Business news from Ukraine

UKRAINE, U.S. SEEK TO LAUNCH SPACE MISSILE IN COMING MONTHS – UKRAINIAN AMBASSADOR TO U.S.

KYIV. July 5 (Interfax-Ukraine) – Ukrainian Ambassador to the United States Valeriy Chaly has said that Ukraine and the United States have plans to jointly launch a space missile.

“We plan to launch a joint space missile with the U.S. in coming months,” he said on Channel 5 TV.

He said that Ukraine is among top ten space states thanks to cooperation with the United States.

ARCELORMITTAL KRYVYI RIH OPENS NEW STEEL PRODUCTS WAREHOUSE IN DNIPRO

KYIV. July 5 (Interfax-Ukraine) – ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) has opened its new steel products warehouse in Dnipro.

The company said in a press release last week that from its new, eighth storage facility in Ukraine. The company plans to ship over 3,000 tonnes of steel products per month.

The own warehouse of the plant in Dnipro has all the range of steel products which ArcelorMittal Kryvyi Rih produces.

ArcelorMittal Kryvyi Rih has opened a new warehouse in central region of Ukraine in accordance with its strategy to develop its own distributing network that the plant started to implement in 2013. The new storage facility holds up to 10,000 tonnes of steel products and occupies the area of 7,000 square meters. It is located on the outdoor and indoor sites. The warehouse in Dnipro possesses a railroad spur and the possibility of trucking services.

“We are not stopping; this is testified by opening of new warehouse in Dnipro. In 2013 we started to develop the warehouse distribution network, as of now we possess eight warehouses, which are capable to ensure the availability of plant’s products in all large regions of Ukraine. Dnipro is the center of steel trade in Ukraine thanks to the favorable location and developed transport infrastructure, thus the presence of warehousing base is a strategic priority for ArcelorMittal Kryvyi Rih,” Acting CMO of ArcelorMittal Kryvyi Rih Anastasia Tatarulieva said.

“All the main steel market players are located in Dnipro, we should not be exclusion. Our distribution model is simple: each warehouse is oriented to each region and it excludes the delay of delivery of products to client due to logistic problems. At that, the warehouse in Dnipro will also execute the function of logistic center for separate districts of central, northern and eastern Ukraine,” she said.

UKRAINE INITIATES CREATION OF TRANSPORT CORRIDOR TO LINK BETWEEN BALTIC SEA, CASPIAN SEA

KYIV. July 4 (Interfax-Ukraine) – Ukraine has sent the draft agreement on establishment of the Baltic Sea-Black Sea-Caspian Sea international transport corridor to the Azerbaijani side.

Such was the statement of Hennadiy Zubko, Ukraine’s Minister of Regional Development, Construction, Housing and Utilities Services he made at the meeting of the Ukraine-Azerbaijan intergovernmental commission on economic cooperation in Baku, his ministry’s press service said.

“This is a big transport corridor that will synchronize several routes and become very much important in strengthening trade and economic ties. It is also planned to create a unified management organ as part of the corridor to form an overarching strategy for development of cargo transportation in the region,” he said.

Zubko also revealed that Ukraine and Azerbaijan continue to maintain cooperation on the transportation route dubbed the Silk Road since the results of the pilot run of the Ukraine-Georgia-Azerbaijan-Kazakhstan-China container train proved technical and technological opportunities that such a service brings.

PASSENGER CAR SALES GROW BY OVER 50% IN JAN-JUNE

KYIV. July 4 (Interfax-Ukraine) – Sales of new passenger cars in Ukraine in January-June grew by 52.8% year-over-year, to almost 27,000, AUTO-Consulting has reported.

In January-May growth was almost 56%.

In June the car market grew by 40% on June 2015 and by 6.6% on May 2016, to 4,700 cars.

“The Ukrainian car market continued the upward pace that AUTO-Consulting has been recording since early 2016,” AUTO-Consulting said.

Toyota remains leader in June with over 500 cars sold, and Renault was second.

Dealers of Skoda cars brought the brand to the third position (in May it was fifth) with over 400 cars sold (a rise of 41%). VW was fourth and Kia was fifth, followed by BMW with a 36% rise in sales.

Hyundai climbed from tenth in May to seventh in June. Ford was eighth and Ukrainian ZAZ was ninth. Nissan was the tenth largest brand in sales.

Premium brands dominated in the top 20 cars sold most of all.

AUTO-Consulting said that Mercedes-Benz, Lexus and Land Rover are boosting sales, while Audi did not show success. Lexus left Audi behind.

“If in the first month it seemed like not a pattern, the second month in a row is a trend,” the group’s analysts said.

Peugeot and Mitsubishi dealers are quickly recovering their positions (a rise of 129% and 175% respectively).

According to the statistics published by Ukrautoprom association on Friday, in June 4,781 passenger cars were sold (a 42% rise on June 2015 and 7.5% rise on May 2016).

The top five coincided with data from AUTO-Consulting. Toyota saw a 4% rise in sales on June 2015 and a fall of 4% on May 2016 with 522 cars sold.

Renault sales grew by 18% on June 2015 and by 7% on May 2016, to 442 cars.

Skoda with 411 cars sold saw a 3.9-fold rise in sales on June 2015 and a 42% rise on May 2016.

Volkswagen boosted sales by 2.3 times on June 2015 and decreased them by 37% on May 2016, to 324 cars, while Kia saw a 2.3-fold rise and 8% rise respectively, to 321 cars.

IFC TO PROVIDE EUR 10-16 MLN FOR DEVELOPING PIG BREEDING IN POLAND, UKRAINE

KYIV. July 4 (Interfax-Ukraine) – The Board of the International Finance Corporation (IFC) on July 2 approved the provision of EUR 10-16 million to Danish Axzon A/S, a large pork producer in Poland and Ukraine.

IFC said on its website that the total cost of the project to expand and improve the company’s operations in northwestern Poland and western Ukraine is EUR 179 million. The balance of the project will be financed with loans from other financial institutions and internal cash generation.

Axzon Group develops pig farms in Denmark, Poland, Ukraine and Russia. The company also involved in plant growing, fodder, biogas and electricity production in Ukraine.

Axzon A/S is an integrated pig meat producer that operates in more than 30 pig farms in Poland, around 10 pig farms in Ukraine, and two pig farms in Russia.

The investment holding that unites 90 Danish farmers – Polen Invest A/S – holds 84.67% in Axzon, 6.97% to IFC, 3.91% to Axzon founder and director general Tom Axelgaard via Axelgaard Holding and 4.45% to Danish farmers and their families (76).

Danosha pig company with 100% Danish capital is part of Axzon A/S.

Danosha LLC has been working in Ivano-Frankivsk region since 2004. The company has seven pig farms in Kalush and Halych districts of Ivano-Frankivsk region.

AGRICULTURE MINISTRY: UKRAINE HITS GRAIN EXPORTS RECORD IN 2015/16 AGRI-YEAR

KYIV. July 4 (Interfax-Ukraine) – Ukraine’s Agricultural Policy and Food Ministry tentatively assesses grain exports from Ukraine in 2015/16 agricultural year (July-June) at 39.415 million tonnes, which is 13% more than during the previous season.

The ministry said in a press release on Saturday that wheat exports reached 17.354 million tonnes, corn – 17.396 million tonnes, barley – 4.409 million tonnes and other grain crops – 256,000 tonnes.

The ministry said that grain exports in the 2014/15 farm year totaled 34.805 million tonnes.

According to the State Statistics Service, grain harvest in Ukraine in 2015 totaled 59.96 million tonnes, which is 6.1% down year-over-year.

The U.S. Department of Agriculture (USDA) expects grain harvest in Ukraine in 2016 to reach 59 million tonnes, exports at around 32 million tonnes.