Business news from Ukraine

KYIV. June 9 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers would relax the procedure for entering the country for businessmen and tourists from China in summer.

Deputy Foreign Minister Vadym Prystaiko has submitted to the government a draft resolution on the temporarily introduction of issuing visas at border checkpoints of the Boryspil International Airport (Kyiv) for citizens of China making a business or tourist trip.

He said that the document is intended to expand relations with China and further develop cooperation between the two countries.

“The draft says that the regime when citizens of China will be able to stay in Ukraine for the period of up to 15 days if they present the document confirming the purpose of their trips as business or tourism will be introduced until September 30,” he said.

Prystaiko proposed that the regime will be introduced from June 20.

He said that from June 19 one more flight to China will be launched (Kyiv-Beijing flight serviced by Ukrainian International Airlines).

KYIV. June 9 (Interfax-Ukraine) – Ukraine’s Agricultural Policy and Food Ministry jointly with the Finance Ministry are mulling the provision of additional funds to support small and medium farms in 2016, Agricultural Policy and Food Minister Taras Kutovy said at the Agro 2016 international exhibition in Kyiv on Wednesday.

“We are discussing the proposal to increase [financial assistance to farmers] with the Finance Ministry. I think that soon it will be clear if these funds are provided,” he said.

Kutovy said that the additional funds will be sent to small and medium agricultural market players.

“The financial assistance will be provided to producers [with a land bank of] up to 500 ha who cannot take commercial credits now,” the minister said, adding that support of small farmers will be implemented in the form of cooperation.

Ukrainian Prime Minister Volodymyr Groysman who also visited the exhibition said that farmers would receive additional funds from the state.

Earlier Kutovy said that by autumn Ukrainian farmers will be able to receive promised UAH 450 million of assistance from the state if the Verkhovna Rada passes amendments to the national budget.

KYIV. June 9 (Interfax-Ukraine) – Public joint-stock company Ukrhydroenergo seeks to start building unit four of Dnistrovska hydroelectric pumped storage power plant in Novodnistrovsk (Chernivtsi region) in 2017 and finish in 2020.

According to the presentation of Energy and Coal Industry Minister Ihor Nasalyk at a meeting of the National Reforms Council the project blueprints would be designed in 2016.

The building of the unit would help to reduce the number of unit launches, daily saving of 1,000-4,000 tonnes of coal, cut emission and decrease natural gas consumption.

According to the ministry’s calculations, the effect from the operation of one unit is $110 million a year if it replaces the thermal power unit.

Dnistrovska hydroelectric pumped storage power plant on December 21, 2015 launched the third unit, the last unit of the first construction phase that consists of three units with a capacity of 324 MW each in generating mode and 421 MW in pumping mode.

KYIV. June 9 (Interfax-Ukraine) – Ukraine increased exports of fuel wood under 4401 foreign trade code (fuel wood, wood in chips or sawdust) in kind by 23.4% in January-May 2016 year-over-year, to 945,173 tonnes (766,206 tonnes in January-May 2015).

According to customs statistics made public by the State Fiscal Service of Ukraine, in monetary terms exports of these products grew by 28%, to $42.528 million ($33.221 million).

Exports were mainly made to Romania (33.79% of total supplies in money terms), Turkey (25.66%) and Poland (8.98%).

Ukraine also imported 127,000 tonnes of these products worth $23,000 in January-May 2016, while a year ago the country imported 108,500 tonnes worth $41,300.

Fuel wood was mainly imported from Germany (66.67% of total supplies), Lithuania (12.5%) and Poland (12.5%).

Ukraine decreased exports of wood in the rough under 4403 foreign trade code in kind by 22.7% in January-May 2016 year-over-year, to 895,909 tonnes (1.159 million tonnes in January-May 2015).

In monetary terms exports of these products fell by 34.6%, to $53.808 million ($82.317 million). Exports were mainly made to Romania (41.14% of total supplies in money terms), China (34.4%) and Turkey (15.17%).

Ukraine also imported 3,767 tonnes of these products worth $272,000 in January-May 2016, while a year ago the country imported 3,975 tonnes worth $296,900. Wood in the rough was mainly imported from Russia (99.63% of total supplies).

Ukraine increased exports of wood sawn or chipped lengthwise of a thickness exceeding 6 mm under 4407 foreign trade code in kind by 16.9% in January-May 2016 year-over-year, to 819,203 tonnes (700,722 tonnes in January-May 2015).

In monetary terms exports of these products grew by 16%, to $166.527 million ($143.588 million). Exports were mainly made to Turkey (19.59% of total supplies in money terms), Poland (11.24%) and Hungary (10.75%).

Ukraine also imported 1,438 tonnes of these products worth $771,000 in January-May 2016, while a year ago the country imported 588,800 tonnes worth $411,400. Wood sawn or chipped lengthwise was mainly imported from Romania (51.17% of total supplies), Poland (14.9%) and Russia (6.87%).

KYIV. June 9 (Interfax-Ukraine) – Oschadbank (Kyiv) as of June 1, 2016 sold 135,000 insurance policies and this was 30 times more than a year ago – 4,500 policies, the bank has said in a press release.

“This year it was decided to increase operations on the bank insurance market. After studying the needs of people we offered two new products in April – Protect Your House and Obereh,” Director of the retail business department Valeria Malakhova said.

The leader in the insurance segment of the bank is compulsory insurance of civil liability of motor vehicle owners (OSAGO) – over 27,000 policies were sold in January through May 2016. Over 85,000 policies were sold for the new product Protect Your House (insurance of leased houses). These policies are signed for the period from one month to one year. The bank also sells the Doctor on the Way insurance product.

The bank said that OSAGO agreements are signed on behalf of PRO100-Strakhuvannia, AXA Insurance, Krayina and Brokbusiness. The policies for voluntary insurance of civil liability of motor vehicle owners and medical insurance (Doctor on the Way) policies are signed on behalf of AXA Insurance. The bank cooperates with MetLife under the Obereh accident insurance program and with Strahovoy Dom under the Protect Your House program.

The franchise for the policies is nil, and the fee for buying the policy is not collected. The bank’s network includes 4,500 departments.

Oschadbank was founded in 1991. Its sole owner is the state.

The bank ranked second among 109 operating banks in the country on April 1, 2015 by total assets (UAH 180.982 billion), according to the National Bank of Ukraine.