KYIV. March 2 (Interfax-Ukraine) – Ukrainian metal companies tentatively increased steel production by 13% in January and February 2016 year-over-year, to 3.909 million tonnes, the Metallurgprom association of metal companies of Ukraine (Dnipropetrovsk) has told Interfax-Ukraine.
Rolled steel output grew by 11% in 2015, to 3.404 million tonnes and cast iron output was up by 21%, to 3.805 million tonnes.
Pipe production fell by 24%, to 107,000 tonnes, and coke output increased by 31%, to 2.152 million tonnes.
In February 2016, 1.971 million tonnes of steel, 1.774 million tonnes of rolled steel and 1.885 million tonnes of cast iron were made, as well as 54,400 tonnes of pipes and 1.062 million tonnes of coke.
As of February 18, 2016, Donetsk Electrometallurgical Plant and Donetsk Metal Works and Stakhanov Ferroalloy Plant were not operating. Additionally, Panteleimonivsky and Krasnohorivka refractory plants were still standing idle. Core production at Khartsyzsk and Dnipropetrovsk pipe plants was stopped.
KYIV. March 2 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers on February 24, 2016, approved a state-funded targeted program for the development of 17 Ukrainian airports until 2023 with the financing of the program projected at UAH 8.7 billion.
The program is aimed at improving management of the airports’ property, it will be conducive to the development of transportation by air and have a positive economic effect on the development of all Ukrainian regions, the government said in a press release.
Under the program, aviation transport infrastructure should be brought in line with international standards and Ukraine is expected to strengthen its status as a transit state due to its unique geographic location. What is more, the program is designed to improve the efficiency of state-owned property management.
The program will be financed not only from local budgets, but will also use, among other things, loans to be raised against state guarantees, airports’ own assets and private investment.
About UAH 1.2 billion of the total required sum of UAH 8.7 billion, will be raised from private investors for the development of airport infrastructure not related to airfields.
The program foresees the construction, renovation, modernization of airfields, runways and airport facilities; airport infrastructure owned by Ukrainian airlines, the creation of an integrated state-owned chain of airports through mergers and transfer of state and municipally owned airports to the Infrastructure Ministry.
Under the program, such international airports as Boryspil (Kyiv) and Lviv will remain in state ownership. The following airports will be returned to state ownership: Dnipropetrovsk, Zhuliany (Kyiv), Kharkiv, Odesa, Donetsk (which is now a destroyed facility in occupied territory in Donbas), and Simferopol (located in the Russia-annexed Crimea). What is more, the airports’ facilities that were built or renovated as part of the Euro 2012 football championship preparations will be transferred to the Infrastructure Ministry.
“As a comprehensive approach to solving the problem of the development of aviation and state transport infrastructure during the construction, reconstruction and modernization of the airports, their infrastructure should be integrated into the system of municipal electric, road and railway transport to create transport hubs by combining all types of transportation,” the program said.
The program foresees that overall passenger flows should grow to 24.3 million people by 2023, which is twice more than in 2015, while airport capacity should double with simultaneously bringing airport services in line with international standards. The time of handling one aircraft is expected to shorten to 35-40 minutes.
Due to the implementation of this program, Ukraine plans to double its transit potential as a major international aviation transport hub. Public and private partnership will be more actively engaged to maintain and operate the airports and create a favorable investment climate to develop the aviation industry. The share of the airports’ activity not related to aviation should grow to 40% of their overall revenue.
What is more, the share of low-cost airlines is projected to grow to 30% of the air transport market.
At least 1,000 additional jobs are expected to be created under the state program.
KYIV. March 2 (Interfax-Ukraine) – Ukrainian dairy producers should find markets to export around 800,000 tonnes of milk to prevent the decline and stabilization of prices of dairy products, economist of the technical cooperation department of the Food and Agriculture Organization of the United Nations (UN FAO) Andriy Yarmak has said.
“Today we have around 700,000-800,000 tonnes of milk that should be removed from the market not to press on prices… Everything looks like that the prices of raw milk could considerably fall in coming months,” he said.
The expert said that the latest Gulfood exhibition in Dubai showed that Ukrainian dairy producers understand the importance of the issue, as almost all Ukrainian producers took part in the exhibition.
“Work is being done. We, on the part of FAO and EBRD [the European Bank for Reconstruction and Development] last year created the trade mission to Hong Kong, and in late March the mission to Taiwan will depart. Now we’ve studied Africa south of the Sahara – this is the region that now develops most of all from the point of consumption of dairy products. We hope that in the next two months the trade mission will be sent there too,” Yarmak said.
He said that despite the work on searching for new markets, the reduction in the number of dairy farms is inevitable.
KYIV. March 1 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) at a tender has selected companies that will appraise the controlling stakes in four power supply companies and signed contracts with them.
The fund said that Ukrconsult expert agency LLC (Odesa) will appraise 70% of shares in public joint-stock company Mykolaivoblenergo, Northeast Consulting Group LLC (Kharkiv) will appraise 65.001% of shares in public joint-stock company Kharkivoblenergo, the United Enterprise for Appraisal of Special-Purpose Facilities and Investment – Ukraine LLC (Kyiv) will appraise 70.009% of shares in public joint-stock company Khmelnytskoblenergo and Orientyr-Reforma LLC (Ternopil) will appraise 50.999% of shares in public joint-stock company Ternopiloblenergo.
Deputy SPF Head Natalia Lebed said that thanks to the transparent tender and selection of worthy candidates the shares of regional power supply companies will be appraised at the highest professional level using best international practices and experience.
“Local companies won the tender. They have a large number of appraisers and more than 10-year experience of work, including in appraising assets in the energy sector,” she said.
The SPF has started preparing for the holding of tenders to sell 70% of shares in public joint-stock company Mykolaivoblenergo, 70% of shares in public joint-stock company Khmelnytskoblenergo, 65% of shares in public joint-stock company Kharkivoblenergo, 50.999% of shares in public joint-stock company Ternopiloblenergo and 50% plus one share in public joint-stock company Ukrnaftoproduct.
The tenders to sell the shares of the companies will be held in the form of open auctions.
KYIV. March 1 (Interfax-Ukraine) – Modern Times Group MTG AB (MTG) has signed an agreement to sell its Ukrainian pay-TV business Viasat Ukraine to Ukraine’s 1+1 Media Group (media.1plus1.ua), MTG said in a press release on March 1.
Completion of the transaction is subject to local market regulatory approval.
“The sale of our Ukrainian operations is part of our ongoing strategic portfolio review. The Ukrainian team have created popular TV entertainment platforms and products, and we wish them every success in the future,” MTG President and CEO Jorgen Madsen Lindemann said.
Viasat Ukraine offers licensed packages of up to 110 TV channels on its satellite pay-TV platform, and also provides Ukraine’s largest telecoms operator Kyivstar with the Internet pay-TV platform for its recently launched offering of up to 130 TV channels and video on demand services.
KYIV. March 1 (Interfax-Ukraine) – Ukraine hopes it will be able to prove at open hearings at the Office of the United States Trade Representative (USTR) that it effectively protects intellectual property rights (IPR), despite recommendations by business representatives that Ukraine should be again designated as a Priority Foreign Country, which is the worst classification given to “foreign countries that deny “adequate and effective” protection of intellectual property rights.
The hearings will begin on March 1, the Ukrainian Economic Development and Trade Ministry said.
A Ukrainian delegation at the hearings will be represented by Deputy Economic Development and Trade Minister and Ukrainian trade envoy Nataliya Mykolska and Director of the ministry’s department for the development of innovation and intellectual property Olena Mynych.
“It is important to Ukraine, as the situation in IPR protection has a direct influence on any decision as for an access to our state to the U.S. market, including as part of the U.S. Generalized System of Preferences [provides duty-free treatment to goods of designated beneficiary countries and territories],” Mykolska said.
The Ukrainian delegates will inform the U.S. side about Ukraine’s progress in protecting of intellectual property rights in such directions as the fight against piracy in copyright and related rights; legalization of software at government agencies; the elimination of problems in collective management of property rights; strengthening of IPR protection; reform of state agencies that manage intellectual property.
According to Mykolska, Ukraine’s status in the Special 301 Report in 2015 was improved, which was a certain gesture of confidence in Ukraine, so the country will continue to take measures to be completely excluded from the list of the countries that deny effective protection of intellectual property rights.
As was reported. Ukraine is on the Priority Watch List in 2015. Ukraine was designated a Priority Foreign Country (PFC) in the 2013 Special 301 Report.
As described in that report, the three grounds for Ukraine’s PFC designation were: (1) the unfair, nontransparent administration of the system for collecting societies, which are responsible for collecting and distributing royalties to U.S. and other rights holders; (2) widespread (and admitted) use of illegal software by the Ukrainian government agencies; and (3) failure to implement an effective means to combat the widespread online infringement of copyright and related rights in Ukraine, including the lack of transparent and predictable provisions on intermediary liability and liability for third parties that facilitate piracy, limitations on such liability for Internet Service Providers and enforcement of takedown notices for infringing online content. Following Ukraine’s designation and pursuant to statute, the Office of the U.S. Trade Representative conducted an investigation under Section 301 of Ukraine’s IPR acts, policies, and practices, which concluded in March 2014. The U.S. Trade Representative determined that while IPR problems persisted, no adverse actions would be taken against Ukraine because of the political situation in Ukraine at that time.
