KYIV. March 27 (Interfax-Ukraine) – Prime Minister of Ukraine Volodymyr Groysman believes that GUAM (Georgia-Ukraine-Azerbaijan-Moldova) needs to implement a program of cooperation with Japan and prepare a program of cooperation with the U.S.
“It is important to prepare the continuation of the GUAM-U.S. cooperation framework program, and I fully support the development of contacts with the Visegrad Four (Poland, Slovakia, Hungary, the Czech Republic),” he said during a meeting with the heads of governments of GUAM member countries in Kyiv on Monday.
According to the prime minister of Ukraine, GUAM also needs to work on the implementation of the framework program for cooperation with Japan, which was signed in 2015.
In addition, Groysman considers GUAM cooperation with the Baltic and Eastern European countries promising.
KYIV. March 24 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) has provided a loan of $15 million to Agrofusion, the largest Ukrainian vertically integrated industrial tomato paste producer created by former co-founder of Sandora juice producers businessman Serhiy Sypko.
According to a posting on the Facebook page of EBRD Senior Advisor Anton Usov, the loan would help the company to partially finance construction of a third tomato plant in Ukraine with an annual production capacity of 34,000 tonnes of tomato paste.
Usov said that the launch of the new plant would help the company to better satisfy growing demand on organic food both in Ukraine and outside the country. The project envisages a $700,000 grant under the EBRD FINTECC program, which will allow introducing a new drop irrigation system and providing for annual saving of up to 1.2 million cubic meters of water. It can be used for more efficient application of fertilizers and reduction of emission in the amount of up to 3,700 tonnes a year. The plastic waste in the production cycle would be considerably cut.
As reported, earlier the EBRD assessed the total cost of the project at $50 million.
The European Investment Bank (EIB) on March 10, 2017 approved the financing of a production line for processing tomatoes in Ukraine. In May 2016 the International Finance Corporation (IFC) from the World Bank Group said it would provide $10 million to Agrofusion Group to boost its working capital.
Agrofusion Group was founded in 2007. Agrofusion Group in 2014 reached its maximum production of 52,778 tonnes of tomato paste, in 2015 it expanded its capabilities through investment, reaching a figure of 61,500 tonnes.
The company’s operational assets include two tomato paste plants with total processing capacity of approximately 500,000 tonnes of tomatoes per season; two seedling green-houses; and 20,000 hectares of irrigated leased land in Mykolaiv and Kherson regions as well as modern farming equipment.
KYIV. March 24 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) could make an equity investment of up to $30 million in Emerging Europe Growth Fund III, L.P. (EEGF III, Delaware, the United States) launched by Horizon Capital Advisors, LLC mainly for investment in Ukraine and Moldova.
According to a report of the bank, the decision is pending the final review by the board on May 4.
The fund has a target size of $150 million.
The fund will seek to generate long-term capital appreciation through equity and quasi-equity investments in growth-oriented small and medium-sized enterprises and mid-market companies primarily in Ukraine and Moldova.
EBRD said that the fund is a follow-on fund to Emerging Europe Growth Fund I and II.
As reported, in June 2016, OPIC (Overseas Private Investment Corporation) said that the OPIC would provide up to $37.5 million to EEGF III launched by Horizon Capital for the period of up to 10 years.
The fund with a target size of $150 million will invest in export-oriented, fast-growing, mid-size companies in Ukraine and Moldova with the potential to grow from local to regional market leaders. The fund will primarily target minority stakes in high growth Ukrainian companies. It may also invest in early-stage, buyout and privatization opportunities as they arise.
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million capital).
The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.
The founding partner and CEO of Horizon Capital is Lenna Koszarny.
KYIV. March 24 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has exempted operations with ferrous and non-ferrous scrap metal, in particular imports, from value added tax (VAT) until January 1, 2019.
The corresponding government resolution dated March 22, 2017 amends another resolution No. 15 of January 12, 2011, which defines the list of ferrous and non-ferrous metal scrap and waste, operations with which are not subject to VAT.
The decision was made in pursuance of the law of Ukraine on amendments to the Tax Code of Ukraine regarding the improvement of the investment climate in Ukraine (No. 1797-VIII), which, inter alia, provides for amendments to the Tax Code of Ukraine with regard to the extension until January 1, 2019 of exemption of operations with ferrous and non-ferrous metal scrap from VAT.
