KYIV. May 23 (Interfax-Ukraine) – The first aircraft engine assembled in China under Ukrainian technologies within the framework of strategic partnership between PJSC Motor Sich (Zaporizhia) and China’s Beijing Skyrizon Aviation Industry Investment Co. Ltd. could be demonstrated by late 2017, Ukraine’s First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has said.
During a briefing held in Kyiv and dedicated to the results of a recent visit of the Ukrainian delegation to China to participate in a high-level dialogue within the framework of the “One Belt. One Road” forum, the deputy premier highlighted the agreements achieved on Ukrainian-Chinese cooperation in the aircraft engine industry, saying the creation of aircraft engines production in Chongqing under Ukrainian technologies is “one of the priorities of the government.”
“Skyrizon and Motor Sich will create a joint venture for production of aircraft engines using Ukrainian technologies in China’s Chongqing. We want in 2017 to show the first engine that will be assembled at this plant,” Kubiv said.
He also welcomed the plans of the Chinese side envisaged by the cooperation program to invest $250 million in the modernization of Motor Sich, noting that the implementation of the program of Ukrainian-Chinese strategic cooperation in the field of aircraft engine building will strengthen the positions and influence of the Ukrainian aviation industry in the world market.
KYIV. May 23 (Interfax-Ukraine) – S&P Global Ratings on May 19, 2017, affirmed its ‘B-‘ long-term issuer credit rating on the Ukrainian capital City of Kyiv, S&P said in a statement.
The outlook is stable, it said.
“The stable outlook reflects our expectations that Kyiv’s strong budgetary performance and ample cash buffers will enable it to withstand uncertainties coming from Ukraine’s very volatile institutional framework and also to provide financial support to its government-related entities (GREs) if needed,” S&P experts said.
The outlook also factors in the rating agency’s assumption that the city will keep its tax-supported debt low.
According to S&P, after debt restructuring, the city of Kyiv has no commercial debt. Its direct debt consists of intergovernmental obligations to Ukraine’s central government.
“We might lower the rating if we were to lower our sovereign ratings on Ukraine, if the city’s tax-supported debt were to increase materially above what we envisage in our base-case scenario, or if the city’s liquidity position were to deteriorate,” S&P said.
The rating agency says that, for the moment, there is no upside potential for its rating on Kyiv.
S&P says it expects Kyiv to continue reporting a strong operating surplus, as well as sound, albeit gradually diminishing, surpluses after capital accounts, which will allow the city to post tax-supported debt below a low 30% of consolidated operating revenues by year-end 2019.
“We think that these factors will counterbalance the very volatile Ukrainian institutional framework for local and regional governments (LRGs), the city’s low wealth levels, and a weak payment culture with a recent track record of defaults,” it said.
KYIV. May 22 (Interfax-Ukraine) – Fuhrlander Windtechnology LLC (Kramatorsk, Donetsk region) has started producing 3.2 MW wind turbines, the company has reported on its website.
“Fuhrlander Windtechnology has made the first 3.2 MW wind turbine in Ukraine. It will be sent to Prychornomorsky wind farm located in Mykolaiv region. Earlier the enterprise produced and supplied several 2.5 MW wind turbines for the farm,” the company said.
Fuhrlander said that production of over 50% of wind turbines is localized in Ukraine. Kramatorsk enterprises Energomashspetsstal, KZTS and NKMZ are involved in the production cycle.
Fuhrlander Windtechnology is the only Ukrainian producer of modern wind turbines. It is engaged in construction of wind farms. The company produces turbines at the production facilities of KZTS.
Since 2010 Fuhrlander Windtechnology has built (using its own equipment) seven wind farms in Ukraine and one wind farm in Kazakhstan.
Beneficiaries of Fuhrlander Windtechnology LLC are the co-owner of ISD Corporation Oleh Mkrtchan and MP Maksym Yefymov (Petro Poroshenko Bloc).
KYIV. May 22 (Interfax-Ukraine) – Ukraine intends to offer China production of electric locomotives with the maximum possible localization in its territory.
According to an Interfax-Ukraine correspondent, Deputy Minister of Infrastructure for European Integration Viktor Dovhan said this at a press conference on the results of the visit of the Ukrainian delegation to the People’s Republic of China in Kyiv.
“Chinese experts in June will come to us, to Ukrzaliznytsia to work out a mechanism for auditing and investing investment in electric locomotives, supply an electric locomotive sample,” he said.
Speaking about the past testing of a locomotive manufactured by General Electric, Dovhan reported on the creation of a joint project group between GE, Ukrzaliznytsia and the Ministry of Infrastructure of Ukraine: there is a plan to enter the investment project within a year.
As reported, the U.S. company General Electric Transportation is interested in investing in Ukraine, in particular in the modernization of the rolling stock of the Ukrainian railways.
Prior to that, General Electric on July 21, 2016 signed memorandums of cooperation with the state-owned enterprise Antonov and Ukrzaliznytsia.
KYIV. May 22 (Interfax-Ukraine) – The council of the business ombudsman, with the support of the European Bank for Reconstruction and Development (EBRD) and the Organization for Economic Cooperation and Development (OECD), has presented the Ukrainian network of integrity and compliance, a new initiative for business that seeks to work transparently.
According to an Interfax-Ukraine correspondent, 46 Ukrainian and international companies in Kyiv on May 19 signed a declaration of integrity and will jointly form the principles and rules of the network.
The declared goal of creating the network is to promote the idea of ethical and responsible business doing: the network member companies agree to maintain an impeccable business reputation and constantly improve standards of integrity in accordance with the best world practices.
It is assumed that the network members will work together to assess anti-corruption risks for implementing compliance programs in their organizations, attract business representatives to discussing principles of integrity, increase interest in transparent business doing among market participants, and regularly confirm the level of their integrity.
Business Ombudsman Algirdas Semeta, who initiated the creation of the network, informed the agency its participants plan by mid-autumn to work out a model within the framework of which they will confirm and verify the fulfillment of commitments undertaken within this initiative.
KYIV. May 22 (Interfax-Ukraine) – The People’s Republic of China is interested in creating a free trade zone (FTA) and establishing a visa-free regime with Ukraine.
The president’s representative in the Verkovna Rada, a member of the Petro Poroshenko Bloc faction Iryna Lutsenko informed about this during a briefing in Kyiv on Friday devoted to the recent visit of the Ukrainian delegation to China to participate in the high-level dialogue within the framework of the One Belt, One Road Forum, an Interfax-Ukraine correspondent reported.
“China does not restrict only on economic cooperation. It was said that China is interested in the initiative to create a free trade zone and establish a visa-free regime,” she said.
According to Lutsenko, today about 100 million Chinese citizens have the opportunity to travel to Europe, including Ukraine.
“This fact cannot but interest our tourist business, our hotels, enterprises, cafes, restaurants, etc. China is interested in Ukraine, it shows great preference towards it,” Lutsenko said.
As reported, the Upper House (Senate) of the Canadian parliament voted for a free trade zone with Ukraine on May 18.
