Business news from Ukraine

Business news from Ukraine

FLOW OF TOURISTS FROM UKRAINE TO TURKEY 46% UP IN SIX MONTHS

KYIV. Aug 4 (Interfax-Ukraine) – The flow of tourists from Ukraine to Turkey for the six months of 2016 increased by 46% compared to the same period in 2015, to 414,994 people.

“Ukraine entered the top ten leading countries in terms of tourist traffic to Turkey in January-June 2016, which is 46% up, and ranked fifth, going ahead of the Netherlands, Greece, the United States, Azerbaijan and France,” the cultural affairs and information department of the Turkish Embassy in Ukraine said.

The report stresses in the six months of 2016 the largest number of tourists came to Turkey from Germany (1.503 million people), Georgia (1.038 million people), Bulgaria (783,429 people) and Britain (693,081 people).

According to the Ministry of Culture and Tourism of the Turkish Republic, 160,938 Ukrainians visited the country in June 2016, which is 74% more than in June 2015.

The Turkish ministry stressed the most popular destinations among Ukrainians are Antalya, Istanbul and Mugla.

UKRAINE COULD CREATE FUND TO FINANCE PROJECTS WITH IRAN – UKRAINIAN ENERGY MINISTER

KYIV. Aug 4 (Interfax-Ukraine) – The Ukrainian government is studying the creation of a special fund aimed at financing Ukrainian-Iranian projects, Ukrainian Energy and Coal Industry Minister Ihor Nasalyk said at a meeting with Iranian Energy Minister Hamid Chitchian in Tehran.

The Energy and coal Industry Ministry reported after the meeting on Tuesday that the parties discussed participation of Ukrainian state-run enterprises in building thermal power plants (TPPs) and modernization of power lines in Iran.

Nasalyk said that Ukrainian enterprises have experience in designing, building, maintaining and upgrading power plants, including Iran’s Ramin and Isfahan TPPs.

Chitchian invited Ukraine to participate in state-funded programs of Iran on development of energy infrastructure. He assured the Ukrainian minister that joint Ukrainian-Iranian ventures would receive financial and technical support from the Iranian government.

UKRZALIZNYTSIA TO BUY 13 PASSENGER TRANSFORMER CARS FROM KRIUKOV CAR BUILDING WORKS

KYIV. Aug 3 (Interfax-Ukraine) – Public joint-stock company Ukrzaliznytsia intends to use the same cars to form night and day trains and will buy 13 transformer cars from Kriukov Car Building Works (KCBW, Poltava region).

“In the night mode four lower and upper benches of the compartment will be used as comfort sleeping couchettes. In the day mode lower benches will be easily transformed into comfortable seats,” the press service of Ukrzaliznytsia reported on Monday.

The press service said that the cars will be delivered by late 2016 under a contract on supply of 21 passenger cars.

The company is confident that the transformer cars would increase efficiency of car use and increase their average daily run.

The press service said that it is likely that the cars will service the new route Kyiv-Lviv-Ivano-Frankivsk with the night express train and the Intercity train in the day mode.

“The schedule has been formed so that the route will be extended to Vorokhta and Yaremche on the days of peak demand,” the press service said.

 

ARTYOMSOL EXPORTS 16,100 TONNES OF EDIBLE SALT SINCE EARLY 2016

KYIV. Aug 3 (Interfax-Ukraine) – Shipments of edible salt to Russia by Ukraine’s state-run enterprise Artyomsol totaled 16,100 tonnes in January through July 2016.

“Artyomsol exports its products to 18 countries. These are CIS countries and EU countries. 329,200 tonnes of salt was shipped to Russia in the first seven months of 2016, including 16,100 tonnes of edible salt,” the company’s press service told Interfax-Ukraine.

In June and July 2016 Artyomsol salt production exceeded the target. Some 30% of salt was shipped to the domestic market and 70% were exported.

The company said that the top-priority task for this year is the reconstruction and modernization of all mines.

This year the company seeks to start producing a new type of products – purified ground salt that will be delivered to the domestic market and for exports.

On January 26, 2015, Russia’s Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor) imposed a ban on imports of edible salt made by Artyomsol and in summer 2016 the company resumed supplies to Russia.

Artyomsol is the largest enterprise engaged in the production and sale of salt (NaCl) in Central and Eastern Europe.

CENTRENERGO SEEKS TO IMPORT 300,000 TONNES OF COAL VIA PORTS BY LATE 2016

KYIV. Aug 3 (Interfax-Ukraine) – Public joint-stock company Centrenergo by the end of this year seeks to import around 300,000 tonnes of coal via ports, acting Director General Oleh Kozemko has said in an interview with Business Censor online publication.

He said that the oral order was made after a meeting of a working group headed by Deputy Prime Minister Volodymyr Kistion on July 25.

“The company was ordered to diversify supplies. I as acting director general support this. The other question is at what price to buy and how it will be compensated for the company in the tariff. For the chief the key efficiency indicators are profit and profit margin,” he said.

Kozemko said that the purchase price of coal in South Africa is even higher than the price of steam coal with delivery from Rotterdam port under the formula provided by the National Commission for Energy, Housing and Utilities Services Regulation (NCER). Today, the indicative Rotterdam price of one tonne of coal with caloric value of 6,000 kilocalories per kilogram is around $51 (for 12 months) plus freight of around $5.

“The cost of coal included in the wholesale market price is $56 or UAH 1,400 per tonne with caloric value of 6,000 kilocalories per kilogram on the CIF conditions (not taking into account handling and railway tariff). The best offer for coal from South Africa received by Centrenergo is $72 per tonne with delivery to port on the same conditions. The best price for imported coal is $16 more than the Rotterdam price,” he said.

He also said that we will sign contracts to supply coal from South Africa only when he received the state appraisal.

“We are waiting for the document from the Institute of Legal Expertise. We have one question to it: would the purchase of imported coal be considered the loss caused to the company,” he said.

“If the company has a mixture of imported and Ukrainian coal, it will be able to see profit. If Centrenergo has to increase imported coal volumes, the company could see loss. If the company fully switches to imported coal, the indicative price set by the NCER for 2016 would not cover expenses,” Kozemko said.

He recalled that early 2016 the company imported coal from South Africa at $56 per tonne, but its caloric value was 5,200 kilocalories per kilogram.

POROSHENKO SIGNS BILL ALLOWING UKRAINIAN AVIATION INDUSTRY TO SET UP JV WITH FOREIGN PARTNERS

KYIV. Aug 3 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has signed a bill amending some Ukrainian laws in part of the creation of conditions for international cooperation of aircraft builders and developing Ukrainian aircraft building.

According to the law passed by Ukraine’s Verkhovna Rada on July 14, 2016 and takes effect next day after its publication, the founders and/or members of such joint ventures can be foreign business entities, except for those located or operating in the territory of the state recognized an aggressor or occupant state and/or with respect to which sanctions are applied.

The document also provides for the extension until 2025 of state financial support to the system of sales of domestic aircraft through the mechanism of cheaper loans (partial compensation of interest rates).

It is expected the adoption of the law will allow up to 2020 to bring about UAH 5-10 billion of investment in the industry and increase sales by 20-25%.

Currently the leading Ukrainian designer and manufacturer of aircraft Antonov State Enterprise (Kyiv), part of Ukroboronprom Concern since 2015, is drafting plans on joint production with foreign partners, including An-132 multi-purpose transport aircraft and An-148/158/178 next generation aircraft family.

Among potential foreign partner are Saudi Arabia, Germany and India.