Business news from Ukraine

KYIV. March 29 (Interfax-Ukraine) – Ukraine exported 2,900 tonnes of cranberries and bilberries in 2016, and this was 3.3 times more than in 2015, Ukraine’s Agricultural Policy and Food Ministry has reported.
According to a Tuesday posting, the largest importers of Ukrainian berries were Poland (1,400 tonnes), the Netherlands (613 tonnes) and Belarus (541 tonnes). In general, exports of cranberries and bilberries brought $6.9 million of currency income last year.
The ministry said that exports of raspberries, blackberries and mulberries more than doubled, to 720 tonnes and exports of strawberries grew by 1.7 times, to 2,270 tonnes.
“First since 2013 Ukraine exported 79 tonnes of currant for $18,200,” the ministry said.

KYIV. March 29 (Interfax-Ukraine) – Automated payments of subsidies to agricultural producers for February under the government support program are to start from April 15, 2017, Ukraine’s Agricultural Policy and Food Ministry reported on Tuesday.
“The main thing what farmers are to do now to receive subsidies for February is to submit applications to the State Fiscal Service before April 1, 2017. The authority has started filling in the relevant register. Payments will start from April 15. All conditions for this have been created,” Minister Taras Kutoviy said.
The ministry said that before April 5 the assignments in line with the monthly budget targets will be allocated. Before April 10 the State Fiscal Service will form the register of budget subsidy recipients. From April 15, the State Treasury will start settling payments automatically sending the sums of budget subsidies from the non-budget account of the ministry to relevant recipients.
The ministry said that a total of UAH 217.3 million has been accumulated to pay in April 2017.

KYIV. March 29 (Interfax-Ukraine) – Ukraine’s Economic Development and Trade Ministry has pointed out 75 markets in the draft exports strategy of Ukraine where Ukraine is not using the trade potential in full, seeing a shortfall of around $6 billion.
According to the published document during its presentation on Tuesday, in particular, Ukraine insufficiently uses the opportunities of trade cooperation with the United States, Germany, UK, France, Japan and Canada.
According to the strategy, exports of goods and services in 2012-2016 almost halved – from $82.4 billion to $44.9 billion.
The ministry said that the EU market share of total Ukrainian exports of goods over the period grew from 25% ($17 billion) to 37.1% ($13.5 billion), the India’s share rose from 3.2% ($2.3 billion) to 5.2% ($1.9 billion), China’s – from 2.6% ($1.7 billion) to 5% ($1.8 billion). Exports of goods and services to Russia fell almost 80%, to from $17.3 billion to $3.6 billion.
According to the document, the share of Crimea, Donetsk and Luhansk regions of total exports of Ukrainian goods fell from 26.6% in 2013 to 10.4% in 2015 (data of the State Statistics Service, not taking into account the ATO zone and Crimea). In the period from 2013 to 2015, exports from Donetsk region fell by 70% and from Luhansk region – by 93%.
The cost of exports losses due to these regions jointly with the temporarily occupied territory of Crimea was $12.9 billion, while total exports losses of Ukraine in the past two years amounted to UAH $25.2 billion.

KYIV. March 29 (Interfax-Ukraine) – Municipal enterprise Kyivpastrans has announced a tender to buy 80 low-deck trolleybuses for UAH 510 million (VAT included), according to a posting on the ProZorro e-procurement system’s website.
According to the report, Kyiv city plans to buy 60 12-meter trolleybuses for up to UAH 318 million and 20 18.5-meter trolleybuses for UAH 192 million.
Bids for the auction can be submitted until April 25, 2017. The auction will be held on May 31.
The trolleybuses are to be supplied before December 29, 2017. However, the start of supplies is set for May 24.
As reported, at the end of 2016 the Bogdan Corporation finished delivery of over 200 trolleybuses of 12 meter and 18 meter using funds the European Bank for Reconstruction and Development (EBRD).
In September 2016, the corporation won the tender to supply 40 more trolleybuses.

KYIV. March 29 (Interfax-Ukraine) – The major pipe enterprises of Ukraine in January and February 2017 increased production of pipes by 46.6% compared to the same period last year, to 161,000 tonnes, including in February they manufactured 84,500 tonnes.
The Ukrtruboprom association told Interfax-Ukraine its enterprises in January and February 2017 increased pipe production by 44.3%, to 107,100 tonnes, in February making 55,300 tonnes.
Khartsyzsk Pipe Plant (Donetsk region), located in the ATO zone, in January and February 2017 made 3,400 tonnes of pipes, whereas in January and February of 2016 it made 1,700 tonnes.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in the period rose by 54.1% compared to 2016, to 35,300 tonnes (17,600 tonnes in February), Interpipe Novomoskovsk Pipe Plant decreased output by 7.8%, to 14,100 tonnes (9,200 tonnes in February), while Interpipe Niko Tube raised production by 63.6%, to 46,800 tonnes (21,700 tonnes in February).
Dnipropetrovsk Pipe increased pipe production by 66.7%, to 3,500 tonnes, making 2,000 tonnes in February. Production grew by 3.3% at Centravis, to 3,100 tonnes of stainless pipes (1,600 tonnes in February).
Trubostal produced 400 tonnes (200 tonnes in February) and Nikopol Steel Pipe Plant YUTIST produced 500 tonnes (all were made in February, while in January the plant was idle).
Mariupol Illich steel works, which is not a member of the association, saw a 72.4% rise in pipe production in January and February 2017, to 21,200 tonnes (12,600 tonnes in February) and production at Kominmet grew by 40%, to 32,600 tonnes (16,600 tonnes).
Luhansk Pipe Rolling Plant, created on the basis of Luhansk Pipe Plant, remained idle in January and February 2017.
AG Stal LLC was also idle in January and February 2017.

KYIV. March 29 (Interfax-Ukraine) – Ukraine must focus on exports of not commodities, which share today is 70%, but innovative and science driven products, First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has said during the presentation of the Expert Strategy of Ukraine.
“The document must be practical and be the flexible and adjustable operations program. The road map for the strategic development of exports would be the basis of the operations plan. We must be not the raw material intensive leader, but the leader of the innovative, investment and science driven block,” he said.
He recalled that in 2016, GDP grew by 2.3%, and in this context Ukraine’s exports strategy must provide for the further economic growth.
According to the published document, the promising sectors are the following: food industry, IT, technical servicing and repair of aircraft, production of spare parts for aerospace and aviation industries, engineering, creative services and tourism.