Business news from Ukraine

KYIV. Jan 4 (Interfax-Ukraine) – Ukraine in January through October 2016 exported $4.5 million worth of Christmas decoration to 25 countries, Deputy Minister of Economic Development and Trade, Ukraine’s Trade Representative Natalia Mykolska has said.

She wrote on her Facebook page on December 31 that 90.6% of exported Christmas decoration was made of glass.

“The main market is the EU countries. A total of 62.3% of total decoration was exported to this market in January through October 2016. Total supplies to the EU countries grew by 31.7% (from $2.1 million in January-October 2015 to $2.8 million). Among top three largest markets were three EU countries (the Netherlands, Germany and Poland),” she wrote.

She also said that 31.1% of total exports and 49.9% of exports to the EU countries is the market of the Netherlands (growth by 37.5%).

Exports to Canada soared by 13.9 times, to Belarus – by 5.1 times, Italy – 3.1 times, Moldova – by 2.9 times, the United States – by 2.7 times, Switzerland – by 2.6 times and Poland by 2.3 times, she said.

Mykolska said that this year new markets appeared – Turkey, Maldives, the Czech Republic, Spain, Ireland, Azerbaijan and Iceland.

The Russian market fell by 54.4% this year, being only $632,300 ($3.5 billion in January-October 2014).

KYIV. Jan 4 (Interfax-Ukraine) – ArcelorMittal Kryvyi Rih boosted steel smelting by over 15% in 2016, to 7 million tonnes, the company said in a press release on Tuesday.

The enterprise met the 2016 target and broke a record of the past years smelting 7 million tonnes – earlier the company smelted this volume in 2008.

The target of 7 million was an ambitious goal. The enterprise met it thanks to effective operation of all divisions of ArcelorMittal Kryvyi Rih.

In 2017 the enterprise will continue implementing large-scale investment projects that would help to reduce production cost, increase effectiveness of production and improve the environment situation in Kryvy Rih and the region, the company said.

KYIV. Jan 4 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers has facilitated exports of scrap ferrous and nonferrous metals, revoking the registration of foreign economic contracts related to transactions with scrap metal.

The amendments were made to some government resolutions in resolution No. 1035 dated December 28, 2016. The resolution also annuls some previous government resolutions.

“The government has relaxed the procedure for exporting scrap metals. The decision would help to liberalize foreign economic activities and liquidate barriers in foreign trade. The institute of registration of scrap metal exports contracts was annulled as such not having economic effect. The resolution revokes the obligatory red tape procedure for this registration. It permits free exports of scrap metal, improves business climate in the country and significantly reduces corruption risks in the sector,” the government said in an explanatory note to the document.

The authors of the resolution expect that scrap metal exports would grow and currency income would increase. The balance between scrap metal producers, exporters and consumers will be established. Foreign economic traders would have to show less permits for customs clearance of exported goods.

KYIV. Jan 4 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers seeks to discuss the creation of the Agency for European Integration in the second quarter of 2017.

According to the draft action plan for medium-term outlook until 2020 the agency could be created as a central executive power authority with a special status.

It is planned that the agency would help to apply a centralized approach to the implementation of tasks in the European integration area and to observe Ukraine’s legal liabilities in the area.

It is planned to approve the communications strategy in the sphere of European integration for 2017-2020 in Q2 2017.

KYIV. Jan 4 (Interfax-Ukraine) – President of the People’s Republic of China Xi Jinping congratulated Ukrainian President Petro Poroshenko and Ukrainian people on the occasion of the 25th anniversary of diplomatic relations between Beijing and Kyiv.

“In 25 years after establishing diplomatic relations Chinese-Ukrainian relations stably develop. Cooperation between the two countries in trade, economic, investment, agricultural, scientific, cultural and other spheres have achieved substantial results. The contents of Chinese-Ukrainian strategic partnership are permanently expanding, which brings real benefits to the two countries and their people,” Xi Jinping said in a greeting published by the press service of the Ukrainian president on Wednesday.

“China pays large attention to the development of Chinese-Ukrainian relations. China is ready to use the best opportunity of the 25th anniversary of diplomatic relations between the two countries based on mutual respect and mutual benefits to come to the further strengthening of the foundation for friendly cooperation between the two countries, promotion of bilateral relations and cooperation in all spheres to have even more achievements,” he said.

KYIV. Jan 3 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine intends until the end of 2017 to ensure the creation of 25 regional development agencies the mission of which involves assistance to local authorities in the implementation of programs and projects of regional development and improvement of investment attractiveness.

The relevant data is contained in the draft of medium term plan of priority actions of the government until 2020.

In addition, the Cabinet plans to improve the system of regional investment projects financed by the State Fund for Regional Development.

According to the government, the current system does not provide a guaranteed stable funding for the duration of projects implementation, giving rise to incomplete construction projects and does not allow achieve the desired effect.

In addition, the Cabinet notes the need to ensure the transition from financing of projects aimed at solving current local problems to projects that merely create workplaces, innovative products and those improving standards of living.

The government also intends to provide regions with access to European funding instruments of regional development, including cross-border cooperation. For example, in 2017 the Cabinet plans to develop an international agreement on Ukraine’s participation in the Danube Transnational Program as earlier the European Commission decided to allocate EUR 5 million for Ukraine to participate in this program.