KYIV. Aug 18 (Interfax-Ukraine) – The Agroliga group of companies (Kharkiv region) made a EUR 2.089 million net profit in January-June 2015, which is 4.3 times up year-over-year, the group said in a financial report.
The group said that its revenue soared by 2.5 times, to EUR 12.85 million, gross profit quintupled, to EUR 2.534 million and operational profit grew by 3.4 times, to EUR 2.454 million.
According to the report, the company increased revenue in H1 2015 thanks to an effective operation in sunflower oil exports. The hryvnia devaluation in 2015 was an additional factor of revenue growth, as operation expenses of the group are calculated in the local currency, while sales are calculated in euros.
One of the strategic tasks of the group is the development of oilseed processing. Agroliga plans to expand seed crushing from 55,000 tonnes to 70,000 tonnes in 2015 and to 100,000 tonnes by 2017.
The company also plans to continue expanding its land bank to 12,300 hectares (9,300 hectares as of August 2015) and develop a milk farm. It plans to boost the number of its cows from 1,000 to 1,400 and start producing dairy products. Agroliga also intends to produce powder milk and soft cheese. In August 2015, a retail milk store will be opened.
Agroliga has been working in the Ukrainian agricultural products market since 1992. Its enterprises are engaged in the cultivation of grains, sunflower seeds processing and dairy farming. The group cultivates land in Kharkiv region.
KYIV. Aug 18 (Interfax-Ukraine) – The surplus of Ukraine’s foreign trade in goods in June 2015 demonstrated a positive trend for a fifth month in a row and amounted to $388.6 million against $296.1 million in May 2015 and $229.3 million in April 2015, the State Statistics Service reported on Wednesday.
The surplus of Ukraine’s foreign trade in goods in June 2015 from June 2014 soared by 6.4 times.
Goods exports in June 2015 declined by 29.3%, to $3.13 billion, while imports fell by 37.2%, to $2.74 billion.
The rate of foreign trade decline slowed, particularly in imports: in May 2015 exports of goods from Ukraine decreased by 41.2% year-on-year, while imports by 45.9%, in April by 39.3% and 39.2% respectively.
Exports in June 2015 from May 2017 grew by 7.7%, while imports rose by 5%.
In the first half of 2015, goods exports declined by 35% year-over-year, to $18.53 billion, while imports fell by 38.5%, to $17.28 billion, while the surplus more than tripled to $1.25 billion.
The service said that the share of Russia in the structure of exports fell from 20% in January-June 2014 to 12.5% in January-June 2015, and imports fell from 29.1% to 16.6% respectively.
At the same time, the share of exports to China increased from 5.1% to 7.9%, Turkey from 6.4% to 8%, Egypt from 4.9% to 6%, India from 3.4% to 3.9%, Germany from 2.9% to 3.4%, Italy from 5% to 5.1%, whereas exports to Poland decreased from 5.2% to 5%.
The share of Hungary in the structure of imports grew from 2.1% to 5.4%, Germany from 8.2% to 11.2%. Shipments from China rose from 8.9% to 10.2%, Poland from 5.2% to 6.2%, France from 2.5% to 2.7%, the United States from 3.7% to 4.1%, however Belarusian exports dropped from 6.9% to 6.4%.
The coverage ratio of imports by exports totaled 1.07.
Foreign trade operations were performed with partners from 207 countries.
Exports of goods to the EU amounted to $6.063 million, or 32.7% of total exports, and decreased compared to the first half of 2014 by 35.6%.
The basic goods of Ukrainian exports were metals and articles thereof 27.2%, herbal products amounted to 18.2%, electrical and mechanical machinery 9.9%, fat and oil of animal or vegetable origin and mineral products 8.7%, chemicals 6.5%, and food 6.4%.
Imports of goods from the EU amounted to $7.390 billion, or 42.8% of the total volume, a fall compared to the first half of last year by 25.7%.
Mineral products accounted for 32.1% of total imports, mechanical and electrical machinery 14.8%, chemicals 14.1%, plastics goods 6.9%, non-precious metals 5.3%, food 4.3%, and herbal products 4%.
KYIV. Aug 18 (Interfax-Ukraine) – The Antimonopoly Committee of Ukraine has permitted International Insurance Consortium B.V. (the Netherlands) to build up a stake of over 90% in Providna insurance company (Kyiv), the company has told Interfax-Ukraine.
The company said that at present, a Western European shareholder holds 9.9992% in the share capital of Providna.
The deal is scheduled to be finalized this year.
As reported, according to the National Commission for Securities and the Stock Market of Ukraine, as of Q1 2015, 90.0001% of shares in Providna belonged to Russia’s Rosgosstrakh.
Providna has been working in the insurance market of Ukraine since 1995. It has an extensive regional network, which includes more than 300 offices, 25 centers for loss settlement, and 25 medical centers in Ukraine. The company provides over 80 mandatory and voluntary insurance products to individuals and companies.
KYIV. Aug 17 (Interfax-Ukraine) – Ambassador Harcourt Andrew Pretorius Tesoriere has been appointed as Head of the EU Border Assistance Mission (EUBAM) to Moldova and Ukraine, the EU Delegation to Ukraine has reported.
“I am delighted to have been selected for this position. I very much look forward to consolidating and strengthening EUBAM’s close working relationship with our partners in Moldova and Ukraine, both those in government service, but also elected representatives, the business community and civil society. I also wish to contribute positively within the terms of EUBAM’s mandate to inclusive solutions that enhance regional cooperation, including economic prosperity for Transnistria,” Tesoriere said.
“He is taking up this position at a crucial time for the Mission, when strengthening regional border security has never been more vital. At the same time, security must be supported by building economic prosperity in the region including Transnistria. The implementation of Association Agreements and Deep and Comprehensive Free Trade Area with Moldova and Ukraine will further facilitate regional trade and strengthen economic stability of these countries. The EU Border Assistance Mission has an important role to play in delivering on this agenda as part of the EU’s wider efforts,” the EU Delegation to Ukraine said.
Before his appointment, Andrew Tesoriere served as the Deputy Head of Mission since December 2014. He has deep experience at a senior level with the UN, OSCE, NATO and the British Government in the work of EUBAM, notably integrated border management, trade facilitation, good governance and mediation.
Andrew Tesoriere is a former senior British diplomat and is a specialist in security, trans-boundary, governance and Islamic issues. He has served as British Ambassador to Albania, Algeria and Latvia; and Chargé d’Affaires to Afghanistan and Syria. Andrew has served in the British Armed Forces, as Executive Chairman of the OSCE postgraduate Academy, and has studied diverse languages, including French, Russian, Arabic, Spanish, Farsi, Pashto, Latvian and Albanian.
EUBAM’s primary objective is to make a sustainable contribution to the development of border-management procedures, thus deterring cross-border crime and fraud. By serving the legitimate needs of Ukrainian and Moldovan citizens, travelers and business, including from Transnistria, EUBAM contributes to enhancing regional security and economic development. The Mission has been working with the border and customs services of Moldova and Ukraine since 2005 to assist the two states in bringing their control procedures into line with EU and international standards. The Mission is funded under the EU’s European Neighborhood Instrument.
KYIV. Aug 17 (Interfax-Ukraine) – The Ukrainian Grain Association (UGA) has appealed to Minister of Finance Natalie Jaresko with a proposal to establish a working group to address problems affecting grain exports, according to a press release issued by the association.
“Market participants point out a number of risks for the normal functioning of the grain market. According to the companies, there are cases of grain arrests on ships and at port terminals. Unknown persons buy grain from producers and middlemen for cash, including foreign currency,” the association said.
In addition, the issue of cancelling VAT accumulation and the transfer of farmers to the general system of taxation is being actively discussed. There are also remarks to the mechanisms of transfer pricing, rate fixing, etc.
As a result, to promptly solve the situation and establish systematic work, the UGA proposed that the Ministry of Finance sets up a permanent interdepartmental working group on the grain market with the participation of representatives of profile associations and businesses.
For its part, the UGA has stated its willingness to actively cooperate and provide necessary expertise and organizational support.
The association believes that Ukraine in the next ten years could double the volume of harvest, and businesses and governmental agencies should work together to solve problems and ensure the effective operation of the grain industry.
KYIV. Aug 17 (Interfax-Ukraine) – The losses faced by the state as a result of shadow schemes in agriculture totals about UAH 20 billion, which exceeds the level of benefits agribusinesses received at the expense of VAT in 2014 standing at UAH 19.8 billion, according to a press release issued by the Ukrainian Agribusiness Club association (UAC).
The agency said that the government is not giving up its attempts to abolish VAT benefits for the agricultural sector.
“Now the issue of filling the budget to ensure the normal functioning of the state and fulfilling the requirements of international lenders is very acute. But instead of implementing the promised reforms, eliminating corruption and withdrawing the economy out of the shadows, the government is trying to cover the budget deficit by increasing tax burden on agriculture,” UAC agricultural markets expert Vitaliy Kordysh said.
According to him, the effect of abolishing VAT benefits could be reversed. It would lead to the reduction of GDP in the industry businesses retreating into the shadows. Currently, the share of agriculture in the shadows is lowest among all the sectors of the economy and stands at 15% with the national indicators being at a level of no less than 42%.
The association believes the main reason for tax shortage in the national budget is the shadow turnover of agricultural land, counterfeit seeds, plant protection agents and the shadow grain market. In addition, according to official statements, damage amounting to $200 million, or UAH 4.6 billion, was caused by the State Food and Grain Corporation via corruption schemes.
