Business news from Ukraine

Business news from Ukraine

UKRAINE, AUSTRALIA REACH UNDERSTANDING ON FUTURE NUCLEAR SECTOR AGREEMENT

KYIV. Nov 2 (Interfax-Ukraine) – Ukraine and Australia have reached an understanding on the key issues of a future intergovernmental agreement on the peaceful use of nuclear energy, Head of the European integration department at the Energy and Coal Industry Ministry Mykhailo Bno-Airiian wrote on his Facebook page.

“We’ve managed to reach an understanding on the key sections of the new agreement on cooperation in the peaceful use of nuclear energy between the Ukrainian and Australian governments and lift all outstanding problems. Now we are to start interior procedures for preparing for signing the agreement,” he said.

He said that the four-day negotiations with a delegation of the Australian Safeguards and Non-proliferation Office (ASNO) finished on October 29.

As reported, Ukraine is holding talks on purchasing uranium concentrate in Australia and Kazakhstan.

KYIV, WASHINGTON DEVELOP ROADMAP TO ATTRACT INVESTMENT – YATSENIUK, PRITZKER

KYIV. Nov 2 (Interfax-Ukraine) – Ukrainian Prime Minister Arseniy Yatseniuk and U.S. Secretary of Commerce Penny Pritzker after talks on October 26 made a statement, which, in particular, concerns the development of a roadmap for taking steps aimed at attracting private capital.

“As a result of our consultations, both sides developed a roadmap featuring several short-term, actionable steps that will further increase business confidence and attract private capital. Both sides underscored the urgency of such steps and the importance of actions by both Ukrainian government officials and the Verkhovna Rada to deepen the said reforms,” reads a joint statement by the officials.

“With the support of the United States, Ukraine will intensify anti-corruption efforts through reforms in the Prosecutor General’s Office and implementation of judicial reform, improve tax administration to ensure a level playing field for all companies, reduce gas royalty rates to encourage investment by world class firms, continue deregulation and eliminate unnecessary licensing and permitting, approve and implement anti-piracy legislation to support intellectual property rights, fully execute an e-procurement system and complete accession to the World Trade Organization’s Government Procurement Agreement,” reads the document.

“Ukraine also underscored its commitment to move forward on putting in place agricultural standards that will attract investment; development and implementation of a thoughtful and transparent privatization plan that provides genuine opportunities for international investors; and civil service reform,” according to the posting.

 

SOME 11,960 HA OF FARMLAND LEASED OUT AT AUCTIONS IN UKRAINE IN JAN-SEPT

KYIV. Oct 30 (Interfax-Ukraine) – Some 518 farmland parcels with a gross area of 11,960 hectares (ha) were leased out at land auctions in January-September 2015, the State Agency for Geodesy, Cartography and Cadastre reported on Thursday.

According to the report, thanks to leasing out land parcels local budgets would obtain over UAH 16.286 million in rent rates.

“Land auctions are the most transparent mechanism, as well as appropriate from the economic point of view, for managing land. Open competition itself offsets risks of corruption,” reads the report, citing Agency Head Maksym Martyniuk.

He said that local budgets receive three times more funds on average than they spend on the organization of trading.

The largest number of land parcels was leased out to investors in Volyn region – 2,253 ha with annual rent rates of UAH 1.617 million. Some 1,357 ha of land for UAH 1.957 million of annual rent rates were leased out in Ternopil region, 1,862 ha for UAH 3.8 million in Lviv region and 595 ha for UAH 562,000 in Kharkiv region.

However, no land auction was held in Kyiv, Ivano-Frankivsk and Odesa region over the period.

“The State Agency for Geodesy, Cartography and Cadastre has instructed heads of the territorial divisions of the agency to stir up work on holding land auctions,” reads the report.

EBRD APPROVES PROVISION OF $85 MLN TO MHP TO REPLENISH WORKING CAPITAL

KYIV. Oct 30 (Interfax-Ukraine) – The board of directors of the European Bank for Reconstruction and Development (EBRD) has approved a project which includes the provision of $85 million to Myronivsky Hliboproduct (MHP) to replenish its working capital.

EBRD Senior Adviser for External Affairs Anton Usov told Interfax-Ukraine that the decision was made on October 28.

MHP will use these funds to replenish its working capital related to the cultivation of crops and feed production and purchase equipment for the soybeans plant.

MHP is the largest poultry producer in Ukraine and it is also engaged in the production of grains, sunflower oil, and meat.

MHP in 2014 saw poultry sales rise by 18% in comparison with 2013, to 525,460 tonnes. The net loss of MHP in 2014 totaled $412 million against $162 million in 2013, while its revenues over last year decreased by 8%, to $1.379 billion.

PRESIDENTS OF UKRAINE, TURKMENISTAN SIGN JOINT STATEMENT

KYIV. Oct 29 (Interfax-Ukraine) – Ukrainian President Ukraine Petro Poroshenko and his Turkmen counterpart Gurbanguly Berdimuhamedow have emphasized the need to strengthen political dialogue between the two countries at the highest level and deepen trade cooperation on trade, economic, energy, financial, scientific, technical, cultural, humanitarian, and other areas.

A joint statement signed by the two presidents was posted on Poroshenko’s official website on Thursday.

“The presidents have reaffirmed their intention to strengthen mutually beneficial cooperation in the international arena. The two leaders stressed the need for coordination and mutual support within the framework of universal and regional organizations which Ukraine and Turkmenistan belong to,” the statement said.

Both leaders also reaffirmed the importance of enhancing the role of the UN and its institutions in addressing global issues, ensuring sustainable development, and strengthening security and stability in the world. The two leaders also declared their readiness to boost their efforts in the fight against terrorism, organized crime, and illicit drug trafficking.

“The parties reaffirm their commitment to comply with the generally recognized principles and norms of international law, including the principles of national sovereignty, territorial integrity, inviolability of borders and non-interference in the internal affairs of other nations, as well as the peaceful settlement of disputes. The leaders of the two countries noted the need to enhance bilateral and multilateral cooperation of regional security and stability,” the statement said.

The two presidents reaffirmed their mutual intent in ensuring the growth of bilateral trade and its diversification, the development of long-term forms of economic cooperation, and further investment cooperation.

The sides also confirmed their readiness to develop and deepen bilateral relations on culture, education, science, tourism and sports. In particular, they agreed to take measures to organize Days of the Culture of Turkmenistan in Ukraine and Days of the Culture of Ukraine in Turkmenistan.

Poroshenko is on an official visit to Turkmenistan on October 28-29, 2015.

AUSTRIA’S ASTEBO COULD LAUNCH HEATING EQUIPMENT PRODUCTION IN LVIV REGION

KYIV. Oct 29 (Interfax-Ukraine) – Austria’s ASTEBO, an industrial boiler manufacturer, is mulling the possibility of launching boiler production in Ukraine – at the Karpaty experimental mechanical plant in Lviv region.

According to a press release of the Chamber of Commerce and Industry of Ukraine, the project was discussed at the Ukrainian-Austrian business forum that took place last week in Vienna.

“Soon ASTEBO representatives with the help of the Chamber of Commerce and Industry would visit the Karpaty plant to study the technical conditions and prepare bids for a tender,” reads the press release.

Karpaty experimental mechanical plant LLC produces chemical and mining equipment and spare parts to it, fuel storage and transportation reservoirs for filling stations and autohydraulic hoists. The plant also produces hopper cars and gondola cars.

According to the state register, 41.3% of the limited liability company belongs to Yevhen Pohrebniak, around 41% to Olegro Ltd. (Cyprus) and 17.7% to the company head Hryhoriy Bevz.

ASTEBO is a global leader in designing, manufacturing and installation of industrial boilers and steam and hot water systems.