KHARKIV. Dec 15 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) has opened a regional office in Kharkiv.
“Eastern Ukraine is also important for our work. It is important for the economy and for our cooperation not only in terms of large-scale projects, but also in terms of the development of small and medium-sized businesses. We are opening an office here because it is important to have an office here, in the region to work with small and medium-sized businesses,” EBRD Managing Director for Eastern Europe and the Caucasus Francis Malige said at a press conference in Kharkiv.
He noted this is the second EBRD office opened with the financial support of the EU in the framework of EU4Business initiative. The third one is to open in Odesa in February 2017.
“Thus, we are sending a strong signal that we see the prospects and a great potential of the country,” the banker said.
EU Ambassador to Ukraine Hugues Mingarelli noted the European Union supports reforms in Ukraine, in particular, advises on the issues of economy deregulation and support and development of small and medium-sized businesses.
“In this field the European Union funds a number of programs aimed at providing advice and support to small and medium-sized enterprises, training and improving their access to finance and credits,” Mingarelli said.
KYIV. Dec 15 (Interfax-Ukraine) – Gas deposits in the northwestern section of Black Sea shelf are assessed at no less than 40 billion cubic meters (bcm), Head of the State Service for Geology and Deposits Mykola Boyarkin has said after the first phase of sea works carried out by the Iskatel research vessel.
“According to estimates of scientists, gas deposits total no less than 40 bcm of gas on 7,000 square kilometers. This is the smallest figures we can receive,” the press service of the authority reported, citing Boyarkin.
Earlier the Iskatel research vessel finished it voyage carrying out exploration of the shelf near the Snake Island. The research work will continue next year.
KYIV. Dec 15 (Interfax-Ukraine) – Sumitomo Electric Bordnetze-Ukraine (Ternopil region), a manufacturer of cable products for Volkswagen Concern, and 100% in which is owned by Japan’s Sumitomo Electric Bordnetze, has opened the first stage of a new production site in Chortkiv (Ternopil region) with the participation of President of Ukraine Petro Poroshenko.
“When it was decided that the new production will be in Chortkiv and there was nothing, nobody believed that in December the plant will be launched and 500 new jobs will be created, and in 2018 their number will exceed 2,000. In March [the investor] was transferred Agromash plant, and there was only wind here, there were no walls, only ruins, and those who come here, including Audi representatives, thought nothing will happen. But the uniting of the potential of Ukrainian, German and Japanese investments have done their job,” the president said at the opening ceremony.
He said there is an agreement with the investor regarding increasing wages to the employees.
“We discussed with the investor what wage will be. First we talked about UAH 3,800-4,000. But no, it will be up to UAH 6,000! And we agreed that by the end of the year we’ll raise it by another 15% – and this will be a gift from the president,” Poroshenko said.
He said the investor is ready to continue investment in Ukraine.
Sumitomo Group is one of the largest Japanese corporations. The group consists of companies working in the financial sector, engineering industry, electrical industry, ferrous and nonferrous metallurgy, and many others.
KYIV. Dec 15 (Interfax-Ukraine) – The procedure for issuing a production license should be relaxed for wine makers, Director of the horticulture and viticulture department of the Agricultural Policy and Food Ministry of Ukraine Viktor Kostenko has said.
“We ask the Cabinet of Ministers to create a working group consisting of representatives of all agencies involved in the issue of production licenses,” he said at the National Winemaking Forum.
He said that the license issue should be relaxed for wine makers, depending on their size.
Kostenko said that the State Fiscal Service demands only seven documents for receiving the license, while around 134 documents in six different agencies are to be collected to get them.
KYIV. Dec 15 (Interfax-Ukraine) – Mortgage crediting of individuals slightly intensified in 2016, demand on mortgage is growing, as well as the number of applications for mortgage credits approved by banks, according to a December report on financial stability published by the National Bank of Ukraine (NBU).
“The crediting conditions poll conducted among banks in Q3 2016 shows that demand on mortgage credits is slightly growing along with the number of applications for mortgage credits approved by bank. Deposit corporations credit purchase of apartments and houses both on the primary and secondary markets. According to intermediaries, the share of residential housing bought in credit does not exceed 5%,” the NBU said.
The regulator said the conditions for provision of new mortgage credits are tough.
Along with buyers of apartments banks also credit constructors both in Kyiv and the regions.
“Large companies take credits for the period of up to three years. Smaller companies receive short-term credits from banks used to support the pace of construction if they fail to quickly sell apartments. However, the crediting of constructors is small. The key source of financing is own funds of companies and payments by apartment buyers,” the central bank said.
