Business news from Ukraine

Business news from Ukraine

UKRAINE MUST COMPLETE ALL TECHNICAL TASKS BY LATE AUGUST TO OBTAIN VISA FREE TRAVEL TO EU IN 2016 – POROSHENKO

KYIV. June 4 (Interfax-Ukraine) – Ukraine must complete all the technical tasks it has been set by the EU by late August 2015 to be granted a visa-free regime in 2016, Ukrainian President Petro Poroshenko has said.

“This is not long to come, but we need the relevant breakthrough to make the good finish. All technical tasks are to be fulfilled by late August, as in September we’re waiting for the EU mission. I personally will control the tough schedule every day, and the government must feel the large responsibility they have,” Poroshenko said while addressing the parliament in his annual speech on Thursday.

“Once again we felt powerful European unity at the Eastern Partnership summit in Latvia. Despite the fact that Ukraine is in a state of war, despite the fact that part of our border is not under our control contrary to our desire, despite the fact that there are thousands and hundreds of thousands of refugees exiled by Russia from their living places… the prospect of visa free regime was first registered in the calendar,” Poroshenko said.

ABOUT 200 STATE ENTERPRISES OUT OF 1,800 ARE OF VITAL IMPORTANCE TO UKRAINE; PRIVATIZATION WILL CONTINUE – POROSHENKO

KYIV. June 4 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has said Ukraine should continue the privatization of state enterprises.

“Of course, I support the thorough control of the parliament over privatization. The more transparent it will be, the better it is. I also support the idea that you, dear lawmakers, will set the rules of privatization and a list of facilities under a proposal of the government. We have over 1,800 enterprises. We have no more than 200 [enterprises that are] vitally important for the state. Of course, we would not sell Ukrzaliznytsia or defense enterprises, but who can explain me why the state needs stud farms which are also on the list of companies that are not subject to privatization?” he said while addressing the parliament in his annual speech on Thursday.

“Finally, the major part of the enterprises put on the list of companies that are not subject to privatization has not received any kopeck of investment during two years and they are doomed to failure in a competitive fight,” he said.

Poroshenko said that equipment and technologies at the enterprises are at the level of the 1930s.

“They would not survive if they do not receive effective direct investment and effective management both from domestic and western investors,” he added.

UKRAINIAN EXPORT TO EU GROW 12% IN 2014 – HEAD OF EU DELEGATION IN KYIV

KYIV. June 3(Interfax-Ukraine) – Ukrainian exports to the European Union went up 12% in 2014, “if one doesn’t take account of last December and January, which were poor months,” said the head of the EU Delegation to Ukraine, Jan Tombinski.

Though the EU-Ukraine free trade treaty takes effect on January 1, 2016, the Union has already lifted its import duties for Ukrainian goods.

“Despite all the economic difficulties we can see slow but important growth of exports from Ukraine to the EU,” Tombinski told Forbes Ukraine. He said exports to all other destinations had suffered “a major drop,” however.

NBU REGISTERS WEBMONEY.UA AS NATIONAL PAYMENT SYSTEM

KYIV. June 3 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) has registered the WebMoney.UA payment system with the register of payment systems, reads a report issued by WebMoney.UA on the official Facebook page.

“WebMoney.UA has got the official status of the national payment system. The system was included in the relevant section of the register of NBU payment systems on May 21 this year,” reads the report.

The company also noted that because of its new official status, WebMoney.UA’s legal basis has been strengthened, accordingly legal guarantees for system users and the possibility of monitoring its work by the NBU has increased.

The company added that obtaining official status won’t affect tariffs, the order of funds withdrawal, and other procedures provided by WebMoney.UA.

As reported, in 2013 the then Income and Tax Ministry of Ukraine searched company and froze UAH 60 million held in its accounts. Afterwards, the central investigation department found that the rules of the system’s operations were not agreed with the NBU.

AVTOKRAZ INCEREASES OUTPUT BY 20% IN FIVE MONTHS

KYIV. June 2 (Interfax-Ukraine) – PJSC AvtoKrAZ (Kremenchuk, Poltava region), the only Ukrainian producer of heavy vehicles, in January-May 2015 increased production by 20% from the same period in 2014, to 452 units.

According to a press release issued by the company, truck sales for the period increased by 16%, to 392 units.

The share of exports of total shipments during this period was 37%, while the domestic market – 63%.

According to the press release, besides basic production – trucks, for five months of this year the company produced and shipped two semi-trailers and eight trailers, while over the same period last year these products were not made.

Truck production in May totaled 96 units, in particular the share of lorries was 95%, chassis – 3%, tractors – 2%.

Last month 96% of manufactured products were for the Ukrainian market, the rest – for exports.

The press service noted that AvtoKrAZ’s production plan for June significantly exceeds the figures of the previous months, however it did not specify the figures.

ELECTRONIC SYSTEM TO SUBMIT DOCUMENTS FOR CONSTRUCTION LICENSES TO BE INTRODUCED IN UKRAINE

KYIV. June 2 (Interfax-Ukraine) – There is a plan to introduce a system to submit applications and documents of companies that want to receive construction licenses in an electronic format on the website of the Electronic Administrative Services of the State Architectural and Construction Inspectorate of Ukraine.
The inspectorate reported on Friday that the draft cabinet resolution was drawn up by itself as the law on licensing types of economic activities will take effect from June 28, 2015, and the draft document has been agreed with the Economic Development and Trade Ministry, Finance Ministry and the State Regulatory Service of Ukraine.
“According to the bill, the construction license will be issued by the licensing agency in the electronic form via an entry on the decision of the licensing agency on the issue of the license to companies in the state register of companies and individuals-businessmen,” reads the report.
The inspectorate believes that the electronic form of submitting documents will reduce errors, which would reduce the number of construction licenses which are refused.