KYIV. Aug 8 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers in September 2016 intends to launch the investment support office with financial backing by equity funds managed by Western NIS Enterprise Fund (WNISEF, created in 1994 with seed capital of $150 million paid by the U.S. government), Ukrainian Prime Minister Volodymyr Groysman has said.
“The goal is to create the entry point for attracting investment,” he said opening a government meeting in Kyiv on Monday.
Groysman said that the governmental envoy will be appointed to coordinate the operations of the office with the government, ministries and other authorities. The Cabinet approved First Deputy Finance Minister Oksana Markarova for the post. She worked for 17 years in investment business, in particular in WNISEF, before coming to the Finance Ministry early 2015.
The prime minister said that foreign investors show their interest to Ukraine, but they demand some conditions.
“We need a coordination mechanism. We should understand where the entry point is and how authorities would help,” he said.
He said that the task of the office is to bring an investor by hand to successfully implement a turnkey project if the investor shows interest.
Groysman said that the attraction of investment is crucially important to bring Ukraine from the state of the country with the raw material type of economy.
Among other tasks on this way is development of infrastructure, provision for political stability, protection of investors’ rights and conducing of judicial reform.
The prime minister said that experience of similar offices in the United States, Lithuania, Poland, Georgia, the Czech Republic and Germany was taken into account when the office in Ukraine was created. He said that the office will be located in the building of the government.
Groysman said that on September 1, 2016, Markarova will present proposals on the director of the office and his or her team.
The prime minister added that if the governmental office shows success, similar regional offices in the regions or municipal offices could be created.
KYIV. Aug 8 (Interfax-Ukraine) – International geological companies Gerald Metals from Switzerland and Commodity Minerals from Australia intend to open offices in Ukraine, Ukraine’s State Service for Geology and Deposits has reported.
“The top priority direction for the State Service for Geology and Deposits for 2016 is the creation of a common geological catalog. The service attracts international geological companies. Two foreign companies have given their consent to open offices in Ukraine,” the authority said in a press release.
Gerald Metals is a large global company producing non-ferrous and precious metals operating on five continents in 40 countries. The company has offices in 18 countries.
The authority added that negotiations with other geological companies are underway.
Head of the State Service for Geology and Deposits Mykola Boyarkin said at a meeting with representatives of the U.S. Embassy this week devoted to the problems of unlawful production of amber that there is a proposal to increase the issue of permits to use deposits by the State Service for Geology and Deposits. Geological information for the investor should be prepared.
“The service is working on the creation a common ‘geological library’ – digitizing the geological data catalog and involving large geological companies. These companies would prove that it is worth to invest in our country by their presence on the Ukrainian market,” he said.
KYIV. Aug 5 (Interfax-Ukraine) – Socar Ukraine Trade House LLC first won a tender held by Center for Provision of Production of public joint-stock company Ukrzaliznytsia to supply diesel fuel, although the bidder of similar tenders WOG Aero Jet which price was 15.3% higher challenged the results of the tender,” Ukrzaliznytsia has reported.
“Socar Ukraine first won the tender of Ukrzaliznytsia to buy diesel fuel,” Ukrzaliznytsia said in a press release on Tuesday.
Center for Provision of Production on August 1, 2016 signed a contract to supply 14.1 tonnes of diesel fuel with Socar Ukraine at the price of UAH 17,700 per tonne (VAT included) and on the same day the oil trader shipped 730 tonnes of diesel fuel.
The company said that this offer was better than offers of other bidders: WOG Aero Jet – UAH 20,400 per tonne with VAT and OKKO Business Contract – UAH 20,700 per tonne with VAT.
Commenting on the claim of WOG Aero Jet sent to Ukraine’s Antimonopoly Committee, Ukrzaliznytsia said that the contract is considered signed, as the committee has not made any decision under the claim. The claim was published later than information that the contract is signed.
The press service of Ukrzaliznytsia added that WOG Aero Jet on August 1, 2016 also filed a claim to the National Anti-Corruption Bureau of Ukraine.
KYIV. Aug 5 (Interfax-Ukraine) – Kyivstar mobile operator saw a 34% rise in earnings before interest, tax, depreciation and amortization (EBITDA) in April-June 2016 year-over-year, to UAH 2.03 billion, the company said in a report on Thursday.
Revenue grew by 11%, to UAH 3.69 billion thanks to a rise of 14-15% in average revenue per user (ARPU), while the number of subscribers shrank by 2% year-over-year, to 25.4 million.
In H1 2016, Kyivstar increased EBITDA by 38%, to UAH 3.85 billion with growth of revenue by 12%, to UAH 7.16 billion.
Capital investment almost halved (by 49%), to UAH 975 million, including a fall of 38% in Q2 2016, to UAH 727 million.
Kyivstar said that increase of EBITDA margin to 54.9% is linked to a rise in revenue, reduction of expenses on interconnection and a fall in structural operating expenses.
“A rise in payments for frequency bands related to the 3G license, growth of utilities tariffs and rent rates and devaluation of the national currency affected operating expenses,” the company said.
Revenue from mobile data transfer grew by 79% compared to Q2 2015, to UAH 262 million with retaining the number of subscribers at 800,000. The growth is linked to the development of 3G network, the launch of attractive tariffs and active promotion of offers for smartphones.
The company said that it expanded 3G network coverage in Q2 2016 with 48% of Ukrainian residents now having access to it.
The number of mobile Internet users decreased by 5% in a year, to 10.3 million, while data traffic grew by 83%, to 283 megabytes.
Kyivstar said that competition on the Ukrainian telecommunications market is toughening, and the trend would grow.
KYIV. Aug 5 (Interfax-Ukraine) – A pilot project to annul government regulation of food prices and services in retail outlets could be launched from August 15 for three or four months.
According to draft resolution posted on the website of the Economic Development and Trade Ministry it is proposed to temporarily suspend resolution No. 1548 dated December 25, 1996 and resolution No. 1222 dated October 17, 2007 in part government regulation of baby food, bread, flour, sugar, cereals, meat and dairy products, eggs, sunflower oil and other food prices.
The revoking of government regulation of the fee for services provided in retail outlets, food and nonfood markets, the level of prices and effectiveness of rent rates on retail space.
The State Statistics Service is obliged to monitor the prices of the above-listed goods and services until November 15, 2016 and submit information on the results to the ministry.
According to an explanatory note, rent rates effectiveness limit set at 2-15% (depending on the region and type of products) the real effectiveness of food production was minus 13.1%, according to statistics.
According to the ministry, loss-making and extra administrative price regulation hinder investment into modernization of Ukrainian food production and building new production lines. Government regulation of prices makes companies to reduce salaries and workforce.
The draft resolution aims at facilitating the procedure for price changes depending on the situation on the market. This would help producers to more quickly react to the changes.
PUTRAJAYA. Aug 5 (Interfax-Ukraine) – Ukraine and Malaysia intend to intensify trade and economic cooperation between the two countries, Ukrainian President Petro Poroshenko has said.
“I am honored to be the first head of the Ukrainian state who visited Malaysia. I am very impressed with the high rate of economic growth in your country,” he told reporters after talks with Prime Minister of Malaysia Najib Tun Razak.
According to him, the talks were constructive and touched on a wide range of issues on the bilateral agenda, as well as regional and international security.
“I am pleased to inform you that we have fully agreed on the need to maintain an active dialogue at the highest level,” Poroshenko said.
According to him, the sides confirmed mutual interest in expanding the entire range of bilateral relations.
“Invigoration of trade and economic relations between the two countries is one of the key points in our agenda,” the president said.
According to him, Ukraine has much to offer Malaysia, ranging from joint participation in space programs, the supply of Antonov aircraft and other areas.
“During the negotiations we agreed on the need to speed up the launch of a joint Ukrainian-Malaysian trade committee. We expect its first meeting to be held next year,” Poroshenko added.
