Business news from Ukraine

Business news from Ukraine

UKRAINE EXPORTS RECORD HIGH 34.8 MLN TONNES OF GRAIN IN 2014/2015 MY – AGRICULTURE MINISTRY

KYIV. July 3 (Interfax-Ukraine) – Grain exports from Ukraine, according to preliminary data, in the 2014/2015 marketing year (MY, July-June) amounted to 34.805 million tonnes, including 18.837 million tonnes of corn.

The Ministry of Agricultural Policy and Food told Interfax-Ukraine that in the last marketing season Ukraine exported 11.234 million tonnes of wheat, 4.46 million tonnes of barley, and 280,000 tonnes of other crops.

As reported, in 2014 Ukraine harvested a record high of nearly 63.8 million tonnes of grain and leguminous crops (excluding Crimea), which is 2.4% more than in 2013.

Exports in the 2013/2014 MY amounted to 32.4 million tonnes.

 

U.S. FIRM CONVERDYN CONTEMPLATES OPENING URANIUM HEXAFLUORIDE FACILITY IN UKRAINE

KYIV. July 3 (Interfax-Ukraine) – ConverDyn, an American company, is contemplating the potential for setting up a joint uranium hexafluoride production facility in Ukraine.

The likelihood of such cooperation was discussed between the U.S. company’s representatives and the top managers of Nuclear Fuel state concern in Kyiv in late June, the Ukrainian concern said in a press release.

Today ConverDyn is keen on cooperation with Ukrainian companies in providing uranium-conversion services to the Ukrainian energy sector.

“The business meeting resulted in an agreement to continue working on possible areas of cooperation between ConverDyn and the concern on the basis of the needs of the Ukrainian nuclear industry,” the statement reads.

Uranium hexafluoride is a necessary link in the production chain prior to uranium enrichment.

Ukraine’s state company VostGOK (based in Dnipropetrovsk region) increased its 2013 output of natural uranium concentrate by 0.4% (3.4 tonnes) to 925.7 tonnes in 2014.

ConverDyn specializes in providing uranium hexafluoride (conversion) services. ConverDyn is owned 50/50 by General Atomics and Honeywell.

Ukraine set up Nuclear Fuel state concern with the aim of organizing certain elements of the nuclear-fuel cycle, such as production of propellants for nuclear power plants and fuel assembly.

Nuclear Fuel consists of four state companies: Eastern Mining and Processing Complex (VostGOK), Smoly, Dniprovsky Precision Pipe Plant, Ukrainian Industrial Technology Scientific Research and Project Exploration Institute.

 

EC READY TO STIR UP WORK ON UKRAINE JOINING COMMON TRANSIT SYSTEM

KYIV. July 3 (Interfax-Ukraine) – The European Commission (EC) is ready to stir up work on Ukraine joining the common transit system, the harmonization of the customs and tax laws of Ukraine under the Ukraine-EU Association Agreement, the introduction of the “one face to the customer” approach and the institution of authorized economic operators, as well as Ukraine joining the Pan-Euro-Med accumulation of origin system, the press service of the State Fiscal Service of Ukraine has reported, referring to the statement of Director of the Directorate General for Taxation and Customs at the European Commission Heinz Zurek on the negotiations with Head of the State Fiscal Service Roman Nasirov.

“We understand that EU standards in the tax and customs areas are decisive for the successful modernization of the State Fiscal Service, and we’re ready for the quick introduction of them in our work. This first is needed for the development of customs procedures, the proper tax administration, building of modern electronic resources of the European model and fighting corruption,” Nasirov said.

He said that joint border and customs control with the EU should be introduced and electronic services should be built up: excise duty, consignment note, the taxpayer cabinet, and the “one face to the customer” system.

The New Computerized Transit System (NCTS) is designed to exchange electronic data on goods in transit between all customs agencies-participants and foreign economic traders.

UKRAINE OBTAINS RIGHT TO EXPORT AROUND 5,000 ITEMS OF GOODS TO U.S. FROM LATE JULY WITHOUT PAYING DUTIES

KYIV. July 3 (Interfax-Ukraine) – Ukrainian companies have received the right to export around 5,000 items of goods under a duty-free regime to the United States, the Economic Development and Trade Ministry has reported.

The ministry said that Ukraine received the opportunity as a part of the revision of the U.S. Generalized System of Preferences, or GSP, which will be in effect from July 29, 2015 until December 31, 2017.

Deputy Economic Development and Trade Minister Natalia Mykolska said that GSP covers widely movable goods: a large number of chemicals, minerals and construction stone, jewelry, many types of carpets, some types of agricultural products, and fish.

Mykolska said that Ukraine has effective protection of intellectual property rights and labor rights, while Ukrainian companies comply with the rules on origin of goods.

“Importers in the United States are to submit applications for giving preferences under GSP. They also received a right to have compensation of the duty which was lifted in July 2013,” she said.

UKRAINE SHOULD BE READY TO SUBMIT EU MEMBERSHIP APPLICATION IN 5-6 YEARS – POROSHENKO

KYIV. July 3 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has said in 5-6 years Ukraine should reach the criteria that will allow it to submit an application for membership in the European Union.

“These reforms pursue a clear-cut and understandable goal – to prepare Ukraine to gain membership in the European Union. I am convinced that within 5-6 years Ukraine should change and reach the required criteria to submit a membership application [to the EU],” Poroshenko said before a meeting with European Parliament President Martin Schulz in Kyiv on Friday.

 

UKRZALIZNYTSIA READY TO TRANSPORT NEW HARVEST GRAIN

KYIV. July 1 (Interfax-Ukraine) – The State Railway Administration of Ukraine (Ukrzaliznytsia) has prepared its grain carriers and freight stations for shipments of grain of the new harvest and is ready to ship at least 3 million tonnes of grain and grain cargo every month, the press service of Ukrzaliznytsia has reported.

The press service said that in January-May 2015, a total of 166,000 grain carriers were loaded and they shipped 10.7 million tonnes of grain, and loading grew by 14.6% from a year ago.

“In 2015, railways expanded the working grain carrier fleet, cut the turnover of vacant and loaded wagons, and increased the volume of grain shipments using direct routes. It is planned to bring the shipment of grain with direct loading on vessels to 46%,” reads the report.

The administration said that available grain carriers are enough to ensure all the needs in transporting grain.

“The only problem that creates a shortage of rolling stock is the absence of the loading plans from grain traders. From year to year difficulties with planning of exports [are] repeated: there are almost no applications at the beginning of the month and too many applications in the second half of the month, and loading on holidays and weekends is not rhythmic,” Ukrzaliznytsia said.

The equipment of elevators also reduces the efficient use of rolling stock. At some elevators, grain is loaded from trucks, and delays appear also occur due to bad weather and the unsatisfactory state of roads.

Ukrzaliznytsia operates a grain carrier fleet of 11,700 wagons. Private companies have 1,900 more grain carriers. This is enough to ship around 40 million tonnes of grain every year.