Business news from Ukraine


Ukraine and France may sign an agreement within the framework of the Mixed Intergovernmental Commission on Economic Cooperation in the near future, Head of the Ukrainian side of the commission, Minister of Internal Affairs of Ukraine Arsen Avakov has said.
“We have been working on the details of a common project with the French side for a long time and in the near future we can reach an intergovernmental agreement that will fully meet the needs of Ukraine. Including the requirements set by the President of Ukraine regarding the localization of production at Ukrainian enterprises,” Avakov said at a meeting with CEO of ALSTOM Henri Poupart-Lafarge on Tuesday, the press service of the Ministry of Internal Affairs of Ukraine reports.
At a meeting with the participation of the French Ambassador to Ukraine Etienne de Poncins and the general director of Ukrzaliznytsia Volodymyr Zhmak, the parties discussed the prospects for implementation of the ALSTOM electric locomotive supply project with partial localization of their production and maintenance in Ukraine.
“We have a very outdated fleet of locomotives and we need to strategically update it. At this stage, we are interested in 50 two-system electric locomotives capable of transporting from 5,500 to 6,000 tonnes of cargo. We need these locomotives with a long-term maintenance system and localized production in Ukraine. At the second stage, we are interested in obtaining single-system locomotives,” Zhmak said during the negotiations.
Poupart-Lafarge, in turn, assured that ALSTOM could be a reliable and long-term partner for Ukrzaliznytsia and Ukraine.
“We have been working on the market for many years and we can meet the needs of Ukrzaliznytsia. ALSTOM has experience in working in markets with the localization of production and service capacities. This strengthens our cooperation and creates new jobs. In particular, we work in this way in Kazakhstan and South Africa,” he said.
De Poncins said that over the past two years, taking into account the active implementation of helicopter (Airbus Helicopters) and ship (OSEA) projects of the Ministry of Internal Affairs of Ukraine, a humanitarian project to improve water supply in Mariupol with the prospect of its spread to Luhansk region, the total cost of all economic cooperation programs between Ukraine and France is EUR 800 million.

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Ukraine and the Slovak Republic have signed an intergovernmental agreement on the provision of aviation operational services by their Ukrainian supplier in a certain part of the Slovak airspace relative to Uzhgorod airport.
According to Minister of Infrastructure Vladyslav Krykliy, the document was signed by him and Minister of Transport and Construction of Slovakia Andrej Dolezal.
“The full operation of Uzhgorod airport will be restored. Just now, together with my Slovak colleague, Minister of Transport and Construction of the Slovak Republic Andrej Dolezal, we signed an appropriate bilateral intergovernmental agreement. Finally, after so many months of inactivity, we will connect Zakarpattia by air service with other regions and with abroad,” he wrote on his Telegram channel on Thursday.
According to the press service of the Infrastructure Ministry of Ukraine with reference to the head of the department, the signing of this agreement will also help strengthen mutual bilateral relations in the civil aviation sector between the countries and in terms of expanding the possibilities of international air transportation.
However, Krykliy expressed hope for the early completion of the coordination of technical issues related to the implementation of the agreement and the signing by the parties of the implementation protocols within a month.
The ministry said that the agreement was initialed by both countries during negotiations in Kyiv on December 18, 2019. The document takes into account the security and defense aspects arising from the membership of Slovakia in NATO, as well as from the fact that the Ukrainian-Slovak border is also the external border of the Alliance.
According to the ministry, the agreement was concluded for an indefinite period and comes into force from the date of receipt through diplomatic channels of the last written notification of the completion of the domestic procedures necessary for its entry into force.

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KYIV. Sept 2 (Interfax-Ukraine) – The Verkhovna Rada has ratified an agreement on the joint production of audiovisual works between the governments of Ukraine and Canada.

Some 318 deputies voted for corresponding bill No. 0040 at the plenary session on Wednesday.

The agreement was signed in Toronto on July 2, 2019.

An explanatory note to the draft law says that the ratification of the agreement will contribute to the intensification of the international activities of the subjects of cinematography of Ukraine in joint film production with other countries.

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Ukraine and Spain will continue working together to conclude an agreement on a common aviation space. The issue of creating additional travel opportunities for citizens was discussed during a telephone conversation between Minister of Foreign Affairs of Ukraine Dmytro Kuleba and Minister of Foreign Affairs, the European Union and Cooperation of Spain Arancha Gonzalez Laya.
“The Foreign Ministry of Ukraine has consistently advocated for Ukrainians’ opportunities to travel freely around Europe and the world. We are working hard to create new opportunities for air travel between Ukraine and the EU countries. The agreement on a joint aviation space just creates such opportunities. We will do everything to conclude this agreement,” Kuleba said, the press service of the Ukrainian Foreign Ministry reported.
Both sides stated that the conclusion of the Agreement on the common aviation space meets mutually beneficial interests and will contribute to the intensification of business, tourist and interpersonal contacts.
The ministers also discussed the importance of enhancing bilateral economic and investment cooperation. It is noted that the creation of additional business opportunities will be facilitated by the signing of the Convention on Avoiding Double Taxation between Ukraine and Spain.
The parties also exchanged information on measures taken by the governments of both countries to counter the spread of COVID-19. Kuleba thanked the Spanish government for the assistance in returning Ukrainian citizens home.
Arancha Gonzalez Laya, in turn, confirmed the invariable position of Spain in the matter of protecting the sovereignty and territorial integrity of Ukraine.

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JSC Ukreximbank and the State Agency of Automobile Roads of Ukraine (Ukravtodor) with the participation of President of Ukraine Volodymyr Zelensky have signed an agreement to provide the first tranche for updating roads in Ukraine in the amount of UAH 5.782 billion from the amount of financing, which will total UAH 19.3 billion.
“Despite the quarantine measures in our country, the most important thing is that the state works and, together with the banking sector and construction companies, builds kilometers of roads and “sews” our country! As I said, roads, bridges are a priority,” Zelensky said after the signing of the agreement.
He emphasized that the Big Construction program is the image of Ukraine as a country with modern and high-quality roads on which you can travel. The president also noted that the program will contribute to the creation of new jobs.
The president’s press service notes that the attraction of funds from Ukreximbank under state guarantees by Ukravtodor became possible due to the adoption of laws on amendments to the budget that Zelensky signed on February 4, 2020, and thanks to the decision of the National Bank to lower the refinancing rate. The loan interest rate will be 10.5% per annum.
“We, as a state bank, support the Big Construction project. With the signing of the agreement, Ukravtodor will receive the first tranche in the amount of UAH 5.782 billion at a rate of 10.5% per annum, which is 2% lower than the Cabinet of Ministers foresaw,” chairman of the board of Ukreximbank Yevhen Metsger said.
He said that Ukreximbank is ready to become a financial partner of the Big Construction project and lend its shoulder to all companies, in particular contractors, that will be involved in the construction of the facilities under this program.

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Gas Transmission System Operator of Ukraine LLC (TSO of Ukraine) and Romania’s Transgaz have signed an interconnection agreement meeting European rules to start cooperation from January 1, 2020. The Ukrainian operator recalled that the negotiations with the mediation of the European Commission have been going on for three years. Operators of Bulgaria, Greece and Moldova have also been involved in them.
“This means that all suppliers have the opportunity of freely transporting gas with a new supply route – from Southern Europe and Turkey – through Bulgaria and Romania – to Ukraine and further to Moldova. That is, from January 1, at the Isaccea 1-Orlivka 1 interstate point a daily capacity on the Ukraine-Romania route in the amount of 17.8 million cubic meters will be available, as well as 15.8 million cubic meters per day in the opposite direction,” the operator said.
The first auctions for booking capacities at the Isaccea 1-Orlivka 1 point should be held in the coming days.
The operator said that the agreement previously signed between the gas transmission system operators of Ukraine and Romania did not allow gas to be transported in the reverse mode, and also did not provide European rules for interaction, since such an opportunity was blocked by the current contract between Naftogaz Ukrainy and PJSC Gazprom.
In addition, such an agreement creates an additional technical opportunity for Moldova to alternatively import gas for its own needs from Turkey and Greece if Gazprom stops transit to Europe through Ukraine.
“This decision is historic and extremely important, because it allows you to create an additional route for gas imports to Ukraine, primarily to provide gas to Moldovan consumers and border consumers of Ukraine in Odesa region. This will allow winter to pass uninterruptedly, even if the gas transit could be stopped from the Russian Federation,” Director General of TSO of Ukraine Serhiy Makohon said.

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