Business news from Ukraine

UKRAINIAN STATE FISCAL SERVICE AUTHORIZES EXPORTER STATUS TO 239 ENTERPRISES THAT SUPPLY GOODS TO EU

The State Fiscal Service (SFS) has announced that authorized exporter status has been granted to 239 enterprises that supply goods to the European Union. “In Ukraine, 239 enterprises that export goods to the EU countries received authorized exporter status as of July 2, 2019,” the agency said on Facebook.
As explained by the SFS, these companies can process goods at customs, using a simplified procedure, that is, without issuing a EUR.1 certificate, they can independently declare the preferential origin of goods in commercial documents.
In addition, the SFS noted that a Finance Ministry order amending the procedure for granting and cancelling such status by the customs came into force on June 21 this year.

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UKRAINE EXPANDS LIST OF BANNED GOODS FROM RUSSIAN FEDERATION

The Cabinet of Ministers of Ukraine has expanded a list of goods from the Russian Federation on which embargo is imposed from July 1, 2019, including raw materials for cement (clinkers) and all kinds of ready cement, mineral (nitrogenous, potassium, phosphorous) fertilizers, foodstuff for animals and veterinary medicines.
The document adopted on May 15, 2019, which was posted on the government’s website, also includes matches, plywood products, wallpaper, light industry products, in particular some types of knitwear and footwear, carbon steel wires, metal wires, pipes, tubes, metal nets, fasteners, steel utensils, equipment for the production of bakery products, and vehicles (cars, motorcycles, tractors, etc.).
In addition, ban on import of used railway cars and trams will be imposed from March 1, 2020.

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UKRAINE’S FOREIGN TRADE IN GOODS (IMPORT), JAN–MARCH, 2019

Ukraine’s foreign trade in goods (import), jan–march, 2019

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OLKOM PLANS TO SUPPLY FIRST BATCH OF GOODS TO POLAND

The Olkom Group plans in autumn 2019 to supply a first batch of goods (margarine spread) to Poland, Board Chairman of PrJSC Kyiv Margarine Plant, which is part of the group, Yuriy Yevenko has said.
“We will start trial deliveries to Europe this season – in September. Now we are negotiating with one Polish company. However, they want products under their own trademark, so we will not export under our own trademark yet. The volume of the first delivery is 40 tonnes: this is enough so that they put the products on the shelves of supermarkets. We plan to increase the share of direct exports to 10% of the total production within three to five years,” Yevenko told Interfax-Ukraine.
According to him, the company increased production by 75% in January-March 2019 (mainly thanks to b2b products), and by the end of the year it plans to double production in monetary terms.
“Last year we earned about UAH 600 million of revenue, and this year we set a goal to earn UAH 1.2 billion,” he said.
He added that in 2018, the company produced about 40,000 tonnes of products, of which 23,000 tonnes were tolling services for oil refining.
Over 2018-2019, company has invested about $1 million in boosting the production capacity, and is currently in talks with the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) and two investment funds.
At the same time, according to Yevenko, in three to five years, Olkom should complete the repayment on loans attracted about 10 years ago and consider expanding production outside Kyiv, but the company does not intend to leave the site in Kyiv.

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GOODS TURNOVER AT FOOD CHAINS OF FOZZY GROUP 26% UP

Fozzy Group in 2018 increased goods turnover at its food chains Fora, Silpo, Thrash!, Fozzy Cash & Carry by 26% compared to 2017, to UAH 78.8 billion, the press service of the company has reported.
“In 2018, goods turnover at the retail grocery chains of the group amounted to UAH 78.8 billion, which is 26% more than in 2017. Thus, Fozzy Group continued its development in 2018: this brought UAH 2.9 billion in taxes to the national budget. In particular, Silpo-Food LLC is among the top three largest taxpayers in Ukraine among retailers in 2018, according to the State Fiscal Service,” the report said.
According to the report, in 2018 some 25 new stores were opened, in particular, seven Silpo in five cities of Ukraine, 12 Fora stores and six Thrash! discount stores. The total number of Fozzy Group stores at the beginning of 2019 was 686.
The group also opened two new restaurant projects in 2018: the Cuban restaurant and bar Escobar and an establishment with the aesthetics of the world bars Who & Why Drinkery. The innovative postal and logistics operator Justin also was launched, its 500 branches are already located in the stores of Fozzy Group.

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