Business news from Ukraine

UKRAINIAN STATE ENTERPRISE HORSE BREEDING OF UKRAINE URGES GOVT TO TACKLE SITUATION IN INDUSTRY

On Thursday, July 30, the press center of the Interfax-Ukraine News Agency hosted a press conference, titled “Who Destroyed Ukraine’s Horse Breeding, and Why? How to Save the Industry? The Opinion of the Heads of Horse Breeding Enterprises.” The conference was attended by Director of Oleksandria stud farm of SE Horse Breeding of Ukraine Oleh Rodionov, Director of Dubrovsky stud farm of SE Horse Breeding of Ukraine Vadym Danylevsky, Director of Lozovsky stud farm of SE Horse Breeding of Ukraine Ihor Dubovyk, former Head of Odesa Hippodrome Kostiantyn Savchyts, President of the Anti-Corruption Entrepreneurial front Ihor Yehorov, lawyer of JSC Ri Group Sabina Knysh, as well as other directors of state-owned horse breeding organizations.
“We have gathered to tell Ukraine and people what is happening at the strategic enterprise. We will not ride to the Olympics on a pig. And such stud farms as Derkulsky, where ten generations of grooms, coaches, jockeys worked, have been completely ruined,” Oleksandria stud farm director Oleh Rodionov said.
Ihor Dubovyk, the director of the Lozovsky stud farm of SE Horse Breeding of Ukraine, said today the horse breeding industry is primarily based on state stud farms. He called on industry representatives to unite and convey their position to the authorities. According to him, the industry urgently needs to put things in order and provide state support to horse breeding.
“During the reform of the agro-industrial complex, livestock breeding in general, and especially horse breeding, suffered the greatest losses. Horses were distributed, sold, and wages were paid with horses. Until 1997, there were two stud farms and 18 pedigree horse farms in Ternopil region. To date, there is not a single stud farm and not a single breeding farm. Now horse breeders have to travel to the villages and beg, as there is simply nothing to feed the horses. What is this if not a crime?” Director of the Western Plemkonetsentr branch Yuriy Volynets said.
According to lawyer Sabina Knysh, on the basis of the documents received by the new management of the state enterprise, it was established that the heads of the stud farms of Luhansk region (Striletsky, Lymarivsky, Derkulivsky, Novooleksandrivsky) committed a number of offenses, with the use of state property, illegal operations for sowing, harvesting and selling crops in land plots owned by the Horse Breeding of Ukraine. It was also established that the managers appointed by Zinchenko K.M. have a criminal record, and that some were convicted of serious crimes.
“The schemes for the illegal receipt of profits from state lands are run by the local farmer-authority Khabib Makhachevich Batirsultanov, whose wife works in the prosecutor’s office of Luhansk region, and the funds are withdrawn through fictitious operations through Dubrava LLC controlled by Khabib,” Knysh said.
According to the lawyer, in order to retain power at the state enterprise Horse Breeding of Ukraine, Zinchenko, Orekhov O.V. (his deputy) in collusion with Batirsultanov and other interested persons have initiated actions blocking the activities of the new management of the enterprise, placed articles in the media and arranged protest actions and the like. The purpose of these actions is to focus public attention not on abuses on the part of Zinchenko and his team, but on the alleged usurpation of power in the state enterprise by Zhara K.K. (LLC Millennium), which previously provided services for sowing, processing and harvesting at the Horse Breeding of Ukraine.
“However, these facts are not confirmed by anything, which cannot be said about empty acts of acceptance and transfer of not yet grown, but not harvested crops between the Luhansk branch of Horse Breeding of Ukraine and LLC Dubrava,” the lawyer said.
Leading horse breeders of Ukraine have called on the Cabinet of Ministers to urgently intervene in the situation, bring the perpetrators to justice, create a commission comprised of specialists and develop an action program to bring the industry out of the crisis.





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INTERFAX-UKRAINE TO HOST PRESS CONFERENCE ‘WHO DESTROYED UKRAINE’S HORSE BREEDING AND HOW TO SAVE THE INDUSTRY, AND WHY? THE OPINION OF THE HEADS OF HORSE BREEDING ENTERPRISES’

On Thursday, July 30, at 14:00, the press center of the Interfax-Ukraine News Agency will host a press conference entitled “Who Destroyed Ukraine’s Horse Breeding and How to Save the Industry, and Why? The Opinion of the Heads of Horse Breeding Enterprises.” Participants include Director of Oleksandria stud farm of State-owned enterprise Horse Breeding of Ukraine Oleh Rodionov; Director of Dubrovsky stud farm of State-owned enterprise Horse Breeding of Ukraine Vadym Danylevsky; Director of Lozovsky stud farm of State-owned enterprise Horse Breeding of Ukraine Ihor Dubovyk; former Head of Odesa Hippodrome Kostiantyn Savchyts; President of the Anti-Corruption Entrepreneurial front Ihor Yehorov; lawyer Sabina Knysh, as well as other directors of state-owned horse breeding organizations (8/5a Reitarska Street). The press conference will be broadcast on the YouTube channel of Interfax-Ukraine. Admission of journalists requires registration on the spot.

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PRESIDENT ZELENSKY SIGNS LAW SUPPORTING CREATIVE INDUSTRY IN RELATION TO COVID-19

President Volodymyr Zelensky signed the law on amendments to certain Ukraine’s legislative acts on government support of culture, creative industries, tourism, small and medium businesses due to the restrictive measures related to the spread of coronavirus (COVID-19) disease.
“Creative industries, cultural institutions are among those which suffered most from lockdown. After all, their activities have stopped almost completely and now they live in total uncertainty. These are entire sectors of the economy that are now on the brink of survival. They also pay taxes and provide people with jobs, therefore, need no less support than traditional business sectors,” the head of the state said during signing the document.
The Verkhovna Rada of Ukraine adopted law No. 692-IX at second reading on June 16. It was supported by 343 MPs. The document establishes a reduction in property rental fees at the request of the tenant of a cultural institution engaged in entrepreneurial activity using this property, for the entire time that it could not be used.
The document also provides additional opportunities for radio by simplifying procedures by amending the law of Ukraine on advertising.
It is important that the document also stipulates the government support for cinematography in the form of providing a government grant for the development of film projects. It is noted that for national fiction, animated, documentary films, films for children (including artistic and cultural significance), films of artistic and cultural significance (copyright), television films, series and debut films, it can be up to 100% of total estimated cost inclusive.
Amendments are also being made to the law of Ukraine on the rental of state-owned and communal property in order to normalize the provision of paid services in the field of culture and arts by cultural institutions.

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DEPUTY PRIME MINISTER FOR INDUSTRY MAY APPEAR IN UKRAINE

President of Ukraine Volodymyr Zelensky has said that the Deputy Prime Minister for Industrial Policy could appear in the government of Ukraine in a week.
“We decided to reinstate such a position as Deputy Prime Minister for Industrial Policy … We have already seen many really professional people. Now we are choosing the best candidate. Because for us both the country’s industry, the defense industry, the space industry, and all our enterprises, as one of the best candidates for this position said, is the country’s development strategy. For the country to really be industrial, to be a space country,” he said at a meeting with business representatives of Odesa region on Saturday.
Zelensky pointed out that in Ukraine there is a full cycle at many enterprises in order to build an industrially powerful country.

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UKRAINIAN INDUSTRIALISTS DEMAND SUPPORT FOR SHIPBUILDING INDUSTRY

The industrial community of Ukraine is against ordering 16 modern Mark VI patrol boats and the equipment they need for $600 million from the United States, the press service of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) has said.
“The main duty of the authorities is to take care of the economic development of their own country, filling their own state budget, creating jobs at home. The orders in question only contribute to the growth of foreign budgets and stabilize the situation with employment in other states and do not help overcome crisis in our country. This is unacceptable and irresponsible,” the ULIE President, the chairman of the Anti-Crisis Council of Public Organizations, Anatoliy Kinakh, said.
In addition to ordering boats, industrialists pay attention to the purchase of imported locomotives and helicopters, which, in their opinion, could threaten serious socio-economic consequences for the whole country.
Kinakh emphasized that Ukraine has its own shipbuilding industry – highly professional production facilities, including in Mykolaiv, which are capable of building modern military boats and other small tonnage ships with a certain modernization.
“At this difficult time, the responsible government must develop both a national strategy for industrial and innovative development, and separate programs for shipbuilding, other priority areas of industry, to use all the levers to support the complex high-tech industry, starting from manufacturers’ access to credit resources, mitigating fiscal burden, changes in public procurement that would allow attracting public finances to load national producers,” he said.

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STATE-RUN NAFTOGAZ TO CUT GAS PRICE FOR INDUSTRY BY 20%

In June 2020, NJSC Naftogaz Ukrainy will reduce the price of natural gas sold to industrial consumers on an advance payment basis by 20.7% (UAH 849.60) compared to the current month’s price, to UAH 3,256 per 1,000 cubic meters (including VAT).
According to a report on the company’s website, the indicated price is relevant for consumers purchasing gas on an advance payment in the amount of more than 50,000 cubic meters per month, provided that there are no debts to the company and for 100% subsidiaries of Naftogaz Ukrainy.
For other buyers, the price next month will decrease by 19% (by UAH 896.40), to UAH 3,818 per 1,000 cubic meters (including VAT).

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