Business news from Ukraine

Business news from Ukraine

“Cherkasy Bus” plans to invest UAH 200 mln in creation of two new bus models

Cherkasy Bus JSC which produces Ataman buses based on Japanese Isuzu units is planning to invest UAH 200 million in the project for creation of two buses exceeding the buses produced today, deputy Dmitry Kisilevsky said after his visit to Cherkasy.
“Due to localization, the owner of Cherkasy Bus, Alexander Dorosh, is bolder in his plans to invest. He is preparing two new larger buses for production. The volume of investments in this project is 200 million hryvnias,” he wrote in Facebook on Thursday, summarizing some results of the law on localization in machine-building, initiator of which he is.
According to him, during the period of the law (since June 2022), which in 2023 provides for mandatory availability of at least 15% of the Ukrainian component in public procurement (and +5% annually until it reaches 40%), the plant has produced 324 buses, won 60 tenders in public procurement – not only for buses, but also for other wheeled vehicles with localization.
“The largest of them is for the supply of 126 school buses for the Lviv region. The localization index in these buses is 60%. Today, two-thirds of the company’s production is an order from the public sector,” Kisilevsky stressed.
In this connection, he noted inappropriate, in his opinion, limitation of the maximum support, which industrial manufacturers can get from the state on the program 5-7-9, to the sum of 60 million hryvnias.
“For comparison, this ceiling is set at 1 billion UAH for retail chains. Such priorities, in my opinion, should be changed to the exact opposite. “Cherkassy bus” program 5-7-9 successfully took advantage of, but the need for investment funds is much more, “- emphasizes the people’s deputy.
Kisilevsky noted that “Cherkassy bus” was idle only a few days in February 2022 (immediately after the Russian invasion), and now 450 residents of Cherkassy work at the plant, another 50 specialists the company is ready to hire. The average salary is 15,000 hryvnias.
He stressed that in Ukraine today there are at least four major manufacturers of buses, jointly capable of covering the needs of the state in this form of transport.
“Buying Ukrainian public transport, state departments, companies and communities win three times. Firstly, they save on service, because the manufacturer is close by. Secondly, they get back more than 40% of their money spent in taxes. Thirdly (and most importantly) this way the State encourages investments and job creation in the country, not abroad”, summed up the MP.
Founded in 1994, “Cherkassy Bus” plant until now has been producing only small class buses, as well as other wheeled vehicles using Isuzu equipment.
According to the resource opendatabot, in 2022, the plant increased its net profit by almost 2.9 times to UAH 65.02 million, while its net income grew by 32.5% to UAH 842.29 million.
The Kiev-based “Investments for Development” LLC and Oleksandr Dorosh own 24.79% of the stock, Anna Suprun and Konstantin Vorushylin – 8.2498% each, another four natural persons (including the long-term director of the plant Vitalii Raabe) own 5.3999% of shares each.
The charter capital of Cherkassy Bus JSC is 162.96 mln hryvnia.

, ,

Zelenskyy at meeting with delegation of politicians and businessmen from USA urged to invest in Ukraine

Ukrainian President Volodymyr Zelenskyy has held a meeting with a delegation of politicians, businessmen and representatives of United States charities led by former US Secretary of State Mike Pompeo.
The head of state noted the importance of such visits and meetings, which are a powerful signal of support for Ukrainians in our fight for freedom and democracy, the press service of the Office of the President reported Tuesday.
“I’m glad to see you have come with your friends,” the president said, addressing Mike Pompeo. – Comprehensive American support is very important to us.”
During the meeting, the head of state invited American business to actively invest in Ukraine. “We are open to this, we are ready to provide you with full assistance. It is very important for us,” he said.
Zelensky informed about business development opportunities in construction, agriculture, IT technology, etc. The president also emphasized the importance of continuing and strengthening defense assistance and joint development of defense technologies, taking into account the experience acquired by Ukraine during the war. “Invest in business, because business is what creates jobs. We are interested in people being able to find jobs and the budget getting revenue to strengthen our capabilities on the battlefield,” summarized the head of state.
A number of other topical issues were also discussed, in particular Ukraine’s movement to NATO, the importance of further strengthening the sanctions pressure on Russia. Zelenski noted the activities of American charitable organizations, whose representatives were present at the meeting, focused on helping displaced people, rebuilding destroyed housing stock, providing medical care, and providing drinking water and food.

, , ,

Amazon to invest $35 bln in new data centers in Virginia by 2040

U.S. online retailer Amazon plans to invest $35 billion by 2040 to open several data centers (data centers) in Virginia, which will create at least 1,000 jobs, Governor Glenn Youngkin said. He said a number of locations within the state are being considered for now, with a final decision to be made later, MT Newswires reported.
Amazon is one of the largest private employers in Virginia, where the first Amazon Web Services (AWS) cloud data centers were established in 2006. In 2018, the company opened a second headquarters in Arlington, which is located in that state. AWS Director of Economic Development Roger Wener said the division has invested more than $35 billion in Virginia since 2006 and contributed nearly $7 billion to the state’s GRP. For the third quarter of 2022, AWS revenue rose 27.5% to $20.54 billion, while Amazon’s like-for-like total was up 15% to $127.1 billion.
The company’s capitalization has fallen nearly 33% in the past 12 months (to $992 billion), while the Nasdaq stock index is down just over 19%.

, , ,

President Zelenskyy urged French business to invest in food industry of Ukraine

Ukrainian President Vladimir Zelensky has called on French business to invest in the Ukrainian food industry.
Speaking by video link at the “Solidarity with the Ukrainian People” conference in Paris on Tuesday, Zelensky recalled that this year “through joint efforts we managed to stop the unfolding of the global food crisis.”
“We have already exported more than 13 million tons of grain. Thanks to our Grain from Ukraine initiative, we will help the poorest countries,” he said.
“But we also send humanitarian cargo to export, mostly raw materials, and we can send processed products. Right now there is a need to build a whole industry that will be export-oriented and definitely have consumers, and definitely give profit,” Zelensky said.
It would be right, he said, “if French business has already assessed the prospects and came to Ukraine. The same is in the energy, machine building, defense industry, transport and other industries.

, , ,

Republic of Korea will invest in Ukraine’s recovery – deputy chairman of Rada

The Republic of Korea is interested in investing in projects to restore Ukraine’s infrastructure, First Deputy Chairman of the Verkhovna Rada Oleksandr Kornienko said.
“We are talking to them about the restoration of infrastructure. They are interested in it … South Korea is a country that can invest a lot in Ukraine and do a lot in terms of our reconstruction,” Kornienko said during a national telethon.
The first deputy speaker of the Ukrainian parliament noted that South Korea is providing humanitarian aid to Ukraine, recalling the agreement to provide Ukraine with 20 high-powered generators.
Kornienko also said that members of the Ukrainian parliament’s delegation discussed with their colleagues from the Republic of Korea “how to build a safe world after our victory.”
The first vice-speaker of the Verkhovna Rada expressed the hope that the delegation of the South Korean parliament will come to visit Ukraine.
“We hope that they will respond to our invitation and come to Ukraine with an official visit and see for themselves how it all happens. And then – we already know examples when countries changed their point of view on arms supplies to Ukraine (the Republic of Korea does not supply arms to Ukraine – IFU),” Kornienko noted.
As it was reported, the first vice-speaker of the Verkhovna Rada heads the parliamentary delegation, which is on a visit to South Korea on November 24-26.

,

Ukrainian Prime Minister calls on Canadian companies to invest in Ukraine now

Ukrainian Prime Minister Denis Shmygal called on Canadian companies to invest in Ukraine now.
“Those who first invest in Ukraine will benefit the most in the future. Speaking at the “Rebuild Ukraine” business conference organized by Canada, called on Canadian companies to join in the reconstruction of our country already now. Ukraine’s civil and energy infrastructure continues to take blows from Russian terrorists. Pointed to the importance of assistance from Canadian businesses in providing critical needs of the state”, – wrote Shmygal in Telegram-channel.
Also priority areas of investment, according to the Prime Minister, are: security and defense industry, the agricultural sector, energy, IT and new infrastructure.
“We are negotiating with IFC and MIGA on insurance of military risks to intensify the attraction of investments. Sovereign bonds of 500 million Canadian dollars issued by the Canadian government will also be an important tool to strengthen Ukraine,” he added.

,