Business news from Ukraine


Industrial production in Ukraine in September 2018 decreased by 1.3% compared to September 2017, while in August it fell by 0.5% compared to August 2017, in July the growth was 2.9%, in June this figure was 2.2%, and in May some 2.5%, the State Statistics Service has said. The agency said that with the adjustment to the effect of calendar days, industrial production in September 2018 also fell by 0.7% from September 2017, while in August 2018 from August 2017 the decline was 0.5%, in July 2018 the growth was 2.3%, in June 2018 some 2.5%.
The service said industrial production in September of this year increased by 1.7% compared to the previous month, and taking into account the seasonal factor it was the same as in August 2018.
In the nine months ending September 2018, the growth of industrial production in Ukraine slowed to 1.8% compared to the same period in 2017, while this figure stood at 2.2% for the eight months, at 2.6% for the seven months, and at 2.5% for the six months.
The supply of electricity, gas and steam in the nine months grew by 2.2%, while the processing industry saw a 1.6% increase, and output in the mining industry grew by 2.0%.
In September 2018 alone, the processing industry reduced production by 1.6% from September 2017, while the supply of electricity, gas and steam fell by 3.9%, and the mining industry saw a 0.7% increase in output.
The State Statistics Service said that industrial production in Luhansk region in September 2018 compared with September 2017 did not change, while Donetsk region saw a 1.2% decrease in industrial output.
As for other regions, a positive result in industry in September this year was recorded in Sumy region (growth by 41.7%), Ternopil region (4.9%), Zaporizhia region (by 4.4%), Zakarpattia (by 3.2%) Ivano-Frankivsk region (2%), Poltava region (1.2%), and Kyiv region (1.5%).
The following regions posted a decrease in industrial production: Odesa region by 14%, Volyn region by 10.3%, Lviv region by 5.4%, Zhytomyr region by 5.1%, Rivne region by 4.9%, Kirovohrad region by 3.4%, Cherkasy region by 3.3%, Kharkiv region by 3%, and the city of Kyiv by 6.3%.
As reported, industrial production in Ukraine in 2017 decreased by 0.1% after growing by 2.4% in 2016. This was preceded by four years of decline: in 2015, industrial production decreased by 13%, in 2014 by 10.1%, in 2013 by 4.3%, in 2012 by 0.7%.



Agrochemical company Grossdorf (Cherkasy) will open a plant for the production of liquid carbomide-ammonium fertilizers near Khmilnyk (Vinnytsia region) with a capacity of 70,000 tonnes per year and a storage capacity of 3,000 tonnes in the middle of December, the press service of the company has said. “We’ve found a site that suited us, and prepared it properly. Currently, work is underway to manufacture equipment for the plant, then it will be tested at the main production facility, transported to Khmilnyk and installed. These works will take approximately one and a half or two months. Thus, the production will be launched by the end of 2018, and agricultural producers of this region will be provided with carbomide-ammonium fertilizers in the spring season of 2019,” Grossdorf Commercial Director Serhiy Ruban said.
He noted that by the end of the year Grossdorf’s production capacity will reach 480,000 tonnes.
The company said over the past year its strategy has changed somewhat. If earlier focus was made on rail transportation, now the company plans to build factories in the main regions where there is a significant need for fertilizers. This is the third plant that Grossdorf group will launch this year.
Grossdorf agrochemical company was established in 2016. It is engaged in production, import, transportation of fertilizers, as well as providing services for introduction of anhydrous ammonia. Its core business is the supply of basic fertilizers for precision farming.

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The production of milk in Ukraine (excluding the temporarily occupied Crimea and Sevastopol, part of Donbas) in January-September 2018 declined by 2% compared to the same period in 2017, to 7.908 million tonnes.
At the same time, egg production in the first nine months grew by 3.1% compared to the same period in 2017, to 12.484 billion eggs, the State Statistics Service of Ukraine said.
Production of meat (in live weight) in January-September 2018 grew by 0.3%, to 2.276 million tonnes.
According to earlier statistics reports, milk production in Ukraine in 2017 decreased by 0.5% from 2016, to 10.329 million tonnes, meat (in live weight) by 0.4%, to 3.259 million tonnes. Production of eggs in 2017 rose by 3.2%, to 15.578 billion eggs.



State-owned enterprise Spetstechnoexport and Turkey’s defense company Aselsan have signed a memorandum confirming plans to start production of Turkish tactical communications devices in Ukraine. An Interfax-Ukraine correspondent has reported that the sides signed the document at the 15th international specialized exhibition Arms and Security 2018 opened in Kyiv on October 9.
Spetstechnoexport Head Vladyslav Belbas told Interfax-Ukraine that the signed document confirms mutual commitments of the parties outlined in the offset agreement signed by Spetstechnoexport and Aselsan in July in Ankara after a meeting of the bilateral intergovernmental commission for defense cooperation. The details of the project are being approved.
As reported, in October 2017, Aselsan and Spetstechnoexport signed a government-guaranteed contract in Kyiv for the amount of $43.635 million for delivery of tactical communications to be used in the USB band in the interests of the Armed Forces of Ukraine in 2018 as part of the government defense procurement order. According to Ukrainian legislation, purchases of defense imports under the government defense procurement order amounting to more than $5 million provide for the conclusion of an offset agreement.

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Crude oil production in Ukraine in January-August 2018 grew by 2.7% year-over-year, to 1.004 million tonnes. The Energy and Coal Industry Ministry of Ukraine told Interfax-Ukraine that gas condensate production grew by 0.8%, to 441,936 tonnes.
Naftogaz Ukrainy’s enterprises increased oil production by 2.9% in January-August 2018, to 976,820 tonnes, but decreased gas condensate output by 7.1%, to 278,330 tonnes. A 2.9% rise was seen in oil production by Ukrnafta, to 926,300 tonnes and a 16.1% fall in production of gas condensate, to 33,400 tonnes, while Ukrgazvydobuvannia cut oil production by 9%, to 50,520 tonnes and gas condensate by 5.7%, to 244,930 tonnes.
Other oil producing companies in January-August 2018 increased crude oil production by 26.3%, to 26,684 tonnes and condensate – by 17.7%, to 163,606 tonnes.
As reported, in 2017, Ukraine cut oil and gas condensate production by 4.2%, to 2.098 million tonnes.

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Electricity production in the united energy system of Ukraine in January-August 2018 increased by 2.1% (2.122 billion kWh) compared to the same period in 2017, to 104.285 billion kWh, the Ministry of Energy and Coal Industry has told Interfax-Ukraine. Nuclear power plants (NPP) in the period reduced electricity production by 7.2%, to 54.111 billion kWh, in particular, electricity generation at Zaporizhia NPP amounted to 24.873 billion kWh (2.6% more compared to January-August 2017), Yuzhnoukrainsk NPP some 10.402 billion kWh (3.5% less), Rivne NPP to 9.435 billion kWh (25.3% less), Khmelnytsky NPP to 9.408 billion kWh (11.8% less).
Thermal power plants (TPP), as well as combined heat and power plants (CHPP) and cogeneration plants increased production by 10.3%, to 38.070 billion kWh. In particular, the generating companies of TPPs raised production by 11.7%, to 31.038 billion kWh, while CHPP and cogeneration plants by 4.6%, to 7.032 billion kWh.
Hydroelectric and hydroelectric pumped storage power plants increased generation by 32.5%, to 9.398 billion kWh, while block stations decreased it by 0.3%, to 970.3 million kWh.
Electricity production by non-traditional sources (wind power plants, solar stations, biomass) for the eight months increased by 37.5%, to 1.730 billion kWh.
The share of nuclear power plants in the structure of electricity production was 51.9% (in January-August 2017 some 57.1%), TPPs, CHPPs and cogeneration plants some 36.5% (33.8%), hydroelectric and hydroelectric pumped storage power plants some 9% (6.9%), block stations 0.9% (1%), and alternative sources 1.7% (1.2%).