Business news from Ukraine


KYIV. May 17 (Interfax-Ukraine) – Ukraine and Turkey have agreed on cooperation in nuclear energy, aircraft industry, development of transit corridors, implementation of joint construction projects, facilitating access of Ukrainian metallurgical companies to the Turkish market, the Southern Gas Corridor, infrastructure projects in Crimea to support Crimean Tatars, Ukrainian Deputy Prime Minister – Regional Development Minister Hennadiy Zubko summarized the results of the 10th session of the Ukrainian-Turkish Intergovernmental Commission on Trade and Economic Cooperation.

“We have agreed on the Ukrainian-Turkish partnership in the development of aircraft industry and space technologies. Together with Turkey, Ukraine is ready to develop and produce new passenger and cargo planes at the Antonov State Enterprise. In particular, these include the development and production of the TAN-158 passenger aircraft based on the An-158 aircraft, a transport aircraft based on the An-178 and an aircraft based on the An-70,” Zubko said.

The head of the Ukrainian delegation said that the parties agreed that Turkey would consult Ukraine on the safety of its nuclear power plants and on the training of all categories of NPP personnel and training of Turkish students and graduate students in Ukraine.

According to him, the agreements include the creation of favorable conditions for bilateral transit shipments, in particular for transporting Turkish goods through the territory of Ukraine to Poland, Slovakia, and the Scandinavian countries. “The next steps of cooperation will be the introduction of uniform rules for sea waybills between the ports of Ukraine and Turkey. At the moment, the parties are agreeing on the tariff and technological conditions of shipments,” Zubko said.

The vice premier also said that the parties decided to hold a joint international construction forum in Kyiv in 2016-2017, having agreed by that time on a number of strategically important infrastructure facilities.

“We are negotiating the opening of its market by Turkey to our metallurgical companies. Ukraine is ready to join the development and reconstruction of Turkish steel companies. We have agreed on cooperation in the field of energy, in particular in the design of new ‘green’ buildings,” Zubko said.

In addition, he said Turkey and Ukraine were planning to set up a joint committee on customs issues to improve the bilateral trade relations.

“We have discussed the possibility of Ukraine’s entry into an important project – the Southern Gas Corridor if it is economically feasible and to ensure non-discriminatory access to the respective capacities,” the deputy prime minister said.

He also stressed the importance of Turkey’s position on the Crimean issue, in particular the fate of the Crimean Tatar people. “We will contribute to the Turkish infrastructure projects aimed at the support of Crimean Tatars,” Zubko said.

As reported, Kyiv hosted the 10th meeting of the Ukrainian-Turkish Intergovernmental Commission on Trade and Economic Cooperation on May 12-13 co-chaired by Deputy Prime Minister – Minister of Regional Development, Construction and Housing and Utilities Services of Ukraine Hennadiy Zubko and Minister of National Defense of Turkey Ismet Yilmaz. The head of the Turkish delegation also met with the President of Ukraine Petro Poroshenko and Prime Minister of Ukraine Volodymyr Groysman.

According to the State Statistics Service, in 2015, Turkey was 2nd in terms of the volume of Ukrainian exports abroad and 5th in terms of the volume of trade. Meanwhile, last year, the exports of goods from Ukraine to Turkey fell by 22.2% to $2.77 billion, while the imports shrank by 34.5% to $0.85 billion.


KYIV. May 17 (Interfax-Ukraine) – Milkiland, a dairy group with assets in Ukraine, Russia and Poland, finished registration of one Polish and two Panamian trading subsidiaries in the first quarter of 2016.

The group said in a report on the Warsaw Stock Exchange (WSE), UA TRADE Sp.zo.o was registered in Poland and Newholm Systems S.A. and Agrointer Corporation – in Panama.

Milkiland Group of companies is one of the largest dairy producers in Ukraine and Russia. In Ukraine the group has 10 plants, which produce a wide assortment of dairy products including cheese, fresh dairy products and butter. In Russia Milkiland produces dairy products at the Moscow-based OJSC Ostankino Dairy Plant. In the summer of 2012 Milkiland bought Masovia Province’s Ostrowia cheese-making plant in Poland, and at the start of 2013 – OJSC Syrodel in Russia.


KYIV. May 17 (Interfax-Ukraine) – The profit of Kredobank (Lviv) in January-March 2016 amounted to UAH 66.609 million, which is 6.4 times more than in the corresponding period of 2015 (UAH 10.402 million).

According to the quarterly financial statements of the bank, its net interest income in the first quarter increased compared to the corresponding period of 2015 by 78%, to UAH 217.370 million.

Total assets in the first quarter increased by 11.5%, to UAH 9.225 billion, loans issued to customers grew by 8.3%, to UAH 4.482 billion.

Charter capital remained at the level of UAH 1.919 billion, net worth rose by 8.3% and stood at UAH 898.72 million.

Kredobank was established in 1990. Its strategic investor is Poland’s largest bank PKO BankPolski S.A., whose share in the charter capital of the Ukrainian bank is 99.6%.

Kredobank ranked 21st among 123 operating banks in the country on October 1, 2015 by total assets


KYIV. May 17 (Interfax-Ukraine) – Interchem pharmaceutical company (Odesa) has completed the implementation of a high tech investment project on the development of production facilities and the construction of a unique laboratory and industrial complex of the European level in Odesa.

According to a company press release, the investment project will allow to quadruple production of medicines that will ensure providing the population with high quality and affordable medicines and facilitate domestic medicines’ entering foreign markets.

The total volume of investment in the new project in early May of the current year amounted to EUR42 million. The total area of the new complex is 15,000 square meters.

During the implementation of the project Interchem paid more than UAH 243 million to the budgets of all levels. The amount of paid tax liabilities under contracts with Ukrainian partners involved in the project exceeded UAH 50 million, tax payments to the budget under contracts with non-residents exceeded UAH 28 million.

The company created 139 new jobs. It is planned by 2020 to increase the number of employees from 700 (early 2016) to 960 people.

Interchem is one of the leading Ukrainian producers of medicines and pharmaceutical substances. It is included in the top ten manufacturers of medicines. The share of own production reaches 2% of the total market in the country.


KYIV. May 17 (Interfax-Ukraine) – Mariupol maritime merchant port (Donetsk region) is interested in mutually beneficial cooperation with all cargo owner companies and continues to develop relations with its strategic partner – Metinvest Group.

According to the Illichivets newspaper, with reference to port director Oleksandr Oliynyk, the agreement on cooperation with Metinvest-Shipping on transshipment of metal produced by Metinvest Group through berth No. 10, which is to be reconstructed, expires in June.

“However, we’ll not terminate our strategic partnership, on the contrary, we will develop it using other berths at the port,” the port director said.

According to him, currently Mariupol metallurgical enterprises provide the basic load of the port’s transshipment facilities with metal for exports. And in May this year four Handysize class vessels deliver iron ore to the port for the needs of metallurgists, which provides the port with an additional cargo flow.


KYIV. May 14 (Interfax-Ukraine) – Agricom Group seeks to start agricultural production in western Ukraine in autumn, Agricom Group CEO Petro Melnyk said at a press conference in Kyiv on Thursday.

“We have invested some $6 million in the past two years. Now we start developing a new cluster in western Ukraine,” he said.

He said that the cluster development strategy in the first year implies purchase of 5,000-10,000 ha of land to create the production base.

“I think that in the autumn we would sow winter crops there,” Melnyk said.

He also said that Agricom Group is building an oat-flake plant in Chernihiv region.

“We are building oat-flake facilities near Chernihiv, absolutely new comparable to other plants in Europe,” he said.

Melnyk said that shareholders finance the plant and a five-year loan from the Swiss export agency was taken to fund the project.

Agricom Group produces food from grain at own production base. It unites agricultural, processing and trade companies.