Business news from Ukraine

OPEN DATA BRINGS OVER $700 MLN TO UKRAINE’S ECONOMY IN PREVIOUS YEAR

Open data in 2017 brought more than $700 million, or 0.67% of GDP, into the economy of Ukraine, according to a study conducted by the Kyiv School of Economics (KSE) in partnership with the London-based Open Data Institute. “If Ukraine continues to work with open data, in particular publish datasets from government decree No. 835, then economic benefits from open data until 2025 will be up to $1.4 billion, or 0.92% of GDP,” said KSE member Artur Kovalchuk, who is one of the authors of the study.
The study finds that today about 3,000-4,000 people directly work with open data, and its further development will translate into the need for personnel with experience in collecting, analyzing, using data.
In addition, Project Manager of the USAID/ UK aid-funded Transparency and Accountability in Public Administration and Services program /TAPAS Petro Matiaszek says that according to the research, the potential of open data in Ukraine is fully comparable with that of the EU. Thus, a recent study by Capgemini for the European Commission estimates direct effects from opening authorities’ data in the EU countries by 2020 vary within 0.37-1.58% of GDP (EUR 55.3 billion).
The study “Economic Potential of Open Data for Ukraine” was conducted with the support of the State Agency for E-Governance and is the first attempt to assess the direct economic effect of opening government data and the potential created by such data for the national economy.
The findings of the research, methodology and other data are available at tapas.org.ua.

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GOVERNMENT DOWNGRADES UKRENERGO PROFIT EXPECTATIONS IN 2018 TO UAH 2.6 BLN

The Cabinet of Ministers of Ukraine has approved the adjusted financial plan of Ukrenergo for 2018 with a net profit of UAH 2.554 billion against UAH 3.296 billion previously set in the document. The relevant decision was made by the government at a meeting on April 25.
The net sales income of Ukrenergo in 2018 is now planned at UAH 7.877 billion, whereas the previous wording of the financial plan foresaw UAH 7.331 billion of income. The planned gross profit is UAH 5.108 billion, whereas before the adjustment the document it included a figure of UAH 4.793 billion.
The updated financial plan of Ukrenergo provides for the transmission by the company’s networks of 113.5 billion kWh of electricity in 2018, while previously it was planned to transfer 115 billion kWh. As reported, Ukrenergo operates trunk and interstate power grids, as well as performs the centralized dispatching of the united energy system in the country. The company is a state-owned enterprise, it is subordinate to the Ministry of Energy and Coal Industry.

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PYRIATYN CHEESE PLANT SEES PROFIT RISE BY 1.6 TIMES IN 2017

PJSC Pyriatyn Cheese Factory (Poltava region), one of the largest cheese making enterprises of Ukraine, received a net profit of UAH 96.4 million in 2017, which is 1.6 times more than in 2016. According to a company report in the information disclosure system of the National Securities and Stock Market Commission, its net income last year increased by 1.4 times, to UAH 1.52 billion.
The gross profit of the cheese plant over the year increased by 1.4 times, to UAH 236.3 million, operating profit by 1.3 times, to UAH 126.96 million.
The sales of hard cheese in monetary terms decreased by 4.5%, to UAH 225.2 million, in natural terms by 28%, to 2,300 tonnes. Sales of processed cheese in money terms increased by 9.6%, to UAH 130.92 million, in natural terms decreased by 13.4%, to 2,150 tonnes.
Pyriatyn Cheese Factory is part of Milk Alliance, established in June 2006 as a holding company with a charter capital of UAH 23.5 million and a balance sheet, 99.9% consisting of long-term financial investments.

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LARGE PORK PRODUCER APK-INVEST SEES 3.5-FOLD RISE IN PROFIT

Private joint-stock company APK-Invest (Donetsk region), a large pork producer in Ukraine, saw UAH 889.1 million of net profit in 2017, which is 3.5 times more than a year ago. According to a company report in the information disclosure system of the National Commission for Securities and the Stock Market, net revenue last year grew by 37.9%, to UAH 2.664 billion.
Gross profit rose by 40.3%, to UAH 405.5 million, and operating profit grew 1.9-fold, to UAH 1.016 billion.
As reported, the company plans to increase the number of pigs by 75%, to 1 million pigs and introduce several new technologies in agriculture.
APK-Invest is a vertically integrated agro-industrial company with a complete closed cycle of production of chilled pork from growing grain and animal feed production to production and sale of meat goods.

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UKRAINE RESTART SPIRIT EXPORTS TO TURKEY

The state-owned enterprise (SOE) Ukrspyrt for the first since 2006 will supply 32,000 decaliters of spirit to Turkey, the SOE has said on its website.
According to the report, spirit will be distilled at the Kovalivka division of the SOE in Ternopil region.
The contract was implemented as part of the development plan of Ukrspyrt in line with the memorandum signed between the Ternopil Regional Administration and the SOE on February 2, 2018.
“A total of 10 tanker trucks arrived to us. They will take 32,000 decaliters of spirit for exports. The trucks will go to Odesa and then to Turkey using a ferry. Then we hope for tight cooperation with Turkish partners,” Head of Kovalivka division of Ukrspyrt Andriy Chorba said.
The Kovalivka division produces 2,000 decaliters of spirit a day, sending almost 90% of it for exports. The key partners are Hungary, Poland and Georgia.
Acting Ukrspyrt Director Yuriy Luchechko said that a vodka line for exports was launched in 2017. The company received an order to supply two more trucks to Germany, he said.

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COMPETITION AGENCY PERMITS IFC TO BUY THREE ELEVATORS IN UKRAINE

The Antimonopoly Committee of Ukraine has permitted the International Finance Corporation (IFC) from the group of the World Bank to acquire three elevators of Mriya agroholding in Ternopil region as part of the debt restructuring.
According to the decision of the committee posted on its website, the permit was given to IFC to buy assets belonged to Noria West private enterprise, Black Bryony Holdings LLC and Elagri-Derenivka LLC.
As reported, Mriya and IFC in May 2017 agreed on the terms of restructuring of the holding’s debt. The parties agreed to split the debt into a secured and unsecured part. They also stipulated terms for restructuring the secured part of the debt. Mriya’s unsecured debt to IFC will be restructured on common conditions for all unsecured creditors.
Mriya’s total debt is $1.087 billion, of which $46 million is loans for working capital, $7 million for leasing of agricultural machinery, $130 million is secured loans, and $904 million is unsecured loans.
After the restructuring, the amount of secured loans will be reduced to $62 million, unsecured ones to $213 million.
Mriya is a vertically integrated agro-industrial holding founded by Ivan Huta in 1992. Today, its land bank is 165,000 ha in Ternopil, Khmelnytsky, Ivano-Frankivsk, Chernivtsi, Lviv and Rivne regions. The capacity of its grain storage facilities is estimated at 380,000 tonnes.

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