Business news from Ukraine

CHINESE FABRIC PRODUCER TO INVEST $20 MLN IN FLAX PROCESSING PLANT IN RIVNE REGION

KYIV. Sept 2 (Interfax-Ukraine) – Yuyue Home Textiles Co., Ltd. is to build a flax processing plant in Rivne region, Rivne Regional State Administration has reported.

The construction of the plant will start as early as in 2016, the project is designed for five years and the total amount of investment is $20 million.

The company has already selected a plot of land, which is in territory of Kostiantynivsky village council in Sarny district, the Chinese company’s CEO said at a meeting with local authorities.

The local government offered a site for the construction of the plant and a plot of land for growing and processing flax. About 30,000 ha of land will be allocated under the project.

CABINET APPROVES EXTENDING LIST OF OBJECTS FOR PRIVATIZATION IN 2016-2017

KYIV. Sept 2 (Interfax-Ukraine) – The Cabinet of Ministers at a meeting on August 31 approved expanding the list of objects for privatization, initially approved in 2015, until 2017.

First Deputy Minister of Economic Development and Trade Yulia Kovaliv said during the discussion of the project at a meeting of the governmental committee it was proposed to instruct the State Property Fund (SPF) to accelerate the mechanism of transferring the objects for privatization, which now takes four or eight months.

According to SPF Head Ihor Bilous, 430 objects were added to the list of objects to be privatized.

Kovaliv told Interfax-Ukraine among these objects are Turboatom, Electrotyazhmash, United Mining Chemical Company, Zaporizhia Titanium and Magnesium Combine and State Food and Grain Corporation.

UKRAINE TO SET UP STATE EXPORT INSURANCE AGENCY – OFFICIAL

KYIV. Sept 1 (Interfax-Ukraine) – The Cabinet of Ministers intends to approve the concept of national export insurance and create the State Export Insurance Agency for promotion of Ukrainian exports, the Ministry of Economic Development and Trade has said.

“The creation of the State Export Insurance Agency will be an instrument to protect exporters against financial risks in accordance with the highest international standards,” First Deputy Prime Minister Stepan Kubiv said.

According to the ministry, Kubiv together with Trade Representative of Ukraine Natalia Mykolska and Deputy Head of the National Bank Oleh Churiy on August 30 hold a meeting with the profile associations as for setting up the State Export Insurance Agency.

The trade representative noted the key focus in creating the agency is on realism and effectiveness.

As reported, in late April this year Natalia Mykolska stated the State Export Insurance Agency could be founded in 2017 if funding for the project is foreseen in the national budget. According to her, six or nine months will be required from the date of creation of the export insurance agency to providing first services.

KYIV MAYOR, CHINESE AMBASSADOR TALK ABOUT ATTRACTING INVESTMENT AND TOURISM DEVELOPMENT

KYIV. Sept 1 (Interfax-Ukraine) – Kyiv City Mayor Vitali Klitschko and Chinese Ambassador to Ukraine Du Wei have discussed the prospects of cooperation in the field of tourism and attraction of new investments and technologies.

“We are looking forward to a fruitful cooperation for the common benefit for our countries,” Klitschko was quoted by his press service.

According to the mayor, China for Ukraine and Kyiv in particular is a strategic partner in attracting new technologies and investments in the areas of IT, engineering and in the agricultural sector.

In turn, Du Wei noted Kyiv’s support of the Chinese Embassy. “I hope that during my tenure we will achieve closer cooperation between Kyiv and Chinese cities. Our embassy is ready to contribute to helping Chinese businesses to work in Kyiv. We would also like to take this opportunity on your behalf to invite Chinese entrepreneurs to the international business forum which will be held in Kyiv in October, so that they could make their contribution to the development of the Ukrainian capital,” the diplomat said.

The parties also discussed the possibility of organizing a business forum for Chinese entrepreneurs.

Klitschko and Wei also spoke about the development of tourism cooperation and more intensive cultural exchange between the two countries.

UKRAVTODOR TO PREPARE STRATEGY OF ROAD DEVELOPMENT FOR 2017-2019 IN SEPT

KYIV. Sept 1 (Interfax-Ukraine) – The State Agency of Automobile Roads of Ukraine (Ukravtodor) jointly with international financial organizations and other institutions is developing a strategy of the road sector development for 2017-2019, agency acting head Yevhen Barakh has said at a press conference in Kyiv.

“Today we are at the stage of preparation for the development strategy for the next three years. Jointly with the World Bank experts, the Ministry of Infrastructure, the Ukrainian Cabinet of Ministers we will prepare this strategy by September,” he said.

According to Barakh, Ukravtodor has already formed the vision of this strategy: in the next three years it is needed to focus on the east and south of Ukraine.

“In addition, we look forward to a number of draft laws, in particular for the creation of the road fund. This also concerns the laws on decentralization and a transfer of roads to the local level,” Ukravtodor said.

 

ANTONOV, CHINA’S AICC AGREE ON LONG-TERM COOPERATION ON AN-225 MRIYA AIRCRAFT

KYIV. Sept 1 (Interfax-Ukraine) – Kyiv-based state-run Antonov enterprise and Aerospace Industry Corporation of China (AICC) have signed an agreement on cooperation under the An-225 Mriya aircraft program, the Ukrainian company’s press service has said.

“The parties have expressed their intention to cooperate in the long-term outlook, which foresees the construction of the second example of the modernized An-225 Mriya aircraft at the Antonov enterprise and its delivery to AICC at the first stage and the establishment of the joint batch manufacture of An-225 in China under Antonov’s license at the second stage,” the company said in a statement.

“Both stages will be implemented on conditions of separate contracts,” the press service said.

The agreement was signed in Beijing, China, on August 30, 2016.

The Antonov An-225 Mriya is the longest and heaviest aircraft ever built. It is 84 meters long and weighs 175 tonnes without fuel. It has a maximum takeoff weight of 640 tonnes, including crew, and its wingspan is an astonishing 88.4 meters.

The An-225 was built in the 1980s to transport the Soviet space shuttle, the Buran, and it made its maiden test flight in 1988. The single example built has the Ukrainian civil registration UR-82060. In spring 2001, it was retrofitted and its commercial operation was launched by Antonov Airlines.

The construction of the second example began in 1987, but only fuselage and a wing were built when the Soviet Union broke up and the aircraft construction was frozen.

At different stages, Ukraine’s foreign partners showed interest in the completion of the second plane, but the plans did not get practical implementation.