Business news from Ukraine

UKRAINE, ISRAEL TO SIGN AGREEMENT ON FREE TRADE AREA IN H1 2016 – POROSHENKO

KYIV. Dec 23 (Interfax-Ukraine) – Ukraine plans to set up a free trade area with Israel, says Ukrainian President Petro Poroshenko.

“I am interested in progress on concluding an agreement on a free trade area between Ukraine and Israel,” Poroshenko told journalists following negotiations with Israeli Prime Minister Benjamin Netanyahu in Jerusalem on Tuesday.

The Ukrainian president said trade turnover between the two countries amounts to $1 billion. “We are interested in increasing it,” he added.

Ukraine is interested in Israel’s assistance in carrying out reform and in expanding bilateral economic cooperation, he said.

“Ukraine is interested in Israel’s assistance in pursuing reforms in our country and in boosting economic cooperation between the two countries,” he said.

The conclusion of a free trade area agreement should promote broader economic cooperation, the presidential press service said. Ukraine is especially interested in expanding cooperation in the high technology sector, he added.

The two leaders discussed ways to step up bilateral trade and economic cooperation, particularly in the agrarian, transportation, construction, and other fields and investment cooperation between the two countries. Based on the outcomes of the negotiations, Ukraine and Israel signed a number of bilateral documents, in particular, those concerning cooperation in the scientific-technical, educational, cultural, and infrastructure development fields. The parties also agreed on holding another session of the Ukrainian-Israeli intergovernmental commission on economic cooperation in the first half of 2016.

The parties expressed hope for the soonest possible signature of a free trade agreement between Ukraine and Israel, which, as they expect, should significantly increase the trade-economic component of interaction between the two states.

Poroshenko invited Netanyahu to visit Ukraine in 2016 and take part in events commemorating the 75th anniversary of the tragedy in the Babyn Yar. He thanked the Israeli prime minister for the humanitarian and medical assistance that Israel renders to Ukraine.

CEMENT PRODUCTION IN UKRAINE 12.5% UP IN NOV – STATISTICS

KYIV. Dec 22 (Interfax-Ukraine) – Cement production in Ukraine in November 2015 increased by 12.5% compared to November 2014, to 650,000 tonnes, while the output growth in October 2015 from October 2014 was 0.3%.
According to the State Statistics Service, these figures are given excluding the temporarily occupied territory of Crimea and Sevastopol, and part of the ATO zone in the east of Ukraine. Data on Donetsk and Luhansk regions could be clarified.
According to the report, the production of these goods in November 2015 from October 2015 decreased by 23.5%, while the reduction in October 2015 from September 2015 was 5.5%, while the growth in September 2015 from August 2015 was 0.6%.
Cement production in January-November 2015 as a whole decreased by 3.6% compared to January-November 2014, to 8.009 million tonnes.

UKRAINE INCREASES STEEL OUTPUT BY 3.1% IN NOV, REMAINS TENTH IN WORLDSTEEL RANKING

KYIV. Dec 22 (Interfax-Ukraine) – Ukrainian metallurgical enterprises in November 2015 increased steel production by 3.1% compared to November 2014, to 1.884 million tonnes, remaining tenth in the ranking of the 66 world’s major manufacturers of these products, compiled by the World Steel Association (Worldsteel).

A fall in steel production in November was recorded in most of the top ten countries, except for Ukraine.

The top ten steel makers in November are as follows: China (63.320 million tonnes, a drop of 1.6%), Japan (8.745 million tonnes, a drop of 4.7%), India (7.140 million tonnes, a drop of 0.2%), the United States (6.089 million tonnes, a drop of 15.6%), South Korea (5.890 million tonnes, a drop of 0.5%), Russia (5.715 million tonnes, a drop of 3.1%), Germany (3.482 million tonnes, a drop of 3.1%), Turkey (2.599 million tonnes, a drop of 7.2%), Brazil (2.548 million tonnes, a drop of 4.4%), and Ukraine (1.884 million tonnes, an increase of 3.1%).

In general, in November this year the 66 countries produced 126.826 million tonnes of steel, which is 4.1% lower than in November 2014.

In January-November 2015 the top ten steel makers included China (738.380 million tonnes, a drop of 2.2%), Japan (96.564 million tonnes, a drop of 5%), India (82.092 million tonnes, an increase of 2.8 %), the United States (73.138 million tonnes, a drop of 9.7%), Russia (65.164 million tonnes, a drop of 0.2%), South Korea (63.833 million tonnes, a drop of 2.9%), Germany (36.208 million tonnes, at the level of 11 months of 2014), Brazil (30.784 million tonnes, a drop of 1.9%), Turkey (28.808 million tonnes, a drop of 8%), and Ukraine (21.033 million tonnes, a drop of 16.8%).

TERRA FOOD OPENS DAIRY FACTORY IN TURKEY

KYIV. Dec 22 (Interfax-Ukraine) – Terra Food group of companies, one of the largest Ukrainian industrial and commercial holdings, has opened the first factory in the industrial park of the city of Karaman in Turkey, the adviser, the partner of Talent Advisors company, Roman Bondar, wrote on his Facebook page.

“We officially inform that Terra Food in a group of the leading experts of the dairy market and investors is really involved in the project of launching a dairy plant in Turkey,” the company told Interfax-Ukraine.

The company in Turkey plans to produce milk powder, cream, butter and dairy snacks.

However, Terra Food did not comment on investment in the project.

“Now we can announce that Terra Food invests the most valuable things in the project it has – the experience of creating and developing dairy enterprises in Ukraine,” it said.

The company added that an official statement will be done closer to February 2016 after all formalities are completed.

Terra Food, founded in 1999, is one of Ukraine’s largest industrial and commercial holdings, which includes three business directions – dairy, meat and agribusiness.

ODESA CUSTOMS ANNOUNCES INTRODUCTION OF ASYCUDA SYSTEM

ODESA. Dec 22 (Interfax-Ukraine) – The Odesa Customs is implementing the ASYCUDA system of customs data processing, head of the customs Yulia Marushevska has said at a press conference.

According to her, the process of implementing the system will take about a year. The agency will get software free of charge, but will have to spend UAH 17 million on training staff to operate the system.

According to Marushevska, the system will allow to ensure a full control and transparency of customs procedures that will eliminate corruption in the authority, a procedure of cargo customs clearance will take 15 minutes to an hour.

In addition, the head of the Odesa customs said wages to customs officers will be increased at the expense of brokerage services to be rendered by the agency.

ASYCUDA is an automated system for customs data processing, which was developed by the United Nations Conference on Trade and Development (UNCTAD) in cooperation with the World Customs Organization.

ALLSEEDS TO PROCESS 500,000 TONNES OF SUNFLOWER SEEDS IN 2015/2016 MY

KYIV. Dec 21 (Interfax-Ukraine) – Allseeds Group intends in the 2015/2016 marketing year (MY, September-August) to process 500,000 tonnes of sunflower seeds at a new plant in Odesa region.

“We want this year to process about 500,000 tonnes of sunflower seeds. Unfortunately, the original plan was higher, but during the launch phase we had problems with the husk granulator,” company CEO Viacheslav Petrysche said in an interview with Interfax-Ukraine.

According to him, the company receives seeds with a different oil content, therefore it decided to introduce the basic oil content when accepting seeds at the plant at the level of 44%.

Petrysche said he sees no prospects for the growth of purchasing prices for sunflower. According to him, with the yield being 12 million tonnes the price of sunflower seeds has fallen to UAH 9,200-9,500 per tonne from UAH 11,000 per tonne.

Allseeds in 2016 will start to actively design the second stage of the oil extraction complex for 2,400 tonnes of seeds per day, and afterwards the third phase.