Business news from Ukraine

KLIMKIN CALLS KOREA TO UP INVESTMENTS INTO UKRAINE, TO LIBERALIZE VISA REGIME

KYIV. Sept 18 (Interfax-Ukraine) – Ukrainian Foreign Minister Pavlo Klimkin at a meeting with South Korea’s Foreign Minister Yun Byung-se urged to make more investments into Ukraine and to liberalize a visa regime for Ukrainians.

“Met with Korean foreign chief, urged [him] to make more investments into Ukraine. Among perspective directions of cooperation are agriculture, IT, education. I proposed the Korean colleague to liberalize visa regime for Ukrainians,” Klimkin wrote on Twitter.

SPF FORMS LIST OF OVER 900 SMALL FACILITIES ELIGIBLE TO BE PRIVATIZED

KYIV. Sept 18 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) has formed a list of 910 facilities of groups A, D and Z that are eligible for privatization, the fund has said on its website.

“In addition, there are around 30,000 facilities that are not included in the charter capitals [of enterprises], which could be privatized,” Deputy SPF Head Tetiana Burtniak said at a meeting with property market players on Tuesday.

She said that the fund’s website includes information on facilities eligible for privatization which will soon be expanded with photo materials.

“The goal is clear and transparent – we finally want to achieve the sale of the whole number of small privatization facilities, most of which have not found investors for a long period of time,” Deputy SPF Head Natalia Lebed said.

She said that the purchase of state property from SPF has its own advantages compared to the secondary market: fully open information on the facilities, transparent ownership history, postponement of payments for two months, and the possibility of selling it with one bidder.

“Facilities are not sold due to various reasons, but the sale procedures today are clear and transparent, the fund reports on each its privatization step,” Burtniak said.

The participants of the meeting, including the heads of Colliers International, CBRE, the Chamber of Realtors of Ukraine, the Association of Realtors of Ukraine and the Unions of Realtors of Ukraine expressed their readiness to cooperate with the fund and promised to send proposals on their participation in the privatization of small facilities.

SWEDISH ECOENERGY READY TO INVEST $120 MLN IN ENERGY GENERATION FROM WASTE IN DNIPROPETROVSK

DNIPROPETROVSK. Sept 17 (Interfax-Ukraine) – Swedish EcoEnergy Scandinavia could build an enterprise to generate energy from waste with a capacity of 100 MW worth $120 million in Dnipropetrovsk with the help of TMM-Energobud.

An Interfax-Ukraine correspondent has reported that a memorandum on the idea was signed by EcoEnergy Vice President Peter Lindh, Deputy Head of Dnipropetrovsk Regional Administration and Director General of company-contractor TMM-Energobud Mykola Tolmachev.

The regional administration said that the investment center at the administration has offered three land parcels for building the plant, and the project could be finished in three years.

“Real programs that would stimulate businesses to more actively use recycled materials should appear in Ukraine. We would support and develop these investment initiatives at the regional level,” Dnipropetrovsk Regional Administration Head Valentyn Reznichenko said.

“We confirm our full readiness to invest in and realize this project,” head of the representative office of EcoEnergy in Ukraine Valentyn Makohon said.

Experts have said that thanks to construction of the plant, Dnipropetrovsk could save 100 million cubic meters of gas a year.

EcoEnergy Scandinavia AB is a project designer and an independent electricity supply organization. It focuses on Eastern Europe and Russia, and its current projects are focused in Russia, specifically the special economic zone in Kaliningrad region.

WORLD BANK READY TO PROVIDE FINANCING TO EQUIP AUTOMATIC WEIGHTING COMPLEXES ON UKRAINIAN ROADS

KIYV. Sept 17 (Interfax-Ukraine) – The World Bank is ready to provide funds to equip automatic weighting complexes for transport on Ukrainian roads, director of the department of strategic development of road market and transport at the Infrastructure Ministry Roman Khmil has said.

“Around $20 million of initial investment is required for the project, while the pay-back period is very small,” he said in an interview with Interfax-Ukraine.

He said that a total of 200 complexes are required, and judging by experience of other countries, the pay-back period of the complexes would be one year.

“However, then revenues from fines fall sharply and they would hardly cover their functioning as everyone starts sticking to the rules. Nevertheless, the economic effect is UAH 15-20 billion a year, which we lose now in the form of damage caused to roads by those who violate weight requirements. We have to send large funds to repair vehicles after they drive on worn-down roads,” Khmil said.

When asked why the state has not provided funds for these complexes, he said that no one seriously tackled the issue or wanted to take political responsibility for the introduction of unpopular reforms.

He said that financing of the complexes could start from October 2015 when the third credit line from the World Bank could be finally approved.

WORLD BANK PROVIDES $500 MLN TO UKRAINE UNDER FINANCIAL SECTOR DEVELOPMENT PROGRAM

KIYV. Sept 17 (Interfax-Ukraine) – The World Bank has provided a loan of $500 million to finance the Second Financial Sector Development Policy Loan, the National Bank of Ukraine (NBU) has said on its website.

Finance Minister of Ukraine Natalie Jaresko and World Bank Director for Ukraine, Belarus and Moldova Qimiao Fan signed the credit agreement on Wednesday.

“The loan was endorsed by the Directors’ Board of the World Bank on September 15, 2015. This loan is one more step towards enhancing the financial stability of our country to recover its economy,” the report said.

The Finance Ministry said on its website that the interest rate for the loan is only approximately 1% p.a. which makes it possible to replace the current liabilities which are served at an interest rate of approximately 8%.

The maturity period for the loan is 17 years, and the first six years are a grace period.

“Within several days the loan will be transferred to the state budget as a single payment,” the report said.

This loan is an element of the broader program of cooperation between Ukraine and its international partners totaling $7.2 billion. The loan became possible thanks to continued cooperation between Ukraine and the International Monetary Fund under the Extended Financing Facility (EFF) agreed in March 2015.

POROSHENKO: 24 EU COUNTRIES FULLY RATIFY UKRAINE-EU ASSOCIATION AGREEMENT

KIYV. Sept 17 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has said that 24 countries-members of the European Union (EU) have finished the process of ratification of the Ukraine-EU Association Agreement.

“In a year that passed after signing the Ukraine-EU Association Agreement 24 states have fully completed the ratification process, despite [the fact] that it was said that it would take over three years to do this,” said on his Facebook page.

Poroshenko said that the agreement on the Deep and Comprehensive Free Trade Area (DCFTA) with the EU would take effect from January 1, 2016.

“No postponement is [being] discussed!” he added.

Poroshenko’s post includes a map which states that Belgium and the Czech Republic have started the ratification process, but have not yet completed it, and that Greece and Cyprus have not ratified the agreement.

All 28 countries-members of the EU must ratify the agreement for it to take effect.