Business news from Ukraine

WORLD BANK BOARD APPROVES DECISION TO PROVIDE $560 MLN TO IBRD TO DEVELOP ROADS IN UKRAINE

KYIV. Nov 5 (Interfax-Ukraine) – The board of directors of the World Bank has approved a decision to provide a loan of $560 million to the International Bank for Reconstruction and Development (IBRD) to finance a project on developing roads in Ukraine, the press service of the Infrastructure Ministry of Ukraine reported on Wednesday.

“The new loan will secure support for the realization of some measures regarding the improvement of road network management, transport communications, and exploitation of roads and road safety on the Poltava-Kharkiv section of the highway,” the ministry said.

 

AZOVMASH TO ENTER MIDDLE EASTERN, AFRICAN MARKETS

KYIV. Nov 5 (Interfax-Ukraine) – Azovmash, the leader in the Ukrainian heavy engineering market, has signed a dealership agreement with the Turkish company Vitas Velioglu Insaat ve Ticaret on the purchase and sale of railcar and heavy machinery goods manufactured by PJSC Azovzahalmash in Middle Eastern and African markets

According to a company press release, the agreement was signed during the visit of a delegation headed by the chairman of the Turkish company to the enterprise.

According to the press release, during the visit the first contract on the supply of wagons produced by Azovzahalmash in 2016-2017 was signed. The volume of the contract and its other parameters has not been disclosed.

“The signing of this contract is the first step towards the restoration of the enterprise. We’ll have to certify wagons, update technical documentation, and work to promote the products in non-traditional markets. Entering the markets of the Middle East and Africa is a real possibility and alternative to the market of the Customs Union, we’ve done major preparatory work for this,” the press service said, citing President of Azovmashinvest Holding Taras Polischuk.

Azovmash (Azovmashinvest Holding) is one of the largest machine building complexes in Ukraine.

GERMANY TO PROVIDE EUR 136 MLN IN LOANS, GRANTS TO UKRAINE IN 2016

KYIV. Nov 5 (Interfax-Ukraine) – Germany will provide EUR 136 million in loans and grants to Ukraine in 2016 to realize over 20 projects.

Economic Development and Trade Minister of Ukraine Aivaras Abromavicius and Head of the Directorate of the Federal Ministry for Economic Cooperation and Development of Germany Andreas Gies signed the corresponding documents in Kyiv on Wednesday.

“The directions of their use is from rather large projects on construction of housing for internally displaced persons (IDPs) to very concrete and specific programs aimed at repairing schools, for example,” Deputy Economic Development and Trade Minister of Ukraine Maksym Nefyodov told reporters after the signing ceremony.

He said that EUR 88 million will be provided as a loan, and EUR 48 million will be provided as technical assistance.

The funds will mostly be allocated through KfW development bank.

Nefyodov said that the credit rate will depend on each project, but will be seven or eight times lower than commercial rates.

He said that the funds will be allocated to both current projects and new ones, including projects to develop democracy, support economic growth and the energy independence of the country, and develop the social sector. Some of the funds will be allocated to operational needs, particularly, for aid if acts of God occur.

RADA RATIFIES AGREEMENT ON MARINE COMMERCIAL SHIPPING WITH CYPRUS

KYIV. Nov 5 (Interfax-Ukraine) – The Verkhovna Rada, Ukraine’s parliament, has ratified an agreement on marine commercial shipping signed by the Ukrainian and Cypriot governments.

Some 247 lawmakers supported the law on the ratification of the agreement (No. 0063).

The agreement aims at developing relations between Ukraine and Cyprus in marine commercial shipping area.

According to the agreement, the vessels of the contracting parties in ports and territorial waters will be treated in the same way as their own vessels in terms of the collection of port fees and taxes, access to ports, the use of services of ports, the loading and unloading of cargo, and embarking or disembarking.

The agreement was signed on November 8, 2012 in Nicosia (Cyprus).

LVIV LOCOMOTIVE REPAIR PLANT POSTS UAH 10 MLN NET PROFIT IN Q3, 2015

KYIV. Nov 4 (Interfax-Ukraine) – Lviv Locomotive Repair Plant, one of the leading enterprises of Ukrzaliznytsia, in January-September 2015 posted a net profit of UAH 1.8 million against UAH 80,000 for the same period in 2014.

According to a company financial report in the information disclosure system of the National Commission on Securities and the Stock Market, the plant’s net income for the period totaled UAH 174 million, which is 4% up.

The plant in January-September saw a gross profit of UAH 34.5 million, which is 13.5% more than in the same period last year. Operating profit was UAH 5.8 million, which is 53% more as well.

Taking into account the previously announced performance of the plant in January-June, in July-September it posted a net profit of UAH 10.2 million against a net loss of UAH 1.7 million for the third quarter 2014, and the plant doubled its net income to UAH 107 3 million.

Lviv Locomotive Repair Plant repairs electric locomotives, auxiliary electric cars, wheel sets and manufactures spares for rail transport repairs.

PASSENGER CAR MARKET IN UKRAINE NEARS STABILIZATION IN OCT

KYIV. Nov 4 (Interfax-Ukraine) – Sales of new passenger cars in Ukraine in October grew by 28% compared to September 2015, to 5,291, which is only 9% down on October 2015, AUTO-Consulting has reported.

“In September, the first positive signals from the car market were seen [growth by 16.2% on August, to 4,137 cars], and the car market is approaching the point of stable growth each month. The beginning of the year the market started with bad indicators – 70-80% in decline,” the consultancy said.

AUTO-Consulting said that most brands recorded two-digit growth in sales in September, and the brands that saw their growth decline reported that this was unconnected with sales.

“For example, the fall in Toyota’s results [8% on September] is linked to the completion of supplies of Prius cars for the police, but market sales of the brand have grown,” reads the report.

Renault was the market leader in October with a market share of 10.7% and 564 cars sold (45% more than in September).

Toyota was second with 453 cars sold. Ford came third with a 7.5% market share and 398 cars sold (60.5% more), and ZAZ came fourth with 359 cars sold.

Skoda came fifth with 275 cars sold, BMW market sales grew by 57%, to 259 cars, and Suzuki – by 56%, to 137 cars.

The premium segment recorded a 3% rise compared to October 2014.