Business news from Ukraine

EBRD COULD PROVIDE $37 MLN LOAN TO MV CARGO TO BUILD GRAIN TERMINAL AT YUZHNY PORT

KYIV. Oct 28 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) is mulling the provision of a $37 million loan to MV Cargo LLC to finance the construction of a grain terminal at Yuzhny port (Odesa region).

The EBRD said on its website that the total project cost is $130 million.

As reported, Cargill, the Ukrainian Sea Ports Authority and M.V. Cargo LLC have signed a tripartite memorandum of intent to realize an investment project at Yuzhny seaport.

The document confirms Cargill’s intention to acquire 51% in a transshipment terminal, which M.V. Cargo stevedoring company will build at Yuzhny seaport. Under the terms of the memorandum, before construction the Ukrainian Sea Ports Authority is to establish a water area on the approach to the terminal with an appropriate level of dredging.

The terminal will allow Cargill to handle grains, cereals and other goods. The capacity of the first phase of construction will amount to 5 million tonnes. The second phase would increase the capacity by another 2-4 million tonnes.

It is planned to launch the terminal in 2017.

SIEMENS INTERESTED IN ENTERING UKRAINIAN LOCOMOTIVE, TRAM PRODUCTION MARKET – UKRAINIAN MINISTER

KYIV. Oct 27 (Interfax-Ukraine) – Siemens is interested in entering the Ukrainian locomotive and tram production market, Ukrainian Infrastructure Minister Andriy Pyvovarsky said after the Ukrainian-German business forum in Berlin.

“We will continue talks on the format of this cooperation at the level of top managers and experts,” he wrote on his Facebook page.

The minister also said that at a meeting in the Transport Ministry of Germany an agreement on joint operations in the railway and road construction sectors, coordination of efforts on the Silk Road initative, and the further exchange of experience had been reached.

“State Secretary at the Federal Ministry of Transport, Building and Urban Development Rainer Bomba will again come to Ukraine in December. We will exchange with experts again: our [experts] will go to them and German [experts] – to us. We’re working on the joint action plan and clear KPIs from this cooperation,” he wrote.

The minister also held a meeting in the Federal Ministry of Economic Affairs and Energy of Germany.

“We discussed the credit from KfW to restore Donbas’ infrastructure. Germany is ready to consider the possibility of increasing its aid to Ukraine,” he said.

Earlier, Director of the Integrated Transport System Department at Siemens Ukraine Dmytro Chernenky said that Siemens is not currently interested in creating a joint venture (JV) to manufacture locomotives in Ukraine as the company is only interested in spare parts supplies.

CANADA TO INVEST CAD30 MLN IN SMALL, MEDIUM BUSINESS PROJECTS IN UKRAINE

KYIV. Oct 27 (Interfax-Ukraine) – The Canadian government is ready to spend CAD 30 million on small and medium-sized businesses’ projects in Ukraine.

“We’ve allocated and will use CAD 30 million to support the projects of small and medium [sized] businesses in Ukraine,” Ambassador of Canada to Ukraine Roman Vaschuk said at a press conference in Kyiv.

According to him, over the past two years the Canadian government has provided Ukraine with CAD 700 million, of which CAD 400 million is a loan of 1.5% per annum, and CAD 300 million is support for investment in various projects, including for providing military aid and ammunition supplies to the Ukrainian military.

Vaschuk said that for the first eight months of this year Canada increased goods exports to Ukraine by 45.6%, to CAD 150 million compared to the same period last year.

As reported, in mid-July this year Ukraine and Canada completed negotiations on establishing a free trade area (FTA).

The provisions of the draft agreement on a free trade area between Ukraine and Canada provide for deepening trade and economic cooperation, including on trade in industrial and agricultural goods, intellectual property protection, and public procurement regulation.

 

NOW IS THE RIGHT TIME FOR INVESTMENT IN UKRAINE – POROSHENKO IN MEETING WITH U.S. SECRETARY OF COMMERCE

KYIV. Oct 27 (Interfax-Ukraine) – During a meeting with U.S. Secretary of Commerce Penny Pritzker in Kyiv on Monday, Ukrainian President Petro Poroshenko spoke about the situation in the country and called for investment.

“Now is the right time and the right place to invest in Ukraine,” the president said, according to his press service.

Additionally, he said that “considerable changes” had taken place in the country since Pritzker’s last visit to Ukraine 13 months ago.

“The president informed about the local elections, which complete the reset of the administration, and also the main areas of reforms aimed at considerable improvement of the business climate in Ukraine, specifically, serious anti-corruption measures, judicial reform and plans to conduct transparent privatization,” the press service has reported.

Pritzker, for her part, pointed out the considerable support by the U.S. government of Ukraine’s efforts to conduct reforms to become a fully-fledged member of the world economy.

TURBOATOM POSTS 56.5% RISE IN NET PROFIT IN NINE MONTHS

KYIV. Oct 26 (Interfax-Ukraine) – Turboatom (Kharkiv), Ukraine’s largest producer of turbine equipment, in January-September 2015 posted a net profit of UAH 1.288 billion, which is 56.5% higher than in January-September 2014.

According to a company financial report in the information disclosure system of the National Commission on Securities and the Stock Market, its net income for the period increased by 35%, to UAH 2.077 billion.

The company saw UAH 1.132 billion in gross profit, while operating profit grew by 71.4%, to UAH 1.340 billion.

The liabilities of Turboatom as of October 1 this year amounted to UAH 1.075 billion, in particular debtor indebtedness for goods and services totaled UAH 21.78 million, received advanced payments – UAH 905 million, budget payments – UAH 3.2 million, wage arrears – UAH 12.5 million, and current liabilities – UAH 60 million.

Taking into account the previously announced performance of Turboatom in January-June 2015, in July-September the company tripled its net profit year-on-year, to UAH 450.48 million, while net income increased by 56.3%, to UAH 783.43 million.

Turboatom is the only Ukrainian producer of turbine equipment for hydro, thermal and nuclear power plants.

 

SECURITIES COMMISSION TO PROPOSE PACKAGE OF BILLS TO ESTABLISH REGULATED COMMODITY MARKET

KYIV. Oct 26 (Interfax-Ukraine) – The National Commission on Securities and the Stock Market has prepared a package of bills to establish a regulated market of raw materials and launch derivatives, its head Timur Khromaev has said.

“We’re collecting parliamentary groups and the committee to present them a set of laws on derivatives and regulated markets,” he said in an interview with Interfax-Ukraine.

Khromaev stressed that Ukraine is almost the only country in the world which does not regulate the raw materials market.

“In these draft laws we introduce the notion of a regulated market of raw materials and a capital market and also introduce other new concepts, new principles of work and capital requirements,” he said.

According to him, the Ministry of Economic Development and Trade and the Ministry of Agricultural Policy and Food agree with the fact that the securities commission is now the engine which is driving the development of the commodities market.

“They support the idea that we need to streamline this market and use the principles of work of the stock market to increase the transparency of the market of raw materials,” the expert said.

He said that the prepared set of draft laws is currently being coordinated with these ministries, while the EBRD and USAID are also actively participating in the process. The commission also intends to hold active discussions with other regulators and with Ukrainian and global market participants.