Business news from Ukraine

UKRZALIZNYTSIA INCREASES GRAIN CARRIAGE BY 12.6% IN TEN MONTHS

KYIV. Nov 28 (Interfax-Ukraine) – PJSC Ukrzaliznytsia in the ten months of 2016 increased grain transportation by 12.6% compared to the same period of 2015, but complains about delays in grain wagon return on the part of grain shippers.

According to a company press release, the company will be able to significantly increase grain handling if grain shippers reduce the circulation of grain wagons and stop delaying cars under loading operations.

“Thus, more than 500 loaded grain cars have accumulated only at two port stations in Odesa region – Illichivsk and Kseniyeve,” Ukrzaliznytsia said.

UKREXIMBANK, WORLD BANK PREPARING NEW PROGRAM TO FUND SMALL, MEDIUM-SIZED EXPORTERS

KYIV. Nov 28 (Interfax-Ukraine) – Kyiv-based Ukreximbank is actively preparing a new project jointly with the World Bank on providing access to long-term loans to Ukrainian export oriented small and medium-sized enterprises (SME), according to a posting on the Ukreximbank’s website.

“The Long Term Finance Project (ALTF) Project will provide long term investment and working capital finance to Ukrainian export oriented SME,” the bank said.

Ukreximbank will act as the direct borrower of the World Bank funds and the implementing agency of ALTF Project. Ukrainian commercial banks are expected to be involved in the ALTF Project implementation as financial intermediaries.

All sub-projects financed under the ALTF Project will be subject to an environmental and social assessment of compliance with the Ukrainian and World Bank environmental regulations utilizing the procedures described in Ukreximbank’s Environmental and Social Management Framework.

After drawing up the ALTF Project jointly with Ukrainian governmental authorities, it will be presented to the World Bank Board of Executive Directors for consideration and approval by the end of the first quarter 2017.

EBRD TO PROVIDE $10 MLN TO MEEST EXPRESS

KYIV. Nov 28 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) would provide a EUR 10 million debt financing to Lviv-based Trading Company (TC) Meest Express LLC, which is incorporated in the Meest group of companies, in further development and expansion of its domestic and international operations.

The bank said last week that the project was approved by its board on November 15, 2016.

The project is intended to expanding the collection and delivery network points; developing an IT platform; developing processing technology at warehouses and collection and delivery points; developing domestic and international logistics hubs; promoting the ‘Meest’ brand, as well as introducing carbon neutral courier products.

The project loan will benefit from concessional financing under the Green Logistics Programme provided by the Global Environmental Facility to promote energy efficiency and lower carbon emissions in the logistics sector.

The total cost of the project is $20 million.

TC Meest Express LLC was founded in 2005. It is a large delivery company on the market. Meest Group was part of Meest Corporation Inc., Toronto, Canada.

The ultimate beneficiary of TC Meest Express LLC is Canadian citizen Rostyslav Kisil.

CAPITAL INVESTMENT IN UKRAINE GROWS BY 16.4% IN JAN-SEPT 2016 – STATISTICS

KYIV. Nov 28 (Interfax-Ukraine) – Capital investment in Ukraine increased by 16.4% in January through September 2016, whereas in the first half of 2016 its increased amounted to 9.6% and in the first quarter of 2016 – only 0.7%, the State Statistics Service has said.

In January-September 2016 some UAH 204.5 billion of capital investment was used (excluding the temporarily occupied territories of Crimea, Sevastopol and part of the Anti-Terrorist Operation area).

Capital investment in Ukraine decreased by 1.7% in 2015, whereas in the first nine months of 2015 the decline amounted to 6%, the first half of the year 9.2%, the first quarter 14.8% and in 2014 the figure stood at 24.1%.

Capital investment grew in Mykolaiv (75.6%), Odesa (59%), Kirovohrad (58.8%), Kharkiv (55.6%), Kherson (51.6%), Zhytomyr (48.5%), Poltava (48.4%) and Cheraksy (47.7%) regions.

Capital investment declined only in Zakarpattia (10.1%), Ivano-Frankivsk (9.7%), Volyn (3.8%) regions and Kyiv city (6.6%).

Sector-wise, the largest growth of capital investment in January-September 2016 was recorded in postal and courier activities – by 3.7 times, advertising and marketing studies – by 2.2 times, real estate – 94.3%, healthcare – 83.2%, agriculture – 64.3%, public administration and defense, mandatory social insurance – by 50.3%, administrative and auxiliary servicing – 55%, education – 44.6% and wholesale, retail and vehicle repair – 27.6%.

Capital investment fell by 44.2% in the IT and telecom sphere, while the sector saw a 2.7-fold rise a year ago.

Own funds of companies and organizations remained the main source of financing of capital investment. Their share was 71.8% of total investment. The share of borrowed funds (bank loans and funds of foreign investors) was 10.3%. The share of national and local budgets was 5.9%.

UKRAINE, HUNGARY AGREE ON DEVELOPMENT OF CHECKPOINTS, INFRASTRUCTURE, BRIDGES ON BORDER

KYIV. Nov 25 (Interfax-Ukraine) – Ukraine and Hungary have agreed on financial cooperation, the development of checkpoints on the joint state border, infrastructure, as well as maintenance of bridges on the border.

According to the press service of the Cabinet of Ministers of Ukraine, during the visit of Prime Minister of Ukraine Volodymyr Groysman to Hungary, the governments of Ukraine and Hungary signed a corresponding framework agreement on providing a loan on the terms of tied aid and a protocol of intent on the comprehensive development of checkpoints and infrastructure on the state border between Ukraine and Hungary.

The loan agreement will make it possible for Hungary to issue a tied aid loan for purchase of goods or services originating from Hungary. The credit funds can be used only for implementation of infrastructure projects specified in the annex to the agreement.

According to the agreement on the comprehensive development of border crossing points and infrastructure, Hungary will finance building a bypass road around Berehove in Zakarpattia region, as well as upgrading a highway between the towns of Mukacheve and Berehove with a targeted credit in the amount of EUR50 million.

 

GROYSMAN CALLS ON HUNGARIAN BUSINESSMEN TO INVEST IN UKRAINE

KYIV. Nov 25 (Interfax-Ukraine) – Prime Minister of Ukraine Volodymyr Groysman has called on Hungary to invest in Ukraine and resume the work of the intergovernmental commission on trade and economic cooperation, which on the part of Ukraine is headed by Deputy Prime Minister for European and Euro-Atlantic Integration Ivanna Klympush-Tsintsadze.

“The Ukrainian government will continue to create quality conditions for doing business in the country,” the press service of the Cabinet of Ministers said citing Groysman.

The premier also urged Hungarian businessmen to invest in the Ukrainian economy, in particular take part in a large-scale privatization program.

Prime Minister of Hungary Viktor Orban, in turn, said that over the last two years trade between the two countries significantly decreased, exchange of goods fell by 33%. However, during the first eight months of this year an 11% increase was recorded.