Business news from Ukraine

UKRAINE, ROMANIA DISCUSS BUILDING BRIDGE ACROSS TISA RIVER

BUCHAREST. April 22 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko and Romanian President Klaus Iohannis during talks in Bucharest have discussed a number of issues of bilateral cooperation, including the possibility of building the Sighet-Solotvyne bridge across Tisa River.

“We’ve discussed projects of cooperation in different spheres – economic, tourism, infrastructure development. In this context we discussed the possibility of building a bridge across the Tisa River,” Iohannis said at a joint press conference with Poroshenko.

The heads of state also discussed the agreement on small border traffic and the possibility of opening new border checkpoints at the joint border section.

FRENCH CABLE PRODUCER NEXANS SEEKS TO LAUNCH ONE MORE PLANT IN LVIV REGION IN 2017

KYIV. April 22 (Interfax-Ukraine) – A new Ukrainian plant of France’s Nexans, a cable manufacturer, will start operating in Brody (Lviv region) in 2017, Governor of Lviv Regional Administration Oleh Syniutka has said.

“The investment project of Nexans that has decided on building a plant in Brody from the ground up has been approved. The plant will start operating in 2017. The company will invest over UAH 120 million and 2,000 people will work there,” he said in an interview with Uriadovy Kurier newspaper published on Wednesday.

Nexans has cable production site in Ukraine at Elektrokontakt Ukraine LLC in Peremyshliany (Lviv region), where the production facilities will be expanded.

“Along with 300 people working in Peremyshliany (one of the poorer districts), over 500 local residents would soon get well-paid jobs,” Syniutka said.

Nexans is the second largest global cable manufacturer.

Syniutka reminded that Fujikura’s investment in Ukraine were the largest. The company selected Yavoriv district of Lviv region.

Commenting on the possibility of resuming production at one of the largest enterprises of the region – Zhydachiv pulp and paper mill (it has been idle since September 2014), Syniutka said that this problem was not solved in 2015.

“Despite everything, we will induce the inefficient owner to launch the plant or transfer property assets to those who are interested in running the enterprise,” he said.

GOVERNMENT RELAXES REGISTRATION OF MEDICINE IN UKRAINE – GROYSMAN

KYIV. April 22 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers at a meeting on Wednesday decided to liberalize registration of medicines that have been certified in the EU, the United States, Switzerland, Japan, Canada and Australia, Ukrainian Prime Minister Volodymyr Groysman wrote on his Facebook page.

“Urgently, by its first decision, the new government has made a step to the introduction of the relaxed registration of medicines in Ukraine. The new decision of the government concerns medicines which have been certified in the United States, EU states, Switzerland, Japan, Canada and Australia. We trust the certification of these countries, and there is no need to pass a long certification in Ukraine,” he said.

He also said that the government has decided to take some measures that would decrease the cost of medicines in Ukraine.

“Among the top priority steps made by the government is to simplify checks of medicines, revise contract limits and ease packaging requirements in order to make them cheaper for Ukrainians. The demonopolization and deregulation of the pharmaceutical market would expand access to high-quality medicines on the Ukrainian market, boost competition, remove corruption and result in the decrease in prices. We will move this way,” he said.

SBERBANK OF RUSSIA SUBSIDIARY TO INCREASE CHARTER CAPITAL BY 52.5%

KYIV. April 22 (Interfax-Ukraine) – The subsidiary bank of Sberbank of Russia, PJSC Sberbank (Kyiv), will increase charter capital by UAH 4.293 billion, or by 52.5%, to UAH 12.465 billion, the subsidiary bank has told Interfax-Ukraine.

“The supervisory council of Sberbank decided to increase the charter capital of the Ukrainian subsidiary by UAH 4.3 billion, to UAH 12.5 billion. The capital of PJSC Sberbank is increased in accordance with the recapitalization plan approved by the National Bank of Ukraine,” the financial institution said.

According to the report, the bank’s capitalization will be carried out by the conversion of the previously obtained interbank loans into capital. The bank will use the funds received for formation of additional reserves for loans.

PJSC Sberbank (formerly PJSC Subsidiary Bank Sberbank of Russia) was founded in 2001. Its owner is PJSC Sberbank (Russia).

The bank ranked fifth among 123 operating banks in the country on October 1, 2015 by total assets (UAH 53.75 billion), according to the National Bank of Ukraine.

UKRAINIAN GOVT APPROVES SENDING UAH 40 MLN FOR FINISHING SPENT NUCLEAR FUEL STORAGE FACILITY TWO

KYIV. April 22 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers at a meeting on Wednesday approved sending UAH 40 million to the fund for completion of construction of spent nuclear fuel storage facility two, an Interfax-Ukraine correspondent has reported.

Ukrainian Ecology and Natural Resources Minister Ostap Semerak said that EUR 105 million is required for the completion of spent nuclear fuel storage facility two, and the issue of collecting the funds will be discussed at the Donor Conference to take place in Kyiv on April 15, 2016.

The minister said that Ukraine will ask donors to send additional funds to the Nuclear Safety Account (NSA). Ukraine is also to contribute own funds to the project.

Semerak said that Ukraine’s total contribution to the completion of spent nuclear fuel storage facility two will be EUR 5 million. He urged the government to support sending of the rest of the sum – EUR 1.5 million or UAH 40 million.

The minister also said that on April 26 Ukraine seeks to sign an agreement on sending EUR 40 million by the European Bank for Reconstruction and Development (EBRD) to the NSA. The EBRD manages NSA.

The international conference to collect funds and send them to the Nuclear Safety Account (NSA) for the completion of the project to build a spent nuclear fuel storage facility two at Chornobyl nuclear power plant (NPP) is to take place in Kyiv on April 25 and April 26.

Ukraine and Japan will co-chair the assembly. More than 20 countries, including G7 states, the European Commission and the European Bank for Reconstruction and Development(EBRD), are invited to participate in the event.

UKRAINE INCREASES STEEL OUTPUT BY 28% IN MARCH, BEING TENTH IN WORLDSTEEL RANKING

KYIV. April 21 (Interfax-Ukraine) – Ukrainian metallurgical enterprises in March 2016 increased steel production by 28.1% compared to March 2015, to 2.173 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 rise in steel production in March was recorded in the half of top ten countries: China, India, the United States, Turkey and Ukraine.

The top ten steel makers in March are as follows: China (70.65 million tonnes, a rise of 2.9%), Japan (8.648 million tonnes, a drop of 6.8%), India (8.059 million tonnes, a rise of 3.4%), the United States (6.748 million tonnes, a rise of 4.9%), Russia (6.012 million tonnes, a drop of 2%), South Korea (5.43 million tonnes, a drop of 8.4%), Germany (3.811 million tonnes, a drop of 1.6%), Turkey (2.173 million tonnes, a rise of 1.3%), Brazil (2.506 million tonnes, a drop of 9.5%), and Ukraine (2.173 million tonnes, a rise of 28.1%).

In general, in March 2016, the 66 countries produced 137.322 million tonnes of steel, which is 0.5% lower than in March 2015.

The top ten steel makers in January-March 2016 includes: China (192.01 million tonnes, a drop of 3.2%), Japan (25.77 million tonnes, a drop of 3.6%), India (22.913 million tonnes, a rise of 1.8%), the United States (19.628 million tonnes, a drop of 1.3%), Russia (17.224 million tonnes, a drop of 5.2%), South Korea (16.176 million tonnes, a drop of 4.3%), Germany (10.782 million tonnes, a drop of 2.5%), Turkey (7.697 million tonnes, a rise of 1.9%), Brazil (7.392 million tonnes, a drop of 12.3%), and Ukraine (6.082 million tonnes, a rise of 18%).

In general, in January-March 2016, the 66 countries produced 385.671 million tonnes of steel, which is 3.6% lower year-over-year.

As reported, in 2015, the top ten steel makers included China (803.83 million tonnes, a drop of 2.3%), Japan (105.152 million tonnes, a drop of 5%), India (89.582 million tonnes, an increase of 2.6%), the United States (78.916 million tonnes, a drop of 10.5%), Russia (71.114 million tonnes, a drop of 0.5%), South Korea (69.673 million tonnes, a drop of 2.6%), Germany (42.678 million tonnes, a drop of 0.6%), Brazil (33.245 million tonnes, a drop of 1.9%), Turkey (31.517 million tonnes, a drop of 7.4%), and Ukraine (22.933 million tonnes, a drop of 15.6%).

In 2015, the 66 countries produced 1.599 billion tonnes of steel, which is 2.9% lower than in 2014.