Business news from Ukraine

UKRAINE CIVIL SOCIETY, EUROPEAN PARTNERS DEVELOPING CONCEPT OF TRANSFORMATION OF UKRAINE

Business and public organizations of Ukraine, representatives of the clergy, international institutions have developed a draft concept of a large-scale qualitative transformation of the state. It is based on current domestic realities and an analysis of successful experience of positive change in Central and Eastern Europe, namely Poland. The Polish government has confirmed its readiness to help Ukraine make a breakthrough in development and involve EU partners in this process. This issue was discussed at a meeting of the Third National Forum “Transformation of Ukraine.”

For several months, a special monitoring group had actively been exploring the experience of Central and Eastern Europe ‒ Poland and other countries ‒ as for the process of transformation. The experts emphasize: in the early 90s, the economy of Ukraine and Poland was almost at the same level. Last year, Ukraine’s GDP amounted to $86 billion, while Poland’s was estimated at $500 billion. However, Ukraine has managed to partly save the industrial, technical, innovative potential. The IT sector has been developing actively – the Ukrainians are the first in Europe in terms of proving IT services.

“It’s a paradox that there are possibilities, but there is no development, and it must be tackled as soon as possible,” President of the Ukrainian League of Industrialists and Entrepreneurs, Chairman of the Anti-Crisis Council of NGOs Anatoliy Kinakh said.

He stresses that the Ukrainian authorities and society will have to solve pressing issues that are indispensable for an economic breakthrough and tangible improvements. They include the security of doing business, the protection of the rights of owners and investors, the creation of conditions for equal competition, development and implementation of programs for industry, IT, agriculture, and others.

“The system of reform is inefficient in Ukraine, as it hinders the international development of the country’s economy,” head of the EU Delegation to Ukraine Jan Tombinski said. “Ukraine is now slowly moving in that direction. You have set accession to the EU as a strategic goal, but the question is how to make it the fastest and most efficient way. Our goal is help Ukraine realize its potential. And believe me ‒ the EU is interested in this.”

Other representatives of the National Forum also pointed to the sluggish and inconsistent reform in the country. They unanimously stressed that Ukrainian society, the government, businesses should as soon as possible consolidate efforts around a single concept of the country’s development and work on it.

Earlier, the Forum’s ad hoc monitoring group, which included domestic and international experts, had been examining and evaluating programs, strategies of Ukraine’s development and prospects for their successful implementation for several months. Based on this analysis, it elaborated proposals aimed at overcoming the current social and economic crisis in Ukraine and drew up a draft concept of transformation of the country.

Participants in the Forum presented the recommendations to national experts and international partners as for the use of successful experience in Central and Eastern Europe, including Poland, for the effective transformation of the state. In particular, they recommend measures to develop Ukraine’s economic potential and improve the quality of its citizens’ life.

The Forum stressed the need to develop a national strategy for transformation. It should take into account the current situation and needs of Ukraine, based on the experience of “young” EU countries. It should also foresee the fulfillment of the Copenhagen criteria that are required for EU membership. The strategy will cover such areas as state security, a favorable business climate, the streamlining of the legal system, public finance, social policy, science, education as well.

All initiatives suggest joint efforts of this country’s leadership, parliament, active members of civil society and Western partners who take care of Ukraine’s future. The Forum and its developments have recently been presented to representatives of the European Parliament and EU delegates in Brussels and Lodz. The plans include the Forum’s participation as a strong national public platform in the most prominent international forums. These are namely the European Economic Summit, scheduled for June, and the July Warsaw Summit of NATO.

“For the NATO Summit, the Forum has been preparing its proposals concerning security not only in Ukraine but also in the entire Europe,” Anatoliy Kinakh said.

PARLIAMENT SIMPLIFIES FAMILY FARM REGISTRATION

KYIV. April 1 (Interfax-Ukraine) – The Verkhovna Rada of Ukraine has adopted the law on amendments to some laws of Ukraine on the promotion, creation and operation of family farms.

Some 262 deputies voted for relevant draft law No. 1599.

The document provides a simplified procedure for the transformation of personal peasant farms into family farms, simplifies registration and organization of their business activities, as well as the procedures for obtaining permits.

The document foresees amendments and additions to the law on farms and personal peasant farms in order to create legal, economic and social preconditions for the transformation of personal peasant farms into family farms, obviating the need to receive the status of legal entity or individual entrepreneur.  The measure ensures the full participation family farms in the agricultural market and strengthens the social protection of members of such farms, stimulating the creation on their basis of a viable system of agricultural service cooperatives and the integrated development of small farms in rural areas.

 

IFC, SWISS GOVERNMENT ALLOCATE $3.5 MLN TO IMPROVE UKRAINE’S INVESTMENT CLIMATE

KYIV. April 1 (Interfax-Ukraine) – The International Financial Corporation (IFC), a division of the World Bank Group, and the State Secretariat for Economic Affairs of Switzerland (SECO) will allocate $3.5 million in 2016-2018 to finance an advisory program to help improve the investment climate in Ukraine.

The funding will be $3.5 million, the project is designed for three years until December of 2018, and its partner is the Swiss government, the World Bank project manager in Ukraine, Eugeniu Osmochescu, said at a press conference in Kyiv on Thursday.

According to him, the program’s partners in Ukraine will be the Economic Development and Trade Ministry and the Agrarian Policy and Food Ministry.

The program is aimed at creating an effective regulatory environment for enterprises, the reduction of costs for the implementation of business activities and providing assistance in opening new markets to Ukrainian agricultural producers.

The new project will focus on improving regulatory procedures such as obtaining permits, licensing and inspection of enterprises in all sectors of economy. It will also help adapt Ukrainian legislation to international requirements.

The program will also help simplify the logistics in ports and river transportation in order to facilitate the development of trade and exports.

This project is based on the results of preliminary work conducted by the IFC in agriculture.

RISOIL LAUNCHES FIRST PHASE OF GRAIN TERMINAL AT ILLICHIVSK PORT

KYIV. April 1 (Interfax-Ukraine) – Risoil S.A. has launched a first phase of a grain terminal belonged to Risoil Terminal JV LLC at the Illichivsk maritime transport port (Odesa region).

“Building a modern complex for grain handling is a large step in developing the region’s infrastructure. These are new jobs and a good example for attracting investors,” the press service of the Agricultural Policy and Food Ministry reported, citing Minister Oleksiy Pavlenko.

He said that Risoil Terminal at the Illichivsk port is the largest export-import bulk terminal in the Black Sea region. The terminal plays a key role in exports of Ukrainian unrefined sunflower oil and provides interim storage services to the large companies such as Cargill, Kernel, ADM and others.

The terminal includes a warehouse with a storage capacity of 30,000 tonnes of grain. Around 120 trucks a day can be unloaded at the warehouse. The annual pass-through capacity of the warehouse will be 700,000 tonnes of grain.

The silo complex has 13 silos with a storage capacity of 85,000 tonnes of grain. Nine more silos with a total capacity of 125,000 tonnes will be built with the railway station for unloading up to 220 wagons a day.

“The truck unloading station with four lanes for trucks is being built. This would allow unloading 400 trucks a day,” the minister said.

Risoil S.A. was founded in Switzerland in 2000. The company offers the following services: logistics of vegetable oils, bulk and general cargoes in the ports of the Black Sea; manufacturing and distribution of vegetable oils; storage of grains and oilseeds in containers and storage and processing of agricultural products.

LUHANSKTEPLOVOZ PRODUCED ALMOST 100 LOCOMOTIVES IN 2014-2015

KYIV. April 1 (Interfax-Ukraine) – Public joint-stock company Luhanskteplovoz, owned by Russia’s Transmashholding (TMH), is operating. The plant in March 2016 fulfilled all its liabilities to customers, first to Russian Railways (RZD), the company reported on Thursday.

“There are still problems with sales of products. Large inefficient expenses appeared due to a delay of a batch of locomotives on the customs border,” the company said.

Luhanskteplovoz failed to pay for spare parts to some companies in Ukraine, Russia, the United States and Germany.

The company also pointed at real challenges with supply of materials and spare parts to the plant.

Luhanskteplovoz said that the problem of non-refunding VAT from the Ukrainian national budget is becoming more acute. The debt has exceeded UAH 750 million.

Director General Petro Karpov said that despite difficulties, Luhanskteplovoz in 2014-2015 produced almost 100 diesel locomotives of various models and other products worth over UAH 3 billion.

Luhanskteplovoz produces trunk and shunting diesel locomotives, electric locomotives and diesel trains.

TOP-30 COUNTRIES EXPORTERS TO UKRAINE

Source: State Statistics Services

Source: State Statistics Services