Business news from Ukraine

INTERCHEM PHARMACY TO OPEN NEW LAB INDUSTRIAL COMPLEX IN ODESA

KYIV. May 17 (Interfax-Ukraine) – Interchem pharmaceutical company (Odesa) has completed the implementation of a high tech investment project on the development of production facilities and the construction of a unique laboratory and industrial complex of the European level in Odesa.

According to a company press release, the investment project will allow to quadruple production of medicines that will ensure providing the population with high quality and affordable medicines and facilitate domestic medicines’ entering foreign markets.

The total volume of investment in the new project in early May of the current year amounted to EUR42 million. The total area of the new complex is 15,000 square meters.

During the implementation of the project Interchem paid more than UAH 243 million to the budgets of all levels. The amount of paid tax liabilities under contracts with Ukrainian partners involved in the project exceeded UAH 50 million, tax payments to the budget under contracts with non-residents exceeded UAH 28 million.

The company created 139 new jobs. It is planned by 2020 to increase the number of employees from 700 (early 2016) to 960 people.

Interchem is one of the leading Ukrainian producers of medicines and pharmaceutical substances. It is included in the top ten manufacturers of medicines. The share of own production reaches 2% of the total market in the country.

MARIUPOL PORT WILL CONTINUE COOPERATION WITH METINVEST

KYIV. May 17 (Interfax-Ukraine) – Mariupol maritime merchant port (Donetsk region) is interested in mutually beneficial cooperation with all cargo owner companies and continues to develop relations with its strategic partner – Metinvest Group.

According to the Illichivets newspaper, with reference to port director Oleksandr Oliynyk, the agreement on cooperation with Metinvest-Shipping on transshipment of metal produced by Metinvest Group through berth No. 10, which is to be reconstructed, expires in June.

“However, we’ll not terminate our strategic partnership, on the contrary, we will develop it using other berths at the port,” the port director said.

According to him, currently Mariupol metallurgical enterprises provide the basic load of the port’s transshipment facilities with metal for exports. And in May this year four Handysize class vessels deliver iron ore to the port for the needs of metallurgists, which provides the port with an additional cargo flow.

AGRICOM GROUP TO DEVELOP AGRICULTURAL CLUSTER IN WESTERN UKRAINE

KYIV. May 14 (Interfax-Ukraine) – Agricom Group seeks to start agricultural production in western Ukraine in autumn, Agricom Group CEO Petro Melnyk said at a press conference in Kyiv on Thursday.

“We have invested some $6 million in the past two years. Now we start developing a new cluster in western Ukraine,” he said.

He said that the cluster development strategy in the first year implies purchase of 5,000-10,000 ha of land to create the production base.

“I think that in the autumn we would sow winter crops there,” Melnyk said.

He also said that Agricom Group is building an oat-flake plant in Chernihiv region.

“We are building oat-flake facilities near Chernihiv, absolutely new comparable to other plants in Europe,” he said.

Melnyk said that shareholders finance the plant and a five-year loan from the Swiss export agency was taken to fund the project.

Agricom Group produces food from grain at own production base. It unites agricultural, processing and trade companies.

OSCHADBANK’S PROFIT TOTALS UAH 112.032 MLN

KYIV. May 14 (Interfax-Ukraine) – State-run Oschadbank (Kyiv) saw UAH 112.032 million in profit in January-March 2016, while a year ago its loss amounted to UAH 5.781 billion.

According to a quarterly report of the bank, its net interest income in Q1 2016 was UAH 2.455 billion, while in Q1 2015 the figure was negative – UAH 1.759 billion.

Total assets increased by 13.6%, to UAH 180.792 billion and credits to clients increased by 5%, to UAH 68.767 billion.

Share capital increased by 16.4%, to UAH 35.109 billion and net worth expanded by 81.2%, to UAH 13.303 billion.

Oschadbank was founded in 1991. Its sole owner is the state.

The bank ranked second among 123 operating banks in the country on October 1, 2015 by total assets (UAH 156.596 billion), according to the National Bank of Ukraine.

UKRAINE SIGNS ANTI-CORRUPTION DECLARATION AT GLOBAL ANTI-CORRUPTION SUMMIT IN LONDON

KYIV. May 14 (Interfax-Ukraine) – Ukraine has joined global declaration against corruption at the Anti-Corruption Summit in London, Ukraine’s State Fiscal Service has reported.

“Along with 40 other countries and representatives of organizations we have agreed the final document of declaration against corruption and the summit communiqué. Thus, global society expressed firm intention to take all possible measures inside countries and at the international level to eradicate corruption in all possible spheres,” the State Fiscal Service said, citing Head Roman Nasirov.

He said that Ukraine has taken a liability to implement the provisions of the document and take concrete steps declared at the summit to realize a new anti-corruption strategy and action plan to be approved in 2017. Public agencies of the country, first of all the State Fiscal Service, are obliged to check accuracy of information about ultimate beneficiaries of companies, introduce international standards in combating money laundering, narrow opportunities for corruption in the zones of large hazard, cooperate with other countries, international institutions and civil society in introduction of international anti-corruption standards.

UKRPOSHTA SEEKS TO OPEN 100 NEW BRANCHES IN 2016

KYIV. May 14 (Interfax-Ukraine) – Ukrainian postal services state enterprise Ukrposhta seeks to open 100 new branches in 2016. The company opened 32 branches in 2015.

Ukrposhta Head Ihor Tkachuk gave the information in an interview published in the Holos Ukrainy newspaper.

He said that Ukrposhta has the most expanded network with almost 12,000 departments.

He said that Ukrposhta has been providing agent services for two years in cooperation with Universalna insurance company. The gradual increase in the number of branches selling insurance policies has expanded the insurance product range. Branches offer mandatory civil responsibility insurance, driver and passengers’ additional insurance, property insurance, compulsory insurance of civil liability of motor vehicle owners (OSAGO) and responsibility to neighbors.

Tkachuk said that medical policies from Deka Insurance, M-Life and Universalna are also sold using a nickelback scheme.

He also said that Ukrposhta is cooperating with Fidobank and bank Mykhailivsky in signing deposit agreements. A total of 1,580 terminals of Raiffeisen Bank Aval and 857 terminals of PrivatBank are installed in Ukrposhta’s departments.