Business news from Ukraine

MALYSHEV PLANT TO SUPPLY NEXT BATCH OF COMBAT EQUIPMENT PARTS FOR PAKISTANI MBT AL-KHALID

KYIV. May 14 (Interfax-Ukraine) – The Malyshev Plant (Kharkiv) is preparing for shipping next large batch of engine transmission compartments and other large knots and parts for combat equipment for a foreign customer, the press service of the tank plant has reported.

“The products will be supplied to a long-time business partner of the enterprise. Along with engine transmission compartments, the plant will supply torsion shafts, air cleaners and boilers,” the press service said.

“Engine transmission compartments and other parts have been examined by the contractor and will be shipped soon,” the plant said.

The Malyshev plant is a world-famous Ukrainian manufacturer of armored vehicles. The plant also produces diesel engines and other products.

Its biggest partners in recent years have been Pakistan, China, Iraq and Thailand.

Since January 2011, the plant has been part of the Ukroboronprom Concern.

Pakistan is the main customer of Malyshev Plant. Since 2001, Ukraine has been cooperating with Pakistan and China in the main battle tank (MBT) Al-Khalid project.

INVESTMENT IN ELITE REAL ESTATE IN KYIV ON FIRST REALTY GROUP DEALS ALMOST DOUBLES IN APRIL

KYIV. May 13 (Interfax-Ukraine) – The volume of investment in elite real estate in Kyiv under the transactions of Blagovist and Park Lane real estate agencies, part of First Realty Group (all based in Kyiv) in April 2016 grew by 1.8 times from March 2016, to $8.489 million, accounting for 25% of total investment in real estate in the past month.

Park Lane said, with reference to its analytical center, that this data includes the calculation of the cost of a transaction in the national currency at the average exchange rate to U.S. dollars on the day of the transaction.

Park Lane reported the share of transactions in the segment of elite real estate in the capital, including facilities with the cost starting with $250,000, in the total volume of transactions formalized by First Realty Group amounted to 7% in April 2016.

The share of transactions with apartments of the total number of deals of First Realty Group was 75%. The highest demand was seen for apartments of 100-250 square meters located both in new residential complexes and old buildings in Pechersky, Shevchenkivsky, Podilsky, Solomiansky and Dniprovsky districts. Their price ranged between $1,700-2,800 per square meter.

According to Park Lane, the share of transactions with non-residential objects in the total volume of transactions in the elite property segment by First Realty Group in Kyiv in April 2016 stood at 10%. The most popular among buyers were offices of 80-150 square meters and a value of $2,800-3,900 square meters located in Pechersky district.

USDA FORECASTS UKRAINIAN GRAIN HARVEST IN COMING FARM YEAR AT 58.9 MLN TONNES

KYIV. May 13 (Interfax-Ukraine) – The U.S. Department of Agriculture (USDA) forecasts that Ukraine will harvest 58.925 million tonnes of grain in the coming agricultural year (July 2016-June 2017) and export 31.83 million tonnes of grain.

Ukraine’s feed grain harvest will total 34.925 million tonnes, including 24 million tonnes of corn, the USDA said. Ukraine will also harvest 7.8 million tonnes of barley and 24 million tonnes of wheat.

The USDA forecasts Ukrainian wheat exports at 11.5 million tonnes in the 2016/2017 farm year. Feed grain exports will amount to 20.33 million tonnes, including 17 million tonnes of corn.

Ukraine estimates grain harvest in 2015 at 59.96 million tonnes, which is 6.1% less than a year earlier, the State Statistics Service reported.

Grain exports in the past farm year totaled 34.6 million tonnes, including 18.837 million tonnes of corn, 11.234 million tonnes of wheat, 4.46 million tonnes of barley and 280,000 tonnes of other grain crops.

The Agricultural Policy and Food Ministry forecasts grain exports in the 2015/2016 farm year will total 37 million tonnes. The Ukrainian Grain Association expects the exports to weigh in at 36 million tonnes.

GOVERNMENT ALLOCATES UAH 134 MLN FOR ODESA-RENI ROAD CONSTRUCTION

KYIV. May 13 (Interfax-Ukraine) – The Cabinet of Ministers on May 11 decided to allocate UAH 134 million for building the Odesa-Reni highway, Prime Minister of Ukraine Volodymyr Groysman has said.

“You can already count on this resource and use it to the full,” the prime minister told the leadership of Odesa region at a conference call.

As reported, in late April President of Ukraine Petro Poroshenko held a meeting with Prime Minister Volodymyr Groysman, Infrastructure Minister Volodymyr Omelyan and Head of Odesa Regional State Administration Mikheil Saakashvili to accelerate the construction of the Odesa-Reni road. The officials defined sources of funding from the national budget, customs revenues and those from EU states. It was also agreed the construction will begin in late May.

UKRAINE JOINS EU PROGRAM FOR COMPETITIVENESS OF SMALL, MEDIUM BUSINESS

KYIV. May 13 (Interfax-Ukraine) – Ukraine has officially joined the European program to strengthen the competitiveness and sustainability of small and medium businesses (COSME, 2014-2020) with a total budget of EUR2.3 billion, according to a posting on the website of the Ministry of Economic Development and Trade.

“Ukraine’s participation in COSME is the next step in the process of Ukrainian economic integration with the EU and the symbol of increasing the role of small and medium-sized enterprises (SME) as a driver of the Ukrainian economy,” Deputy Minister of Economic Development and Trade Yulia Klymenko said.

The corresponding agreement on Ukraine’s participation in the EU program was signed in Brussels by European Commission Director General for Internal Market, Industry, Entrepreneurship and SMEs Lowri Evans and Representative of Ukraine in the European Union Mykola Tochytsky. The next step is the ratification of the agreement by parliament.

The program for the current year that is available for Ukraine consists of 25 sub-programs, which are classified in three areas: simplifying SMEs’ entering foreign markets, improving competitiveness and creating a culture of doing business. The program supports projects on various subjects, including clusters, tourism, chemical industry, facilitating access to public procurement, administrative burden reduction and protection of intellectual property rights for companies operating in countries which are not EU members.

CABINET ALLOCATES UAH 1.1 BLN FROM REGIONAL DEVELOPMENT FUND FOR 220 PROJECTS IN 11 REGIONS OF UKRAINE

KYIV. May 13 (Interfax-Ukraine) – The Cabinet of Ministers has approved the allocation of UAH 1.1 billion from the State Fund for Regional Development for financing regional projects in 11 regions of the country, Prime Minister Volodymyr Groysman has said.

“We’ve approved the State Regional Development Fund: UAH 1.1 billion will be spent on the projects you have filed for approval,” he said at a meeting with the heads of regional administrations.

Earlier Vice Prime Minister of Ukraine, Minister of Regional Development, Construction, Housing and Utilities Services Hennadiy Zubko reported the interdepartmental commission had recommended the approval of 219 projects submitted by 11 regions: Vinnytsia, Volyn, Dnipropetrovsk, Zakarpattia, Kyiv, Poltava, Rivne, Ternopil, Kharkiv, Khmelnytsky regions and Kyiv.

“The commission recommended the Cabinet of Ministers approve projects with the funding of UAH 1.010 billion. Among them, in particular, is UAH 955,639 to repay creditor indebtedness formed at the expense of the 2015 fund. The unallocated balance of funds stands at UAH 1.99 billion,” the vice premier said.