Business news from Ukraine

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.

KROMBERG&SCHUBERT TO INCREASE NUMBER OF WORKERS AT ZHYTOMYR PLANT TO 5,000 IN THREE YEARS

KYIV. April 20 (Interfax-Ukraine) – The Kromberg&Schubert manufacturer of cable systems for cars, intends in three years to increase the number of employees at the second production site in Ukraine in Zhytomyr to 5,000 people (today the plant employs 900 workers).

According to the press service of Zhytomyr City Council, the leadership of the Ukrainian company reported this during the Doors Open Day on April 16.

The plant started operations in September 2015 in a test mode, which will last until June this year. Currently the plant is actively recruiting employees.

As reported, the overall investment in the new enterprise is estimated at EUR30 million. As of today, according to the press service, more than EUR10 million has been used.

Currently Kromberg&Schubert Ukraine LLC (Volyn region), established in 2005, operates in the country. Investment in the company amounted to EUR11.5 million. The company employs about 5,500 people.

The plant produces onboard cable systems for passenger cars. The plant’s capacity is about 1,000 sets of electric cables per day. The main consumers of its products are Daimler AG, BMW, and Volkswagen.

UKRAINE UNDERGOES FIRST TRADE POLICY REVIEW AT WTO

KYIV. April 20 (Interfax-Ukraine) – Ukraine, for the first time since joining the World Trade Organization (WTO) in May 2008, is undergoing the review of its trade policy, within which Kyiv and the WTO Secretariat present their detailed reports on the state of practically all the sectors of the country’s economy, the press service of the Ministry of Economic Development and Trade has said.

“As expected, we can note interest in this event on the part of WTO members who pay serious attention to the transparency of Ukraine’s trade regime, as evidenced by the significant number of questions – 450!” reads a press release citing the head of the Ukrainian delegation, Deputy Minister of Economic Development and Trade and Trade Representative of Ukraine Natalia Mykolska.

According to the procedure, the opponent discussant of the Ukrainian delegation on the part of the WTO will be Permanent Representative of Switzerland to the WTO Remigi Winzap.

The review of trade policies of WTO members is one of the most important activities of the organization, because it is a significant element of transparency, reinforcing the principle of predictability of trade regimes, legislation and its implementation by WTO members.