Business news from Ukraine

JOINT AIR SPACE AGREEMENT WITH EU COULD BE SIGNED IN JULY – INFRASTRUCTURE MINISTER

KYIV. April 22 (Interfax-Ukraine) – An agreement on a joint air space between the EU and Ukraine could be signed in July 2016, Ukraine’s Minister of Infrastructure Volodymyr Omelian has said.

“We have a serious issue of signing the agreement with the EU. We’ve got a new date from Brussels – July 2016. This is the last date I believe in, then I will draw the EU’s attention to the fact that they need to keep their word,” he said during the Ukrainian Infrastructure Forum in Kyiv.

As reported, President of Ukraine Petro Poroshenko in 2015 authorized the then Minister of Infrastructure Andriy Pyvovarsky to sign an agreement on a joint air space with the EU. Prior to that, European Commission Spokesperson Jakub Adamowicz noted that the Commission supports the signing of the agreement, but did not mention a specific date when such an agreement could be signed, in particular due to the unsolved problem of Gibraltar.

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.