Business news from Ukraine

FRUNZE PLANT COULD SET UP PRODUCTION IN KAZAKHSTAN OR BELARUS TO OFFSET LOSSES FROM ABOLITION OF FTA BETWEEN RUSSIA AND UKRAINE

KYIV. Jan 28 (Interfax-Ukraine) – Frunze Plant (Kharkiv), the leading Ukrainian manufacturer of fencing systems, plans to increase its presence in the European market and is studying the issue of setting up production in Kazakhstan or Belarus to compensate for losses from the abolition of a free trade area (FTA) regime between Russia and Ukraine.

According to a press release from the company, with reference to its board chairman Oleksandr Vasylenko, January showed that exports of goods to Russia are becoming much more expensive.

“Duties of 6% to 15% were imposed on our products. In addition, Russian customs officers, guided by internal documents, sometimes increase the price of products by almost two times that simultaneously raises the amount of VAT for our trading partners,” he said.

In addition, he said the devaluation of the ruble plays into the hands of Russian manufacturers making similar products.

Frunze Plant, founded in 1885, produces screens for agriculture machinery, flooring grills, netting and fencing systems for the construction industry, elements of urban environment (waste baskets, benches), storage racks and others.

KLITSCHKO DISCUSSES ROLE OF CHINESE HAISUM ENGINEERING IN KYIV’S DEVELOPMENT

KYIV. Jan 28 (Interfax-Ukraine) – Kyiv Mayor Vitali Klitschko together with his deputies in charge for the relevant issues has discussed the participation of China Haisum Engineering Co. in the development and construction of infrastructure projects in Kyiv.

“I am happy that investors are interested in projects in Ukraine, in particular, in Kyiv. Our task is to create the best conditions for investors, so that they have an opportunity to invest money and develop business in the Ukrainian capital. Kyiv has an enormous potential in terms of resources. We have many attractive investment projects and a large number of qualified professionals in various sectors. Despite the challenging economic environment, Kyiv has managed to attract UAH 1.7 billion, and we continue working with investors,” the press service of the Kyiv City Administration cited Klitschko on Wednesday.

The city major noted that the city was actually looking for investors to finance the construction and development of its infrastructure in order to finish the construction of the Podilsko-Voskresensky bridge, a subway line to Troyeschyna, and a large motorway orbital road, as well as to fund the construction of social objects, namely, kindergartens, schools, hospitals, and sports facilities.

Haisum Engineering’s Manager of International Business Department Gong Jun, in turn, said that his company was interested in cooperation with Ukrainian municipal authorities and participation in the construction of social objects of the city.

The parties have agreed that the next meeting to deliberate the details of the company’s participation in Kyiv’s construction projects will be held in April. “The Chinese partners will take this time to get acquainted with the projects which were presented by the city administration and the Kyiv investment agency,” the statement said.

Haisum Engineering is a state-run Chinese company with offices in South and South-East Asia, Europe, Middle East, and Latin America, the press-service of the Kyiv City Administration said. The company implements numerous projects in housing, utilities and infrastructure rehabilitation and modernization and can raise funds from the Chinese Investment Bank.

 

SPF TO PREPARE 26 COALMINES, UKRTORF, TWO CHPS FOR PRIVATIZATION IN 2016

KYIV. Jan 28 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) has put state concern Ukrtorf, state enterprise Kryvy Rih combined heat and power plant (CHP), state enterprise Severodonetsk CHP and 26 coalmines and coal producers to the list of facilities that are to be prepared for the privatization in 2016.

The list of facilities is approved in SPF order No. 106 of January 22, 2016, a copy of which has been sent to Interfax-Ukraine.

The following facilities will be prepared for the privatization:

Three coalmines of Volynvuhillia: Novovolynske colliery group (run-of-mine coal production in 2015 totaled 20,100 tonnes), Buzhanska (123,100 tonnes) and Novovolynska 9 (92,600 tonnes);

Seven coalmines of state enterprise Lvivvuhillia: Mezhyrichenska (227,500 tonnes), Vidrodzhennia (295,100 tonnes), Velkomostivska (280,000 tonnes), Lisna (263,000 tonnes), Stepna (337,700 tonnes), Chervonohradska (351,100 tonnes), Zarichna (60,000 tonnes);

Four coalmines of state enterprise Selydivvuhillia: Novohrodivska 1-3 (791,500 tonnes), Rosiya (237,200 tonnes), Ukraina (124,700 tonnes) and Kurakhivska (94,700 tonnes);

Four coalmines of state enterprise Krasnoarmiyskvuhillia: Dymytrova (13,500 tonnes), Tsentralna (14,300 tonnes), Stakhanova (362,800 tonnes) and Rodynska (16,000 tonnes);

Four coalmines of state enterprise Pervomaiskvuhillia: Zolote (14,300 tonnes), Karbonit (9,300 tonnes), Toshkivska (48,000 tonnes) and Hirska (294,300 tonnes);

State enterprise Pivdennodonbaska Mine 3 (350,600 tonnes, earlier was part of DUEK state enterprise);

Krasnolymanska (641,700 tonnes);

Public joint-stock company Lysychanskvyhillia (543,800 tonnes),

Public joint-stock company Nadia Mine (228,200 tonnes).

As reported, the Cabinet of Ministers of Ukraine approved the privatization of these state-run coalmines and state enterprise Ukrtorf in resolution No. 271 of May 12, 2015.

PARLIAMENT RATIFIES PROTOCOL ON APPLICATION OF FREE TRADE AREA AGREEMENT WITH UZBEKISTAN

KYIV. Jan 28 (Interfax-Ukraine) – The Ukrainian parliament has ratified the protocol on the application of the free trade area agreement dated October 18, 2011 between the parties of the agreement and Uzbekistan.

A total of 234 parliamentarians supported bill No. 0060 on Wednesday.

The protocol aims at providing the effectiveness of the provision of the free trade area agreement dated October 18, 2011 in relations between Uzbekistan and the parties of the agreement, taking into account the conditions foreseen in the protocol and the expansion of the free trade area within the CIS.

According to the protocol, the free trade agreement signed by the Ukrainian and Uzbek governments on December 29, 1994 is valid.

Uzbekistan does not apply imports and exports duties towards Ukraine.

The protocol on the application of the free trade area agreement dated October 18, 2011 between Uzbekistan and the parties of the agreement was signed on May 31, 2013 in Minsk.

PGOK EXPORTS NEARLY 11.5 MLN TONNES OF PELLETS IN 2015, REMAINS LEADER AMONG GOKS IN CIS – UKRPROMZOVNISHEKSPERTYZA

KYIV. Jan 27 (Interfax-Ukraine) – Poltava Mining and Processing Plant (Poltava GOK, Komsomolsk, Poltava region), controlled by British Ferrexpo Plc, in 2015 exported 11.494 million tonnes of pellets to Europe and the Middle East, as well as Japan and China, retaining the first place in terms of production and exports of these goods among similar enterprises in the CIS countries.

According to a press release from the company, such data were released by state enterprise Ukrpromzovnishekspertyza.

According to the document, in 2015, in particular, Pivnichny GOK (Ukraine) exported 3.314 million tonnes of pellets, Karelsky Okatysh (the Russian Federation) 3.373 million tonnes, Central GOK (Ukraine) 1.931 million tonnes, Lebedinsky GOK (Russia) 1.790 million tonnes.

Production of iron ore pellets by mining enterprises in 2015 amounted to 11.662 million tonnes at PGOK, Mikhailovsky GOK (the Russian Federation) produced 10.943 million tonnes, Karelsky Okatysh 10.612 million tonnes, Pivnichny GOK 7.690 million tonnes, Kachkanarsky GOK (the Russian Federation) 6.510 million tonnes.

Poltava GOK is the main asset of British-based Ferrexpo Plc mining company listed on the London Stock Exchange: it owns 100% of shares in Ferrexpo AG, which, in turn, holds a 97.34% stake in Poltava GOK, 100% in Yerystove GOK and 99.9% in Belanovsky GOK.

ODESA SEAPORT REALIZING SOME INVESTMENT PROJECTS IN 2016

KYIV. Jan 27 (Interfax-Ukraine) – Odesa maritime merchandise port plans to realize some investment projects in 2016, the press service of the Sea Port Authority has reported, referring to head of the port’s administration Mykhailo Sokolov.

He said that reconstruction of berth 7 with construction of a handling terminal is underway, construction of a grain handling terminal on the basis of berth 35 (1-z) continues and construction of a container terminal is going on at the Quarantine Mole.

This year the port plans to start reconstructing an overpass, the cargo customs clearance zone, a concert and exhibition hall and a passenger ship terminal.

The administration and partners of the port take into account and fulfill ecological requirements when they agree and realize investment projects. In 2015, grain terminals of the harbor commissioned several modern aspiration systems that allowed cutting dust formation of cargos.

Odesa port is located on an area of 109.5 hectares. The port is capable of processing over 14 million tonnes of dry cargo and 24 million tonnes of liquid cargo per year. The port accepts vessels with lengths of up to 270 meters and maximum draughts of 13 meters. The total length of the port’s berths exceeds eight kilometers.