Business news from Ukraine

PRIVATBANK BECOMES FULLY STATE-OWNED BANK – DEPOSIT GUARANTEE FUND

KYIV. Dec 22 (Interfax-Ukraine) – The Individuals Deposit Guarantee Fund and the Finance Ministry of Ukraine on December 21 signed an agreement to sell 100% of shares in PrivatBank, the press service of the fund has reported.

“Since the moment of the transfer the state is the owner of 100% of shares in the bank in the person of the Finance Ministry. This was made thanks to coordinated actions of the Finance Ministry, National Bank of Ukraine (NBU), Deposit Guarantee Fund, National Commission for Securities and the Stock Market, National Depository of Ukraine, Ukrgasbank and Ukreximbank,” the fund said on its Facebook page.

All the required procedures were settled within 72 hours: reserves for active transactions have been formed, additional shares have been issued and placed, amendments to the bank’s regulations have been made, the transition balance has been formed and all the procedures for selling the shares and reshuffle the owners of the bank have been finished.

“PrivatBank’s capital is negative. According to the law on the individuals deposit guarantee system, the Deposit Guarantee Fund sold all the shares of the bank to the Finance Ministry for UAH 1,” the fund said.

In general, it took two days to buy ownership rights to the shares of PrivatBank since the start of the procedure for removing the bank from the market.

INTEREST RATES ON NBU’S ACTIVE AND PASSIVE OPERATIONS SET FOR DECEMBER 21

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The Refinancing Rate is a rate at which the NBU provides loans to commercial banks for replenishment of their monetary reserves and lending funds

ODESA COGNAC PLANT STARTS SUPPLYING ITS PRODUCTS TO AUSTRALIA, POLAND

KYIV. Dec 21 (Interfax-Ukraine) – Private joint-stock company Odesa Cognac Plant, a large cognac producer in Ukraine, has signed contracts to supply its products to Australia and Poland.

“Odesa cognac plant would increase production and sales this year. We are entering new markets. Two weeks ago we shipped a batch of our products to Australia. Now we have signed a contract to supply cognac to Poland,” Board Chairman Eduard Horodetsky told reporters.

He said that now the enterprise is expanding geography of shipments and developing on the U.S. market. The company exports its products to 14 countries.

“Around 10% of products are exported,” he said.

He said that the cognac production facilities were located by 55% during the year.

“Our distilling capacity is 30 million liters of wine a season. Now around 8 million liters of cognac spirit is aging,” he said.

EU EUR 6 MLN PROJECT TO CREATE AND REFURBISH 20 MODEL POLICE STATIONS IN UKRAINE

KYIV. Dec 21 (Interfax-Ukraine) – The European Union is financing a project, titled “Support to Police Reform” (EUR 6 million), as part of which in three Ukrainian regions 20 model police stations and bureaus will be established, according to the press release of the EU Advisory Mission Ukraine (EUAM) group for reforming civil safety.

Head of the EU Advisory Mission Ukraine (EUAM) Kestutis Lancinskas presented the EU-funded project in Lviv on Tuesday. The police departments and bureaus will be formed in Kyiv, Kharkiv and Lviv regions (7 will be established in Lviv region).

“Our plan is for the 20 police stations we will be cooperating with to serve as models of the new police for the rest of the country. We aim for the public in the Kyiv, Kharkiv and Lviv regions to feel better protected and served by the police after this project is completed,” Lancinskas said.

According to the project, some 20 police stations will be refurbished, re-equipped and their staff re-trained. A number of measures will be conducted to increase trust between police and citizens living in these regions.

The project will be carried out under the aegis of the Swedish police in cooperation with the Consultation Mission of the EU and the United Nations projects bureau.

 

EBRD PROVIDING UP TO EUR 8 MLN TO KREMENCHUK TO BUY 50 NEW TROLLEYBUSES

KYIV. Dec 21 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to EUR 8 million to Kremenchuk municipal trolleybus company (KTU) for the acquisition of 50 new low-deck trolleybuses, including spare parts and maintenance tools, as well as the workshop maintenance and diagnostic equipment for the new fleet, the press service of the EBRD has reported.

The loan, which will be guaranteed by the municipality, will be supported by an investment grant of up to EUR 2 million from the Eastern Europe Energy Efficiency and Environment Partnership (E5P), to which the European Union is the largest contributor.

“The investment in Kremenchuk will be the first urban transport project in Ukraine to benefit from an E5P grant,” the press service said.

The bank’s press service said that Kremenchuk is an industrial city in central Ukraine with approximately 225,000 inhabitants. About 50,000 of them live across the Dnipro River and currently don not have full access to the KTU service.

“The project will allow the municipal public transport operator to increase its level of service to households, currently not fully covered by it, by restoring two trolleybus routes on the right bank side of the city. The municipality will also contribute to the project by rehabilitating necessary infrastructure,” the bank said.

The new trolley buses, which will be procured in 2017, will be 20% more efficient than the current ones, most of which are at least 15 years old. As a result of the renewal and the shift to energy efficient and environmentally friendly electric transport services, the municipality will benefit from the reduction of hazardous emissions.

“The EBRD project will allow for a complete renewal of the electric transport fleet in Kremenchuk for the first time in the history of the city. Its implementation will provide the residents of all districts of the city with comfortable, affordable and environmentally friendly public transport,” EBRD said citing Kremenchuk Mayor Vitaliy Maletsky.

“By financing this project we are not only supporting ecologically clean and modern municipal service. We are also providing affordable transport and services to low income families and senior citizen. The EBRD is grateful to E5P and the EU for their crucial support for the project, without which it would have never materialized,” EBRD Managing Director for Eastern Europe and the Caucasus Francis Malige said.

The project is implemented under the Ukraine Public Transport Framework approved by the EBRD in 2015. The facility is designed to help replace ageing municipal transport with new ecologically friendly rolling stock.

In October 2015 Odesmiskelektrotrans and EBRD signed a loan agreement for EUR 8 million to buy 45 new trolleybuses under the Ukraine Public Transport Framework.

The EBRD is the largest international financial investor in Ukraine. To date, the bank has made a cumulative commitment of almost EUR 12 billion through 369 projects since the start of its operations in the country in 1993.

CURRENCY CROSS-RATES AT 16:01 KYIV TIME ON 20/12/16

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©Source: Bloomberg

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