Business news from Ukraine

EC STARTS PROCESS OF TRANSFERRING EUR600 MLN AID TO UKRAINE

BRUSSELS. July 9 (Interfax-Ukraine) – The European Commission (EC) has started the process of transferring EUR 600 million out of the third EUR1.8 billion macro-financial assistance package to Ukraine.

According to the press service of the European Commission, the money will be issued to Kyiv as a loan.

The funds will be provided on the basis of the memorandum of understanding and the loan agreement signed at the Eastern Partnership summit in Riga on May 22.

The third program of assistance to Ukraine will consist of three tranches, the last of which is expected in early 2016.

KYIV MAYOR KLITSCHKO CALLS ON FRENCH BUSINESS TO INVEST IN KYIV

KYIV. July 8 (Interfax-Ukraine) — Kyiv Mayor Vitali Klitschko has invited French businessmen to develop their business in the Ukrainian capital, the mayor’s press service said.

“We’re doing our best to ensure that private investors come to Kyiv and develop a successful business, as these are jobs and taxes the city needs. Your presence here means further intention to work in Ukraine. There are good opportunities for investment today. The market is semi-vacant in many segments. Therefore I urge you to invest in Kyiv, as at the very moment it’s time to seize the opportunity,” Klitschko said at a meeting with French Minister of State for Foreign Trade, the Promotion of Tourism and French Nationals Abroad Matthias Fekl and a group of French businessmen who work in Ukraine.

Klitschko said that Kyiv is interested in projects for energy efficiency, transport, municipal infrastructure (construction of roads, highways, and bridges), the mayor’s press service reported.

According to Klitschko, the municipal authorities are also interested in the development of Ukrainian-French relations and deepening of cultural and economic ties.

Fekl in turn said that France is committed to further joint work with Germany in the Normandy format for the complete implementation of the Minsk ceasefire agreements.

He assured the Kyiv mayor that France supports Ukraine on its way of economic and political reforms.

KYIV TO HOST UKRAINE-FRANCE INTERGOVERNMENTAL COMMISSION FOR ECONOMIC COOPERATION IN APRIL 2016

KYIV. July 8 (Interfax-Ukraine) – A meeting of the joint Ukrainian-French intergovernmental commission for economic cooperation is scheduled to be held in Kyiv in April 2016, according to a post on the Cabinet of Ministers’ website.

An agreement to hold the meeting was reached during a meeting between its co-chairman, Ukrainian Deputy Prime Minister Hennadiy Zubko and French Minister of State for Foreign Trade, the Promotion of Tourism and French Nationals Abroad Matthias Fekl in Kyiv on Tuesday.

“Ukraine is striving to boost intersectoral cooperation and is ready to hold the seventh meeting of the joint Ukrainian-French intergovernmental commission for economic cooperation in Kyiv in April 2016,” Zubko said.

He said that Ukraine is interested in deeper economic and investment cooperation between Ukraine and France, not only in agriculture and transport sectors, but also in the energy sector, specifically energy efficiency.

DATAGROUP TO ATTRACT FOREIGN INVESTMENT FOR FURTHER DEVELOPMENT

KYIV. July 8 (Interfax-Ukraine) – PJSC Datagroup plans to attract foreign investment for further development, CEO Maksym Smelianets has said at a press conference.

“We want to attract investment. We should definitely do this,” he said.

However, he found it difficult to specify the amount of the planned investment.

“How much they will give. There is the war in the country, it is difficult to expect large investment in the industry now,” Datagroup Honorary President Oleksandr Danchenko said.

As reported, in 2010 the company attracted investment from Horizon Capital which received a blocking stake in the operator.

PJSC Datagroup was founded in 2000. The company is engaged in providing telephone services, data transmission services, Internet access, as well as telecommunication equipment sales.

 

UKRAINIAN PORK EXPORTS RISE BY 8.2 TIMES, POULTRY – BY 9.8% IN H1, 2015

KYIV. July 8 (Interfax-Ukraine) – In January-June 2015, Ukraine exported 14,680 tonnes of pork, which is 8.2 times more than in the same period in 2014.

According to customs statistics released by the State Fiscal Service of Ukraine, in monetary terms exports of these products in the first half of 2015 amounted to $29.75 million.

Pork imports during this period totaled 1,520 tonnes compared to 18,660 tonnes a year earlier. In monetary terms, this accounted for $3.79 million.

Exports of poultry and by-products increased by 9.8%, to 75,830 tonnes for nearly $103.43 million. Imports totaled 23,070 tonnes ($15.64 million), which is 6.2% more than the figure in the first half of 2014, which amounted to 21,730 tonnes ($23.93 million).

METINVEST TO OPEN REPRESENTATIVE OFFICE IN POLAND

KYIV. July 8 (Interfax-Ukraine) – Metinvest mining and steel group has established a trade office in Poland – Metinvest Polska.

According to a company press release, the activity of the representative office is aimed at strengthening cooperation with the customers of Metinvest rolled steel and providing them with a prompt and effective service.

The press release said Europe is one of the priority markets for Metinvest Group. The company supplies about 4.4 million tonnes of steel, or 34% of total sales to the region.

Among European countries, Poland is the second largest buyer of Metinvest goods. The Polish economy consumes more than 12.2 million tonnes of steel a year. In 2014, Polish steel consumption per capita increased by 17%. The country is actively involved in regional trade: it imports up to 70% of steel consumed and exports half of production volumes.

In Europe, 20 sales offices and warehouses of Metinvest operate, in particular in Germany, Italy, Spain, Belgium, Switzerland, Britain, Romania, and Bulgaria. Overall, the company has sales offices in all the key steel consuming regions. More than 6,500 customers buy steel products and raw materials from Metinvest, and 1,700 of them are European companies.

The Metinvest Group metallurgical enterprises are located in Ukraine and Europe.