Business news from Ukraine

A PLATFORM CREATED FOR DIALOGUE BETWEEN BUSINESS, NGOS AND AUTHORITIES

The Ukrainian capital, Kyiv, has hosted the first meeting of the “Transformation of Ukraine” National Forum, which was attended by representatives of the European Union, NGOs, civil society activists, entrepreneurs, the youth, the clergy, and representatives of the international community.

The creation of the forum was predetermined by the depth of the current challenges Ukraine faces, namely the need to preserve its statehood, carry out effective reforms, and ensure the modern, democratic and competitive development of the country, along with successful European integration.

The Supervisory Board of the Forum includes head of the EU Delegation to Ukraine Jan Tombinski, President of the Foundation European Centre for Entrepreneurship Jerzy Kwiecinski, President of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) Anatoliy Kinakh, Primate of the Ukrainian Orthodox Church (Kyiv Patriarchate) Patriarch Filaret, Major Archbishop of the Ukrainian Greek Catholic Church Patriarch Sviatoslav, and others.

As was announced by one of the forum’s initiators — head of the Anti-Crisis Council of NGOs and ULIE President Anatoliy Kinakh, the forum will become an effective system to support reforms in Ukraine as it employs the mechanisms of Europe’s best practices.

“We must do everything to strengthen democracy along with the rule of law and ensure European standards of living for Ukrainian citizens. We call for the full implementation of the Agreement on a Deep and Comprehensive Free Trade Area between Ukraine and the EU as of January 1, 2016,” the participants of the first meeting of the National Forum said in a joint statement.

The main tasks of the permanently functioning platform will be to establish productive communication between the authorities and society; clarify the causes of changes and reforms to the public; monitor the implementation of legal and administrative decisions and their impact on the daily life of the public; and monitor and report about possible threats to the reform process in the country.

An ad hoc permanent working group will be created to analyze and evaluate ongoing and future programs and strategies for Ukraine’s development, as proposed by the government, the President of Ukraine, and other national and international partners.

The so-called sectoral forums, which will deal with issues of a particular industry, were also founded as part of the “Transformation of Ukraine” initiative, and they will be held both at national and regional levels. They will tackle such issues as the business climate, agriculture, energy, decentralization and regional development, the development of civil society, education and science, social problems, and culture. Each sectoral forum will have both national and international coordinators. Currently, there is an initiative to create an Assembly of Coordinators to ensure the horizontal coordination of their work.

“Transformation of Ukraine” members have already appealed to President of Ukraine Petro Poroshenko to support the Forum and join its work together with government officials.

The next meeting of the National Forum will take place in Kyiv in November 2015. You can find more details on the forum at nftu.org.ua.

CABINET INCREASES ESTIMATED COST OF BUILDING FIRST SUBWAY LINE IN DNIPROPETROVSK BY UAH 1.1 BLN

KYIV. Oct 13 (Interfax-Ukraine) – The Cabinet of Ministers has adjusted the estimated cost of building the first stage of a subway in Dnipropetrovsk.

According to Cabinet decree No. 1055-r dated October 7, 2015, the total estimated cost of construction is UAH 5.618 billion as of September 20, 2013, while government resolution No. 571-r of June 25, 2012 previously declared that the cost as of April 20, 2012 was UAH 4.489 billion meaning that the estimated cost increased by UAH 1.1 billion.

In addition, the length of a two-track line will increase from 11.82 km to 13.16 km, the operational length will remain unchanged at 11.1 km.

New order No. 1055-r renders previous decree No. 571-r as invalid.

As of January 1, 2013, work worth UAH 522.639 million had been carried out.

As reported, the Verkhovna Rada in September 2014 ratified a financial agreement between Ukraine and the European Investment Bank (EIB) on the completion of work to build a subway in Dnipropetrovsk.

EBRD TO CONSIDER PROVISION OF EUR 11.6 MLN TO BUSINESSMAN KOZYTSKY’S COMPANY TO BUILD WIND POWER PLANT

KYIV. Oct 13 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) will consider providing EUR 11.6 million to Carpathian Wind LLC (Lviv, under the control of businessman Zinoviy Kozytsky) to build a wind farm with a capacity of 9.9 MW near Stary Sambir (Lviv region).

EBRD said on its website that the bank’s board will consider the project on November 25, 2015.

Under the project, the bank could provide EUR 8.5 million of its own funds and EUR 3.1 million issued by Clean Technology Fund (CTF). The cost of the project is EUR 17.9 million.

As reported, Kozytsky’s Eco-Optima built and operates a wind power plant near Stary Sambir with a capacity of around 13 MW. The EBRD’s funds were also used to build this plant.

 

ZAPORIZHSTAL TO DOUBLE NET PROFIT IN 2015

ZAPORIZHIA. Oct 12 (Interfax-Ukraine) – Zaporizhia iron and steel works (Zaporizhstal), belonging to Metinvest Group, intends in 2015 to increase net profit by 2.2 times compared to 2014, to $150 million from $69 million.

Company CEO Rostyslav Shurma reported that in the first nine months of the current year the plant posted a profit of $118 million. The steel mill intends to gain another $32 million in the fourth quarter.

The CEO also said that EBITDA is expected to reach $300 million. In the first nine months EBITDA amounted to $250 million.

“We hope to earn $50 million EBITDA in the fourth quarter,” the director stated.

The Zaporizhstal head added that the profitability of the enterprise in 2014 amounted to 25%, in 2015 it is expected to reach 19%. The expected debt to EBITDA ratio this year is 0.4.

“The company has virtually no debts,” the CEO said.

Zaporizhstal is one of the largest industrial enterprises of Ukraine, whose steel products are well known and are in demand in the domestic market and in many countries around the world.

 

CREATION OF UKRAINE’S NATIONAL INFRASTRUCTURE FOR GEOSPATIAL DATA ASSESSED AT $500 MLN-$1 BLN – OFFICIAL

KYIV. Oct 12 (Interfax-Ukraine) – The cost of the realization of the project to create national infrastructure for geospatial data in Ukraine as a base for processing this data has been assessed at $500 million-$1 billion, and there are plans to raise donor funds from international financial organizations to realize the project, Head of the State Service of Ukraine for Geodesy, Cartography and Cadastre Maksym Martyniuk said at a seminar of Japan International Cooperation Agency ( JICA) and the State Service of Ukraine for Geodesy, Cartography and Cadastre held in Kyiv on October 9.

“We have a common vision of the project’s budget, and it is assessed from $500 million to $1 billion,” he told reporters.

Martyniuk said that it is only possible to speak about the term of the creating and launching the national infrastructure for geospatial data after financing sources are defined and the budget is approved.

He said that the final variant of the project implies that the national infrastructure for geospatial data would be a large data-center with data on all facilities under construction, as well as land parcels, utilities networks, transport infrastructure of the country, etc.

EIB LOAN OF EUR 400 MLN TO BE ALLOCATED TO MODERNIZE AGRICULTURE INFRASTRUCTURE IN UKRAINE, DEVELOP AQUACULTURE

KYIV. Oct 12 (Interfax-Ukraine) – The EUR 400 million loan provided by the European Investment Bank (EIB) will be allocated to projects to modernize infrastructure in Ukraine’s agriculture, as well as to develop aquaculture.

Key investment gaps to be addressed include agricultural field machinery; drying, storage, processing and logistics capacity; and investments in aquaculture and cold chain infrastructure in the fish sector, EIB said on its website.

The loan will also be available for investment in public sector infrastructure, such as testing laboratories, research and vocational training facilities and fish stock monitoring capacity that supports the sustainable flow of produce from producer to consumer along these value chains.

The project aims to have a positive impact on the rural economy as well as on the environment and public health.