Business news from Ukraine

AMERICAN FRONTERA STARTS CONSTRUCTION OF LNG-TERMINAL IN UKRAINE –YATSENIUK

KYIV. July 17 (Interfax-Ukraine) – American Frontera Resources Corporation will build an LNG-terminal in Ukraine, Ukrainian Prime Minister Arseniy Yatseniuk has said.

“Naftogaz Ukrainy signed the corresponding memorandum with Frontera company. The American company starts construction of LNG-terminal and supplying natural gas to Ukraine via the construction of the LNG-terminal,” he said in the Verkhovna Rada on Friday when reporting on his recent visit to Washington.

As reported Naftogaz earlier said that a memorandum had been signed with Frontera during the American-Ukrainian business forum in Washington held on July 13. The parties will cooperate in issues in gas and oil prospecting and production in Ukraine, as well as the realization of LNG import project via the capacity of American company in Georgia. The confirmed reserves of natural gas in Georgia amount to 300 billion cubic meters.

VILNOHIRSK PLANT TO DOUBLE SALES OF GLASS SAND IN UKRAINE

KYIV. July 17 (Interfax-Ukraine) – Vilnohirsk state mining and metallurgical plant (Dnipropetrovsk region), part of state-run United Mining and Chemical Company plans to double supplies of glass sand to the Ukrainian market, United Mining and Chemical Company said in a press release on Thursday.

The company said that top managers of Vilnohirsk plant is mulling the possibility of glass sand supplies to Vilnohirsk Glass LLC, the largest bottle producer in the region, which is able to buy over 100,000 tonnes of sand every year.

Cooperation with Vilnohirsk plant would allow the company to save on logistics, while the plant will be able to boost sales of VS-30 glass sand.

“At present, Vilnohirsk plant supplies VS-30 glass sand only to OJSC Hostomel glass plant Vetropak. Supplies to Vilnohirsk Glass would allow us to double sales of sand on the domestic market,” Deputy Director General of United Mining and Chemical Company Oleksandr Hladushko said.

He said that monthly supplies to the future consumer could total over 4,000 tonnes.

The plant is able to produce 150,000 tonnes of glass sand a year. At present, the plant makes around 50,000 tonnes of sand.

Along with glass sand, the plant produces molding and construction sand which is supplied to metal and engineering companies.

“United Mining and Chemical Company is holding talks with another potential consumer of glass sand – Kostopil glass product plant. The company will be able to buy over 3,000 tonnes of sand every month,” Hladushko said.

United Mining and Chemical Company started operating from August 2014 when the Ukrainian government decided to transfer property of Vilnohirsk state mining and metallurgical plant and Irshansk state mining and processing plant to its management.

In January-March 2015, United Mining and Chemical Company saw UAH 44.866 million of net profit.

LIOU TO CREATE INVESTMENT DIVISION HEADED BY REPRESENTATIVE OF OTP-CAPITAL ASSET MANAGEMENT COMPANY

KYIV. July 17 (Interfax-Ukraine) – The League of Insurance Organizations of Ukraine (LIOU) plans to expand directions of the operation of the financial committee, creating the investment division headed by the chief of the investment department of OTP Capital asset management company and a member of LIOU, Taras Yeleiko, the league said in a press release.

According to the report, the decision was made at a meeting of the financial committee on July 15, 2015.

The financial committee will be renamed the financial and investment committee.

The structure of reserves of insurance companies and yield from them, strategies to manage insurance reserves within legal restrictions will be coordinated by the investment division. The analysis of the banking market, limits for banks with investment rating, tools with fixed yield, current yield will be conducted, and the macroeconomic indicators and the hryvnia exchange rate forecasts will be drawn up.

According to the document, at the meeting special attention was paid to the discussion and approval of proposals of LIOU members to the draft resolution of the national commission for financial service markets regulation on approving mandatory criteria and requirements for adequacy, diversification of insurers’ assets and their quality.

STATE FOOD-GRAIN CORPORASTATE FOOD-GRAIN CORPORATION EXPORTS 19,000 TONNES OF FLOUR IN 2014/15 AGRI-YEARTION EXPORTS 19,000 TONNES OF FLOUR IN 2014/15 AGRI-YEAR

KYIV. July 16 (Interfax-Ukraine) – Public joint-stock company State Food-Grain Corporation exported around 19,000 tonnes of flour in the2014/15 agricultural year (July-June), the company has reported, referring to the head of the corporation’s processing department Viacheslav Tsehelnyk.

“According to the calculations of APK-Inform agency, State Food-Grain Corporation was second among exporters of wheat flour in the 2014/15 agri-year. The corporation was fourth among supplies of flour products abroad,” Tsehelnyk said.

He said that in 2015/16 agri-year, the corporation plans to supply around 60,000 tonnes of wheat flour abroad and become a leader among exporters.

“We plan to expand sales markets for flour products to the following countries: China, Yemen, United Arab Emirates, Georgia, Slovakia and Azerbaijan,” he said.

As reported, the Agricultural Policy and Food Ministry appointed deputy director of Ukrspyrt Oleksandr Niman as deputy board chairman of State Food-Grain Corporation on July 8, 2015.

In August 2010, the government decided to create the State Food and Grain Corporation of Ukraine. The corporation has a chain of branches, comprised of grain storage facilities, flourmills, fodder factories and a cereals factory. The 53 subdivisions of the corporation can store a total of 3.75 million tonnes of grain, which includes the grain handling capacities of Odesa and Mykolaiv ports of around 2.5 million tonnes of grain cargo per year.

The State Food and Grain Corporation of Ukraine in late 2012 received the first tranche of $1.5 billion from the Export-Import Bank of China. The funds were to be allocated to carry out spot and forward purchases of four million tonnes of grain which would be shipped to China.

China National Machinery Industry Complete Engineering Corporation (CMCEC) is the operator under the contract, which was signed for a period of 15 years.

The corporation plans to export 3.5 million tonnes of grain by late 2015 under the Chinese contract.

GRAIN STOCKS IN UKRAINE AS OF JULY 1 SOME 13% HIGHER THAN LAST YEAR

KYIV. July 16 (Interfax-Ukraine) – Grain stocks held at agricultural enterprises in Ukraine, apart from small ones, and at enterprises that store and process grain, amounted to 7.9 million tonnes as of July 1, 2015, which is 12.9% up year-over-year, Ukraine’s State Statistics Service has reported.

Wheat stocks amounted to 3.2 million tonnes, barley stocks stood at 1.5 billion tonnes, corn at 2.9 million tonnes tonnes, and rye at 100,000 tonnes.

Grain reserves at just agricultural enterprises weighed in at 4.5 million tonnes as of July 1, which was 17.7% more than a year earlier, including 1.6 million tonnes of wheat, 800,000 tonnes of barley, and 1.8 million tonnes of corn.

The statistics service’s figures indicate that sunflower seed reserves amounted to 1 million tonnes as of the said date, which was 33.5% down year-over-year, including 500,000 tonnes stored at agricultural enterprises (19.9% up year-over-year).

Data does not include the temporarily occupied territory of Crimea and Sevastopol and a part of the antiterrorist operation zone.

 

NCER EXTENDS UKRHYDROENERGO’S 2015 INVESTMENT PROGRAM BY 1.5 TIMES

KYIV. July 16 (Interfax-Ukraine) – Ukraine’s National Commission for Energy, Housing and Utilities Services Regulation (NCER) has expanded the investment program of public joint-stock company Ukrhydroenergo by almost 1.5 times or UAH 540 million, to UAH 1.696 billion (VAT not included).

The commission made the decision at a meeting on Tuesday.

“We haven’t increased the tariff. These are funds that we managed to find thanks to saving and cutting credit rates. UAH 540 million will be sent to the completion of their unit of Dnistrovska pumped storage hydro power plant, which we plan to launch by the Power Engineers’ Day,” Ukrhydroenergo Head Ihor Syrota told Interfax-Ukraine.

As reported, in late December the commission approved Ukrhydroenergo’s investment program in the amount of UAH 824.652 million, and in early June the program was expanded to UAH 1.156 billion (VAT not included).

Electricity generation by Ukrhydroenergo’s hydroelectric plants and pumped storage hydroelectric plants fell by 37.1% in 2014, to 8.546 billion kilowatt-hours (kWh).

Ukrhydroenergo operates all of the major hydroelectric power plants on the Ukrainian sections of the Dnipro and Dniester rivers. Their total electricity generating capacity amounts to gigawatts. The Energy and Coal Industry Ministry owns 100% of the shares of the company.