Business news from Ukraine

UKRAINE INCREASES FLOUR EXPORTS BY 23% IN 2015

KYIV. Jan 18 (Interfax-Ukraine) – Flour exports from Ukraine in 2015 amounted to 304,015 tonnes, which is 23% more than in 2014.

According to customs statistics, made public by the State Fiscal Service of Ukraine, in monetary terms exports of wheat flour in the past year fell by 4.6%, to $69.093 million from $72.230 million.

Imports of flour to Ukraine halved to 1,250 tonnes from 2,490 tonnes in 2014, while in monetary terms the figure decreased by 3.3 times, from $1.72 million to $524,000.

According to the service, exports of flour from other grains fell from 6,103 tonnes worth $2.693 million to 2,832 tonnes for $882,000.

Imports of such flour to the country amounted to 444 tonnes against 136 tonnes in 2014. In monetary terms, it increased by 1.5%, to $134,000 from $132,000.

UKRAINE EXPORTS AMMONIA WORTH $252 MLN, NITROGEN FERTILIZERS FOR $522 MLN IN 2015

KYIV. Jan 18 (Interfax-Ukraine) – Ukraine in 2015 exported ammonia (foreign activity code 2814) for $251.938 million, imported for $28.676 million.

According to the State Fiscal Service, the United States received ammonia for $57.237 million, Turkey for $55.651 million, Morocco for $49.666 million, other countries for $89.384 million.

Imports of ammonia last year was carried out mainly from Russia (worth $28.503 million).

In 2015, nitrogen mineral and chemical fertilizers were also exported (foreign activity 3102) in the amount of $521.552 million. Turkey was supplied fertilizers worth $222.547 million, Italy for $55.724 million, India for $29.851 million, other countries for $213.43 million.

Imports of fertilizers (code 3102) for the period amounted to $212.931 million, in particular imports from Russia stood at $169.977 million, Belarus at $21.761 million, Uzbekistan at $16.514 million, other countries at $4.679 million.

ACQUISITION OF NORMATEK TO ALLOW VOLIA GROUP TO EXPAND ITS PRESENCE IN B2B SEGMENT

KYIV. Jan 18 (Interfax-Ukraine) – The acquisition of Normatek company would allow Volia Group to expand its presence in the B2B (business to business) segment, Volia President Serhiy Boiko has told reporters.

He said that Normatek with the 10.5 GHz and 5.5 GHz radio frequencies range access licenses provided services to around 10 corporate clients and planned to enter the B2C (business-to-customer) market.

“We are the B2C market that this company missed. That’s why after holding negotiations with the owners we understood each other how to more efficiently use the opportunities opened with the licenses. For use this is the resolving of issues linked to B2B segment when we need to connect business center or clients to whom it is expensive to lay a cable. In this case we can use wireless solutions,” he said.

Boiko said that by March the company plans to design a business case how to earn larger funds compared to what they earned with 10 clients. At present, the company launched a pilot Wi-Fi hotspots downtown Kyiv, in particular, on the Sofiyska Square.

He said that investment in the acquisition of Normatek was up to UAH 5 million.

Boiko said that Volia Group could acquire more assets this year.

Volia Group is managed by SigmaBleyzer private international investment company and Providence Equity Partners fund.

Volia is a large provider on the cable television market and the market of broadband access to the Internet in Ukraine.

EU POSITIVELY ASSESSES REFORMS IN UKRAINE – POROSHENKO

KYIV. Jan 15 (Interfax-Ukraine) – Ukraine in 2015 moved forward on the way of reforms, and the positive decision of the European Commission on the visa free regime for Ukrainians and the launch of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA) are evidences of this, Ukrainian President Petro Poroshenko has said.

“Despite fierce counteraction of Kremlin, DCFTA with the EU entered into full force on January 1. Unprecedented migration crisis did not hinder the decision of the European Commission on the completion of the assessment mission on the implementation of the Visa Liberalization Plan of Actions and we obtained the decision on the visa-free regime though several months ago few people believed in that inside and outside the country,” Poroshenko said at a first press conference in 2016 in Kyiv on Thursday.

The positive decision of the European Commission on the visa-free regime “is the indicator of positive assessment of reforms in Ukraine by the EU and the world,” he said.

Poroshenko said that reforms in 2015 were launched in various spheres, but not all of them have yielded results yet.

“Nowhere and never did the war lead to thriving of the country. We are now facing military aggression against our country, military actions on our land. It is not just a military aggression. Since January 1, a powerful large-scale economic aggression has been started imposing embargo on a great range of Ukrainian goods,” he said.

Commenting on the achievement of Ukrainian authorities in 2015, Poroshenko said that the country “ensured the activity and capability of the international coalition in support of Ukraine.”

“A very bright demonstration of this fact was the vote of 177 UN countries electing Ukraine a non-permanent member of the UN Security Council,” he said.

“When you come to Yavoriv training center [Lviv region], you will see dozens of flags of our allies. These flags are a symbol of our military-technical cooperation with various countries of the world,” the head of state said.

“Last year ended with a decision of all 28 EU members on the prolongation of sanctions against Russia for its continuous aggression against Ukraine and non-fulfillment of the Minsk agreements. I guess you all know that it required certain efforts from our Ukrainian team. Increasing economic crisis of Russia is a price for aggression against Ukraine,” Poroshenko said.

AZERBAIJANI INVESTORS PLAN TO INVEST $50 MLN IN CRUSHING SOYBEANS, PRODUCING BIOETHANOL IN SUMY REGION – OFFICIAL

KYIV. Jan 15 (Interfax-Ukraine) – Top managers of Sumy Regional Administration have reached an agreement with investors from Azerbaijan on opening a soybean plant with a crushing capacity of 220,000-250,000 tonnes in Romny district and investment of up to $22 million, Sumy Regional Administration Head Mykola Klochko has said.

“In addition, it is planned to launch the first phase of alternative fuel plant, particularly, bioethanol, on the basis of the former Velyko-Zhovtnevy sugar refinery in Bilopillia district in 2016. Investment in the plant is up to $30 million,” the regional administration reported on its website, citing Klochko.

He said that he is confident about these projects as they have concrete agreements.

He said that it is planned to create over 200 jobs at the initial stage of the soybean plant.

Other details on investors are not given.

SOME UAH 879.5 MLN TO BE ISSUED FOR BUILDING FOURTH LINE OF KYIV METRO IN 2016 – PROGRAM

KYIV. Jan 15 (Interfax-Ukraine) – The program of the socio-economic development of Kyiv for 2016 provides for the allocation of UAH 879.5 million to Kyiv Metropoliten for building the fourth subway line from Velyka Kiltseva Street to the Troyeschyna residential area.

According to the report published in the Khreschatyk newspaper, the program of socio-economic development foresees the completion of building the fourth line of the Kyiv subway by December 2020, and the total cost of the project is UAH 6.903 billion. At the same time, as of the beginning of January 2016 investment in the project amounted to UAH 48.097 million.

In addition, the program foresees funding in the amount of UAH 112.064 million for chemical grouting on some sections of the Kyiv subway lines in 2016.

The total capital expenditure of the company in 2016 under the program will stand at UAH 1.017 billion, including UAH 68.019 million from the special fund of the city budget and UAH 949.145 million at the expense of its own and borrowed funds.

According to the report, the program provides for financing in the amount of UAH 156.881 million for Kyivpastrans. Among the largest projects of the company for 2016 is the reconstruction of tram tracks and stations, as well as procurement of trams.