Business news from Ukraine

SETTLING UP PUBLIC PRIVATE PARTNERSHIP IN MEDICINE COULD ATTRACT INVESTMENT TO UKRAINE – MP

KYIV. Oct 16 (Interfax-Ukraine) – The introduction of the law and legal acts on public private partnership in healthcare could help to attract investment to the Ukrainian medicine sector under the conditions of a lack of budget funds, Deputy Head of the parliamentary healthcare committee Iryna Sysoyenko (Samopomich) said at a forum devoted to investment in Ukrainian healthcare held on Thursday.

“I’ve prepared several examples of this partnership. In 2014, in Europe EUR 18.7 billion was attracted to the public private partnership projects in 2014, and EUR 16.3 billion in 2013. Our southern neighbor – Turkey – managed to triple GDP during 10 years mainly thanks to the use of public private partnership mechanisms, attracting $115 billion of investment into 193 projects,” the lawmaker said.

Sysoyenko said that the settling of the public private partnership issue is required to improve the disabled rehabilitation system in Ukraine.

“We need rehabilitation centers of the European level, which Ukraine does not have. The settling of the public private partnership issue would help creating these centers,” she said.

Sysoyenko said that the coordination council at the parliamentary healthcare committee is finishing drawing up a draft law on rehabilitation.

The lawmaker also supports draft laws on self-administration of medical institutions and changing the financing of clinics.

UKRAGROCOM, HERMES-TRADING PLANS TO RETAIN AGRICULTURAL EXPORTS IN 2015/16 AGRI-YEAR AT 500,000 TONNES

KYIV. Oct 16 (Interfax-Ukraine) – The UkrAgroCom and Hermes-Trading group of companies (Kirovohrad region) hopes to retain agricultural exports in the 2015/16 agricultural year (July-June) at 500,000 tonnes.

“I think that the group should reach the figure of at least 500,000 tonnes, maybe, it would be 700,000-800,000 tonnes next year,” Hermes-Trading Director Yuriy Skichko told reporters at the Ukrainian Agrarian Congress.

He said that the company continues to harvest corn harvesting. The yield of corn is higher than in 2014, despite the hot summer.

Skichko expressed disappointment in the actions of lawmakers concerning the adoption of the law on internal water transport.

“The non-adoption of these laws is ruinous for the further development of the country. They would allow for boosting transportation, loading roads, and developing the shipbuilding sector,” he said.

Three options of the draft law on internal water transport are on the floor of the Ukrainian parliament, but they were rejected. A new version is being drawn up.

In 2013, the group opened Svitlovodsk river terminal with a grain storage capacity of 94,000 tonnes.

UkrAgroCom and Hermes-Trading are part of an agricultural corporation specializing in the production of grain and oilseeds, as well as cattle and pig breeding

The group rents about 75,000 hectares of farmland in Kirovohrad region and owns elevators with a capacity of 353,000 tonnes of grain.

It also owns the Oleksandriya sugar refinery.

 

UKREXIMBANK TO BECOME PART OF EXPORT-CREDIT AGENCY AFTER REFORM – DEPUTY MINISTER

KYIV. Oct 16 (Interfax-Ukraine) – State-run Ukreximbank (Kyiv) will become part of the Export-Credit Agency being created in Ukraine to support Ukrainian exporters after it is reformed.

“The Finance Ministry is drawing up a system to reform state-run banks and it is clearly defined that Ukreximbank will support export-import transactions,” Deputy Ukrainian Deputy Economic Development and Trade Minister and Trade Representative Natalia Mykolska said at a meeting of the council for supporting Ukrainian exports held on Thursday.

She said that by the end the month, the government will finish the concept of the export-credit agency which could be also named Export-Insurance Agency.

Mykolska said that Ukreximbank will finance export-import transactions, while Export-Credit Agency will insure non-banking risks.

After completing the concept, the government would also submit the relevant law on the export-credit agency to the parliament.

Economic Development and Trade Minister of Ukraine Aivaras Abromavicius said at the meeting that Citibank wants to hold a large conference in Ukraine in Q1 2016 with the involvement of the heads of the world’s largest credit agencies.

AVTOKRAZ TO PRODUCE ABOUT 1,450 VEHICLES IN 2015

KREMENCHUK. Oct 15 (Interfax-Ukraine) – PJSC AvtoKrAZ (Kremenchuk, Poltava region), the only Ukrainian producer of heavy trucks, plans to produce about 1,450 vehicles in 2015, which is 4.2% more than last year.

Enterprise CEO Roman Cherniak said many of the vehicles it produced in the current year have been delivered to the Armed Forces of Ukraine and the Interior Ministry.

“In 2015 the plant systematically and fruitfully worked and will produce up to 1,450 vehicles. A large part of the vehicles made this year is intended for the Armed Forces of Ukraine, the Interior Ministry and border guards,” he said.

AvtoKrAZ makes 33 basic vehicle models, and more than 260 modifications and trim levels for civilian and military vehicles.

ARTYOMSOL WITH UKRAINIAN DANUBE NAVIGATION WORKING ON ALTERNATIVE WAYS TO SHIP SUPPLIES TO EUROPE

KYIV. Oct 15 (Interfax-Ukraine) – Artyomsol state enterprise is holding talks with private joint-stock company Ukrainian Danube Navigation (Izmail, Odesa region) on the provision of services to ship salt to the Danube countries.

The state enterprise said in a press release on Tuesday that the necessity to optimize transport logistics appeared due to the growth in exports of Artyomsol’s products, including to the European Union.

“We understand that today there are external problems with a shortage of rolling stock and we’re working on alternative options to supply our products. We supply [our products] via Izmail seaport under FOB conditions. We’re discussing cooperation with PrJSC Ukrainian Danube Navigation to work out transportation of our salt to the European Union countries under CIF conditions,” acting director of Artyomsol Andriy Zhuravlev said.

The press service said that the economic calculations showed that cooperation with Ukrainian Danube Navigation is a more beneficial way of dispatching cargo as it cuts logistics expenses and protects consumers from failures due to the absence of rolling stock.

The start of cooperation with Ukrainian Danube Navigation will boost supplies to the countries where Artyomsol is working now (Hungary, Slovakia, Serbia, Bulgaria) and will allow the company to enter the new markets of Slovenia, Montenegro, Croatia, Bosnia and Herzegovina, and find direct access to the river ports of Austria and south Germany.

Artyomsol is the largest enterprise engaged in the production and sale of salt (NaCl) in Central and Eastern Europe.

EUROPEAN BUSINESSES INTERESTED IN SUCCESSFUL LANCH OF UKRAINE-EU FREE TRADE ZONE

Representatives of the European business community are interested in the prompt adaptation of the Ukrainian economy to EU standards and regulations. Thus, representatives of the Confederation of European Business, BUSINESSEUROPE, — the most powerful structure to support and protect the interests of businesses which operates in 34 European countries, have already expressed their readiness to help Ukraine prepare for closer integration into the European market. This was discussed at a recent meeting of a BUSINESSEUROPE delegation with Ukrainian industrialists and entrepreneurs.

In particular, they said that Ukrainian exporters should comply with safety and product quality requirements. What is more, they discussed the need to create equal terms of competition for domestic and European manufacturers and establish clear mechanisms for interaction between the Ukrainian and European business environments.

“We have already achieved the first positive results of mutual and systemic cooperation through the Brussels-based office of the Ukrainian League of Industrialists and Entrepreneurs (ULIE), including personal meetings of business representatives at all levels,” BUSINESSEUROPE’s Director General Markus J. Beyrer said.

The sides discussed priority directions of interaction between business organizations. Ukrainian industrialists are interested in deeper communication in various sectors, namely banking, the IT sector, energy efficiency and energy saving, and small- and medium-sized businesses. Ukraine needs the experience of new EU members, East European countries and the Baltic States in adapting to European standards. It is very important, according to participants, that the sides conduct joint monitoring of the mutual obligations undertaken by Ukraine and the EU as part of the Association Agreement and the evaluation of the effectiveness of EU programs aimed at supporting Ukrainian businesses, including small-and medium-sized ones.

The parties also pointed out the need to involve Ukraine in the implementation of joint EU investment and infrastructure projects, as well as cooperation in the high tech sector. Markus Beyrer and ULIE President Anatoliy Kinakh decided to put these issues on the priority list for cooperation, which will be solved by separate ad hoc groups of the organizations, specialized associations of Ukrainian businesses that are members of the Anti-Crisis Council of NGOs.

The ULIE and BUSINESSEUROPE agreed to sign a memorandum of cooperation. The memorandum will be signed in Brussels in December 2015, and it is in December that the Belgian capital will host the large-scale conference “The European Parliament is the Civil Society of Ukraine.” At the conference, Ukrainian and European civil society organizations, together with representatives of the European Parliament, will have the opportunity to discuss the implementation by both parties of the Ukraine-EU Association Agreement, and “synchronize their watches” pending the launch of the free trade zone on January 1, 2016.