Business news from Ukraine

U.S. ARGENTEM CREEK INTERESTED IN INVESTMENT IN ENERGY SECTOR OF UKRAINE

KYIV. Feb 17 (Interfax-Ukraine) – U.S. investment company Argentem Creek Partners and Energy Resources of Ukraine have signed an agreement on strategic partnership to implement joint investment activities in the energy sector of Ukraine, reads a press release from the Ukrainian company.

According to Argentem Creek Director for Investment Daniel Chapman, the signing of an agreement on cooperation with Energy Resources of Ukraine is the first step in the company’s strategy in the framework of implementing investment projects in Ukraine.

“We want to become part of the successful development of the country’s energy sector. We see a huge potential for investment in power generation, renewable energy and oil and gas production in Ukraine,” he said.

Argentem Creek is a company specializing in financing projects in the emerging markets. It is headquartered in New York and has offices in Minneapolis, London, Buenos Aires, and Singapore.

Argentem Creek Partners is one of the three structures, resulting from the division of Black River Asset Management investment company, part of Cargill Group.

GOVERNMENT TO MULL FULL SALE OF OSCHADBANK AND UKREXIMBANK BY LATE 2020

KYIV. Feb 17 (Interfax-Ukraine) – The strategy of reforming the state banking sector, developed by the government, foresees the possibility of a full privatization of strategic Oschadbank and Ukreximbank in the long term, while the decision on the amount of shares for sale and the terms of sale will be made by the Cabinet of Ministers by the end of 2020.

This is stated in the “Basis of strategic reform of the public banking sector,” approved by the government.

According to the document, posted by the Ministry of Finance on the official website, it is planned in the medium term (by mid-2018) to sell at least 20% of Oschadbank and Ukreximbank to a qualified investor or an international financial institution through a transparent tender.

“To this end, the supervisory councils of the strategic banks will be required in 2018 to select the preferred method of selling shares and agree it with the Ministry of Finance. The final decision on the sale of shares will be made by the Cabinet of Ministers no later than the first quarter of 2018,” reads the document.

GERMANY INITIATES HOLDING OF ECONOMIC FORUM IN KYIV WHERE INVESTMENT PROJECTS ARE PRESENTED – KYIV MAYOR

KYIV. Feb 17 (Interfax-Ukraine) – The Federal Ministry for Economic Cooperation and Development of Germany has proposed that the economic forum is organized and held in Kyiv, where Kyiv will present projects in which German investment could be involved, Kyiv Mayor Vitali Klitschko said in Munich after a meeting with Federal Minister for Economic Cooperation and Development of Germany Gerd Muller.

“We’ve agreed to hold the economic forum in Kyiv with the involvement of German business to continue cooperation and attract investment and we will present projects for the implementation in Kyiv,” the press service of Kyiv City Administration reported on Saturday, citing Klitschko.

He said that Germany wants to directly work with Ukrainian cities for more efficiency, taking into account successful experience and the implementation of projects with Kyiv. Kyiv authorities realized a project of open budget with support of Germany. The project has made all spending of the budget funds transparent and this was another step in fighting corruption.

“I as the chair of the Association of Cities and Towns of Ukraine proposed to the minister that cooperation is expanded for other cities – for example, to realize the open budget project in other cities of Ukraine and consider the projects for investment,” Klitschko said.

TOP-30 counrturies exporters to Ukraine, January-November 2015

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Excluding the temporarily occupied territories of the Autonomous Republic of Crimea, the city of Sevastopol and part of the anti-terrorist operation zone.

KOLONIST WINEMAKING COMPANY PLANS TO INCREASE WINE OUTPUT BY 15-20% IN 2016

ODESA. Feb 16 (Interfax-Ukraine) – Kolonist winemaking company (Odesa region) plans to boost wine production by 15-20% in 2016, Kolonist executive director Volodymyr Holodynets has told reporters.

He said that in 2015, the company processed 240 tonnes of grapes (around 140,000 bottles of wine), and this year the company plans to process 250 tonnes of grapes (160,000-170,000 bottles).

This year Kolonist plans to make a first pilot batch of sparkling wine under the Biser trademark. It will have 5,000 bottles.

The company also plans to use some wine materials to produce balsamic vinegar. Holodynets said that it is impossible to forecast its production volume, as it will be ready in five or six years, and this segment is unique for Ukraine now.

Kolonist produces wine under the Kolonist trademark in Bolhrad district of Odesa region. The owner and founder of the company is Ivan Plachkov.

 

LUTSK CARDBOARD-PAPER MILL’S PRODUCTION 38% UP IN JAN

KYIV. Feb 16 (Interfax-Ukraine) – Lutsk cardboard-paper mill, part of the United Cardboard Company belonging to businessman Mykola Lobov, produced goods worth UAH 22.3 million in January 2016, which is 37.7% up year-over-year, according to the Ukrpapir association.

The association said that during this period the mill made 3,000 tonnes of various types of cardboard – 3% down year-over-year, including a rise of 18% in packaging cardboard output, to 2,870 tonnes.

The mill did not produce box cardboard in January (400 tonnes in January 2015) as well as roofing cardboard, while cover board production plunged by 58.3%, to 120 tonnes. The mill also did not produce pulp (80 tonnes in January 2015).

One more company in the sector under control of the United Cardboard Company – Poninkivsky Cardboard and Paper Mill – boosted production by 64% in January 2016, to almost UAH 28 million.

The mill more than doubled production of box board, to 3,370 tonnes, and corrugated cardboard packaging output rose by 15%, to 4.07 million square meters.

Paper production rose by 23.2% in January 2016, to 210 tonnes.

Lutsk cardboard-paper mill LLC was founded on the basis of assets of Lutsk cardboard-ruberoid mill in summer 2012.

The mill produces raw materials for corrugated board production (fluting and test liner), roofing, box and cover cardboard.

In 2015, the mill produced goods worth UAH 404.55 million, which was 67.1% up year-over-year.

Poninkivsky Cardboard and Paper Mill was founded over 200 years ago. The mill produces cardboard and paper.

In 2015, the mill saw a rise of 97.3% in production, to UAH 329.22 million.