Business news from Ukraine

SECOND PLANT OF GERMANY’S LEONI AG WILL OFFICIALLY OPEN IN KOLOMYIA IN LATE SEPT

KYIV. Aug 29 (Interfax-Ukraine) – Germany’s Leoni AG, which has a factory for production of cable networks for cars in Stryi (Lviv region), is planning to officially open the second plant in Ukraine in Kolomyia (Ivano-Frankivsk region) on September 29, plant director Ruslan Grem has told Interfax-Ukraine.
“President of Ukraine Petro Poroshenko is invited to open the plant,” he said.
The plant will also specialize in production of cable networks for the leading auto brands, in particular for BMW cars. The volume of investments in the plant is EUR16 million.
The director of the plant said the first stage of production will be opened in autumn, while in future it is planned to open four lines increasing in the number of workers and the production area.
“The total area of the enterprise in Stryi, for example, is 64,000 square meters, while that in Kolomyia will amount to 35,000 square meters. Now the plant in Stryi employs more than 7,500 people, in Kolomyia it is planned to employ 1,000 people at the first stage, about 5,000 by 2020,” he said.
Leoni, founded in 1917, is the world’s leader in the field of electrical wiring systems and cable technologies. The company employs more than 82,000 people in 31 countries. In 2016 the company’s sales exceeded EUR4.4 billion.

ANTONOV SEES NET PROFIT FALL BY 67% IN H1, 2017

KYIV. Aug 29 (Interfax-Ukraine) – Antonov state enterprise (Kyiv) in January-June 2017 saw net profit under Ukrainian accounting standards fall by 66.59% compared to the same period in 2016, to UAH 22.79 million.
According to the financial report on the website of the enterprise, its net income in the first half of the year increased by 37.7%, to UAH 2.223 billion.
According to the company, in January-March 2017 the net profit of Antonov was down by 69.9%, to UAH 24.01 million, net income increased by 30.84%, to UAH 1.17 billion.
Antonov state enterprise is the leading Ukrainian developer and manufacturer of aircraft, a recognized world leader in the niche of transport aircraft. The enterprise cooperates with more than 75 countries.
By the decision of the government, since April 2015 the enterprise has been part of Ukroboronprom state concern.

UKRAINE, POLAND DISCUSSING EUR 1.7 MLN PROJECT TO CREATE MUSEUM AND CULTURAL SPACE

KYIV. Aug 29 (Interfax-Ukraine) – Ukraine and Poland are discussing a project in museum and cultural cooperation with the cost of EUR 1.7 million that could be implemented within cross-border cultural cooperation, the press service of Deputy Prime Minister for European and Euro-Atlantic Integration Ivanna Klympush-Tsintsadze has reported.
During her working visit to Lviv Klympush-Tsintsadze met Chairman of Lviv Regional Council Oleksandr Hanuschyn, representatives of Lviv Regional Council and Lviv Regional Administration.
The interlocutors, in particular, discussed the possibility of creating a joint Ukrainian-Polish museum space within cross-border cultural cooperation. The project cost is EUR 1.742 million. With the European money support, this amount can be injected into preserving and promoting the joint Polish and Ukrainian cultural heritage, museum environment, a high-quality museum product and improving Ukrainian-Polish cultural communication,” the press service said.
In particular, the project provides for the restoration of the Korniakt Palace (Royal Kamienica or townhouse), the preparation for holding joint exhibitions, trainings and roundtables for museum workers in Lviv and Lublin, internships for restorers, and work on the strategy for development of cooperation between the museums of Lviv and Lublin.
The press service said that these measures are considered as part of the program of Poland-Belarus-Ukraine cross-border cooperation for 2014-2020. The total cost of the program is EUR 201.39 million, of which EUR 183 million are EU funds, which can be used to support projects.

GOVT TO FORESEE UAH 1 BLN TO SUPPORT FARMERS IN DRAFT STATE BUDGET FOR 2018 – GROYSMAN

KYIV. Aug 29 (Interfax-Ukraine) – Prime Minister of Ukraine Volodymyr Groysman has stated it is planned to foresee UAH 1 billion for a program to support farmers in the draft national budget for 2018.
“Separately, we will spend UAH 1 billion next year on targeted support to Ukrainian small farms,” the head of government said in an interview with the Ukrainian Radio.
According to the premier, the agrarian sector together with processing forms about 17% of GDP.
As reported, earlier Groysman announced the intention to increase financing for the program of partial compensation of the cost of Ukrainian agricultural machinery to UAH 1 billion in the draft national budget for 2018.

UKRAINIAN EXPORTS TO CANADA 76% UP IN JAN-JUNE 2017 – MYKOLSKA

KYIV. Aug 28 (Interfax-Ukraine) – Exports of Ukrainian goods to Canada in the first six months of 2017 amounted to $22.7 million, which is 76.3% more than for the same period in 2016, Ukrainian Deputy Minister of Economic Development and Trade Natalia Mykolska has said.
“The FTA agreement with Canada had begun influencing our economic relations before it entered into force. In the first six months of 2017 exports of goods to Canada totaled $22.7 million, which is 76.3% more than for the same period in 2016,” she said in an interview with Interfax-Ukraine.
She said for exports to Canada goods must pass certification, which differs from the European one.
The deputy minister drew attention to the fact that imports of Canadian goods to Ukraine is also reviving, particularly in the sphere of pharmaceuticals and seafood, light industry goods: special clothing, garments for cold weather and work clothes.