Business news from Ukraine

UKRZALIZNYTSIA EXPECTS 15% RISE IN REVENUES FROM HIGH-SPEED TRAFFIC IN 2016 – DRAFT FISCAL PLAN

KYIV. Feb 22 (Interfax-Ukraine) – PJSC Ukrainska Zaliznytsia expects the revenues of its subsidiary Ukrainian High-Speed Railway Company from passenger traffic in 2016 to amount to UAH 663.7 million, which is 15.3% higher than the plan for 2015 and 15.1% more than the rate expected for 2015.
According to an explanatory note to the draft financial plan of the company for 2016, the revenues are expected to grow due to the increase in the number of passengers carried, the introduction of high-speed trains on new directions, putting on additional pairs of trains.
Thus, high-speed Intercity+ trains are to be introduced on the following routes: Kyiv-Kharkiv-Kyiv, Darnytsia-Lviv-Darnytsia, Kyiv-Kostiantynivka-Kyiv, Kyiv-Dnipropetrovsk-Krasnoarmiysk-Kyiv, Kyiv-Zaporizhia-Kyiv, Darnytsia-Truskavets-Darnytsia, Darnytsia-Odesa-Darnytsia, Kyiv-Kryvy Rih-Kyiv. High-speed Intercity trains run on the Darnytsia-Ternopil-Darnytsia route.

UKRAINE LIMITS IMPORTS OF SOLID MDF FROM RUSSIA FOR ANOTHER FIVE YEARS

KYIV. Feb 22 (Interfax-Ukraine) – Ukraine has extended for another five years an anti-dumping duty of 31.58% on imports of medium density fiberboard
(MDF) produced in the Russian Federation.
According to a report by the Interdepartmental Commission on International Trade in the Holos Ukrainy newspaper, the decision was made on February 12 after the revision of anti-dumping measures and comes into force on the date of publication.
The report notes that not a single Russian producer or exporter of MDF registered within the review procedure.
On the basis of information available at the ministry, it was found out that in 2012-2014 MDF exports to certain third countries have signs of dumping.
The commission also notes that Russian MDF producers have unused production capacity, which is several times larger than the volume of consumption of this product in the domestic market of Ukraine.

STATE FOOD-GRAIN CORPORATION COULD INVEST OVER UAH 10 MLN IN KROLEVETS GRAIN CENTER

KYIV. Feb 22 (Interfax-Ukraine) – Public joint-stock company State Food-Grain Corporation plans to send over UAH 10 million of capital investment in the Krolevets grain production center (Sumy region) in 2016.

“Many plans and much work are ahead. This year large capital investment of over UAH 10 million is planned. Now we’re working on the project to modernize power supply to the enterprise with the switch to the first class power consumption. This would allow saving on purchase of power and cut cash cost of finished products,” the corporation said, citing Director of Krolevets grain production center Hennadiy Hordiyenko.

He said that the branch would resume production of pasta in 2016.

“At the beginning of the year we plan to restore production of pasta. We have all the required equipment and materials for this: Italian equipment, high-quality flour and a desire to supply high-quality products to the market,” Hordiyenko said.

Krolevets grain production center makes wheat flour, mill offals and mixed fodder. The center accepts, dries, stores and ships grain and leguminous crops and oilseeds.

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.

UZBEKISTAN CANCELS EXTRA IMPORT DUTY ON UKRAINIAN GOODS AHEAD OF TIME

KYIV. Feb 22 (Interfax-Ukraine) – Uzbekistan has prematurely canceled additional import duties on Ukrainian goods, which was introduced from July 1, 2015 for one year, the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan reported on its official website.

The ministry pointed out that Uzbekistan introduced additional import duties on Ukrainian goods in response to the introduction by Ukraine on February 26, 2015 of additional import duties of 5-10% for one year.

Uzbekistan prematurely canceled additional import fees because Ukraine had annulled additional import duties from January 1, 2016.

UKRAINE USES 62% OF DUTY-FREE SUGAR EXPORTS QUOTA TO EU IN ONE AND HALF MONTHS

KYIV. Feb 19 (Interfax-Ukraine) – Ukraine in one month and a half of 2015 used the duty-free sugar exports quota to the European Union (EU) by 62%.

According to a posting on the Ukrtsukor association, as of February 16, 12,400 tonnes of sugar was exported from Ukraine to the EU with the annual quota of 20,070 tonnes.

As reported, the Cabinet of Ministers of Ukraine increased bottom prices of beet sugar by 40.7% for the 2016/17 agricultural year, to UAH 9,078.87 per tonne (VAT not included).

U.S. READY TO INVEST IN UKRAINIAN DEFENSE INDUSTRY ONLY AFTER REFORMS CONTINUE, CORRUPTION TACKLED – AMBASSADOR

KYIV. Feb 19 (Interfax-Ukraine) – U.S. business will be able to invest and share solutions with the Ukrainian defense industry only if Ukraine continues to press ahead on critical reforms and tackles corruption, U.S. Ambassador to Ukraine Geoffrey Pyatt has said.

At the Ukrainian Defense & Security Forum 2016 in Kyiv on Thursday he said that representative of U.S. defense companies are taking part in the forum.

“These companies will be good partners. They have the ability to bring to you best-in-the-world technology and their demonstrated expertise at integrating with other international partners. But they have requirements. They will want to see that the government sticks to the path of reform, that you uphold your IMF commitments, that the government continues to make progress on the critical topic of rule-of-law reform. And they want to ensure, most of all, that they are working in an environment where the risks that they are taking are business risks, and not risks of unpredictable legal and judicial environment,” he said.

“Private sector support and investment from the United States will only come as Ukraine continues to take meaningful steps to reform its trade and investment climate,” Pyatt said.

“The war against corruption Ukraine is fighting is a critical element of winning the war the Kremlin has brought to your country. I know that all of you in this room understand that, and I want you to understand also how committed the United States is to standing by the Ukrainian people in this difficult time, he said.