Business news from Ukraine


KYIV. May 19 (Interfax-Ukraine) – Ukraine will create a financial ombudsman institute.

This is stipulated in the comprehensive program for financial sector development for 2015-2020, which was approved by the National Reforms Council.

To improve the standards of protecting the rights of consumers and financial market investors, this program will also raise the standards of the disclosure of information on financial services, establishes clear sanctions for market participants for violating the rights of financial services consumers, introduces a mechanism to protect the rights of minority shareholders, and increases the transparency of payments to the depositors of banks undergoing liquidation.

In general, the program foresees three stages of reform: cleaning the financial sector, laying the foundation for its development and the implementation of development measures.


KYIV. May 19 (Interfax-Ukraine) – Milkiland-Ukraine, a subsidiary of Milkiland dairy group with assets in Ukraine, Russia and Poland, plans to produce 15,000-20,000 tonnes of cheese in 2015.

“We want to reach a figure of 15,000-20,000 tonnes. We planned 30,000 tonnes, but I see we won’t be able to reach this figure,” company CEO Anatoliy Yurkevych said at the Agri Invest Forum in Kyiv.

According to him, last year the group produced 28,000 tonnes of cheese in Ukraine.

Yurkevych said that Milkiland plans to increase production at its Russian enterprise Syrodel.

To achieve this, the enterprise was reconstructed, which allowed it to increase its capacity by up to 15-20 tonnes per day.

“The Russian factory last year began producing cheese from June. In connection with these events (the embargo on cheese supplies to Russia), we reconstructed it and increased its capacity. The maximum capacity there is 15-20 tonnes of cheese a day,” he added.

Yurkevych also said that cheese production at the Polish factory of the group dropped by 4 or 5 times in connection with the ban on supplies to Russia.

The group plans to produce 3,500 tonnes of cheese at the Russian company, while the expert found it difficult to forecast the volume of output at the Polish plant.


KYIV. May 19 (Interfax-Ukraine) – Astelit LLC (the LIFE brand) has launched the UMTS (3G) standard network for commercial exploitation in Lviv, the company said in a press release issued on Tuesday.

“Lviv residents and guests of the cultural capital of Ukraine have received the chance of becoming the first users of 3G+ services from the LIFE brand, which can maintain Internet speed of up to 63.3 megabits per second. It means that subscribers can watch video steaming, quickly transfer large files, load video and make video calls,” reads the report.

The subscribers can get the 3G+Smartphone tariff plan with a fee from UAH 89 per 30 days.

Lviv is the first city where the company launched its network for commercial exploitation. The company is the first among the three winners of the tender to launch the network (along with MTS Ukraine and Kyivstar).

As reported, on February 23, 2015, Astelit was named the winner of the first lot to obtain licenses for 3G communications. The license cost the operator UAH 3.355 billion.


KYIV. May 19 (Interfax-Ukraine) – Czech Airlines on May 19 launched a regular flight between Kyiv and Kosice (Slovakia), Sales and Marketing Director at Czech Airlines Jan Toth said during the presentation of the flight in Kyiv on Tuesday.

“We see the business potential between Ukraine and eastern Slovakia, which impelled us to launch the flight,” he said.

Toth said that the airline expects that the flight will reach 85% of its capacity.

Airbus A319 aircraft will operate on the route.

Departures from Kyiv are on Mondays, Thursdays, Fridays and Saturdays at 04:10 and passengers will fly back at 23:55.

Passengers will be able to fly onwards to Prague using the flight.

“Passengers who will leave for Prague and back to Kyiv are not to leave the plane during the landing in Kosice. After a short 30-minute landing the plane will fly from Kosice to Prague or back to Kyiv,” reads the press release given to those attending the presentation.

According to the report, ОК916 and ОК917 flights between Prague and Kyiv will be replaced by ОК976/ОК977 Prague-Kosice-Kyiv/Kyiv-Kosice-Prague flights.

The price of a one-way ticket from Kyiv to Kosice is from UAH 1,875 (taking into account all fees and duties) and UAH 3,506 for a return ticket. The cost of a one-way ticket to Prague starts from UAH 2,741 to UAH 5,361 for a return ticket.

When asked if the airline has plans to launch any other flights from Kyiv, Toth said that the airline does not have concrete plans for this year.


KYIV. May 19 (Interfax-Ukraine) – Prime Minister of Ukraine Arseniy Yatseniuk and the special envoy of the Japanese prime minister on issues regarding assistance for Ukraine, Deputy Foreign Minister of Japan Jasumasa Nagamine, have discussed future assistance by the Japanese government for Ukraine.

“The Japanese representative reported about the intension of the Japanese government to continue supporting reforms and technical aid projects in Ukraine,” the government’s press service has reported.

Yatseniuk praised the principled position of Japan in defending the sovereignty and territorial integrity of Ukraine and the respective political efforts of the Japanese government, including as a part of the G7.

Nagamine is currently in Kyiv.


KYIV. May 19 (Interfax-Ukraine) – On Monday in Brussels, Ukrainian Foreign Minister Pavlo Klimkin and European Commissioner for Migration, Home Affairs and Citizenship, Dimitris Avramopoulos, discussed the implementation of a visa-free regime for Ukraine and preparation for the upcoming Riga summit.

“Particular attention was paid to the issue of further movement towards the introduction of a visa-free regime for Ukrainian citizens. Avramopoulos admitted that considerable progress had been achieved by Ukraine in carrying out the criteria of the second phase of the action plan on visa liberalization, which was noted in the report of European Commission (EC) on the state of its implementation dated May 8. He confirmed that the European Commission was ready to provide as much support as possible for our country to finish the issues left [to be settled] to achieve the desired goal – cancelation of visas for Ukrainian citizens,” the Foreign Ministry’s press service reported.

Avramopoulos said that the EC was ready to prepare its next report on Ukraine’s implementation of the visa liberalization action plan.

Klimkin spoke about the specific steps Ukraine had already taken and was planning to take in order to follow the recommendations specified in the EC’s report.

The parties also discussed the preparation for the Eastern Partnership Summit in Riga on May 21-22. Ukraine noted that the summit should end with a clear signal on the deadline of the introduction of visa-free travel for Ukrainian citizens.

The parties supported the creation of a joint border guard and customs control between Ukraine and EU member states. They also discussed cooperation on the EU Visa information System in which is due to begin operating June 23.

Klimkin and Avramopoulos positively assessed the implementation of the EU-Ukraine Agreement regarding Visa Processing Liberalization.

Klimkin also invited Avramopoulos to visit Ukraine soon.