Business news from Ukraine

DEMAND FOR NEW COMMERCIAL CARS IN UKRAINE PERKS UP NOTICEABLY IN JULY

KYIV. Aug 10 (Interfax-Ukraine) – New commercial car sales in Ukraine in July increased by 52% compared to June this year, to 448 units, bus sales by 2.3 times, to 50 units.

According to the Ukrautoprom association, in comparison with July 2014 commercial car sales decreased by 8.6%, buses by almost five times.

The leaders of the July sales among commercial cars became GAZ, Renault and FIAT, together occupying 45% of the market.

“All three brands in July managed to demonstrate the increased presence in the Ukrainian market both compared to the previous month and year-over-year,” the association said.

In particular, GAZ sales doubled year-on-year and almost tripled from June this year, to 75 units, Renault – 22% and 40% respectively, to 66 units, FIAT – 3% and 68%, to 62 units.

The leader in the bus segment was RUTA – 16 vehicles against two buses in June this year and 12 in July 2014.

Ukraine’s Etalon and Ataman ranked second, selling ten buses each. ZAZ buses I-VAN ranked third (nine buses sold).

INDUSTRIAL PRICES IN UKRAINE 2% UP IN JULY – STATISTICS

KYIV. Aug 10 (Interfax-Ukraine) – Industrial prices in Ukraine in July 2015 increased by 2% compared to 0.6% in June, the State Statistics Service has reported.

At the same time, in annual terms (compared to the same month last year) the rise in wholesale prices continued to slow down: to 37% from 37.9% in June, 42% in May, and 48.6% in April.

In general, over the first seven months of 2015 industrial prices increased by 25.9%.

As reported, the rise in Ukrainian industrial prices in 2014 accelerated to 31.8% from 1.7% in 2013 and 0.3% in 2012.

The service said the price of goods in mining and quarrying in July increased by 1.6%, particularly extraction of metal ores by 4.6%, stone, sand and clay by 2.8%. At the same time, prices for crude oil production were down by 1.4%.

Prices in processing industry rose by 0.2%, in particular in manufacture of electrical equipment, machinery by 0.9%, rubber and plastic products, other non-metallic mineral products by 0.7%, basic pharmaceuticals by 0.5%.

However, prices in manufacture of coke, chemicals, iron and steel, finished metal products, except for machinery and equipment declined by 0.9-0.5%.

Prices in production of food, beverages and tobacco rose by 0.6%. In particular prices in beverage industry increased by 3.5%, meat production by 2.2%, sugar by 1.8%, dairy products by 1.6%, bread, bakery and pastry products by 0.5%. At the same time, prices in production of cereals declined by 3.2%, fruit and vegetables processing and canning by 1.2%, oil and animal fat by 0.6%.

Tariffs in supply of electricity, gas and conditioned air grew by 7.0% due to the rise in the price of electricity by 7.8%.

UKRAINIAN PRESIDENT SIGNS LAW EXEMPTING PRIVATE SCHOOLS, PRESCHOOLS FROM PROPERTY TAX

KYIV. Aug 10 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has signed law No. 654-VIII which amends the Tax Code of Ukraine in order to create favorable conditions for the provision of education services by preschool and general education institutions of non-state ownership, the presidential press service reported.

According to the law, preschool and general education institutions irrespective of their form of ownership and their sources of financing, cultural, scientific, educational, healthcare, social protection, sports institutions fully funded by the national or local budgets are exempted from paying company property tax.

Buildings of preschool and general education institutions irrespective of their form of ownership and the source of financing, that are used to provide general educational services are exempted from paying tax on property other than land parcels.

The Verkhovna Rada passed this bill on July 17. The law takes effect from the first day of the month that follows the month when it was published.

UKRAINE INCREASES PORK EXPORTS BY 7.4 TIMES, POULTRY BY 5.6% IN SEVEN MONTHS

KYIV. Aug 10 (Interfax-Ukraine) – Ukraine in January-July 2015 exported 18,620 tonnes of pork, which is 7.4 times more than in the same period in 2014.

According to customs statistics, made public by the State Fiscal Service of Ukraine, in monetary terms exports of these products for the seven months amounted to $38.997 million.

Pork imports for the period amounted to 2,184 tonnes compared to 20,170 tonnes a year earlier. In monetary terms the figure was $5.132 million.

Poultry exports rose by 5.6%, to 90,487 tonnes.

Poultry exports in monetary terms amounted to almost $125.553 million. Imports came to 27,964 tonnes worth $18.626 million, which is 2.1% less than in January-July 2014, when the figure amounted to 28,550 tonnes worth $29.77 million.

As reported, Ukraine in 2014 doubled exports of pork, to 9,400 tonnes, increased poultry shipments abroad by 20%, to 174,700 tonnes. At the same time, pork imports dropped five-fold, to 30,800 tonnes, poultry by 14.2%, to 61,000 tonnes.

UKRAINE IMPORTS FUEL WORTH $2.8 BLN IN SEVEN MONTHS

KYIV. Aug 10 (Interfax-Ukraine) – Ukraine in January-July 2015 imported fuel (foreign economic activity code 2710) for a total of $2.187 billion, in particular in July for $414.323 million.

According to the State Fiscal Service, in the seven months the cost of fuel imported from Belarus stood at $998.982 million, Russia $531.651 million, Lithuania $172.94 million, from other countries $482.97 million.

In January-July 2014, Ukraine imported fuel worth a total of $3.635 billion, in particular from Belarus for $1.865 billion, from Russia $679.696 million, Lithuania $373.448 million, from other countries for $717.659 million.

In addition, in January-July this year exports from Ukraine cost a total of $81.621 million. The price of fuel delivered to Cypriot counterparties was $23.221 million, Italy $14.205 million, Russia $6.184 million, other countries $38.011 million.

Code 2710 applies to not only petrol and diesel fuel, but fuel oil, jet fuel, a number of other specific products.

At the same time, Ukraine in January-July 2015 did not import oil (code 2709), however oil exports to Lithuania amounted to $2.647 million.

OPENING INTERNATIONAL RIVER CHECKPOINT TO INCREASE CARGO TRAFFIC BETWEEN BELARUS, UKRAINE – INFRASTRUCTURE MINISTRY

KYIV. Aug 7 (Interfax-Ukraine) – Opening an international river checkpoint will increase increasing cargo traffic between Belarus and Ukraine, according to the press service of the Infrastructure Ministry of Ukraine,

The press service said the issue was discussed at a meeting of the ministry’s representatives, Kyiv river port PJSC, the State Fiscal Service of Ukraine and Kyiv City Customs Office.

According to the ministry, vessels are currently unloaded and cargo is processed at the international checkpoint in Kherson. According to the ministry, a new checkpoint in Kyiv will increase the volume of river cargo traffic between Ukraine and Belarus.

Chairman of the Board of Kyiv river Port Andriy Savchuk expressed his readiness to work on the issue.

“To start the preparation of technical-economic grounds for the project, it’s necessary that a detailed analysis be conducted regarding how opening of a checkpoint will affect the dynamics of cargo traffic on river transport from the Belarus,” he said.

Based on the results of the meeting, the Fiscal Service and Infrastructure Ministry decided to give relevant information regarding the dynamics of cargo traffic from Belarus in 2013-1015 and the prospects of its growth if a checkpoint in Kyiv is opened at Kyiv river port. The decision on realizing the project and its prospects will be made after the abovementioned information is considered.