Business news from Ukraine

LITHUANIANS WILL HELP UKRAINIAN BUSINESS SUCCESSFULLY ENTER EUROPEAN MARKETS

The business communities of Ukraine and Lithuania will deepen their cooperation with the launch of a free trade area between Ukraine and the EU. Lithuanian political and business circles seek to actively cooperate with Ukraine to contribute to its further integration into the EU and share their experience on the benefits and risks along this way. These issues were on the agenda of a workshop entitled “Opportunities and Prospects of Business Relations between Ukraine and Europe,” which was organized by experts from the Lithuanian Confederation of Industrialists in the Ukrainian capital of Kyiv.

The event was the first to be held under an Eastern Partnership educational project, which was organized by the Ministry of Foreign Affairs of Lithuania for NGOs of industrialists and entrepreneurs of Ukraine. The project is being implemented thanks to cooperation between the Ukrainian League of Industrialists and Entrepreneurs and the Lithuanian Confederation of Industrialists, and bilateral business councils.

The Lithuanians informed the participants in the workshop who represent the local business community about the economic importance of the free trade zone, its benefits for both parties, as well as about certain risks and the tools to avoid them. Thus, according to various forecasts, the Ukrainian exporters will be able to save up to EUR 500 million per year due to the cancellation of customs tariffs. These incentives concern 97% of all planned exports from Ukraine to the EU.

Deputy Director-General of the Lithuanian Confederation of Industrialists Gintaras Morkis forecasts that Ukraine’s GDP may grow by 6.2% in the long-term outlook due to the free trade zone with the EU.

The Ukrainian side noted that the country is currently facing a very important task of adapting national products to technical regulations, as well as safety and quality standards adopted by the EU. Another task is the diversification of exports.

Ukrainian industrialists and entrepreneurs continue to build up their contacts with European partners. Thus, on December 8, a Memorandum of Cooperation between the Ukrainian League of Industrialists and Entrepreneurs and BUSINESSEUROPE, the most powerful structure to support and protect the interests of businesses in the EU, is to be signed in Brussels. What is more, the Belgian capital will host a large-scale conference entitled “The European Parliament is the Civil Society of Ukraine. The educational workshop, organized by the Lithuanian side, will continue as Ukrainian industrialists and entrepreneurs have been invited to Vilnius late this year. There will be an event as part of the First Lithuanian-Ukrainian economic forum, which will be attended by the presidents of both countries and representatives of EU institutions.

The Lithuanian Confederation of Industrialists is an independent organization that represents the interests of transparent business in that country. It unites 44 industrial and 9 regional associations of enterprises of different area of expertise ‒ industrial structures, research and development institutions, educational establishments, and others. It is represented at the European Economic and Social Committee and is a BUSINESSEUROPE member.

UKRKHARCHOZBUTSYROVYNA-TERMINAL TO BUILD 240,000 TONNES GRAIN ELEVATOR BY 2019

KYIV. Nov 2 (Interfax-Ukraine) – The Ukrkharchozbutsyrovyna-Terminal maritime complex for handling liquid food products (Mykolaiv) intends to build a grain elevator with a capacity of 240,000 tonnes at Dnipro-Buzky sea port by 2019.

“Our company has a land plot. According to the project, over the next two or three years the following construction is expected: further development of the filling complex and then a transfer to the construction of warehouses for floor storage with a capacity of 60,000 tonnes with acceptance of road and railways transport,” managing director Dmytro Falko said at the international conference “The new projects of grain and oilseeds terminals in Ukrainian ports” in Kyiv.

According to him, the second stage of the project involves the construction of a silo with a capacity of 240,000 tonnes.

“The grain business is new for us, but having a history of increasing grain exports by Ukraine as a grain state, we also want to get into this business and begin the construction of a grain complex. I believe there are prerequisites for this,” he said.

Falko also said that in the long-term prospect, particular in 2019-2022, his company plans to carry out dredging work and attract investors to the construction of terminals for different types of cargo.

The implementation of the first and second stages of the project has been estimated to cost $180 million.

 

GOVERNMENT APPROVES AGREEMENT ON OPENING WORLD FOOD PROGRAM OFFICE IN UKRAINE

KYIV. Oct 30 (Interfax-Ukraine) – The Cabinet of Ministers has approved the signing of an agreement to open an office of the World Food Program in Ukraine.

Corresponding Cabinet decree No. 1106-r of October 28, 2015 has been posted on the official website of the Ukrainian government.

The person authorized to sign the agreement on behalf of Ukraine was Ambassador to Italy Yevhen Perelyhin.

The World Food Program is the world’s largest humanitarian organization which provides 4 million tonnes of food anually. It was founded in 1963 as an agency to provide food under the UN and is engaged in providing assistance to the poor in developing countries and fighting against hunger and poverty.

CABINET INCLUDES IMF, WORLD BANK, IFC, EBRD, USAID REPRESENTATIVES IN AD HOC GROUP FOR COMPANIES PRIVATIZATION

KYIV. Nov 2 (Interfax-Ukraine) – The Cabinet of Ministers has included representatives of the International Monetary Fund (IMF), the World Bank, the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the U.S. Agency for International Development (USAID) in a working group to prepare recommendations and proposals for the government on the privatization and terms of the sale of state enterprises.

The decision is stipulated in government decree No. 849 of October 21.

As reported, the Cabinet of Ministers on June 24, 2015 established a working group led by the head of the State Property Fund of Ukraine (SPF) to prepare recommendations for the government on privatization. The government also defined the members of the group: its deputy head is the SPF deputy chairman, the secretary is a fund representative. The group also includes the Deputy Minister of Economic Development and Trade, the Senior Adviser to the Minister of Economic Development and Trade, the Deputy Minister of the Cabinet, the First Deputy Finance Minister, the First Deputy Minister of Energy and Coal Industry, the director of the department for effective state property management at the Secretariat of the Cabinet, and the state commissioner of the Antimonopoly Committee.

UKRAINE, AUSTRALIA REACH UNDERSTANDING ON FUTURE NUCLEAR SECTOR AGREEMENT

KYIV. Nov 2 (Interfax-Ukraine) – Ukraine and Australia have reached an understanding on the key issues of a future intergovernmental agreement on the peaceful use of nuclear energy, Head of the European integration department at the Energy and Coal Industry Ministry Mykhailo Bno-Airiian wrote on his Facebook page.

“We’ve managed to reach an understanding on the key sections of the new agreement on cooperation in the peaceful use of nuclear energy between the Ukrainian and Australian governments and lift all outstanding problems. Now we are to start interior procedures for preparing for signing the agreement,” he said.

He said that the four-day negotiations with a delegation of the Australian Safeguards and Non-proliferation Office (ASNO) finished on October 29.

As reported, Ukraine is holding talks on purchasing uranium concentrate in Australia and Kazakhstan.

KYIV, WASHINGTON DEVELOP ROADMAP TO ATTRACT INVESTMENT – YATSENIUK, PRITZKER

KYIV. Nov 2 (Interfax-Ukraine) – Ukrainian Prime Minister Arseniy Yatseniuk and U.S. Secretary of Commerce Penny Pritzker after talks on October 26 made a statement, which, in particular, concerns the development of a roadmap for taking steps aimed at attracting private capital.

“As a result of our consultations, both sides developed a roadmap featuring several short-term, actionable steps that will further increase business confidence and attract private capital. Both sides underscored the urgency of such steps and the importance of actions by both Ukrainian government officials and the Verkhovna Rada to deepen the said reforms,” reads a joint statement by the officials.

“With the support of the United States, Ukraine will intensify anti-corruption efforts through reforms in the Prosecutor General’s Office and implementation of judicial reform, improve tax administration to ensure a level playing field for all companies, reduce gas royalty rates to encourage investment by world class firms, continue deregulation and eliminate unnecessary licensing and permitting, approve and implement anti-piracy legislation to support intellectual property rights, fully execute an e-procurement system and complete accession to the World Trade Organization’s Government Procurement Agreement,” reads the document.

“Ukraine also underscored its commitment to move forward on putting in place agricultural standards that will attract investment; development and implementation of a thoughtful and transparent privatization plan that provides genuine opportunities for international investors; and civil service reform,” according to the posting.