Business news from Ukraine

EUROPEANS POSITIVE ABOUT MORE CIVIL SOCIETY IN UKRAINE

Delegations of such EU countries as France, Germany, Poland, representatives of the European Parliament, the European Commission, who gathered in the Polish city of Lodz to discuss closer integration and further development with the Ukrainian side, have positively evaluated the efforts made by the Ukrainian non-governmental sector to stimulate the process of reform in the country. This was the subject of the presentation of the large-scale “Transformation of Ukraine” National Platform, which was introduced by co-founder of the initiative, President of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) and Chairman of the Anti-Crisis Council of NGOs Anatoliy Kinakh at the 9th Europe-Ukraine International Forum.

This National Forum, which has accumulated a large number of proposals and social resources within a short period of time, aims to build a democratic state, introduce a European development model in the country. It brought together representatives of all branches of power and civil society in Ukraine, clergy, international organizations from the EU Member States and G7 countries. The forum also enjoys great support of foreign partners from the Baltic States, Central and Eastern Europe.

The ULIE actively involves its international partners ‒ MEPs, the largest European business association BUSINESSEUROPE ‒ in the development of this platform. Related meetings were held by industrialists and entrepreneurs in Brussels late last year.

Participants in the Forum have long been cooperating with peers from Poland, in particular, they are currently engaged in the development and implementation of an approach to using Polish experience in the country’s transformation in line with EU standards.

The European partners, who attended the presentation, including the former European Commissioner for Enlargement and European Neighbourhood Policy (February 2010 through October 2014) Štefan Füle and Head of the EU Delegation to Ukraine, Ambassador Jan Tombinski and others, shared Kinakh’s opinion that the National Forum has all the resources to become an effective instrument of interaction between society, the president, the parliament, the government of Ukraine and the international community to foster the transformation, support the developed, strong national economy and ensure sustainable development.

Two meetings of the “Transformation of Ukraine” National Forum have already been held. They defined priorities and outlined tasks for 2016. These are the fight against corruption, the creation of conditions for the rule of law and equality before the law, energy security, social policy, the development of local government, innovation policy as well.

UKRAINIAN ENTERPRISES BEGIN TO INTRODUCE RESOURCE-EFFICIENT PRODUCTION TEHNOLOGY

Ukrainian experts have assessed the implementation of a project to promote adaptation and implementation of resource-efficient and cleaner production in Ukraine. This task is performed by the Center for Resource-Efficient and Cleaner Production. The project has been launched in cooperation between Ukraine and the United Nations Industrial Development Organization (UNIDO).

Chairman of the advisory board of the project, Vice-President of the Ukrainian League of Industrialists and Entrepreneurs Vasyl Krutov stresses that the need for enterprises to widely incorporate resource-efficient practices has arisen due to demand for energy independence.

According to the World Economic Forum (WEF), Ukraine has got “stuck” at the 70th-80th positions of the Global Competitiveness Ranking in the past decade. One of the factors which seriously limit the competitiveness of both individual companies and the economy as a whole is high energy- and resource-intensive production in Ukraine. The World Energy Council, which issues annual rankings of the sustainability of national energy systems, emphasizes that high levels of energy consumption and CO2 emissions remain a key threat to Ukraine’s energy security. The UNIDO project is designed to solve these problems.

In 2015, the Center worked with 20 enterprises in 5 regions in Ukraine. The effect of the technical solutions proposed by the Center’s experts will allow the companies to reduce electricity consumption by about 30,000 MW, water consumption by almost 50,000 m3, the use of materials by 105 tonnes per year, and lower CO2 emissions by 6,500 tonnes per year.

Participants in the meeting of the advisory board of the project indicated that given the commitments undertaken by Ukraine under the Association Agreement with the European Union, the Paris Agreement under the United Nations Framework Convention on Climate Change and other relevant international documents, resource efficiency is a no-alternative way of economic development for Ukraine.

Global best practices show that measures to introduce and implement resource-efficient and cleaner production become successful only when there is close cooperation of the government, international organizations, NGOs and businesses.

The experts came to the conclusion that such cooperation in Ukraine needs to be stepped up, including through engagement of international investment projects, the popularization of methods and practices of resource-efficient and cleaner production among the government, industry and the public. Also, it was decided to begin preparations to propose the State Statistics Service of Ukraine switch to European standards of assessing the energy and resource efficiency of enterprises. In addition, it is necessary to strengthen cooperation between Ukraine and UNIDO, which may be stipulated in the wording of a new framework program of cooperation between UNIDO and the government of Ukraine for 2016-2020 whose draft is now being developed with the participation of the Ministry of Economic Development and Trade of Ukraine.

Reference. This international project has been implemented in Ukraine since 2013. It aims to facilitate the competitiveness of Ukrainian enterprises through a reduction in energy-related and other costs without a decline in production. Its advisory board includes representatives of ministries, the National Bank of Ukraine, regional and local authorities of the city of Kyiv, the Ukrainian League of Industrialists and Entrepreneurs, the Chamber of Commerce and Industry, the National Technical University of Ukraine “Kyiv Polytechnic Institute” (NTUU “KPI”), large enterprises and industry associations of Ukraine.

PRODUCTION OF MAIN AGRICULTURAL CROPS IN 2015

Безымянный

Excluding the temporarily occupied territories of the Autonomous Republic of Crimea, the city of Sevastopol and part of the anti-terrorist operation zone.

In weight after the cleaning.

MHP EXPORTS 13,950 TONNES OF SOYBEANS OIL IN 2015

KYIV. Feb 3 (Interfax-Ukraine) – Myronivsky Hliboproduct (MHP) exported some 13,950 tonnes of soybeans oil in 2015 at the price of $733 per tonne and around 3,715 tonnes of soybeans oil in September-December 2015, the company reported on Tuesday.

Since Q2 2015 MHP has started exporting soybeans oil produced from 2014 harvest using one of the Ukrainian soybeans oil extraction plants (not MHP facility). At the same time, soybeans cake is used for fodder production at MHP’s fodder production facilities.

In October 2015 MHP has launched soya extraction plant into operations (as a part of Katerynopilsky Elevator). The production capacity of the site is 1,000 tonnes of soybeans per day. During the trial period (since the beginning of October) the plant worked at 50% capacity utilization.

“The company considers soybeans oil exports as one of the “natural hedge” routes accumulating additional hard currency revenues and protecting the company from volatilities with local currency,” MHP said in the report.

In addition, in Q4 2015, MHP sold 69,050 tonnes of sunflower oil, which was 18% lower than in Q4 2014. The average price of $759 per tonne in Q4 2015 was 4% lower than in Q4 2014 ($789 per tonne) in line with world market trends. In 12M 2015, production of sunflower oil decreased by 3% to 286,745 tonnes, sold at an average price of $779 per tonne, which was 7% lower compared to price in 12M 2014 ($835 per tonne).

 

UKRAINE USES ANNUAL QUOTA FOR SUPPLIES OF COOLED POULTRY TO EU IN A MONTH

KYIV. Feb 3 (Interfax-Ukraine) – Ukrainian companies in one month used the annual quota for duty free supplies of cooled poultry in the amount of 16,000 tonnes to the European Union (EU).

According to a report of the Cabinet of Ministers for 2015 posted on its website, the quota was used by 100% as of February 1, 2016.

Earlier the founder of Myronivsky Hliboproduct and its majority shareholders Yuriy Kosiuk criticized the existing structure of quota distribution under the deep and comprehensive free trade area (DCFTA).

“I think we are deceived. Dramatically large restrictions or quotas are set for food exports from Ukraine. To help you understand: Ukraine produces 1.2 million tonnes of poultry per year. At the same time, Europe gave a duty-free quota of 16,000 tonnes to Ukraine,” Kosiuk said

According to him, 20,000 tonnes of frozen dressed chicken, which is not interesting for the market, can be duty-free imported, and all that is in excess of the quota is applied a duty of over EUR1,000 per tonne.

According to the Union of Poultry Farmers, in 2015 the country used 100% quota on supplies of cooled poultry, while the quota for frozen poultry was used only by 25%, as there is no demand on it.

According to the government’s report, as of February 1, 2016, Ukrainian companies used 66% of the quota on supply of sugar (the quota is 20,070 tonnes) and pork – 2.8% (the quota is 20,000 tonnes).

In January, the customs offices of the State Fiscal Service of Ukraine issued over 4,500 EUR.1 certificates for exports of goods to Ukrainian companies.

Since early 2016, 23 companies obtained the status of the approved exporter to the EU. They supply honey, sauces, sunflower oil, yeast, cookies, glass products and other goods. The access to the EU market is opened for 10 dairy companies and 18 companies obtained permits to export dairy products to China. Over 35 companies are able to export meat and meat products to Moldova, Kazakhstan, Kirgizstan, Armenia and Uzbekistan.

TURBOATOM TO SUPPLY PARTS FOR ENERGY EQUIPMENT OF KAIGA, RAJASTHAN NPPS IN INDIA IN 2016

KYIV. Feb 3 (Interfax-Ukraine) – Public joint-stock company Turboatom (Kharkiv), Ukraine’s largest producer of turbine equipment, on February 1, 2016 signed a contract with India’s Trafalgar to supply spare parts for power equipment of operating four turbines with a capacity of 240 MW at Rajasthan (RAPP) and Kaiga nuclear power plants (NPPs) in India, the company’s press service reported on Tuesday.

The press service said that this is the first contract to supply spare parts for nuclear turbines in India. Its cost is not disclosed. The term of equipment delivery is 2016.

The sides also agreed to sign next contract to supply spare parts in 2016 for the implementation of scheduled maintenance at NPPs. The conclusion of the document is planned for the period within two or three months.

A contract to supply four sets of power equipment (turbine, condenser, generator, separator, control system and auxiliary equipment) for Kaiga-3.4, RAPP-5.6 NPPs between Turboatom and National Nuclear Power Corporation of India (NPCIL) was signed in 2002. The reactors were launched in the period from 2007 to 2011.

The total capacity of turbosets manufactured by Turboatom at Indian nuclear power plants is almost 1,000 MW.

According to CEO of Trafalgar Rajiv Hariharan, as for today there are all grounds to continue doing business with Turboatom.

“We hope that even more equipment of Turboatom will work in India, and this contract is the first step,” Naval Attaché of the Embassy of India in Ukraine Siddhartha Sant, who was present at the contract signing ceremony, said.

Turboatom is the only Ukrainian producer of turbine equipment for hydro, thermal and nuclear power plants.