Business news from Ukraine

KYIV INVESTMENT AGENCY LOOKING FOR INVESTORS FOR FIRST PHASE OF TROYESCHYNA INDUSTRIAL PARK PROJECT

KYIV. June 10 (Interfax-Ukraine) – Representatives of the pharmaceutical market, organic chemistry and small domestic appliances assemblers could place their own production facilities on a land parcel of 30-40 ha near combined heat and power plant six as part of the first phase of the industrial park project being realized in Troyeschyna district of Kyiv, Director of Kyiv Investment Agency Oleh Mistiuk has told Interfax-Ukraine.

“Maybe, the project would not be realized in the scale planned earlier [the land parcel of 270 ha in Desniansky district was reported], but at least several domestic appliances assemblers, organic chemistry, pharmaceutical companies could appear. This is only the first phase. We have divided by at least two phases. The first one is around 30-40 ha… Then it will depend on producers,” Mistiuk said.

Pharmaceutical companies showed the largest interest to the project, but they have some precautions regarding the placement of production facilities near residential areas.

He said that Kyiv authorities will be able to start preparing the industrial park only when the complete pool of investors for the first phase will be created.

Kyiv Investment Agency will thoroughly examine investors and environment polluting production facilities cannot be placed there.

EBRD TO OPEN REPRESENTATIVE OFFICE IN KHERSON – REGION GOVERNOR

KYIV. June 10 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) will open a representative office in Kherson that will credit companies with an annual turnover of EUR 1-3 million, Head of Kherson Regional Administration Andriy Hordeyev has told Interfax-Ukraine.

“The permanent representative office of the EBRD for micro-crediting is to open in Kherson. The agreement has been reached with the EBRD managing director for Eastern Europe and the Caucasus. The bank sees that this is business with EUR 1-3 million turnover. For example, 1,000 ha for irrigation,” he said.

Hordeyev said that the approximate date for opening the office is June 15.

Among top priority projects for crediting are irrigation, alternative energy and infrastructure projects.

GOVERNMENT TO RELAX ENTRANCE TO UKRAINE FOR CHINESE BUSINESSMEN, TOURISTS IN SUMMER

KYIV. June 9 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers would relax the procedure for entering the country for businessmen and tourists from China in summer.

Deputy Foreign Minister Vadym Prystaiko has submitted to the government a draft resolution on the temporarily introduction of issuing visas at border checkpoints of the Boryspil International Airport (Kyiv) for citizens of China making a business or tourist trip.

He said that the document is intended to expand relations with China and further develop cooperation between the two countries.

“The draft says that the regime when citizens of China will be able to stay in Ukraine for the period of up to 15 days if they present the document confirming the purpose of their trips as business or tourism will be introduced until September 30,” he said.

Prystaiko proposed that the regime will be introduced from June 20.

He said that from June 19 one more flight to China will be launched (Kyiv-Beijing flight serviced by Ukrainian International Airlines).

AGRICULTURE MINISTRY JOINTLY WITH FINANCE MINISTRY MULLING PROVISION OF EXTRA FUNDS FOR SMALL FARMERS

KYIV. June 9 (Interfax-Ukraine) – Ukraine’s Agricultural Policy and Food Ministry jointly with the Finance Ministry are mulling the provision of additional funds to support small and medium farms in 2016, Agricultural Policy and Food Minister Taras Kutovy said at the Agro 2016 international exhibition in Kyiv on Wednesday.

“We are discussing the proposal to increase [financial assistance to farmers] with the Finance Ministry. I think that soon it will be clear if these funds are provided,” he said.

Kutovy said that the additional funds will be sent to small and medium agricultural market players.

“The financial assistance will be provided to producers [with a land bank of] up to 500 ha who cannot take commercial credits now,” the minister said, adding that support of small farmers will be implemented in the form of cooperation.

Ukrainian Prime Minister Volodymyr Groysman who also visited the exhibition said that farmers would receive additional funds from the state.

Earlier Kutovy said that by autumn Ukrainian farmers will be able to receive promised UAH 450 million of assistance from the state if the Verkhovna Rada passes amendments to the national budget.

UKRHYDROENERGO TO START BUILDING UNIT FOUR OF DNISTROVSKA POWER PLANT IN 2017

KYIV. June 9 (Interfax-Ukraine) – Public joint-stock company Ukrhydroenergo seeks to start building unit four of Dnistrovska hydroelectric pumped storage power plant in Novodnistrovsk (Chernivtsi region) in 2017 and finish in 2020.

According to the presentation of Energy and Coal Industry Minister Ihor Nasalyk at a meeting of the National Reforms Council the project blueprints would be designed in 2016.

The building of the unit would help to reduce the number of unit launches, daily saving of 1,000-4,000 tonnes of coal, cut emission and decrease natural gas consumption.

According to the ministry’s calculations, the effect from the operation of one unit is $110 million a year if it replaces the thermal power unit.

Dnistrovska hydroelectric pumped storage power plant on December 21, 2015 launched the third unit, the last unit of the first construction phase that consists of three units with a capacity of 324 MW each in generating mode and 421 MW in pumping mode.

UKRAINE BOOSTS FUEL WOOD EXPORTS BY 23.4% IN JAN-MAY, SAWN WOOD EXPORTS 16.9% UP, WOOD IN ROUGH EXPORTS 22.7% DOWN

KYIV. June 9 (Interfax-Ukraine) – Ukraine increased exports of fuel wood under 4401 foreign trade code (fuel wood, wood in chips or sawdust) in kind by 23.4% in January-May 2016 year-over-year, to 945,173 tonnes (766,206 tonnes in January-May 2015).

According to customs statistics made public by the State Fiscal Service of Ukraine, in monetary terms exports of these products grew by 28%, to $42.528 million ($33.221 million).

Exports were mainly made to Romania (33.79% of total supplies in money terms), Turkey (25.66%) and Poland (8.98%).

Ukraine also imported 127,000 tonnes of these products worth $23,000 in January-May 2016, while a year ago the country imported 108,500 tonnes worth $41,300.

Fuel wood was mainly imported from Germany (66.67% of total supplies), Lithuania (12.5%) and Poland (12.5%).

Ukraine decreased exports of wood in the rough under 4403 foreign trade code in kind by 22.7% in January-May 2016 year-over-year, to 895,909 tonnes (1.159 million tonnes in January-May 2015).

In monetary terms exports of these products fell by 34.6%, to $53.808 million ($82.317 million). Exports were mainly made to Romania (41.14% of total supplies in money terms), China (34.4%) and Turkey (15.17%).

Ukraine also imported 3,767 tonnes of these products worth $272,000 in January-May 2016, while a year ago the country imported 3,975 tonnes worth $296,900. Wood in the rough was mainly imported from Russia (99.63% of total supplies).

Ukraine increased exports of wood sawn or chipped lengthwise of a thickness exceeding 6 mm under 4407 foreign trade code in kind by 16.9% in January-May 2016 year-over-year, to 819,203 tonnes (700,722 tonnes in January-May 2015).

In monetary terms exports of these products grew by 16%, to $166.527 million ($143.588 million). Exports were mainly made to Turkey (19.59% of total supplies in money terms), Poland (11.24%) and Hungary (10.75%).

Ukraine also imported 1,438 tonnes of these products worth $771,000 in January-May 2016, while a year ago the country imported 588,800 tonnes worth $411,400. Wood sawn or chipped lengthwise was mainly imported from Romania (51.17% of total supplies), Poland (14.9%) and Russia (6.87%).