Business news from Ukraine


KYIV. Oct 30 (Interfax-Ukraine) – Some 518 farmland parcels with a gross area of 11,960 hectares (ha) were leased out at land auctions in January-September 2015, the State Agency for Geodesy, Cartography and Cadastre reported on Thursday.

According to the report, thanks to leasing out land parcels local budgets would obtain over UAH 16.286 million in rent rates.

“Land auctions are the most transparent mechanism, as well as appropriate from the economic point of view, for managing land. Open competition itself offsets risks of corruption,” reads the report, citing Agency Head Maksym Martyniuk.

He said that local budgets receive three times more funds on average than they spend on the organization of trading.

The largest number of land parcels was leased out to investors in Volyn region – 2,253 ha with annual rent rates of UAH 1.617 million. Some 1,357 ha of land for UAH 1.957 million of annual rent rates were leased out in Ternopil region, 1,862 ha for UAH 3.8 million in Lviv region and 595 ha for UAH 562,000 in Kharkiv region.

However, no land auction was held in Kyiv, Ivano-Frankivsk and Odesa region over the period.

“The State Agency for Geodesy, Cartography and Cadastre has instructed heads of the territorial divisions of the agency to stir up work on holding land auctions,” reads the report.


KYIV. Oct 30 (Interfax-Ukraine) – The board of directors of the European Bank for Reconstruction and Development (EBRD) has approved a project which includes the provision of $85 million to Myronivsky Hliboproduct (MHP) to replenish its working capital.

EBRD Senior Adviser for External Affairs Anton Usov told Interfax-Ukraine that the decision was made on October 28.

MHP will use these funds to replenish its working capital related to the cultivation of crops and feed production and purchase equipment for the soybeans plant.

MHP is the largest poultry producer in Ukraine and it is also engaged in the production of grains, sunflower oil, and meat.

MHP in 2014 saw poultry sales rise by 18% in comparison with 2013, to 525,460 tonnes. The net loss of MHP in 2014 totaled $412 million against $162 million in 2013, while its revenues over last year decreased by 8%, to $1.379 billion.


KYIV. Oct 29 (Interfax-Ukraine) – Ukrainian President Ukraine Petro Poroshenko and his Turkmen counterpart Gurbanguly Berdimuhamedow have emphasized the need to strengthen political dialogue between the two countries at the highest level and deepen trade cooperation on trade, economic, energy, financial, scientific, technical, cultural, humanitarian, and other areas.

A joint statement signed by the two presidents was posted on Poroshenko’s official website on Thursday.

“The presidents have reaffirmed their intention to strengthen mutually beneficial cooperation in the international arena. The two leaders stressed the need for coordination and mutual support within the framework of universal and regional organizations which Ukraine and Turkmenistan belong to,” the statement said.

Both leaders also reaffirmed the importance of enhancing the role of the UN and its institutions in addressing global issues, ensuring sustainable development, and strengthening security and stability in the world. The two leaders also declared their readiness to boost their efforts in the fight against terrorism, organized crime, and illicit drug trafficking.

“The parties reaffirm their commitment to comply with the generally recognized principles and norms of international law, including the principles of national sovereignty, territorial integrity, inviolability of borders and non-interference in the internal affairs of other nations, as well as the peaceful settlement of disputes. The leaders of the two countries noted the need to enhance bilateral and multilateral cooperation of regional security and stability,” the statement said.

The two presidents reaffirmed their mutual intent in ensuring the growth of bilateral trade and its diversification, the development of long-term forms of economic cooperation, and further investment cooperation.

The sides also confirmed their readiness to develop and deepen bilateral relations on culture, education, science, tourism and sports. In particular, they agreed to take measures to organize Days of the Culture of Turkmenistan in Ukraine and Days of the Culture of Ukraine in Turkmenistan.

Poroshenko is on an official visit to Turkmenistan on October 28-29, 2015.


KYIV. Oct 29 (Interfax-Ukraine) – Austria’s ASTEBO, an industrial boiler manufacturer, is mulling the possibility of launching boiler production in Ukraine – at the Karpaty experimental mechanical plant in Lviv region.

According to a press release of the Chamber of Commerce and Industry of Ukraine, the project was discussed at the Ukrainian-Austrian business forum that took place last week in Vienna.

“Soon ASTEBO representatives with the help of the Chamber of Commerce and Industry would visit the Karpaty plant to study the technical conditions and prepare bids for a tender,” reads the press release.

Karpaty experimental mechanical plant LLC produces chemical and mining equipment and spare parts to it, fuel storage and transportation reservoirs for filling stations and autohydraulic hoists. The plant also produces hopper cars and gondola cars.

According to the state register, 41.3% of the limited liability company belongs to Yevhen Pohrebniak, around 41% to Olegro Ltd. (Cyprus) and 17.7% to the company head Hryhoriy Bevz.

ASTEBO is a global leader in designing, manufacturing and installation of industrial boilers and steam and hot water systems.



KYIV. Oct 29 (Interfax-Ukraine) – Novotech-terminal LLC (Odesa) plans to start building an elevator with a grain storage capacity of 110,000 tonnes at Odesa maritime merchandise port.

“Near berth 25 an elevator with a storage capacity of around 110,000 tonnes will be built. As far as I know our partners have drawn up the blueprints which are being examined,” Deputy Head of Administration of Odesa seaport Ruslan Sakhautdinov said at the investment forum “New projects of grain and oilseeds terminals in the ports of Ukraine” in Kyiv on Wednesday.

He said that construction and assembly works will start soon and that the Novotech-terminal has shown good results in grain handling.

“The wagon turnover is 3.5 days compared to eight days at large elevators in Odesa region. This is a very good indicator,” he said.

It is also planned to create a grain complex at berth 7, which is operated by Metals Ukraine.

“[The berth] requires reconstruction. We’re at the stage of designing with the port’s administration. The length of the berth is 350 meters. All the required permits have been received. Next year we’re ready to start construction and assembly works and it could take around two years to finish them,” he said.

Sakhautdinov said that two stevedoring companies – Metals Ukraine and Olimpex Coupe International – are mulling the technology of uniting their elevators into a gallery and would create a “grain hub” on the territory of Odesa seaport.


KYIV. Oct 29 (Interfax-Ukraine) – National Nuclear Generating Company Energoatom in Brussels on Wednesday signed several documents on cooperation with Belgian companies Transnubel Engineering and Tractebel Engineering, the company’s press service has reported.

The press service said that during the negotiations with Transnubel, the possibility of delivering fresh nuclear fuel to Ukrainian nuclear power plants (NPPs) from Sweden’s Westinghouse plant was discussed.

“Transnubel is one of the European leaders in the area of transportation of radioactive materials and affiliated services. The procedures and service provision standards are in line with the EU requirements, ensuring the highest safety level during transportation of radioactive materials,” reads the report.

The protocol of on cooperation with Tractebel Engineering foresees the participation of the Belgian company in the implementation of the comprehensive program on increasing the safety of reactors of Ukrainian NPPs being realized by Energoatom.

The sides are also interested in joint work on a project to increase the capacity of reactors of the VVER-1000 type at Ukrainian NPPs. In addition, Tractebel Engineering is ready to provide engineering and technical support during the completion of construction of reactors three and four of Khmelnytsky NPP and take part in the realization of other projects of new construction by Energoatom.

Energoatom is the operator of all four Ukrainian-based operating nuclear power plants, which have 15 VVER reactors with an overall generating capacity of 13.835 gigawatts.

Tractebel Engineering is a global engineering consultancy company with worldwide expertise in energy, water and infrastructure projects. Tractebel Engineering’s services cover the whole lifecycle of these projects, from feasibility studies to decommissioning.

Tractebel Engineering is part of ENGIE Energy Services, which is the European leader in provision of engineering services in the energy sector.