Business news from Ukraine

GOVT TO FORESEE UAH 1 BLN TO SUPPORT FARMERS IN DRAFT STATE BUDGET FOR 2018 – GROYSMAN

KYIV. Aug 29 (Interfax-Ukraine) – Prime Minister of Ukraine Volodymyr Groysman has stated it is planned to foresee UAH 1 billion for a program to support farmers in the draft national budget for 2018.
“Separately, we will spend UAH 1 billion next year on targeted support to Ukrainian small farms,” the head of government said in an interview with the Ukrainian Radio.
According to the premier, the agrarian sector together with processing forms about 17% of GDP.
As reported, earlier Groysman announced the intention to increase financing for the program of partial compensation of the cost of Ukrainian agricultural machinery to UAH 1 billion in the draft national budget for 2018.

UKRAINIAN EXPORTS TO CANADA 76% UP IN JAN-JUNE 2017 – MYKOLSKA

KYIV. Aug 28 (Interfax-Ukraine) – Exports of Ukrainian goods to Canada in the first six months of 2017 amounted to $22.7 million, which is 76.3% more than for the same period in 2016, Ukrainian Deputy Minister of Economic Development and Trade Natalia Mykolska has said.
“The FTA agreement with Canada had begun influencing our economic relations before it entered into force. In the first six months of 2017 exports of goods to Canada totaled $22.7 million, which is 76.3% more than for the same period in 2016,” she said in an interview with Interfax-Ukraine.
She said for exports to Canada goods must pass certification, which differs from the European one.
The deputy minister drew attention to the fact that imports of Canadian goods to Ukraine is also reviving, particularly in the sphere of pharmaceuticals and seafood, light industry goods: special clothing, garments for cold weather and work clothes.

UKRAINIAN ENTERPRISES POST UAH 186.3 BLN PRETAX PROFIT IN JAN-JUNE 2017 – STATISTICS

KYIV. Aug 28 (Interfax-Ukraine) – Enterprises and organizations in Ukraine in January-June 2017 received a pretax profit from ordinary activities in the amount of UAH 186.3 billion, whereas in January-June 2016 they posted a profit of UAH 63 billion, the State Statistics Service has said.
According to its data, in the first half of 2017 enterprises that worked profitably received UAH 270 billion of profit, which is 44.2% more than in the same period in 2016.
At the same time, 67.4% of enterprises worked unprofitably: their losses for the six months of this year amounted to UAH 83.7 billion, which is 32.6% less compared to January-June 2016.
The service said the share of loss-making enterprises in Ukraine in the first half of this year decreased by 3.4 percentage points compared to last year, to 31.2%.

MOODY’S UPGRADES UKRAINE’S CREDIT RATING TO CAA2 WITH ‘POSITIVE’ OUTLOOK

KYIV. Aug 28 (Interfax-Ukraine) – The Moody’s Investors Service rating agency has upgraded Ukraine’s ratings in Ukrainian and foreign currency from Caa3 to Caa2 with a “positive” outlook.
The press service of the Cabinet of Ministers of Ukraine said Prime Minister of Ukraine Volodymyr Groysman, commenting on the agency’s decision, stressed this is a testament to the success of structural reforms in Ukraine.
“The key factors in the credit rating change upwards are the effect of structural reforms and the strengthening of Ukraine’s position in the world market. According to financial experts’ forecasts, the continuation of changes will improve the debt dynamics of our state,” the head of government said.
The premier stressed there is much work ahead in the political stability sector, the continuation of economic reforms, the strengthening of the foreign exchange rate and the overall strengthening of the economy.
According to him, the success of reforms, in particular at the macro level, will help cope with the forecasted debt load of 2019 and the subsequent years when Ukraine will have to repay the debts of the previous periods.

UKRAINE NEEDS TO RAISE COMPETITIVENESS IN DOMESTIC AND FOREIGN MARKETS, DEVELOP START-UPS – U.S. AMBASSADOR

KYIV. Aug 28 (Interfax-Ukraine) –U.S. Ambassador to Ukraine Marie Yovanovitch believes that Ukraine needs to develop competitiveness in the domestic and foreign markets and activate start-ups.
Speaking at the Inaugural Economic Forum “Supporting the Economic Development of Ukraine: Cooperation between Government and the Diaspora,” in Kyiv on Friday, Yovanovitch said they believe that an important element of enhancing the competitiveness of Ukraine’s economy is activating start-ups and increasing competitiveness in the domestic market.
The ambassador believes that now it is important to raise Ukraine’s competitiveness on the international market.

PILOT PRODUCT TO RELAX BIOSESCURITY CONTROL FOR FRUIT, VEGETABLES COULD BE LAUNCHED IN ODESA REGION

KYIV. Aug 23 (Interfax-Ukraine) – Ukraine’s Service for Food Safety and Consumer Protection jointly with Odesa Regional Administration, Odesa customs office and business representatives initiate the launch of a pilot project to relax biosecurity control for fruit and vegetables.
“After long discussions in Odesa a model that provides for the balance of interests of the state and importers has been found. The proposed changes mean that fruit and vegetable samples will be selected once for the first batch of food supplied under a contract if the next batches are shipped under the same contract, by one sender or the supplier from the same country for the same buyer,” acting Head of the State Fiscal Service of Ukraine Myroslav Prodan wrote on his Facebook page.
He said that among obligatory conditions is that the exporting country must be a signatory of the International Plant Protection Convention, and importers are to present food origin and biosecurity certificates issued by the exporting country.
According to the proposal, vegetable (potatoes, tomatoes and carrots), fruit, berries, citrus fruit and other fresh fruit will be checked under the relaxed rules.
“I hope that the draft resolution will be approved by the Cabinet of Ministers,” Prodan said.