Business news from Ukraine

KFW APPROVES INFRASTRUCTURE DEVELOPMENT PROJECTS WORTH EUR 89.5 MLN IN UKRAINE – MINISTER

KYIV. Sept 21 (Interfax-Ukraine) – Germany’s KfW (Kreditanstalt fur Wiederaufbau) Development Bank as of September 17, 2015 approved infrastructure development projects in Ukraine worth EUR 89.5 million that would be realized using the bank’s funds, Deputy Prime Minister and Regional Development, Construction, Housing and Utilities Economy Minister of Ukraine Hennadiy Zubko has said.

“The sum is EUR 89.5 million,” he said asked about the cost of the approved projects at a meeting of the Ukrainian-German working group on the selection of projects to be financed by KfW held in Kyiv on Thursday.

Zubko also said that on September 16, negotiations between Germany, the Energy and Coal Industry Ministry and Infrastructure Ministry on the provision of loans by KfW in the amount of EUR 150 million and EUR 60 million to realize transformer substation reconstruction and electric locomotive modernization projects respectively were held.

He said that the projects approved on September 17 concern reconstruction and modernization of facilities in the essential services area, in particular, this concerns investment of EUR 48 million into the water supply station in Dnipropetrovsk.

Projects on switching 257 budget-funded institutions to use alternative energy in Zaporizhia, projects in the water supply area in Izium and Chuhuyiv (Kharkiv region) and in the heating supply area in Lysychansk (Luhansk region) and Mariupol (Donetsk region) were also approved.

ARMS AND SECURITY KYIV 2015 EXHIBITION TO HOST OVER 200 COMPANIES FROM 10 COUNTRIES

KYIV. Sept 21 (Interfax-Ukraine) – Over 200 companies from 10 countries will present their products during the Arms and Security 2015 international exhibition, which will be held in Kyiv on September 22-September 25.

Beside Ukrainian companies, 21 foreign companies from nine countries will take part in the exhibition, the organization committee of the exhibition has told Interfax Ukraine. The U.S., UK, Israel, China, India, Bulgaria, Estonia, the Netherlands and Poland have confirmed their participation in the exhibition.

“Considering the fact that the Arms and Security 2015 is held under the conditions of continuing Russian aggression against Ukraine, its main events are focused on meeting the needs of the Armed Forces of Ukraine, the National Guard of Ukraine and other Ukrainian [military] forces. However, under the current conditions, Arms and Security 2015 is considered as a serious instrument for extending military-technical cooperation between Ukraine and foreign partners and increasing orders for the national military-industrial complex,” the organization committee said.

The total exhibition area is 18,000 sq. meters where over 40 full-scale models of national and foreign military and special equipment, including aviation models, will be presented.

As part of the military exhibition, arms and individual equipment for soldiers on battlefield will be presented, including equipment and weaponry for ground forces, law enforcement agencies, border control, and military aviation.

The capabilities of the national military-industrial complex at will be represented by 32 companies of Ukroboronprom state concern, including the leaders – PrJSC Motor Sich, PrJSC AvtoKrAZ, Makarov Pivdenny Machine Building Plant (Pivdenmash), Pivdenne State Design Office, PJSC Leninska Kuznia, and Arsenal State Enterprise of Special Instrumentation.

Ukroboronprom will be the central Ukrainian company at the exhibition and will present advanced armored vehicles, including the BTR-3E1, the Dozor-B APC, the Ovod APC, new artillery equipment, high-accuracy missiles and radio equipment. UAVs and small arms developed by Ukrainian manufacturers will also be presented.

VISA INTERNATIONAL PLANS TO COOPERATE WITH UKRPOSHTA

KYIV. Sept 18 (Interfax-Ukraine) – VISA International has expressed its desire to cooperate with Ukrposhta postal company, which has a network of 12,000 departments.

The press service of Ukrposhta has reported that a delegation from VISA International has arrived in Kyiv to discuss the future steps and conditions of cooperation.

“The expansion of its possibilities in the financial service area, both in towns and rural areas, especially in those corners of the country where no bank operates is a very important issue,” acting Ukrposhta Director General Ihor Tkachuk said.

VISA is one of the largest global payment systems and its cards are accepted in stores in over 200 countries.

JAPAN’S FUJIKURA PLANS TO GET EUR 40 MLN OF REVENUE IN 2016 FROM PLANT IN UKRAINE

KYIV. Sept 18 (Interfax-Ukraine) – Japan’s Fujikura electric wire and telecommunications systems corporation plans to receive EUR 40 million of revenue from an electronic element and wire plant in Lviv region which is being created as part of an investment project, Fujikura Managing Executive Officer Ichiro Kamada said at the presentation of the project in Kyiv on Wednesday.

He said that at the first phase of the realization of the project, which has assessed investment of EUR 5-6 million, will create 300 jobs and will eventually increase the number of employees to 3,000 within the next three years.

“Now we’re to decide for what global automobile manufacturers we will produce goods. We plan to transfer our production facilities from Romania to Ukraine and at the first phase the products will be made at existing facilities with a gross area of 12,000 square meters,” Kamada said.

He said that if the first phase is a success, Fujikura will decide on its expansion and further construction of a plant. He assessed total investment in the project at EUR 60 million for three years.

Ukrainian Economic Development and Trade Minister Aivaras Abromavicius said at the presentation that a month ago Fujikura made the decision to resume the realization of the project on the creation of the plant in Lviv region which was frozen in November 2013 due to political events in Ukraine.

“The arrival of these companies makes us feel optimistic. Those reforms concerning deregulation, improvement of investment climate, reforms of the State Fiscal Service being conducted in our country should be more communicated, as actually along with the DCFTA agreement with the EU other opportunities are opened to create production facilities with the purpose of exports to the EU. If they manage to do everything, they would create jobs and bring investment, and their colleagues, rivals and friends would come to our country and would invest with the purpose of exports to the European market. This investment is an important signal for the government and other foreign investors that reforms bring positive effect,” the minister said.

Kamada said that Fujikura started searching for the location to realize the project in 2011.

“We’ve almost decided to come in 203 and signed the office and production facilities leasing agreement in October and November 2013, but, unfortunately, we had to freeze the project. Now we again decided to come, hoping that nothing bad would happen in Ukraine,” Kamada said.

Fujikura was founded in 1885 in Japan and gradually transformed into an international corporation providing innovation solutions. Its turnover exceeds EUR 5 billion a year.

KLIMKIN CALLS KOREA TO UP INVESTMENTS INTO UKRAINE, TO LIBERALIZE VISA REGIME

KYIV. Sept 18 (Interfax-Ukraine) – Ukrainian Foreign Minister Pavlo Klimkin at a meeting with South Korea’s Foreign Minister Yun Byung-se urged to make more investments into Ukraine and to liberalize a visa regime for Ukrainians.

“Met with Korean foreign chief, urged [him] to make more investments into Ukraine. Among perspective directions of cooperation are agriculture, IT, education. I proposed the Korean colleague to liberalize visa regime for Ukrainians,” Klimkin wrote on Twitter.

SPF FORMS LIST OF OVER 900 SMALL FACILITIES ELIGIBLE TO BE PRIVATIZED

KYIV. Sept 18 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) has formed a list of 910 facilities of groups A, D and Z that are eligible for privatization, the fund has said on its website.

“In addition, there are around 30,000 facilities that are not included in the charter capitals [of enterprises], which could be privatized,” Deputy SPF Head Tetiana Burtniak said at a meeting with property market players on Tuesday.

She said that the fund’s website includes information on facilities eligible for privatization which will soon be expanded with photo materials.

“The goal is clear and transparent – we finally want to achieve the sale of the whole number of small privatization facilities, most of which have not found investors for a long period of time,” Deputy SPF Head Natalia Lebed said.

She said that the purchase of state property from SPF has its own advantages compared to the secondary market: fully open information on the facilities, transparent ownership history, postponement of payments for two months, and the possibility of selling it with one bidder.

“Facilities are not sold due to various reasons, but the sale procedures today are clear and transparent, the fund reports on each its privatization step,” Burtniak said.

The participants of the meeting, including the heads of Colliers International, CBRE, the Chamber of Realtors of Ukraine, the Association of Realtors of Ukraine and the Unions of Realtors of Ukraine expressed their readiness to cooperate with the fund and promised to send proposals on their participation in the privatization of small facilities.