Business news from Ukraine

CANADA TO INVEST CAD30 MLN IN SMALL, MEDIUM BUSINESS PROJECTS IN UKRAINE

KYIV. Oct 27 (Interfax-Ukraine) – The Canadian government is ready to spend CAD 30 million on small and medium-sized businesses’ projects in Ukraine.

“We’ve allocated and will use CAD 30 million to support the projects of small and medium [sized] businesses in Ukraine,” Ambassador of Canada to Ukraine Roman Vaschuk said at a press conference in Kyiv.

According to him, over the past two years the Canadian government has provided Ukraine with CAD 700 million, of which CAD 400 million is a loan of 1.5% per annum, and CAD 300 million is support for investment in various projects, including for providing military aid and ammunition supplies to the Ukrainian military.

Vaschuk said that for the first eight months of this year Canada increased goods exports to Ukraine by 45.6%, to CAD 150 million compared to the same period last year.

As reported, in mid-July this year Ukraine and Canada completed negotiations on establishing a free trade area (FTA).

The provisions of the draft agreement on a free trade area between Ukraine and Canada provide for deepening trade and economic cooperation, including on trade in industrial and agricultural goods, intellectual property protection, and public procurement regulation.

 

NOW IS THE RIGHT TIME FOR INVESTMENT IN UKRAINE – POROSHENKO IN MEETING WITH U.S. SECRETARY OF COMMERCE

KYIV. Oct 27 (Interfax-Ukraine) – During a meeting with U.S. Secretary of Commerce Penny Pritzker in Kyiv on Monday, Ukrainian President Petro Poroshenko spoke about the situation in the country and called for investment.

“Now is the right time and the right place to invest in Ukraine,” the president said, according to his press service.

Additionally, he said that “considerable changes” had taken place in the country since Pritzker’s last visit to Ukraine 13 months ago.

“The president informed about the local elections, which complete the reset of the administration, and also the main areas of reforms aimed at considerable improvement of the business climate in Ukraine, specifically, serious anti-corruption measures, judicial reform and plans to conduct transparent privatization,” the press service has reported.

Pritzker, for her part, pointed out the considerable support by the U.S. government of Ukraine’s efforts to conduct reforms to become a fully-fledged member of the world economy.

TURBOATOM POSTS 56.5% RISE IN NET PROFIT IN NINE MONTHS

KYIV. Oct 26 (Interfax-Ukraine) – Turboatom (Kharkiv), Ukraine’s largest producer of turbine equipment, in January-September 2015 posted a net profit of UAH 1.288 billion, which is 56.5% higher than in January-September 2014.

According to a company financial report in the information disclosure system of the National Commission on Securities and the Stock Market, its net income for the period increased by 35%, to UAH 2.077 billion.

The company saw UAH 1.132 billion in gross profit, while operating profit grew by 71.4%, to UAH 1.340 billion.

The liabilities of Turboatom as of October 1 this year amounted to UAH 1.075 billion, in particular debtor indebtedness for goods and services totaled UAH 21.78 million, received advanced payments – UAH 905 million, budget payments – UAH 3.2 million, wage arrears – UAH 12.5 million, and current liabilities – UAH 60 million.

Taking into account the previously announced performance of Turboatom in January-June 2015, in July-September the company tripled its net profit year-on-year, to UAH 450.48 million, while net income increased by 56.3%, to UAH 783.43 million.

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

 

SECURITIES COMMISSION TO PROPOSE PACKAGE OF BILLS TO ESTABLISH REGULATED COMMODITY MARKET

KYIV. Oct 26 (Interfax-Ukraine) – The National Commission on Securities and the Stock Market has prepared a package of bills to establish a regulated market of raw materials and launch derivatives, its head Timur Khromaev has said.

“We’re collecting parliamentary groups and the committee to present them a set of laws on derivatives and regulated markets,” he said in an interview with Interfax-Ukraine.

Khromaev stressed that Ukraine is almost the only country in the world which does not regulate the raw materials market.

“In these draft laws we introduce the notion of a regulated market of raw materials and a capital market and also introduce other new concepts, new principles of work and capital requirements,” he said.

According to him, the Ministry of Economic Development and Trade and the Ministry of Agricultural Policy and Food agree with the fact that the securities commission is now the engine which is driving the development of the commodities market.

“They support the idea that we need to streamline this market and use the principles of work of the stock market to increase the transparency of the market of raw materials,” the expert said.

He said that the prepared set of draft laws is currently being coordinated with these ministries, while the EBRD and USAID are also actively participating in the process. The commission also intends to hold active discussions with other regulators and with Ukrainian and global market participants.

ODESA PORT-SIDE PLANT SEES UAH 205.3 MLN IN NET PROFIT IN JAN-SEPT

KYIV. Oct 26 (Interfax-Ukraine) – Public joint-stock company Odesa Port-Side Plant saw UA 205.298 million in net profit in January-September 2015 compared to UAH 243.42 million of net loss year-over-year.

The company said in a report that its net revenue grew by 2.1 times or UAH 4.398 billion, to UAH 8.577 billion. Gross profit totaled UAH 1.321 billion, while in January-September 2014 its gross loss stood at UAH 84.044 million.

In January-September 2015, the plant produced 1.155 million tonnes of mineral fertilizers and sold 1.162 million tonnes of fertilizers.

Odesa Port-Side Plant is in state ownership. The plant transships ammonia to vessels and produces chemical products.

RAIFFEISEN BANK AVAL SEES 21% RISE IN NET INTEREST-BEARING INCOME IN JAN-SEPT

KYIV. Oct 26 (Interfax-Ukraine) – Net interest-bearing income of Raiffeisen Bank Aval (Kyiv) grew by 20.8% in January-September 2015 year-over-year, to UAH 4.271 billion.

The bank said in a quarterly report that its loss totaled UAH 2.064 billion in January-September 2015, which is 50.8% up year-over-year (UAH 1.369 billion).

In Q3 2015, the loss amounted to UAH 71.376 million, which is 80.4% down year-over-year (UAH 365.908 million).

Total assets grew by 12.8%, to UAH 52.639 billion.

Credits and debts of clients decreased by 13.2%, to UAH 25.961 billion.

Reserves for overdue credits reached 85.9% of the total sum of credits and clients’ debts as of early October, while as of early 2015 they were 46.7%.

The charter capital of the bank remained UAH 3.003 billion and net worth fell by 35.4%, to UAH 3.843 billion.

The bank said that the loss was seen due to hryvnia devaluation, the bank also formed additional reserves and revised the currency position. The bank saw loss also due to the stoppage of operation in the Anti-Terrorist Operation (ATO) zone and due to the worsening of the economic situation in Donbas.

However, the operating profit was large.

“These improved results allowed the bank to see total operating profit of UAH 3.3 billion in Q3 2015, which is a clear evidence of the efficiency and proper development of the institution,” the bank said in the report.

Capital adequacy coefficient of the bank is 13.23% with the requirement of at least 10%.

Raiffeisen Bank Aval was founded in 1992. As of late September 2015, Raiffeisen Bank International held 96.5% of shares in the Ukrainian bank.

RBA ranked sixth among 127 banks operating in the country on July 1, 2015 by total assets (UAH 52.414 billion), according to the National Bank of Ukraine.