Business news from Ukraine

UNITED MINING CHEMICAL COMPANY POSTS UAH 631.8 MLN PROFIT IN 2015

KYIV. March 24 (Interfax-Ukraine) – United Mining and Chemical Company, managing Vilnohirsk mining and metallurgical combine (Dnipropetrovsk region) and Irshansk mining and processing complex (IGOK, Zhytomyr region), in 2015 posted a net profit of UAH 631.8 million.

According to the Ministry of Economic Development and Trade’s presentation on the results of work of the largest state-owned enterprises of Ukraine for 2014-2015, the company’s revenue was UAH 1.829 billion in 2015.

Comparable data for 2014 are not provided.

The press service of the company told Interfax-Ukraine that the company’s pretax profit in 2015 amounted to UAH 773 million.

As reported earlier, the company in January-September 2015 saw a pretax profit of UAH 414.5 million, its net profit amounted to UAH 238 million, income stood at UAH 1.167 billion.

United Mining and Chemical Company sells its products in more than 30 countries. The main markets of the company are the EU, China, Turkey, the United States, and Africa.

KYIV TO SPEND OVER UAH 25 BLN ON TRANSPORT INFRASTRUCTURE MODERNIZATION UNTIL 2019

KYIV. March 24 (Interfax-Ukraine) – Kyiv plans to upgrade transport infrastructure in 2016-2018, spending about UAH 25.6 billion on this purpose.

Upgrades are contained in the action plan for 2016-2018 on implementing the strategy of Kyiv’s development until 2025, which is stipulated in order No. 100 of Kyiv City State Administration, dated February 26, 2016, and published in the Khreschatyk newspaper on March 23.

As part of the document, the modernization of transport infrastructure in Kyiv belongs to the strategic objectives of improving the comfort of living and provides 13 points mentioned in the indicative financial realization plan.

Some UAH 3.867 billion has been allocated for the construction of the Podilsko-Vyhurivska subway line until 2019, UAH 1.308 billion for the purchase of subway carriages, UAH 4.177 billion for the capital construction and modernization of the Kyiv metro, UAH 6.323 billion for the construction and reconstruction of the street and road network, and UAH 1.37 billion for the modernization of street lighting systems.

In addition, the development of parking space will require UAH 1.024 billion, the development of Kyiv International Airport some UAH 263.1 million, city computerization some UAH 732.3 million, the construction of transport interchange nodes with terminals some UAH 605.4 million, building trolleybus lines UAH 216.8 million, the reconstruction and construction of tram lines UAH 2.653 billion, purchase of tram cars, trolleybuses, buses, electric buses and special vehicles UAH 3.075 billion.

SYSTEM OF DECENTRALIZED E-AUCTIONS TO BE SOON LAUNCHED IN UKRAINE

KYIV. March 24 (Interfax-Ukraine) – A system of decentralized electronic auctions will be soon launched in Ukraine, the founder of the Innovation and Development Foundation, Georgian MP Giorgi Vashadze has stated.

“This system will be launched in a month or a month and a half. Integration with specific state structures is starting and the software is ready,” Vashadze told Interfax-Ukraine before the presentation of the system of decentralized online auctions in public areas at the municipal and central levels in Kyiv.

According to the official, the purpose of the project of electronic auctions is to minimize the possibility of subjective factors in the government structures, make the auctions as transparent as possible and exclude the possibility of manipulation.

“Electronic auctions we offer today are based on the Blockchain technology. In fact, Ukraine will become the first country in the world where this technology will be used in e-governance,” he said.

According to Vashadze, when using this technology, the state or another entity won’t have monopoly rights to the database, while the possibility of data manipulation will be minimized.

“The Blockchain technology actually changes the function of the state,” Vashadze stressed.

SEA PORT AUTHORITY SIGNS AGREEMENT WITH CARGILL ON INVESTMENT PROJECT AT YUZHNY PORT

KYIV. March 24 (Interfax-Ukraine) – Ukrainian Sea Port Authority and M.V. Cargo have signed an agreement on the realization of two partnership projects on building a grain terminal at the Yuzhny seaport.

The authority said in a press release that Sea Port Authority Director Andriy Amelin and M.V. Cargo Head Oleksandr Prymak signed the document. Director General of Cargill AT LLC Martin Schuldt, Director General of TIS LLC Andriy Stavnitser, Head of the Yuzhny port’s administration Maksym Shyrokov and Grain and Oilseeds Business Head at Cargill Europe Andreas Rickmers and Vice President of Cargill International Rodger Janson also took part in the signing ceremony.

M.V. Cargo acts as a developer and undertakes liabilities to build a marine grain handling terminal and berth 25 at the Yuzhny port. A capacity of the first phase of the terminal will be up to 5 million tonnes. The capacity will be increased by two or four million tonnes during the second project phase.

Sea Port Authority will help to create the navigable operating area of berth 25 and the navigable canal leading to berth 25. Sixteen meters deep dredging work will be carried out.

The approximate cost of investment in building the grain terminal is $104 million.

Dredging work will cost some $50. The funds will be provided by Sea Port Authority. Profile ministries are agreeing the project feasibility study.

Prymak said that budgets of all levels will obtain over UAH 300 million of taxes a year after the completion of the project. Around 350 jobs will be created.

Building of M.V. Cargo grain terminal will finish before September 1, 2018. Sea Port Authority is responsible for completing dredging works before February 1, 2018.

PRIVATIZATION OF STATE-RUN ENTERPRISES IS KEY FACTOR FOR UKRAINE’S GDP GROWTH IN 2016 – EBRD DIRECTOR

KYIV. March 24 (Interfax-Ukraine) – Fair and transparent privatization of state-run enterprises is the key factor for restoring the Ukrainian economy in 2016, EBRD Director for Ukraine Sevki Acuner has said.

“Unfortunately, I don’t see large foreign direct investment (FDI) to Ukraine in the near term, as well as the opportunities to increase spending on infrastructure. The only possible recovery factor for me is privatization,” he said at a business conference organized by UkrSibbank in Kyiv on Tuesday.

Acuner said that privatization should be open and fair.

EBRD is taking active part in the process as an advisor, he said. This helps to remove tycoons from the economy and create the competitive environment in the country.

He said that actions of Ukrainian politicians rather ineffective.

EBRD is not interested in politics, but in political stability, he said, adding that without political stability one unlikely would have a desire to invest.

He also welcomed the decision of Ukrainian authorities to partially sell shares in state-owned Oschadbank and Ukreximbank. He pointed out the importance of improving corporate management of banks before sale of shares.

EBRD is holding consultations for authorities on legislation that will bring banking operations in line with commercial principles. The bank would consider the possibility of buying shares in these banks, Acuner said.

INDIA CONSIDERS UKRAINE AS IMPORTANT PARTNER IN CENTRAL EUROPE – AMBASSADOR

KYIV. March 23 (Interfax-Ukraine) – India considers Ukraine as an important partner in Central Europe and is ready to develop new fields of a mutually fruitful cooperation, Ambassador Extraordinary and Plenipotentiary of India to Ukraine Manoj Kumar Bharti has said at a press conference at Interfax-Ukraine.

“India considers Ukraine as an important partner in Central Europe. Ukraine has a lot to offer to India. India already has a substantial cooperation in the defense sector of Ukraine. India is the largest export destination for sunflower oil from Ukraine. However, there are a few new potential areas of expanded cooperation between our two countries,” he said.

The ambassador, in particular, noted the prospects for a mutually beneficial cooperation in the field of construction, development of infrastructure projects, agriculture, automotive industry, medicine, in-bound tourism and education in Ukraine.

In addition, Bharti stressed the importance of cooperation in the field of pharmaceuticals.

“Almost any important and lifesaving drug that Ukraine buys, it can save huge amount of money by importing from India. I understand that if Ukraine imports $100 worth of such drugs from India, it is saving at least $200 because these drugs will cost minimum $300 if imported from European or other sources. Indian pharmaceutical products are known worldwide for their high quality and reasonable price,” the official stressed.

“Before these products get registration in Ukraine, your GMP inspection visit the manufacturing units in India. The products are tested by Ukrainian laboratories,” he added

According to Bharti, currently Ukrainian companies can participate in the development of projects, in particular, those carried out within the framework of the Make in India state program or a project to develop 100 smart cities by 2030.

“If Ukrainian companies are involved in housing project in South America, they should also consider the immense potential that exists in India. I was at Electrontrans in Lviv a week ago and I encouraged them to take part in the 100 smart city project,” the ambassador said.

Bharti also noted there is a significant demand for leguminous crops in India.

“There are new products which have great potential of export from Ukraine to India. India imports huge amount of beans. Last year 500,000 tonnes of one kind of bean was imported from Canada. There are at least 13 kinds of beans that Indians use extensively. Farmers in Ukraine should look at the possibility of exporting beans to India,” he stated.

The ambassador also said that nearly 6,100 Indian students are currently studying in Ukraine.

“If the current system of admission through agents and recruiting agencies is changed so that Indian students can apply on-line and get admission smoothly without going through the agents and middlemen, I believe more than 20,000 Indian students may like to study in the excellent education and research facilities in Ukraine,” he said.