Business news from Ukraine

ELEKTROKONTAKT UKRAINE WILL OPEN THIRD PLANT IN LVIV REGION IN LATE SUMMER

KYIV. Aug 1 (Interfax-Ukraine) – Elektrokontakt Ukraine LLC, a manufacturer of cable networks for cars, a subsidiary of Nexans Concern, will open a new plant in Brody (Lviv region) on August 30, which will become the third and largest production site in Ukraine, the press service of the company has told Interfax-Ukraine.
According to its information, the construction of the plant “from scratch” was started in June 2016 and is almost completed today, preparations are being made for launch.
The new plant occupies an area of more than 20,000 square meters.
The investments of Nexans in the new plant amounted to UAH 1 billion.
The plant in Brody became one of the largest manufacturing enterprises of Nexans, which now operate in Romania, Mexico, Bulgaria, China, Slovakia, the Czech Republic, and Tunisia. It is planned to produce cable products for BMW cars, which has already audited the plant and signed an agreement with it.
Elektrokontakt Ukraine LLC has been operating in Lviv region since 2007, when the first production facility in Peremyshliany was established. In 2011 the second production site in Zolochiv was opened on the basis of the former radio plant.
The company produces cable goods for the world automotive companies: Volkswagen (Audi, Porsche), General Motors (Opel), BMW (BMW, Mini, Rolls Royce), and Daimler (Mercedes-Benz).

RAIFFEISEN BANK AVAL POSTS 88% RISE IN NET PROFIT IN H1, 2017

KYIV. Aug 1 (Interfax-Ukraine) – The net profit of Raiffeisen Bank Aval (Kyiv) in January-June 2017 amounted to UAH 2.738 billion, which is 88% more compared to the same period of 2016 (UAH 1.456 billion).
According to a financial report on the bank’s website, its net interest income for the first half of this year increased by 15.5% compared to the corresponding period last year, to UAH 2.739 billion.
In addition, the bank received a commission income of UAH 1.040 billion (25.5% more).
The bank’s assets for the first six months increased by 8.8%, to UAH 60.912 billion, in particular loans and advance payments to customers increased by 10.2%, to UAH 30.859 billion.
Its charter capital at the end of this period remained at the same level – UAH 6.155 billion, while net worth decreased by 8.8%, to UAH 9.181 billion.
Raiffeisen Bank Aval was founded in 1992. According to its data, as of January 1, 2017 Raiffeisen Bank International (RBI, Austria) owned 68.27% of the charter capital in the financial institution, the European Bank for Reconstruction and Development (EBRD) held 30%.
Raiffeisen Bank Aval ranked fifth among 90 operating banks as of April 1, 2017 in terms of assets (UAH 57.684 billion), according to the National Bank of Ukraine.

RGK TRADING SIGNS AGREEMENT WITH EUSTREAM ON ACCESS TO SLOVAK GTS FOR GAS IMPORTS TO UKRAINE

KYIV. Aug 1 (Interfax-Ukraine) – RGK Trading company on June 21 signed an agreement with Eustream on access to Slovak gas transportation capacities to import gas from EU countries to Ukraine, the company’s press service has reported.
“The agreement gives RGK Trading the right to use the capacity of the Slovak gas transportation system (GTS) for gas imports from the EU countries to Ukraine. The framework contract with the operator of the Slovak GTS provides RGK Trading with direct access not only to the natural gas market of Slovakia but also neighboring countries: this is the Czech Republic (the NCG hub zone), Austria, and Hungary (the CEGH zone),” the report said.
RGK Trading added within the strategy of diversification of supplies in May-June trial purchases of gas in Europe have already taken place (the volume of test batches is about 6 million cubic meters).
“In accordance with the contract with Eustream, RGK Trading has been allowed to participate in auctions on which Eustream puts the free transport capacity of its GTS. And it is possible to buy out free capacity for a period of a day, a month, a quarter or a year at such auctions. The starting price of capacity depends on the period and volume: the longer the period and the greater the amount of capacity put up for bidding, the cheaper is the transit of a cubic meter of gas,” the press service said.

AOT ENERGY INTERNATIONAL COMMODITIES TRADER OPENS REPRESENTATIVE OFFICE IN UKRAINE

KYIV. July 31 (Interfax-Ukraine) – AOT Energy international commodities trader is opening a representative office in Ukraine.
According to the unified register of companies, AOT Energy Ukraine with an office in Kyiv was registered on July 14, 2017. Its core business is trade with natural gas.
The parent company of AOT Energy Ukraine is AOT Gas Holdings AG (Switzerland).
As reported, earlier AOT supplied gas to Ukraine via its division in Poland.
MET and Trafigura international traders have opened their offices in Ukraine.
France’s Enfie is seeking to receive a license to supply gas in Ukraine.

UNITED CARDBOARD COMPANY UKRAINE WITH CYPRIOT OWNER COULD MERGE ASSETS OF LOBOV’S UNITED CARDBOARD COMPANY

KYIV. July 31 (Interfax-Ukraine) – United Cardboard Company Ukraine LLC registered late 2016 could acquire a controlling stake in United Cardboard Company LLC of businessman Mykola Lobov (both based in Lutsk), as well as in two corrugated cardboard and corrugated packaging manufacturers – Yug Karton Ukraine LLC and Lutsk Cardboard and Paper Factory LLC, which are incorporated in the United Cardboard Company.
The press service of the Antimonopoly Committee of Ukraine said last week that the committee permitted to acquire these stakes. The acquisition will grant over 50% of the votes in the management body of each company.
According to the public register, United Cardboard Company Ukraine LLC was registered in December 2016 with a charter capital of UAH 11 million (the creation of the company will be finished by late 2017). Its founder is Cyprus-based LN Cardboard Group. The ultimate beneficiary is Alberto Lanza (registered in Belize).
In turn, United Cardboard Company LLC was created in 2009. It incorporates Yug Karton (production facilities in Mykolaiv), Lutsk Cardboard and Paper Factory and Poninka Cardboard and Paper Mill (production facilities in Khmelnytsky region).
The owners of United Cardboard Company LLC with a charter capital of UAH 10 million are Mykola Lobov (70%) and Svitlana Lobova (30%).
United Cardboard Company LLC owns Yug Karton LLC founded in 2009, and Mykola Lobov fully owns Yug Karton Ukraine LLC with a charter capital of UAH 50,000 registered in February 2016 in Lutsk.
According to the public register, Lutsk Cardboard and Paper Factory LLC was registered in 2012. Its charter capital is UAH 301,000. Zinaida Lobodenko holds 100% of shares in the company.
In January 2017, Lutsk Cardboard and Paper Factory Ukraine LLC was registered at the same address with the charter capital of UAH 100,000. Ruben Alberto Lanza fully owns the company.
According to the Ukrpapir association, in H1 2017 Lutsk Cardboard and Paper Factory Ukraine produced almost 20,000 tonnes of commodity cardboard, 2,000 tonnes of box cardboard, 2,500 tonnes of cover board and 350 tonnes of roofing board, while Lutsk Cardboard and Paper Factory saw a 85% fall in production of box cardboard year-over-year, to 4,000 tonnes, and the factory did not produce other types of cardboard anymore.
The similar situation is with Poninka Cardboard and Paper Mill where production fell by more than 67%, to UAH 46.5 million, and Poninka Cardboard and Paper Mill Ukraine which earlier did not produce goods made products for UAH 376 million.
Poninka Cardboard and Paper Mill Ukraine LLC was registered in Lutsk in January 2017 with the charter capital of UAH 100,000 at the same address as Lutsk Cardboard and Paper Factory. Its owner is United Cardboard Company Ukraine LLC. The owner of Poninka Cardboard and Paper Mill LLC is United Cardboard Company LLC (Lobov).

AGRARIAN FUND SEES 2.8-FOLD RISE IN NET PROFIT IN H1 2017

KYIV. July 31 (Interfax-Ukraine) – Net profit of public joint-stock company Agrarian Fund saw a 2.8-fold rise in net profit in January-June 2017, to UAH 70.18 million.
According to a financial report of the company, its revenue in H1 2017 totaled UAH 1.82 billion compared with UAH 1.31 billion in H1 2016.
Gross profit of the Agrarian Fund in January-June 2017 fell by 3.7%, to UAH 224.7 million. The company saw a 2.6-fold rise in operating profit, to UAH 106.1 million.
The fund sold 286,300 tonnes of grain, 122,700 tonnes of flour and 44,300 tonnes of processed food in January-June 2017. Over the period the company exported 19,000 tonnes of grain and 6,900 tonnes of grain products.
In 2016, the fund saw a 69% fall in net profit, to UAH 48.7 million. Revenue totaled UAH 2.1 billion and pretax profit – UAH 410 million.
Agrarian Fund was established in spring 2013 by the government decree. Its charter capital is UAH 5 billion.