Business news from Ukraine

COMMISSION OF TRADE CENTERS OF 570,000 SQ M EXPECTED IN UKRAINE IN 2015 – JLL

KYIV. June 10 (Interfax-Ukraine) – Ukraine plans in 2015 to commission several new trade centers with a total area of 570,000 square meters, while in case of commissioning this volume the index of retail space per 1,000 residents in the country will increase to 85 square meters from 59 square meters at the end of the first quarter of 2015.

According to a press release from Jones Lang LaSalle international consulting firm (JLL), in terms of the planned retail space commissioning this year Ukraine for the first time entered the top three states and ranks third after Turkey with 1.2 million square meters and Russia with 1.7 million square meters.

“The Ukrainian commercial real estate market, in our view, has a great potential for development in the future – perhaps one of the highest in Europe, which is due to the immaturity of the market, a small number of high quality shopping centers, especially in regional cities, and a low representation of global retailers,” the head of the retail space department at JLL in Ukraine, Hanna Chubotina, said.

At the same time, she said that during the last year there had been observed a decreased activity in the Ukrainian commercial real estate market.

JLL noted that in the current economic situation in Ukraine, the timing of many projects could be postponed and the figure of retail space commissioning over 2015 will be lower.

According to JLL, Europe as a whole plans in 2015 to commission about 6.3 million square meters of retail space.

In the first quarter of 2015, the average retail space index per 1,000 residents in European countries was 199 square meters, while in Western Europe – 260 square meters, in Eastern Europe – 134 square meters.

According to JLL, Ukraine by the end of the first quarter of 2015 on this indicator ranked 23rd (59 square meters per 1,000 residents).

UKRAINE, JAPAN TO STIR UP COOPERATION BETWEEN TWO CONTRIES AND IN INTERNATIONAL AREA

KYIV. June 9 (Interfax-Ukraine) – Ukraine and Japan have agreed to stir up cooperation, Japanese Prime Minister Shinzo Abe has said.

“We’ve agreed to stir up bilateral exchanges, in particular, on the inter-parliamentary level, promote the quick entry of the agreement between Ukraine and Japan on promotion and protection of investment into effect, which is aimed at the improvement of investment climate and strengthening intergovernmental contacts,” he said after the talks with Ukrainian President Petro Poroshenko on June 6 in Kyiv.

In turn, the Ukrainian president said that this visit opens a new page in the history of Ukrainian-Japanese relations.

“Arrival to Kyiv of the leader of the country which is one of the most powerful economies of the world and an influential member of G7 has a crucial significance for the enhancement of Ukrainian-Japanese partnership,” he said.

“Today’s negotiations have shown that Ukraine and Japan share the position on inadmissibility of changing internationally recognized borders by force in violation of generally recognized principles of international law,” Poroshenko said.

“During today’s meeting we discussed the expectations from the G7 summit, which will start tomorrow in Germany. I am glad to note that Japan is determined to actively assist Ukraine in the implementation of important internal reforms during its presidency in G7 next year. One of the key issues on the agenda of our meeting was the issue of deepening cooperation between Ukraine and Japan in the international security issues, especially in the context of the deployment of the peacekeeping mission in Ukraine and cooperation on the reform of the UN Security Council,” the Ukrainian president said, adding that Japan is an important and reliable partner of Ukraine.

DRAGON ASSET MANAGEMENT WILL DO BUSINESS INDEPENDENTLY UNDER OZON CAPITAL BRAND

KYIV. June 9 (Interfax-Ukraine) – AMC Dragon Asset Management has decided against extending its license agreement with its parent structure, Dragon Capital investment company (both based in Kyiv), and will instead focus on the independent development of business under its own brand – Ozon Capital, reads a company press release.

According to the press release, for the last ten years Dragon Asset Management has worked as a fully independent company. Many of the proposed investment products used the Dragon Capital brand on the basis of the licensing agreement with the eponymous company. Dragon Asset Management decided not to extend the license agreement with Dragon Capital to maintain the independence and development of its own brand.

Other planned changes in the activity of the AMC include the renewal of its corporate identity and the change of location.

At the same time, the company will retain its entire investment team and product range.

AMC Dragon Asset Management was a subsidiary of Dragon Capital, one of the leading investment companies on the market. The company received a license of the National Commission on Securities and the Stock Market in May 2006.

AREA SOWN WITH BUCKWHEAT IN 2015 SOME 15,000 HA HIGHER THAN PROJECTED – AGRICULTURE MINISTRY

KYIV. June 9 (Interfax-Ukraine) – Ukrainian agricultural companies have sown 127,000 hectares with buckwheat, which is 15,000 ha higher than was projected, the Ministry of Agricultural Policy and Food has reported

“Due to the fact that we have repeatedly raised questions about buckwheat, we increased the area under this crop by at least 15,000 ha. Thus, we will provide food security in this direction,” First Deputy Minister of Agricultural Policy Yaroslav Krasnopolsky told reporters at the XXVII International Agricultural Exhibition Agro 2015.

According to him, the total area sown with buckwheat is estimated at 127,000 ha.

As reported, the agricultural ministry had said the area sown with buckwheat needed to be increased in 2015 to meet the needs of the domestic market. According to the ministry, to ensure rational norms of buckwheat consumption in Ukraine least 180,000 tonnes of grain need to be grown.

AREVA TO ENRICH URANIUM OF UKRAINIAN WESTINGHOUSE FUEL ASSEMBLIES IN 2016 – ENERGOATOM PRESIDENT

KYIV. June 9 (Interfax-Ukraine) – France’s AREVA has won a tender to supply enriched uranium to National Nuclear Generating Company Energoatom, Energoatom President Yuriy Nedashkovsky has told reporters.

He said that the product will be used for the production of Westinghouse fuel assemblies.

Nedashkovsky said that the core volumes of the enriched uranium product to Westinghouse plant in Sweden will be supplied in 2016, and the tablets and fuel assemblies will be made at the plant in Vasteras.

“AREVA will buy uranium on the market or use its own, it is the company’s choice,” he said.

He said AREVA proposed to not only lower the price of enrichment services, but also suggested the possibility of paying in U.S. dollars or euros with flexible volume limits.

“The tender was held in several stages, we held talks with everyone and selected the lowest price,” he said.

Nedashkovsky said that in the future the company could hold separate tenders to buy uranium and its enrichment services.

As reported, Energoatom began to examine Westinghouse fuel in 2000 in a bid to diversify Ukraine’s sources of nuclear fuel.

In March 2008, Energoatom signed a contract with Westinghouse Electric Sweden AB to provide fresh nuclear fuel in 2011-2015 for three and six Ukrainian nuclear generating units fitted with VVER-1000 reactors.

In April 2015, Energoatom and AREVA signed a contract on supply of enriched uranium.

Energoatom is the operator of all four Ukrainian-based operating nuclear power plants, which have 15 VVER reactors with an overall generating capacity of 13.835 gigawatts.

EBRD READY TO CONTINUE FINANCING PROJECTS IN UKRAINE IF REFORMS CONTINUE

KYIV. June 8 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) is ready to continue financing projects in Ukraine and the bank is waiting for successful reforms, head of the delegation and EBRD Director, the Netherlands, Mongolia, Macedonia and Armenia, Paul Vlaanderen said during a press conference at the EBRD representative office in Ukraine on June 5.

The EBRD is ready to provide assistance as long as the reforms are going in the right direction and the right projects are offered, and the EBRD is ready to invest, he said.

Vlaanderen said that the goal of the visit of the EBRD delegation was to assess the situation in Ukraine and analyze bank’s operations in the country. The delegation met Ukrainian Prime Minister Arseniy Yatseniuk, Finance Minister Natalie Jaresko, National Bank of Ukraine Governor Valeriya Gontareva, MPs, and representatives of companies operating in Ukraine.

Vlaanderen pointed out the fight against corruption and the improving business climate in Ukraine. He said the judicial system and the functioning of the public management at all levels should be improved, as well as the operation of tax agencies.

He did not specify the concrete volume of the EBRD’s investment in Ukraine for 2015, adding that in 2013 it was EUR 820 million and in 2014 – over EUR 1.2 billion.

This level is acceptable and normal for the EBRD, he said.

Vlaanderen said that the economic sectors interesting for the EBRD in Ukraine are agriculture, energy, logistics, transport, pharmaceutical sector and IT.

The EBRD is the largest international financial investor in Ukraine. As of January 1, 2015, the Bank had a total cumulative commitment of EUR 10.4 billion in 344 projects in the country.