Business news from Ukraine

UKRAINIAN ENERGY MINISTER SIGNS REVISED DOCUMENTS ON INTERNATIONAL ENERGY CHARTER

KYIV. May 21 (Interfax-Ukraine) – The Energy and Coal Industry Minister of Ukraine, on behalf of Ukraine, has signed the final document of the Ministerial (The Hague II) Conference on the International Energy Charter on May 21, 2015, Head of the European integration department at the Ukrainian Energy and Coal Industry Ministry Mykhailo Bno-Airiyan has said.

“This document is not obliging, but it stresses the desire of all signers to ensure energy security in the world, including in Ukraine. Unfortunately, the previous agreement of 1991, the so-called European Energy Charter, required large modernization due to the change of the general situation in the global energy sector,” he wrote on his Facebook page.

He said that the revised document was signed by around 70 countries.

AGROSPETSSERVICE TO LAUNCH EVEVATOR OF 76,000 TONNES IN KIROVOHRAD REGION BY 2017

KYIV. May 20 (Interfax-Ukraine) – Agrospetsservice (Kirovohrad region) intends to launch its own elevator with a design capacity of 76,000 tonnes by 2017.

Founder of the group Serhiy Tarasov told reporters at the Agri Invest Forum in Kyiv that this year the company would put into operation the second stage of an elevator for 18,000 tonnes.

“Last year the first stage was commissioned – it is about 18,000 tonnes,” Tarasov said.

According to him, the entire project will cost around EUR15 million.

The expert confirmed the intention to build a pig farm for 5,250 broodstock animals and a feed mill in Kirovohrad region. The project cost is estimated at EUR22 million.

Agrospetsservice is engaged in the cultivation of grains, oilseeds and sugar beets in Kirovohrad region. Its land bank is 41,000 ha. Last year the group harvested 41,600 tonnes of wheat, 36,650 tonnes of sunflower, 15,400 tonnes of corn, 10,900 tonnes of soybeans, and 1,950 tonnes of barley.

The group also includes Kapitanivka sugar factory.

INSTITUTE OF FINANCIAL OMBUDSMAN TO BE CREATED IN UKRAINE

KYIV. May 19 (Interfax-Ukraine) – Ukraine will create a financial ombudsman institute.

This is stipulated in the comprehensive program for financial sector development for 2015-2020, which was approved by the National Reforms Council.

To improve the standards of protecting the rights of consumers and financial market investors, this program will also raise the standards of the disclosure of information on financial services, establishes clear sanctions for market participants for violating the rights of financial services consumers, introduces a mechanism to protect the rights of minority shareholders, and increases the transparency of payments to the depositors of banks undergoing liquidation.

In general, the program foresees three stages of reform: cleaning the financial sector, laying the foundation for its development and the implementation of development measures.

MILKILAND TO PRODUCE 15,000 – 20,000 TONNES OF CHEESE IN UKRAINE IN 2015

KYIV. May 19 (Interfax-Ukraine) – Milkiland-Ukraine, a subsidiary of Milkiland dairy group with assets in Ukraine, Russia and Poland, plans to produce 15,000-20,000 tonnes of cheese in 2015.

“We want to reach a figure of 15,000-20,000 tonnes. We planned 30,000 tonnes, but I see we won’t be able to reach this figure,” company CEO Anatoliy Yurkevych said at the Agri Invest Forum in Kyiv.

According to him, last year the group produced 28,000 tonnes of cheese in Ukraine.

Yurkevych said that Milkiland plans to increase production at its Russian enterprise Syrodel.

To achieve this, the enterprise was reconstructed, which allowed it to increase its capacity by up to 15-20 tonnes per day.

“The Russian factory last year began producing cheese from June. In connection with these events (the embargo on cheese supplies to Russia), we reconstructed it and increased its capacity. The maximum capacity there is 15-20 tonnes of cheese a day,” he added.

Yurkevych also said that cheese production at the Polish factory of the group dropped by 4 or 5 times in connection with the ban on supplies to Russia.

The group plans to produce 3,500 tonnes of cheese at the Russian company, while the expert found it difficult to forecast the volume of output at the Polish plant.

ASTELIT LAUNCHE 3G NETWORK FOR COMMERCIAL EXPLOTATION IN LVIV

KYIV. May 19 (Interfax-Ukraine) – Astelit LLC (the LIFE brand) has launched the UMTS (3G) standard network for commercial exploitation in Lviv, the company said in a press release issued on Tuesday.

“Lviv residents and guests of the cultural capital of Ukraine have received the chance of becoming the first users of 3G+ services from the LIFE brand, which can maintain Internet speed of up to 63.3 megabits per second. It means that subscribers can watch video steaming, quickly transfer large files, load video and make video calls,” reads the report.

The subscribers can get the 3G+Smartphone tariff plan with a fee from UAH 89 per 30 days.

Lviv is the first city where the company launched its network for commercial exploitation. The company is the first among the three winners of the tender to launch the network (along with MTS Ukraine and Kyivstar).

As reported, on February 23, 2015, Astelit was named the winner of the first lot to obtain licenses for 3G communications. The license cost the operator UAH 3.355 billion.

CZECH AIRLINES KYIV-KOSICE FLIGHT

KYIV. May 19 (Interfax-Ukraine) – Czech Airlines on May 19 launched a regular flight between Kyiv and Kosice (Slovakia), Sales and Marketing Director at Czech Airlines Jan Toth said during the presentation of the flight in Kyiv on Tuesday.

“We see the business potential between Ukraine and eastern Slovakia, which impelled us to launch the flight,” he said.

Toth said that the airline expects that the flight will reach 85% of its capacity.

Airbus A319 aircraft will operate on the route.

Departures from Kyiv are on Mondays, Thursdays, Fridays and Saturdays at 04:10 and passengers will fly back at 23:55.

Passengers will be able to fly onwards to Prague using the flight.

“Passengers who will leave for Prague and back to Kyiv are not to leave the plane during the landing in Kosice. After a short 30-minute landing the plane will fly from Kosice to Prague or back to Kyiv,” reads the press release given to those attending the presentation.

According to the report, ОК916 and ОК917 flights between Prague and Kyiv will be replaced by ОК976/ОК977 Prague-Kosice-Kyiv/Kyiv-Kosice-Prague flights.

The price of a one-way ticket from Kyiv to Kosice is from UAH 1,875 (taking into account all fees and duties) and UAH 3,506 for a return ticket. The cost of a one-way ticket to Prague starts from UAH 2,741 to UAH 5,361 for a return ticket.

When asked if the airline has plans to launch any other flights from Kyiv, Toth said that the airline does not have concrete plans for this year.