Business news from Ukraine

SHUVAR PLANS TO START BUILDING SECOND PHASE OF REGIONAL AGRICULTURAL CENTER IN 2020

Shuvar LLC (Lviv), the operator of the eponymous agricultural market, plans to start building second phase of the regional agricultural center with a total area of 26,000 square meters in 2020 sticking to the implementation of a development concept.
According to a posting on the website of the company, the market announced an architecture tender to select the best project for second phase. Architectural shops MarekArciszewski, MAManagement (Warsaw, Poland), Artik Design Bureau LLC (Lviv) and A-III Dmytro Antoniuk LLC (Kyiv) presented their projects.
The projected building will be three-story and includes, in addition to pavilions with different types of agricultural products, a retail gallery with recreation areas and craft products, a food hall with 5-10 restaurants of various cuisines and a single food hall.
The facility will be located on a plot of 20 hectares.
Shuvar LLC was created in 1991.
The participants of the limited liability company, according to the National Commission for Securities and the Stock Market, as of early 2018 were Roman Fedishyn (50.5%), Andriy Chipchar (27%), Liubov Doskoch (9.8%), Liubov Bokalo (9.6%), Natalia Fedishyn (2 , 5%), as well as Shuvar LLC (0.4%). The ultimate beneficiary is Roman Fedishyn.

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UKRAINE CUTS CAST IRON EXPORTS

Ukraine in January-August 2019 decreased exports of pig iron in natural terms by 25.8% compared to the same period in 2018, to 1.567 million tonnes.
According to customs statistics released by the State Fiscal Service, during this period exports of cast iron in monetary terms fell by 31.1%, to $507.943 million.
Exports were mainly made to the United States (53.39% of deliveries in monetary terms), Italy (15.45%), and Turkey (9.91%).
In January-August 2019, Ukraine imported 836 tonnes of similar products for $502,000, while in January-August 2018 some 997 tonnes worth $569,000. Imports were carried out from Russia (76.29% of deliveries in monetary terms), Germany (20.92%), and Poland (2.79%).
As reported, in 2018, Ukraine increased exports of pig iron by 28.4%, to 3.006 million tonnes, and in money terms it rose by 42.6%, to $1.053 billion. Exports were mainly made to the United States (59.88% of deliveries in monetary terms), Italy (11.85%), and Turkey (10.92%).
In 2018, Ukraine imported 1,375 tonnes of pig iron for $796,000, while in 2017 – 2,000 tonnes for $1.02 million. The goods were imported from Russia (78.02% of deliveries in monetary terms) and Germany (21.98%).

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STATE FOREST RESOURCES AGENCY OF UKRAINE WANTS TO ANNUL MORATORIUM ON EXPORT OF UNPROCESSED LOGS

The State Forest Resources Agency of Ukraine has said that it is necessary to annul a moratorium on export of unprocessed logs imposed in 2015.
“It is necessary to lift the moratorium, give a free market for logs – this will stimulate price growth and the work of our industry enterprises, and not only those that are coordinated by the State Forest Resources Agency. This will give an impetus to the development of the economy,” Deputy Head of the State Forest Agency Volodymyr Bondar said in a statement of the agency.
According to him, the moratorium on the export of unprocessed logs in the form it was accepted did not give an economic breakthrough, and created a “criminal situation for the state’s economy” in the issue of logs.
“Forestry enterprises today have the remains of 1.2 million cubic meters of logs. We have reduced logging, because we cannot sell what was logged in Ukraine,” Bondar said.
He said that if the legislator wanted to stock logs and give impetus to the development of local business, then this had to be done not through a ban, but through stimulating the development and deepening of processing.
“For this, it is necessary that investments come to Ukraine. Without making any decisions on creating an investment climate in Ukraine, simply banning the export of logs, this only leads to a decrease in the domestic price, a decrease in logging. We do not even remove logs, which we mark in the forest, because it does not have its own consumer,” the deputy head of the State Forest Resources Agency said.
According to Bondar, due to lower prices for logs and the inability to sell it, the question of stopping enterprises of various types arises.

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NEW PASSENGER CAR MARKET EXPANDS BY 2% IN UKRAINE

Primary registrations of new passenger cars in Ukraine in January-August 2019 grew by 2% year-over-year, to 54,600, the Ukrautoprom association has reported.
Sales growth in August of this year by 12.5% compared to August of 2018, to 8,300 cars, contributed to the positive pace over the January-August period.
“This is the best result for the domestic market over the past 19 months,” the association said.
The leader of August – Renault – improved the result of the same month by 44% to 1,422 cars, Toyota ranked second, registrations of which grew by 20% to 1,175 cars, and the KIA brand moved up to the third position with sales growth of 71%, up to 817 cars.
Skoda was fourth with 601 cars sold (a rise of 49%), and Nissan maintained fifth position despite a 5% drop in sales (to 472 cars).
Ukrautoprom said that over the past summer season in Ukraine, 22,400 new passenger cars were registered.
Meanwhile, the AUTO-Consulting information and analytical group, analyzing car sales last month, said that sales growth amounted to 6.3%, to 8,200 cars, even compared to the successful July of 2019, and compared to August 2018, they grew by 19.8%.
The top three of the month at AUTO-Consulting coincides with Ukrautoprom’s, and the group’s sensation of the month is Peugeot’s breakthrough in eighth place (11th in July), with a 25.4% increase in sales, to 247 vehicles compared with July 2019.

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UKRAINIAN PARLIAMENT PLANS TO CHANGE CONCESSION LEGISLATION

Ukraine’s Verkhovna Rada has passed at first reading the law on concession foreseeing the amendments to some legislative acts aimed at improving legal regulation of concession activities.
An Interfax-Ukraine correspondent reported that bill No. 1046 was supported at first reading at the plenary meeting of the Rada by 293 MPs on Friday. Some 254 MPs backed shortening the terms of preparation of the bill for second reading.
According to the authors of the document, the bill should contribute to improving the legal regulation of concession activities, which, in turn, will provide the opportunity of effectively attracting domestic and foreign investment in the Ukrainian economy for infrastructure development. The document also defines a clear mechanism for selecting a concessionaire and introduces concession conditions in line with international practice.
According to the text of the bill, the term “concession” defines a form of public private partnership (PPP), which implies granting by a concessor the rights to create and/or build (repair/ re-equip, and other actions), and/or manage the concession facility to a concessionaire, and/or to provide services on the terms determined under a concession agreement, and foresees the transfer of most of the operational risk to the concessionaire.
The bill, in particular, defines: a clear separation of regulating concession and other forms of PPP implementation; a unified procedure for initiating and making decisions on the implementation of PPPs for all forms of PPPs (including concessions); introduction of a transparent procedure for selecting a concessionaire (a concession tender, a competitive dialogue), consistent with international practices, as well as the possibility of attracting advisers and independent experts to prepare PPP projects in the form of concession.
The document also provides additional guarantees for concessionaires and creditors, in particular, the determination of the right to replace the concessionaire with another concessionaire in the concession agreement.
In addition, the bill simplifies land allocation procedures for PPP projects in the form of concessions; defines the features of the concession in markets that are in a state of natural monopoly, as well as the features of the concession for the construction and operation of roads.
At the same time, the new version of the bill introduces a clear regulation of the ownership of the facility under concession, the purpose of which is to preserve the state/territorial community’s ownership of the concession facility.
In addition, the document provides potential concessionaires with the opportunity of initiating a concession.
The bill also stipulates that concession facilities cannot be forests, but aerodromes can be, and concession charges for roads will serve as a source of filling the Road Fund.
At the same time, according to the conclusion of the parliamentary committee on Ukraine’s integration with the EU, the bill does not comply with the Ukraine-EU Association Agreement and needs to be revised taking into account the relevant remarks.

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PRESS CONFERENCE “SUCCESSFUL COMPLETION OF 1ST PHASE OF #DNIPROSWIMMING TO TAKE PLACE IN KIEV

Interfax-Ukraine to host press conference ‘Successful Completion of 1st Phase of #DniproSwimming Project: Athlete Swims 1,000 km along Dnipro from Belarus Border to Kherson’
On Monday, September 16, at 12.00, the Interfax-Ukraine news agency’s press center will host a press conference titled: “Successful Completion of 1st Phase of #DniproSwimming (#VplavDnepr and #VplavDnipro) Project: Athlete Swims 1,000 km along Dnipro from Belarus Border to Kherson. Awards from the Book of Records of Ukraine. Further Plans.” Participants include: record-breaking swimmer Mykhailo Romanyshyn; expert of the National Register of Records of Ukraine Vitaliy Zorin; participant in the project (accompanying boat) Andriy Yaremov; organizer of the #DniproSwimming project Maksim Urakin (8/5a Reitarska Street).

More details by phone: +38 067 232 0042.

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