Business news from Ukraine

AGRARIANS RECEIVE UAH 79.8 MLN IN STATE SUBSIDIES IN FEB – AGRICULTURE MINISTRY

KYIV. April 20 (Interfax-Ukraine) – The Ministry of Agricultural Policy and Food has announced the transfer of UAH 79.8 million in budgetary subsidies to agricultural producers on the basis of their activities for February.
According to a report on the Facebook page of Minister Taras Kutoviy, this amount is one-fiftieth of the planned state support to agricultural producers on VAT compensation.
The minister thanked the State Treasury Service and the State Fiscal Service for coordinated work in payment of subsidies.
As reported, the Cabinet foresaw UAH 4 billion for the system of subsidies in the agro-industrial complex in 2017.
Payment of such subsidies for February 2017 was carried out under separate conditions in connection with the terms of entry into force of the relevant regulatory and legal acts. Payment of state support from March is carried out as normal.
According to the Association of Milk Producers, a number of enterprises included in its structure received state compensation in the amount of 30% to 57% of the VAT paid.

NOVA POSHTA TO TRIPLE VOLUME OF DELIVERIES IN MOLDOVA, MORE THAN DOUBLE IN GEORGIA IN 2017

KYIV. April 20 (Interfax-Ukraine) – Nova Poshta group of companies plans by the end of 2017 to triple the total volume of deliveries in Moldova, and increase it by 2.5 times in Georgia.
According to a press release from Nova Poshta, in 2016 the volume of domestic deliveries in Georgia grew by 4.6 times, international by almost nine times.
“At the same time, a higher demand in the Georgian market is seen for domestic deliveries: the number of deliveries inside the country in 2016 was 3 times higher than the number of international shipments. As a whole, the company delivered about 200,000 items over the year in Georgia,” the report says.
The development of Nova Poshta in Moldova began with the B2B segment and is now continuing in the B2C category. In this country, the volume of domestic deliveries in 2016 quadrupled, international almost tripled. As a whole, in Moldova the company in 2016 delivered more than 50,000 items. At the same time, international deliveries are of a greater demand in the Moldovan market. This is due to the geographical location of the country, as well as the developed logistics solutions with Ukraine and other states.
Nova Poshta, founded in 2001, is the leader in the local delivery market. The company’s network consists of more than 2,300 offices throughout Ukraine. In 2016 Nova Poshta delivered more than 100 million items.

CONSTRUCTION OF SIGMA PARK YARYCHIV INDUSTRIAL PARK NEAR LVIV TO START IN APRIL – PM

KYIV. April 20 (Interfax-Ukraine) – Construction of one of the largest industrial parks in western Ukraine – Sigma Park Yarychiv – on a land parcel of around 25 ha in Lviv region will start in April 2017, Ukrainian Prime Minister Volodymyr Groysman wrote on his Facebook page on Wednesday.
“In April the preparation for construction of one of the largest logistics parks in western Ukraine Sigma Park Yarychiv on 25 ha will start. Several large and dozens of small foreign companies will operation in Stary Yarychiv located 20 km far from Lviv in two years. They would create around 8,000 jobs,” the prime minister said.
He said that the opening of the industrial park would add some UAH 40-50 million to the budget of the rural council every year.
“I am sure that the creation of these industrial parks would allow us to make a breakthrough. Thanks to the founders for the real step to economic growth! I hope that lawmakers would support relevant legislation on industrial and technological parks that would help to stimulate this development,” he said.

TOTAL COST OF ASSETS OF UKRAINIAN PRIVATE PENSION FUNDS 8% UP IN 2016 – WATCHDOG

KYIV. April 19 (Interfax-Ukraine) – The total cost of assets of private pension funds in Ukraine as of late 2016 reached UAH 2.139 billion, and this was 8% more than as of late 2015 and 13.4% less than as of late 2014, according to a posting on the website of the national commission for financial service markets regulation.
The regulator said that total revenue received from investment of pension assets grew by 23.9%, to UAH 1.081 billion. Profit from investing assets was UAH 834.8 million (27.1% up).
The sum of retirement investments grew by 0.4%, to UAH 1.895 billion. Companies paid UAH 1.802 billion (95.1% of total investments, 0.2% down). Investments by individuals totaled UAH 92.2 million (14.8% up).
Expenses settled using pension assets grew by 14.2%, reaching UAH 245.7 million for the period of existence of pension funds or 11.5% of total cost of assets.
The regulator said that the number of pension contracts signed by administrators of the private pension funds grew by 4.9%, to 62,600 thanks to growth of the number of contracts signed with individuals by 6.2%, to 55,200.
The number of investors grew by 2.5%, to 56,500.
The total number of participants of private pension funds was 834,000, including 81,300 (9.7%) receiving pensions.
Pension payments grew by 13.1%, to UAH 629.9 million.

NUMBER OF TOURISTS COMING TO UKRAINE 5.6% UP IN 2016

KYIV. April 19 (Interfax-Ukraine) – The number of foreign tourists visiting Ukraine in 2016 increased by 5.6% compared to 2015, to 13.6 million people, according to a report from the Ministry of Economic Development and Trade, with reference to data from the State Border Guard Service of Ukraine.
According to its data, Moldovan citizens predominated among foreign tourists who visited Ukraine in 2016, they accounted for 32.9% or 4.474 million people.
At the same time, Belarusian citizens took a share of 13.4% (1.828 million people), Russians 11.3% (1.543 million people), Hungarians 9.3% (1.271 million people), and Polish citizens 8.8% (1.195 million people).
The number of tourists from Russia who visited Ukraine in 2016 increased by 16.8%, or by 221,643 people, compared to 2015.
Most of all tourist traffic to Ukraine in 2016 grew from Tajikistan: the figure tripled compared to 2015, to 165,158 people. The number of tourists from Uzbekistan increased by 1.9 times, to 136,021 people, from Lithuania by 48%, to 52,273 people, from Turkey by 44.7%, to 206,706 people, and from Israel by 45.1%, to 217,160 people.
According to the document, 95.3% of tourists visited Ukraine in 2016 for personal reasons, 2% on transit, 1.3% as tourists, 1.1% for other purposes, and 0.2% for service purposes.

ODESA CUSTOMS OFFICE SENDS RECORD-BREAKING SUM TO NATIONAL BUDGET IN MARCH

ODESA. April 19 (Interfax-Ukraine) – Odesa customs office of the State Fiscal Service of Ukraine in March 2017 sent UAH 2.24 billion of customs payments to the national budget.
The press service of the main department of the State Fiscal Service in Odesa region reported on Tuesday that this is a record-breaking figure. In the whole history of Odesa customs office since Ukraine’s independence the office’s monthly payments had not even reached UAH 2 billion.
“Average daily payments are also record-breaking. They are twice more than in March 2016, being UAH 102 million. In the first quarter of 2017 Odesa customs office collected over UA H 4.083 billion of customs payments. This is UAH 1.76 billion more than a year ago,” the press service said.
As reported, Ukrainian President Petro Poroshenko in September 2015 signed law No. 666-VIII amending Section IV “Final and Transitional Provisions” of the Budget Code of Ukraine related to the experiment in Odesa, Volyn, Lviv and Chernivtsi regions in financial support for the reconstruction and maintenance of public roads of national importance.
The document clarifies in case of meeting the monthly budget customs payments revenue target more than by 100%, 50% of the extra sum should be sent to the regions in proportion to their share of this sum.
The Verkhovna Rada in December 2016 expanded the experiment on financial support for the reconstruction and maintenance of public roads of national importance at the expense of part of customs duties for all the regions of Ukraine.