Business news from Ukraine

OKKO SEEKS TO START IMPORTING NATURAL GAS FROM POLAND IN OCT

KYIV. Oct 9 (Interfax-Ukraine) – The multi-sector holding OKKO Group, which includes the OKKO filling station chain (Galnaftogaz Concern), intends to import natural gas for the needs of own businesses and for selling it on the Ukrainian market, planning first supplies from Poland this month.
“The current liberalization gives us a chance of not only starting in this business successfully, but also becoming a noticeable player on the Ukrainian gas market,” OKKO Group Vice President Yuriy Kuchabsky said last week.
He said that the group wants to use experience accumulated during the imports of fuel in the new business and a large database of clients in Ukraine.
OKKO said that the company has received a license from the National Commission for Energy, Housing and Utilities Services Regulation (NCER) and held negotiations with potential suppliers.
OKKO seeks to switch to gas purchase directly at the European gas hubs in the future.
According to the press release, the group will offer a price package for natural gas and fuel. The company is mulling sales of gas via the ProZorro e-procurement system.
OKKO incorporates over 10 various businesses in production, trade, construction, insurance, servicing and other sectors.
The European Bank for Reconstruction and Development, Goldman Sachs, Horizon Capital, Renaissance Capital, Genesis Asset Managers, LLP and other companies are shareholders and institutional investors in the holding.

MARIUPOL ILLICH STEEL WORKS TO BUY EQUIPMENT FOR $25 MLN FROM AUSTRIA’S PRIMETALS TECHNOLOGIES TO RECONSTRUCT SLITTING LINES SHOP

KYIV. Oct 9 (Interfax-Ukraine) – Mariupol Illich Steel Works (Donetsk region) has signed a contract with Primetals Technologies Austria GmbH to supply equipment for reconstruction of the 1700 slitting lines shop worth over $25 million.
The enterprise said in a press release last week that under the contract the Austrian partner will design the project’s engineering documents in details and in 2018 the equipment will be supplied. The equipment will increase effectiveness of the shop, improves the quality of the products and reduce waste in slabbing.
The startup works are scheduled for 2019.
Earlier in August 2017, Mariupol Illich Steel Works and Primetals signed a contract to design basic engineering documents for reconstruction of the slitting lines shop. Total investment of Metinvest in the project will be $85.5 million.
Since 2016, the sides are also implementing a project on building a continuous -casting machine worth $150 million.

MARIUPOL ILLICH STEEL WORKS TO BUY EQUIPMENT FOR $25 MLN FROM AUSTRIA’S PRIMETALS TECHNOLOGIES TO RECONSTRUCT SLITTING LINES SHOP

KYIV. Oct 9 (Interfax-Ukraine) – Mariupol Illich Steel Works (Donetsk region) has signed a contract with Primetals Technologies Austria GmbH to supply equipment for reconstruction of the 1700 slitting lines shop worth over $25 million.
The enterprise said in a press release last week that under the contract the Austrian partner will design the project’s engineering documents in details and in 2018 the equipment will be supplied. The equipment will increase effectiveness of the shop, improves the quality of the products and reduce waste in slabbing.
The startup works are scheduled for 2019.
Earlier in August 2017, Mariupol Illich Steel Works and Primetals signed a contract to design basic engineering documents for reconstruction of the slitting lines shop. Total investment of Metinvest in the project will be $85.5 million.
Since 2016, the sides are also implementing a project on building a continuous -casting machine worth $150 million.

EGYPT PLANS TO ACCEPT ABOUT 600,000 UKRAINIAN TOURISTS IN 2017

KYIV. Oct 6 (Interfax-Ukraine) – Egypt plans to accept about 600,000 Ukrainian tourists in 2017, the growth of tourist flow for the eight months of 2017 was 120%, Head of Egypt’s National Tourism Organization Hisham El Demery has said.
“During the eight months of 2017 Egypt had already accepted 430,000 Ukrainian tourists,” he told reporters on the sidelines of the 25th International Tourism Salon “Ukraine” in Kyiv.
According to the official, at present Egypt intends to actively develop new kinds of tourism for the country, in particular, excursion, medical and pilgrimage tourism.
“The Egyptian government supports different types of tourism, not only related to the sea and the beach,” he said.
According to him, progress in the treatment of hepatitis C will contribute to the development of medical tourism in Egypt. Patients will get not only treatment but also rehabilitation.
For the development of pilgrimage tours Egypt intends to propose a program within which pilgrims can stay in the country for up to 3.5 years, making trips to 25 locations.
He said he hopes Ukraine will abolish the recommendation not to visit a number of Egyptian cities the Foreign Ministry of Ukraine issued.

UKRZALIZNYTSIA IMPROVES GONDOLA CARS SUPPLY TO METAL AND MINING COMPANIES IN SEPT – UKRMETALLURGPROM

KYIV. Oct 6 (Interfax-Ukraine) – Public joint-stock company Ukrzaliznytsia in September 2017 improved average figure for supply of gondola cars to enterprises of the metal and mining sector of Ukraine – from 21% in August to 26%, President of the Ukrmetallurgprom association (Dnipro) Oleksandr Kalenkov said on Wednesday.
“Average supply to metal and mining companies was 26% of their total loading on gondola cars [21% in August], and in general the pace is good,” he said.
Kalenkov said that the situation with cars supply in October is sharply worsening, according to information of the association.
He said that Ukrmetallurgprom is trying to achieve the market share of cars supplies by the branch of Ukrzaliznytsia – Transport Logistics Center. Today the market share is 35-40%.
Earlier Ukrmetallurgprom criticized Ukrzaliznytsia for the absence of cooperation and ignorance of the interests of the key cargo dispatchers, in particular, metal and mining companies.

UKRGASBANK, MEGABANK BECOME SUBAGENTS OF EIB PROJECT ON LENDING TO SMALL, MEDIUM-SIZED ENTERPRISES

KYIV. Oct 6 (Interfax-Ukraine) – Ukrgasbank and Megabank have become subagents of the project of the European Investment Bank (EIB) for lending to small and medium-sized enterprises in the amount of EUR400 million, according to a press release from the Finance Ministry of Ukraine.
According to the report, the corresponding agreements with the banks were signed by the ministry on October 5.
Under the terms of the agreement with the EIB, the Ministry of Finance, with the assistance of Ukreximbank, provides credit funds to the selected participating banks to finance Ukrainian enterprises.
Lending is designed for five years with the possibility of further extending the period of using EIB lending resources.
The Verkhovna Rada of Ukraine ratified the financial agreement between Ukraine and the EIB on a loan of EUR400 million for small and medium-sized enterprises on July 15, 2015.
The Ministry of Finance attracted long-term loans from the EIB for financing small and medium-sized business projects, as well as socio-economic infrastructure projects, including those on energy efficiency, mitigation of climate changes and adaptation to them.