Business news from Ukraine

KERNEL, DNIPROVSKY STEEL MILL, ARCELORMITTAL KRYVYI RIH ARE LARGEST RECIPIENTS OF VAT REFUNDS IN MARCH 2017

KYIV. April 6 (Interfax-Ukraine) – The largest recipient of VAT refunds in March 2017, as in the previous two months, was Kernel-Trade agricultural exporter with UAH 1.335 billion, the State Treasury Service has reported.
According to its data, the following are Dniprovsky steel mill, part of ISD Corporation, with UAH 647.8 million and ArcelorMittal Kryvyi Rih with UAH 637.54 million.
The following four places are also occupied by the representatives of the mining and metallurgical complex: Zaporizhstal with UAH 494.7 million, Azovstal with UAH 469.5 million, Poltava GOK with UAH 426.8 million and Mariupol-based Illich steel mill with UAH 408 million.
The top ten recipients of VAT refunds also include three agricultural exporters: Satellite LLC with UAH 330.5 million, Louis Dreyfus Company Ukraine with UAH 271.4 million, and Suntrade with UAH 188.7 million.

ECO-BUD-TRADE WINS TENDER TO BUILD PODILSKO-VOSKRESENSKY BRIDGE IN KYIV

KYIV. April 6 (Interfax-Ukraine) – Eco-Bud-Trade LLC (Kyiv) has won a tender to build the Podilsko-Voskresensky Bridge in Kyiv held on March 31, the press service of Kyiv City Administration has reported.
Director of the construction and housing provision department of Kyiv City Administration Kostiantyn Fedotov said that the tender to build the bridge was held for two sections. Eco-Bud-Trade LLC won the two lots.
According to the report, the company proposed to build a section across the Dnipro River for UAH 4.3 billion, while works on the left bank would cost UAH 1.7 billion. Some works are to be completed in 2017.
“The top priority task for this year set before the winner of the tender will be completion of works in the section across the Dnipro River,” Fedotov said.
As reported, the city has arranged with participation of Head of Kyiv City State Administration Vitali Klitschko the examination of the Podilsko-Voskresensky Bridge by German specialists. Germany has provided EUR 200,000 for this purpose.
The authorities hope that urban traffic movement across the bridge will be launched in three years.

BASF SEES 12% RISE IN SALES IN UKRAINE IN 2016

KYIV. April 6 (Interfax-Ukraine) – Chemical concern BASF saw a 12% rise in sales in Ukraine.
“BASF in Ukraine increased sales by 12% last year. The key business segments showed growth of over 10%. This is linked to general development of sectors and the launch of several partner projects with leading Ukrainian companies,” BASF Managing Director in Ukraine Andreas Lier said at a press conference in Kyiv on Wednesday.
He said that in 2016 the project on fortification of sunflower oil (adding fortified vitamin A) was realized with two Ukrainian producers and exporters. This helped the companies to enter Asian and African markets.
Another project realized by BASF in Ukraine was designing of BASF solution for the largest refrigerator manufacturer in Ukraine. The project helped to create products not using Ozone Depleting Substances (ODS).
Lier said that last year BASF business in Lviv, Ivano-Frankivsk, Ternopil, Vinnytsia and Kyiv regions expanded within 15-20%.
“If social and economic development resumes, in particular, growth of the key economic sectors for the company, BASF in Ukraine would be able to reach the same growth in 2017 or even improve its results,” he said.
The managing director said that BASF in Ukraine supports companies in certification of products, facilitation of access to new markets and cooperates with associations in drafting legislation.
BASF is the largest chemical company in the world with six integrated production platforms and 352 production facilities all over the world. The company’s portfolio is organized into five segments: chemicals, performance products, functional materials & solutions, agricultural solutions and oil & gas.

UKRAINIAN SEA PORT AUTHORITY TO SEND UAH 966 MLN TO DEVELOP BERTH INFRASTRUCTURE BY LATE 2017

KYIV. April 5 (Interfax-Ukraine) – Ukrainian Sea Port Authority plans to send UAH 966 million to develop berth infrastructure by the end of this year, Authority Head Raivis Veckagans has said.
“We would receive the most optimal work of contractors in the port infrastructure in terms of the price only after considerably expanding competition at tenders of the authority and opening the market to world-renowned companies. We are facilitating the blueprints documents in line with FIDIC international standards. This would provide for the trilateral analysis of projects, transparency of the process and the indispensable attribute “quality,” he said at the Port Infrastructure Development Day organized by Ukrainian Sea Port Authority jointly with the American Chamber of Commerce in Ukraine in Kyiv on Tuesday.
At the event the authority presented plans to develop port infrastructure for coming years to leading global contractors.
Veckagans said that the blueprints approval procedures for construction of facilities using budget funds should be relaxed. The authority has drawn up draft amendments to relevant government resolutions.
“Their adoption would help to remove the double blueprint approval procedure, relax capital investment process and reduce time for approval of projects to two years. Soon we will discuss our proposals with experts and business,” he said.
President of the American Chamber of Commerce Andy Hunder said that the public presentation of plans to develop port infrastructure helps to provide for transparency of tenders.
“Business and Ukrainian Sea Port Authority are interested not only in informing on the current and future projects at ports, but first in carrying out works, especially for announced capital investment in the amount of around UAH 3.5 billion for construction and reconstruction of berths and dredging works. The implementation of the announced projects, including the start of new ones approved by the government should be reflected in the financial plan of the authority. This would allow using the declared investment,” Hunder said.
Deputy Regional Development, Construction, Housing and Utilities Economy Minister Lev Partskhaladze who was present at the event said that it is important to build port infrastructure sticking modern technologies and solutions.
“Both reconstruction and new construction of ports should be carried out only using modern technologies. One of the key tasks of the Regional Development, Construction, Housing and Utilities Economy Ministry is brining construction requirements in line with international principles, taking into account newest technologies. Our country has a large potential in the implementation of these projects,” he said.