Business news from Ukraine

UKRAINE POSTS 45.4% RISE IN POULTRY EXPORTS, IN PORK EXPORTS 56.7% UP IN JAN-FEB

KYIV. March 13 (Interfax-Ukraine) – Ukraine in January and February 2017 exported 31,730 tonnes of poultry, and this was 45.4% more than a year ago, the State Fiscal Service has reported.

In money terms poultry exports rose by 37.8%, to $39.75 million.

Poultry imports grew by 38.8%, to 16,080 tonnes and in money terms it increased by 28%, to $6.4 million.

According to customs statistics, pork exports in January and February 2017 rose by 56.7%, to 1,130 tonnes for $2.11 million compared to $1.07 million in January and February 2016.

Pork imports to Ukraine over the period plunged by 33%, to 450 tonnes. Pork for $742,000 was imported to the country and this was 10.9% less than in January and February 2016.

As reported, Ukraine in 2016 exported 3,160 tonnes of pork, which is 88.4% less than in 2015. Pork imports in 2016 decreased by 23.2%, to 2,840 tonnes.

Poultry exports in the past year grew by 48.9%, to 240,160 tonnes. Poultry imports in 2016 rose by 36%, to 83,300 tonnes.

VETROPACK HOSTOMEL GLASS FACTORY POSTS UAH 62.4 MLN NET PROFIT IN 2016

KYIV. March 13 (Interfax-Ukraine) – PJSC Vetropack Hostomel Glass Factory (Kyiv region), the largest Ukrainian producer of glass containers, last year saw a net profit of UAH 62.39 million against a net loss of UAH 80.34 million a year earlier.

According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market, its assets last year increased by 15.3%, to UAH 1.6 billion.

Undistributed profit increased by 49.8%, to UAH 189.1 million.

Total debtor indebtedness over the year rose by 32.6%, to UAH 396.7 million.

In 2016 its current obligations increased by 1.3 times, to UAH 237.3 million.

The plant shareholders intend to approve its financial results for 2016 at a general meeting on April 12 this year.

The number of personnel at the company last year decreased by four people, to 637 employees.

Since 2006 Vetropack Hostomel Glass Plant is part of the Vetropack European group of companies, a major glass container manufacturer with factories in Switzerland, Italy, the Czech Republic, Croatia, and Slovakia. It produces containers for wine, champagne, vodka and cognac, beer, mineral water, etc.

VOLUME OF M&A TRANSACTIONS IN UKRAINE 20% UP IN 2016 – CMS

KYIV. March 13 (Interfax-Ukraine) – The volume of mergers and acquisitions (M&A transactions) in Ukraine in 2016 increased by 20%, to EUR605.3 million, while their total number decreased by 2.6 times, to 54, such data are given in a report of CMS legal group.

The largest transactions of the past year, according to the group, were exchange of assets between UniCredit financial group and ABH Holding (Luxembourg), within which the group transferred a 99.9% stake in Ukrsotsbank to the holding in exchange for a 9.9% stake in ABHH, the transaction was valued at EUR296.3 million; the purchase by American company Cargill of 51% of a transshipment terminal, which MV Cargo stevedoring company will build in Yuzhny port (Odesa region) for EUR90.9 million; the purchase by Kernel agrarian group of the right of demand for Ellada oil extraction plant (Kirovohrad region) for EUR87.1 million; the purchase by Fairfax Financial Holdings Limited international financial group of 9.99% in Astarta for EUR34.2 million; the purchase by Dragon Capital Investments Limited of the Piramida shopping center in Kyiv for EUR21.9 million; the purchase by the Federation of Trade Unions of Tatarstan of the Foros sanatorium, which formerly belonged to Ihor Kolomoisky, for EUR16.7 million; the purchase by 1+1 Media group of the Ukrainian satellite and Internet TV operator Viasat Ukraine from Swedish-based Modern Times Group MTG AB for EUR16.1 million; the purchase by the Rozetka.ua online store of a warehouse complex in Brovary for EUR14.6 million; the purchase by businessman Sergiy Tigipko of Radisson Blu Hotel in Podil in Kyiv for EUR9.2 million; and the purchase by Georgian Industrial Group of a 29.3% stake in PJSC Indar (Kyiv) for EUR4.3 million.

PRIVATBANK WINS TENDER TO PLACE ATMS IN KYIV METROPOLITEN

KYIV. March 13 (Interfax-Ukraine) – State-controlled PrivatBank (Dnipro) has won a tender conducted by Kyiv authorities to select banks to place ATMs at 49 metro stations.

“A tender has been conducted for placing ATMs in the metro. The winner is PrivatBank,” the Kyiv City Council deputy from the Samopomich faction, head of the commission on property issues Leonid Antonenko wrote on his Facebook page.

According to him, the cost of leasing premises for one ATM for the bank will be UAH 470,000 per month.

“The price rose from UAH 270,000 to UAH 470,000 per month excluding VAT. Initially Kyiv City State Administration planned to transfer the ATMs to another bank without a tender. This bank, by the way, did not apply for the tender,” Antonenko added.

GOVERNMENT REMOVES REQUIREMENTS FOR CONSTRUCTION LICENSE TERMS FROM BYLAWS

KYIV. March 13 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers has removed requirements regulating the expiration terms of construction licenses from bylaws.

The decision was made at a government meeting on Friday, March 10.

First Deputy Economic Development and Trade Minister Maskym Nefyodov said that current legislation envisages the perpetual term for construction licenses.

“However, we know that in some regions there were shameful cases when a person comes to re-register the license and hears that there are additional resolutions and bylaws mentioning that the license has a term. Unfortunately, this is sometimes linked to corruption… We asses that the effect from removing this corruption element could exceed $30 million in coming three years,” he said.

According to the website of the Regional Development, Construction, Housing and Utilities Economy Ministry, as of February 13, 2017 the State Architectural and Construction Inspectorate used the rules for licensing economic activities linked to creation of architectural facilities approved by government resolution No. 1396 issued on December 5, 2007.

The rules say that the term of the construction license is five years, and three years for companies that receive this license for the first time.

The law on licensing of types of economic activities says that the construction license has the perpetual term.

GOVERNMENT APPROVES FEASIBILITY STUDY FOR KAKHOVKA HPP 2

KYIV. March 13 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers on March 10 approved a feasibility study for construction of Kakhovka hydroelectric power plant (HPP) 2, the press service of the government has reported.

“The financing of the project will be thanks to the tariff for electricity generation by public join-stock company Ukrhydroenergo, own funds of the company and government secured loans provided on the conditions of co-financing by the European Bank for Reconstruction and Development and the European Investment Bank,” the government said.

The press service did not provide for any details of the feasibility study.

As reported, the approximate cost of the second phase of Kakhovka HPP is EUR 420 million. The installed capacity is 250 MW. The project would be implemented in 2019-2024.