Business news from Ukraine

ECONOMY MINISTRY POINTS OUT 75 MARKETS WHERE UKRAINE NOT USING FULL TRADE POTENTIAL

KYIV. March 29 (Interfax-Ukraine) – Ukraine’s Economic Development and Trade Ministry has pointed out 75 markets in the draft exports strategy of Ukraine where Ukraine is not using the trade potential in full, seeing a shortfall of around $6 billion.
According to the published document during its presentation on Tuesday, in particular, Ukraine insufficiently uses the opportunities of trade cooperation with the United States, Germany, UK, France, Japan and Canada.
According to the strategy, exports of goods and services in 2012-2016 almost halved – from $82.4 billion to $44.9 billion.
The ministry said that the EU market share of total Ukrainian exports of goods over the period grew from 25% ($17 billion) to 37.1% ($13.5 billion), the India’s share rose from 3.2% ($2.3 billion) to 5.2% ($1.9 billion), China’s – from 2.6% ($1.7 billion) to 5% ($1.8 billion). Exports of goods and services to Russia fell almost 80%, to from $17.3 billion to $3.6 billion.
According to the document, the share of Crimea, Donetsk and Luhansk regions of total exports of Ukrainian goods fell from 26.6% in 2013 to 10.4% in 2015 (data of the State Statistics Service, not taking into account the ATO zone and Crimea). In the period from 2013 to 2015, exports from Donetsk region fell by 70% and from Luhansk region – by 93%.
The cost of exports losses due to these regions jointly with the temporarily occupied territory of Crimea was $12.9 billion, while total exports losses of Ukraine in the past two years amounted to UAH $25.2 billion.

KYIVPASTRANS SEEKS TO BUY 80 LOW-DECK TROLLEYBUSES FOR UAH 510 MLN

KYIV. March 29 (Interfax-Ukraine) – Municipal enterprise Kyivpastrans has announced a tender to buy 80 low-deck trolleybuses for UAH 510 million (VAT included), according to a posting on the ProZorro e-procurement system’s website.
According to the report, Kyiv city plans to buy 60 12-meter trolleybuses for up to UAH 318 million and 20 18.5-meter trolleybuses for UAH 192 million.
Bids for the auction can be submitted until April 25, 2017. The auction will be held on May 31.
The trolleybuses are to be supplied before December 29, 2017. However, the start of supplies is set for May 24.
As reported, at the end of 2016 the Bogdan Corporation finished delivery of over 200 trolleybuses of 12 meter and 18 meter using funds the European Bank for Reconstruction and Development (EBRD).
In September 2016, the corporation won the tender to supply 40 more trolleybuses.

UKRAINE INCREASES PIPE OUTPUT BY 47% IN JAN-FEB

KYIV. March 29 (Interfax-Ukraine) – The major pipe enterprises of Ukraine in January and February 2017 increased production of pipes by 46.6% compared to the same period last year, to 161,000 tonnes, including in February they manufactured 84,500 tonnes.
The Ukrtruboprom association told Interfax-Ukraine its enterprises in January and February 2017 increased pipe production by 44.3%, to 107,100 tonnes, in February making 55,300 tonnes.
Khartsyzsk Pipe Plant (Donetsk region), located in the ATO zone, in January and February 2017 made 3,400 tonnes of pipes, whereas in January and February of 2016 it made 1,700 tonnes.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in the period rose by 54.1% compared to 2016, to 35,300 tonnes (17,600 tonnes in February), Interpipe Novomoskovsk Pipe Plant decreased output by 7.8%, to 14,100 tonnes (9,200 tonnes in February), while Interpipe Niko Tube raised production by 63.6%, to 46,800 tonnes (21,700 tonnes in February).
Dnipropetrovsk Pipe increased pipe production by 66.7%, to 3,500 tonnes, making 2,000 tonnes in February. Production grew by 3.3% at Centravis, to 3,100 tonnes of stainless pipes (1,600 tonnes in February).
Trubostal produced 400 tonnes (200 tonnes in February) and Nikopol Steel Pipe Plant YUTIST produced 500 tonnes (all were made in February, while in January the plant was idle).
Mariupol Illich steel works, which is not a member of the association, saw a 72.4% rise in pipe production in January and February 2017, to 21,200 tonnes (12,600 tonnes in February) and production at Kominmet grew by 40%, to 32,600 tonnes (16,600 tonnes).
Luhansk Pipe Rolling Plant, created on the basis of Luhansk Pipe Plant, remained idle in January and February 2017.
AG Stal LLC was also idle in January and February 2017.

UKRAINE MUST BE NOT RAW MATERIAL INTENSIVE LEADER, BUT INNOVATIONS LEADER – MINISTER

KYIV. March 29 (Interfax-Ukraine) – Ukraine must focus on exports of not commodities, which share today is 70%, but innovative and science driven products, First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has said during the presentation of the Expert Strategy of Ukraine.
“The document must be practical and be the flexible and adjustable operations program. The road map for the strategic development of exports would be the basis of the operations plan. We must be not the raw material intensive leader, but the leader of the innovative, investment and science driven block,” he said.
He recalled that in 2016, GDP grew by 2.3%, and in this context Ukraine’s exports strategy must provide for the further economic growth.
According to the published document, the promising sectors are the following: food industry, IT, technical servicing and repair of aircraft, production of spare parts for aerospace and aviation industries, engineering, creative services and tourism.

ANTONOV AIRLINES INCREASES TRANSPORTATION OF GOODS BY 23% IN 2016

KYIV. March 27 (Interfax-Ukraine) – Antonov Airlines (Kyiv), part of state enterprise Antonov, one of the leading global operators of heavy An-124-100 Ruslan aircraft with a cargo carrying capacity of 150 tonnes, in 2016 increased cargo transportation by 22.8% compared to 2015, to 21,463 tonnes, the Antonov press service has told Interfax-Ukraine.
According to the press service, the number of flights carried out by the company in 2016 increased by 25.1%, to 448 flights, the time of flights in 2016 amounted to more than 4,600 hours.
The Antonov Airlines fleet now has seven An-124-100 Ruslan planes with a cargo capacity of 150 tonnes, an An-225 Mriya super transport aircraft with a capacity of 250 tonnes, a multi-purpose An-74T (10 tonnes) aircraft, An-22 Antei (60 tonnes), and An-26 (5.5 tonnes) aircraft.
Since 2006, Antonov Airlines has been implementing a contract on strategic transportation within the NATO SALIS (Strategic Airlift Interim Solution) program in the interests of 18 alliance countries and the EU. In December 2014 the contract with Russia’s airline Volga-Dnepr was extended until the end of 2016. In autumn 2016 the Antonov Airlines management announced the plan to continue cooperation with NATO on the SALIS program after the completion of a joint contract with the Russian company. Within the framework of the new format of partnership, Leipzig remains the basic site of Ukrainian Ruslan aircraft.