Business news from Ukraine


KYIV. Feb 25 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine at a cabinet meeting on Wednesday adopted as resolution on the National Agency for Tracing, Recovery and Management of Crime Assets.
“The parliament passed several bills that were initiated by the government to improve anti-corruption legislation. Now the government did its duty and adopted the resolution on the creation of the National Agency for Tracing, Recovery and Management of Crime Assets,” the press service of the Justice Ministry reported, citing Justice Minister of Ukraine Pavlo Petrenko.
He said that similar agencies exist in all EU countries. They have a possibility of quickly receiving information on assets, property and other foreign assets of persons who are suspected of committing crimes.
Petrenko also said that the cabinet asked the parliament to submit a list of their representatives to the tender commission to select agency members as soon as possible.


KYIV. Feb 25 (Interfax-Ukraine) – The Agricultural Policy and Food Ministry of Ukraine has reported that as of February 24, early spring crops had been sown on 1,700 ha in Odesa region and on 900 ha in Mykolaiv region.
The ministry said in a press release that out of 7.1 million ha with winter crops sprouts are seen on 6.5 million ha (92%), and crops on 4.3 million ha
(67%) are in good and satisfactory state and crops are weak on 2.2 ha (33%), and crops on 80 ha were killed.
The ministry said that 8% (600 ha) did not form sprouts, and Poltava, Dnipropetrovsk and Kharkiv regions have the largest number of these fields.
Out of 665,100 ha with winter rapeseeds sprouts were seen on 586,900 ha, including crops in good and satisfactory stage on 389,400 ha (66%), weak crops on 192,400 ha (33%) and crops on 5,200 ha (1%) were killed.
Around 10% of crops (68,200 ha) did not form sprouts, and Poltava, Dnipropetrovsk, Mykolaiv and Kharkiv regions have the largest number of these fields.


KYIV. Feb 25 (Interfax-Ukraine) – The investor in M.V. Cargo Andriy Stavnitser after the creation of a team that can realize investment projects plans to attract other investors to Ukraine, and he is creating an investment bank, Stavnitser said on Wednesday after singing of the investment agreement between M.V. Cargo and U.S. Cargill to invest $100 million in the construction of a grain terminal at the Yuzhny port.
Stavnitser has not yet delivered the details of the project on the creation of the investment bank.
Commenting on the investment agreement, he said that the sides formalized their plans via the signing of the agreement on the acquisition of 51% of shares in M.V. Cargo by Cargill.
The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) will be also investors in the project.
He said that his company will build the terminal under the turn-key conditions.
He said that the company signed a memorandum on dredging works with the Sea Port Authority of Ukraine. The works would allow accepting ships with draught of 100,000 tonnes to load them at the terminal. He said that there is a separate order of the prime minister regarding the signing of the dredging agreement with the authority.
The press service of M.V. Cargo told Interfax-Ukraine that the structure of investment will be the following: Sea Port Authority carries out all the required dredging works, and M.V. Cargo will invest a part of the funds into the construction of the grain terminal, and the rest of the funds will be provided by the EBRD and IFC.
The press service said that after its realization the project would be able to bring around UAH 300 million of taxes to the national budget and around $10 million of payments in the form of port fees every year.


Source: State Statistics Services

Source: State Statistics Services

Source: State Statistics Services

Source: State Statistics Services

Excluding the temporarily occupied territories of the Autonomous Republic of Crimea, the city of Sevastopol and part of the anti-terrorist operation zone

2 Including transportation by urban electric train



KYIV. Feb 24 (Interfax-Ukraine) – KSG Agro (Luxembourg) with assets in Ukraine plans to change it’s business strategy from 2015 and next years by switching from harvesting of crops to meat production.

The company said on the Warsaw Stock Exchange (WSE) on Tuesday that the Group in process of calculation and analysing possibilities of such change and expects enhance of liquidity and profits. In case new strategy finally adopted the group the part of land ha will be sold to third parties.

Big Dutchman Pig Equipment GmbH sued from September 01, 2015 Group Component Rantie LLC for repayment UAH 101,340 ($ 4,600). As at February 15, 2016 negotiations were held between KSG Agro and representatives of the counterparty. As a result KSG Agro received a restructuration plan which is in the process of signing.

KSG Agro is a vertically integrated agricultural group, working in almost all the segments of the agricultural market, including the production, storage, processing, and sale of agricultural products. The total arable land leased by the company is around 63,000 hectares.


KYIV. Feb 24 (Interfax-Ukraine) – U.S. company Cargill and M.V. Cargo, operating in the Yuzhny seaport in Odesa region, have signed an investment agreement, on the construction of a grain terminal in the port.

The agreement was signed at the Ukrainian government’s building on Wednesday.

“Cargill decided to invest $100 million in the construction of a grain terminal in the Yuzhny port to make it one of the largest hubs in Ukraine,” Ukrainian Prime Minister Arseniy Yatseniuk has said.

As reported, in August 2015, the Ukrainian Sea Port Authority and MV Cargo LLC signed a trilateral memo on the joint implementation of investment project in Yuzhny port (Odesa region).

The document confirmed Cargill’s intention to acquire 51% in a transshipment terminal, which M.V. Cargo stevedoring company will build in Yuzhny seaport. Under the terms of the memorandum, before construction the Ukrainian Sea Ports Authority undertakes to establish water area on the way to the terminal with an appropriate level of dredging.

“The new terminal implies more port charges, more revenues to the local and national budgets, more high paid jobs for Ukrainians. In fact, after the implementation of the Cargill investment project Odesa region will get up to 350 new jobs. We want the similar projects of the world renowned companies to become a positive signal for businesses preparing to enter Ukraine,” Minister of Infrastructure Andriy Pyvovarsky said then.

The terminal will allow Cargill to handle grains, cereals and other goods. The capacity of the first phase of construction will amount to 5 million tonnes. The second phase would increase the capacity by another 2-4 million tonnes.