Business news from Ukraine


KYIV. Feb 10 (Interfax-Ukraine) – Raiffeisen Bank Aval saw UAH 3.804 billion of profit after taxation in 2016, being the best among Ukrainian banks, the National Bank of Ukraine (NBU) has reported.

Citibank saw UAH 1.45 billion of profit and OTP Bank saw UAH 913.76 million, being third.

Credit Agricole Bank saw UAH 807.79 million and ING Bank Ukraine – UAH 791.1 million followed by Oschadbank with UAH 468.17 million of profit. Oschadbank revaluated securities for sale in the bank’s portfolio – UAH 1.177 billion. This increased its total revenue to UAH 1.845 billion (second on the market).

Ukrgasbank also revaluated its securities portfolio – UAH 403.02 million. The bank was ninth in terms of profit after taxation with UAH 293.68 million and seventh in total revenue with UAH 696.7 million.

FUIB saw UAH 367.01 million of profit after taxation, ProCreditBank – UAH 300.65 million and Kredobank – UAH 263.68 million.

Nationalized PrivatBank is at the end of the list. The bank posted UAH 135.309 billion loss after taxation due to forming reserves for the non-performing loan portfolio.

Ukrsotsbank bought by the owners of Alfa-Bank last year saw UAH 10.367 billion and Alfa-Bank (Kyiv) – UAH 4.095 billion. Subsidiaries of Russian banks VTB Bank saw UAH 6.32 billion of loss, Prominvestbank – UAH 4.227 billion, Sberbank – UAH 2.818 billion and BM Bank – UAH 1.759 billion.

State-run Ukreximbank also posted large loss – UAH 1.011 billion, as well as UkrSibbank – UAH 993.97 million, Pravex-Bank – UAH 588.38 million and Diamantbank – UAH 573.02 million. For all banks the reason of seeing loss was impairment expense.

In general, loss after taxation of 93 operating banks in the country in 2016 totaled UAH 158.48 billion: 62 banks posted UAH 10.817 billion of profit, while 31 banks saw UAH 162.3 billion loss.

The NBU also gave return on assets data for 2016, according to which Alliance Bank showed the best result with 23.76% followed by Citibank with 10.21% and Crystalbank with 7.48%.

Bank 3/4 posted 6.94% return on assets and Industrial-Financial Bank – 6.53%, while Raiffeisen Bank Aval – 5.39%, bank Avangard – 5.07%, Deutsche Bank DBU – 4.89%, ING Bank Ukraine – 4.6% and Poltava-Bank – 4.46%.


KYIV. Feb 10 (Interfax-Ukraine) – The owner and director general of TMM developing and construction firm Mykola Tolmachev seeks to invest in agricultural business projects.

“I have four business plans. I am ready to study two of them in the agricultural sector. I am interested in those things that no one is doing now,” he said in an interview with Interfax-Ukraine.

Tolmachev said that he is studying construction of a pectin plant and the launch of a powder milk production project.

“Some apples contain pectin. Its price is from $15 to $25 per kilogram. The project is ideal for Belarus, as they have the raw material base,” he said.

He said that the second project to produce powder milk should be implemented with the prospect of exporting it to China.

“The powder milk project should be realized for China. There is always demand in this country on it. The price is good – $2,000-3,000 per tonne. I think that they would be investors without any problems. We are making products no worse than European companies make,” he said.

Tolmachev said that the prospect for launching the two projects is three or five years. It suits the TMM development strategy to become an international company in the next five years.

At present, TMM as the general contractor is building an elevator in Vasylkiv (Kyiv region). Earlier the company finished construction of a bakery. TMM is cooperating in construction of infrastructure projects with Astarta, Ukrproduct and NCH.

“We have what to offer, as we are the full cycle company and can make almost everything, starting from examination and design. If the company is ready to give us a bank guarantee, we build their facilities using own money,” the owner of TMM said.

He said that Ukrainian agriculture is a promising direction for investment, as Ukraine could produce 120 million tonnes of grain, but it has large problems with infrastructure.

“This is a large market for the next 10 years: according to my estimates, agricultural producers are to invest or raise around $12 billion in grain storage and transportation infrastructure. New companies would come: it is enough work for everyone, as in other segments,” the businessman said.

He said that agriculture in Ukraine will be profit-making if the land market were launched.

TMM Firm is a developing and construction company of full cycle. It has been operating on the Ukrainian construction market since 1994.


VILNIUS. Feb 10 (Interfax) – The Lithuanian government has decided to facilitate the employment of some experts from third countries and hopes to attract such workers from Ukraine, Prime Minister of Lithuania Saulius Skvernelis has said.

“If you look at the statistics of recent years, people of those professions, we are talking about, come from Ukraine. I think that we see the same process in the neighboring Poland. The situation is more liberal there. According to our data, thousands of Ukrainians have successfully integrated into the labor market. They are creating additional cost and allow the business to grow,” the prime minister said in an interview with Ziniu radijas radio station on Thursday.

According to him, the government, making employment of foreign experts easier, has created sufficient guards in order not to hurt the growth of wages of local residents.

On Wednesday, the Lithuanian government approved the list of professions for easy order of specialists’ employment of certain areas from abroad, in particular, programmers, experts in the field of information technology, engineers of various fields and technicians. These provisions will apply to immigrants not from the EU countries. Within the community itself all its citizens can work in another country without permission.


KYIV. Feb 9 (Interfax-Ukraine) Cheese imports in January 2017 totaled 559 tonnes, which was 38.6% up on January 2016. Imports in monetary terms totaled $2.5 million ($1.6 million in January 2016).

At the same time, exports of butter from Ukraine in January 2017 increased by 1.8 times, to 605 tonnes. Butter exports in monetary terms amounted to $2.3 million against $0.99 million in January 2016. Imports of this product, according to the State Fiscal Service, fell by 27% in January 2017, to a mere 39 tonnes ($185,000) from 49.6 tonnes ($177,000).

Exports of condensed milk and cream in January 2017 increased by 1.8 times, to 3,100 tonnes. Condensed milk and cream shipments totaled $4.9 million in January 2017, which is almost two times more than in January 2016 ($2.4 million).


KYIV. Feb 9 (Interfax-Ukraine) – Ukraine’s Infrastructure Ministry hopes to repair the runway at the Odesa international airport in 2017, Minister Volodymyr Omelyan said at a meeting with journalists in Kyiv late on Wednesday.

“The aviation development program is working. I hope that this year we will start repair of the runway at the Odesa airport,” he said.

The minister added that the funds may be provided for some other directions.

As reported, in July 2016 now-resigned Head of Odesa Regional Administration Mikheil Saakashvili said that the Odesa airport could stop operating due to the bad state of the runway.

In February 2017 Vice President of Ukraine International Airlines (UIA) mentioned the bad state of the runway in Odesa.

Odesa International Airport is in the top three largest airports in Ukraine on the number of passengers in the first half of 2016. It performs regular and charter flights between the cities of Ukraine, the CIS, Western Europe, Asia, and Africa.


KYIV. Feb 9 (Interfax-Ukraine) – Ukraine in January 2017 exported 10,993 tonnes of poultry, and this was 50% more than a year ago, the State Fiscal Service has reported.

In money terms poultry exports rose by 21%, to $13 million.

Poultry imports shrank by 20.2%, to 6,900 tonnes and in money terms it decreased by 24%, to $2.8 million.

According to customs statistics, pork exports in January fell by 31%, to 380 tonnes for $690,000 compared to $470,000 in January 2016.

Pork imports to Ukraine over the period plunged by 78.7%, to 64 tonnes. Pork for $125,000 was imported to the country and this was 68.8% less than in January 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.