Business news from Ukraine

UKRAINE TO INCREASE ELECTRICITY SUPPLIES TO POLAND BY 400 MW – ENERGY MINISTER

KYIV. Aug 14 (Interfax-Ukraine) – Ukraine intends to speed up repairs on its thermal power plants and to increase the capacity of electricity supplies to Poland by 400 MW, Energy and Coal Industry Minister of Ukraine Volodymyr Demchyshyn has said.

At the moment, the capacity of power supplies from Burshtyn thermal power plant to Poland is 600 MW, the ministry’s press service said quoting Demchyshyn.

Demchyshyn added that Ukraine currently itself imports electricity from Russia under the previously signed contract.

“The contract has worked exactly as planned – as insurance against force majeure, and imports will be stopped as soon as we restore our own capacity,” he stressed.

The minister also said that the group of experts left for private thermal power plants (TPPs) to check if the currently unscheduled repairs are expedient. The ministry is also conveying to DTEK the need to ensure a more even provision of its power plants with coal.

“Apart from the problems of the TPPs, we now have a very low production on hydroelectric power plants due to low water levels. The hydroelectric power plants on the Dnipro River generally have the lowest level of power generation in history. However, the lessons of the heating season were not in vain, and we are ready for this situation,” the minister summed up.

As reported, Poland imposed restrictions on electricity consumption due to heat.

Ukrainian Prime Minister Arseniy Yatseniuk earlier instructed the Ministry of Energy and Coal Industry in connection with the critical situation in the energy system of Poland to take urgent measures to ensure the highest technically possible supply of electricity to Polish power grids.

NBU TO INCREASE INTERNATIONAL RESERVES TO $15 BLN BY YEAR END

KYIV. Aug 14 (Interfax-Ukraine) – The National Bank of Ukraine intends by the end of the year to increase international reserves to at least $15 billion to implement the world’s recognized indicator of reserves adequacy to cover three months of imports, NBU Head Valeriya Gontareva has said in an interview with the Focus magazine.

“We plan by the end of the year to increase forex reserves to $18 billion. This is certainly ambitious plans, while the minimum objective for us is $15 billion, which cover three months of imports,” she said.

Speaking about cleaning the banking system, the NBU head noted it has been completed. Now the National Bank moves to the second stage: to restart it, while seeking a full disclosure of the structure of their ultimate owners.

“We consider 44 banks as non-transparent. In the course of analysis this figure could increase. Of these 44 banks two have been recognized problem, 14 banks got a notification from us that their ownership structures are officially recognized as non-transparent,” Gontareva said.

As reported, the NBU international reserves in July increased by $112 million, or by 1.1%, to $10.375 billion. In early August the National Bank received the $1.7 billion second tranche of the EFF program from the International Monetary Fund.

CATTLE NUMBERS IN UKRAINE 7.1% DOWN IN SEVEN MONTHS, PIGS BY 3.3%, POULTRY BY 4.8% – STATISTICS

KYIV. Aug 13 (Interfax-Ukraine) – Cattle numbers in Ukraine (excluding the temporarily occupied territory of the Autonomous Republic of Crimea, the ATO zone) as of August 1, 2015 amounted to 4.403 million animals, which is 7.1% less compared to the same period in 2014.

According to the State Statistics Service, the number of cows during this period decreased by 6.2% and amounted to 2.226 million animals.

The number of pigs fell by 3.3%, to 7.724 million animals, sheep and goats by 6%, to 1.726 million animals.

Poultry numbers in the country compared to August 1, 2014 decreased by 4.8%, amounting to 248.765 million birds.

CHINESE INVESTORS INTERESTED IN BUILDING PORT ELEVATOR IN UKRAINE FOR 50,000-100,000 TONNES – OFFICIAL

KYIV. Aug 13 (Interfax-Ukraine) – Chinese investors intend to build a port elevator of 50,000-100,000 tonnes in Ukraine, First Deputy Minister of Agricultural Policy and Food Yaroslav Krasnolsky has said.

“As a result of our meetings, we do not have a signed protocol. Envoys have arrived in Ukraine and they are ready to build an elevator for 50,000-100,000 tonnes and raise $2.5 billion from the Chinese side. This concerns a port elevator,” he said at a briefing in Kyiv.

According to him, the relevant agreements were achieved during a visit of the Ukrainian delegation to China. In the near future representatives of Chinese state-owned companies are expected to come to establish cooperation with Ukrainian companies.

According to the ministry, in 2014 the share of agricultural products in the total goods turnover in China amounted to 29% (the total turnover stood at $2.7 billion).

UKRAINE RESUMES GAS IMPORTS FROM HUNGARY IN LOW VOLUMES

KYIV. Aug 13 (Interfax-Ukraine) – Ukraine has applied for pumping 1,963 cubic meters of natural gas from Hungary on August 11, according to data from the Hungarian gas transportation system operator FGSZ.

Ukrtransgaz confirmed the receipt of an application for 100,000 cubic meters in August.

“One application in the amount of 100,000 cubic meters was received for August for the Hungarian direction. It is recorded on the balance sheet account, and as soon as the sufficient gas volume, at which it is possible to provide measurement, is accumulated, pumping will be performed,” the head of the PR department at PJSC Ukrtransgaz, Maksym Beliavsky, said.

As reported, Ukraine suspended gas imports from Hungary from July 1. In June, the daily gas transportation was 2.6-2.7 million cubic meters of gas.

Ukraine in January-July 2015 reduced natural gas imports by 27.2% compared to the same period in 2014, to 10.7 billion cubic meters. In particular, 6.9 billion cubic meters, or about two-thirds, were supplies from Europe, and 3.8 billion cubic meters, or about one-third, from Russia.

UKRAINIAN GOVERNMENT, ESA PREPARING AGREEMENT FORMALIZING KYIV’S SPACE INTEGRATION PLANS

KYIV. Aug 13 (Interfax-Ukraine) – Ukrainian government and European Space Agency (ESA) are preparing the agreement “On Ukraine’s acquiring the status of a European country cooperating with ESA,” which is a stage of realization of Kyiv’s plans for becoming a full member in European space structures.

According to the Cabinet of Ministers’ resolution No. 803-r as of August 5, Ukrainian government’s delegation, which is being formed and will be lead by Head of the State Space Agency of Ukraine Oleh Ursky, was ordered to conduct talks with ESA on agreeing on the draft of this agreement, in accordance with approved directives.

As approved by the document, the delegation consists of representatives of the State Space Agency, Justice Ministry, Foreign Ministry, Economic Development and Trade Ministry, Finance Ministry, government’s secretariat. If needed, the delegation head can replace delegation members and involve representatives of central government agencies in its work.

Signing of the above-mentioned agreement is one of Ukrainian Space Agency’s top priority tasks for Ukraine’s rocket-and-space industry in 2015. This is one of the stages of the roadmap of Ukraine’s integration into ESA developed by the partners.

Ukrainian rocket-and-space industry representatives believe that Ukraine’s membership in ESA will extend the country’s presence on European space market.

In July, Ukrainian State Space Agency and ESA started consultations on the cooperation of Ukrainian rocket-and-space industry enterprises with European companies within the ESA projects. Major prospect directions of bilateral cooperation at the given stage, which are being considered, include Earth’s remote sensing (ERS), rocket carriers, and scientific research. Earlier Ukraine stated its interest in the participation in the new European project of Ariane-6 rocket carrier. Europeans also showed interest in Ukrainian rocket engines. New European Vega-class, rocket carrier created upon the order of ESA is equipped with Ukrainian engine.

In 2008, Ukrainian government and ESA signed inter-governmental agreement on cooperation in researching and using space for peaceful purposes. At the beginning of 2014, the agreement was prolonged until 2019.