Business news from Ukraine

UKRAINIAN GOVERNMENT EXTENDS ‘WARM LOANS’ PROGRAM FOR 2017

KYIV. Feb 9 (Interfax-Ukraine) – The Ukrainian Cabinet of Ministers at its meeting on Wednesday adopted a decision to extend for 2017 the public program to partially compensate the cost of loans for modernization of heating efficiency and increase of energy efficiency in the Ukrainian housing sector (the ‘warm loans’ program), the press service of the State Agency for Energy Efficiency and Energy Saving reported.

“The government has extended the popular ‘warm loans’ program for 2017 and improved the procedure for provision of compensations under this program. Soon, Ukrainians will be able to make full use of its capabilities and raise non-repayable financial aid from the state for energy efficiency measures,” the agency head, Serhiy Savchuk, said.

According to him, the list was of banks participating in the program has been extended in particular to include PrivatBank, which according to Savchuk, will allow enhancing competition among banks, reducing the cost of loans, and attracting more participants.

In addition, a mandatory commercial accounting for the activities on improvement of heating efficiency of apartment block will be introduced.

“Thus, homeowner associations will be able to control the actual consumption of energy at home and assess the efficiency of the implementation of energy efficiency measures. As before, homeowner associations will get 40% non-repayable financial assistance for such measures,” Savchuk said.

As reported, UAH 400 million of the 2017 national budget will be sent to provide non-repayable financial assistance to households and homeowner associations to take energy efficiency measures: insulation of buildings, installation of water and heat meters, heaters with thermostatic regulators, replacement of windows, modernization of lighting and other things.

GREECE INTERESTED IN DEVELOPING COOPERATION WITH BLACK SEA REGION OF UKRAINE – GREEK PM

KYIV. Feb 9 (Interfax-Ukraine) – Greek Prime Minister Alexis Tsipras said that Athens is interested in developing cooperation with the Black Sea region of Ukraine.

“Greece is extremely interested in development of cooperation with the Black Sea region of Ukraine due to historical links of Greece with these regions, in particular, in cultural and economic aspects. And we are very keen to develop closer links with the Black Sea regions,” the prime minister of Greece told after a meeting with Ukrainian Prime Minister Volodymyr Groysman in Kyiv on Wednesday evening.

According to Tsipras, the two countries have historical ties. About 100,000 ethnic Greeks live in Ukraine, and Greece is interested in their safety, keeping in mind that some of them are living in the conflict zone in Donbas.

UKRAINE, U.S. SIGN AGREEMENT ON FATCA

KYIV. Feb 8 (Interfax-Ukraine) – Ukraine’s Finance Minister Oleksandr Danyliuk and U.S. Ambassador in Ukraine Marie Yovanovitch signed an intergovernmental agreement to improve the implementation of tax rules and apply the provisions of the U.S. foreign account tax compliance act (FATCA) was signed in Kyiv on Tuesday.

“This agreement helps to reduce the opportunities for financial fraud and tax evasion, to promote a better exchange of information between Ukraine and the United States, the exchange of experience and strengthening our cooperation with the United States,” Danyliuk said after the signing.

Yovanovitch explained that under the agreement, the United States will receive at the state level information from the Ukrainian side about the administration of income tax by U.S. citizens and companies in which they own stakes.

The bilateral cooperation in the field of administration of income and taxes is a two-way street, the ambassador said noting that the U.S. is also willing to share the relevant data with the Ukrainian authorities.

Danyliuk said that the agreement on FATCA has already been signed with 60 countries.

 

CAR IMPORTERS START IMPORTING ELECTRIC CARS TO UKRAINE

KYIV. Feb 8 (Interfax-Ukraine) – Official car importers have started importing electric cars to Ukraine. At the current stage the start of electric car sales is not a commercial project, but promotion of the product. Buyers should be prepared for it and infrastructure should be arranged.

“We have started importing electric cars officially at the end of last year. Of course, there is no large demand on them, but there is hope that a crucial point will be seen in the near term when the price of the car and the price of electricity will meet in one point and boom of their sales starts,” Director AWT Bavaria (BMW cars) Oleksandr Tymofeyev said during the discussion of the development of the Ukrainian automobile market late on Monday.

He said that taking into account the current state of the market and the necessity of receiving profit this is not a commercial project now. However, promotion of electric cars to the market requires a lot of time and funds.

“Advantages of these cars should be explained to consumers. The owners of the cars would come to the servicing centers less often. For example, the electric cars do not have lubricants, but they have recuperation boosting the lifespan of brake pads by two or three times if it is used wisely. On the other hand, we need to write letters to fire-fighting service, as this is another fire-fighting system in case of a car accident – there is no petroleum, but there is electricity and voltage,” he said.

Board Chairman of Renault Ukraine Yana Minenko said that the company devoted itself to the issue in 2015 after seeing the interest of Ukrainians to these cars.

“Initially this is not a commercial project – how many these cars can be sold on the 50,000-60,000 car market? Today few official representatives show their interest in the issue. Mainly unofficial representatives who import the cars from the United States and the EU were present at a meeting of the working group at the Infrastructure Ministry at the end of 2016. However, the official network is broad today. If it is not involved in promotion, there is no sense to speak about the servicing of electric cars in Ukraine,” she said.

“Now electric cars are much more expensive than cars with ICE, and I support the initiative of the ministry to implement a comprehensive program to promote them in Ukraine,” Minenko said.

Commercial Director of Hyundai Motor Ukraine Hennadiy Chetverukhin also said that the company decided to be involved in the issue, taking into account growth of the Ukrainian market.

He supported the opinion first to create infrastructure. Large investment is required in the creation and equipping servicing stations.

He said that it is likely that when the electric car market development programs were realized, companies would face internal problems in Ukraine.

The Infrastructure Ministry said that as of November 2016 there were 1,630 electric cars in Ukraine. Their annual growth is 13.2%, and their share of total sales is 0.7%.

MILK ALLIANCE TO INCREASE CHARTER CAPITAL BY 35%

KYIV. Feb 8 (Interfax-Ukraine) – Shareholders in private joint-stock company Milk Alliance (Kyiv) have decided to increase charter capital by 35%, to UAH 37.1 million, the company has reported in the information disclosure system of the National Commission for Securities and the Stock Market.

According to the report, the decision was made at a meeting of shareholders held on February 6.

Milk Alliance will privately place 8.2 million additionally issued ordinary shares with a face value of UAH 1. The market price and the placement price is UAH 1.07 per share.

The company would not attract an underwriter to place the shares.

The participant of the private placement is the only shareholder in the company – MilCo Holding.

PrJSC Milk Alliance is part of the eponymous group.

Milk Alliance unites Pyriatyn cheese factory, Bashtanka cheese factory, Horodenka, Trostianets, Novoarkhanhelsk and Zgurivka cheese factories, Zolotonosha butter factory, as well as Etalonmolprodukt and Etalon trade house sales companies.

BULGARIA’S FISHERMAN INVESTMENTS TO BUY 22% OF SHARES IN KOSTOPIL GLASS PLANT

KYIV. Feb 8 (Interfax-Ukraine) – Bulgaria’s Fisherman Investments LLC intends to acquire 2.724 million shares or 21.9999% of the share capital in private joint-stock company Kostopil Glass Plant (Rivne region), the company has reported in the information disclosure system of the National Commission for Securities and the Stock Market.

Edmonton Developments Inc. (British Virgin Islands) will sell the shares. As of Q3 2016 the company held 21.9990% in the Ukrainian company.

The price of a share will be $0.12 or UAH 3.23.

As of February 7, 2017, Fisherman Investments and affiliated persons did not hold shares in the plant.

Kostopil Glass Plant was founded in 2000. Its core business is hollow glass production.