Business news from Ukraine

ALLSEEDS TO PROCESS 500,000 TONNES OF SUNFLOWER SEEDS IN 2015/2016 MY

KYIV. Dec 21 (Interfax-Ukraine) – Allseeds Group intends in the 2015/2016 marketing year (MY, September-August) to process 500,000 tonnes of sunflower seeds at a new plant in Odesa region.

“We want this year to process about 500,000 tonnes of sunflower seeds. Unfortunately, the original plan was higher, but during the launch phase we had problems with the husk granulator,” company CEO Viacheslav Petrysche said in an interview with Interfax-Ukraine.

According to him, the company receives seeds with a different oil content, therefore it decided to introduce the basic oil content when accepting seeds at the plant at the level of 44%.

Petrysche said he sees no prospects for the growth of purchasing prices for sunflower. According to him, with the yield being 12 million tonnes the price of sunflower seeds has fallen to UAH 9,200-9,500 per tonne from UAH 11,000 per tonne.

Allseeds in 2016 will start to actively design the second stage of the oil extraction complex for 2,400 tonnes of seeds per day, and afterwards the third phase.

 

EC TO RECOMMEND THAT EU APPROVE VISA-FREE TRAVEL WITH UKRAINE IN EARLY 2016 – REPORT

KYIV. Dec 21 (Interfax-Ukraine) – The European Commission on Friday approved a positive report on the implementation by Ukraine of the Action Plan on Visa Liberalization (VLAP) with the EU by Ukraine.

“Based on this assessment and the commitments taken, and given the outcome of the continuous monitoring and reporting carried out since the launch of EU-Ukraine Visa Liberalization Dialogue in October 2008, the Commission considers that Ukraine meets all the benchmarks set in respect of the four blocks of the second phase of the VLAP. Taking into account overall relations between the EU and Ukraine, the Commission will present, early 2016, a legislative proposal to amend Regulation (EC) No 539/2001,” reads the report of the European Commission, which is available to Interfax-Ukraine.

Besides, the document describes Kyiv’s progress achieved in document security, including biometrics, integrated border management, migration management and asylum, public order and security, external relations and fundamental rights.

However, Kyiv leadership still committed to ensure that the National Anti-Corruption Bureau and specialized anti-corruption prosecution are fully operational in the first quarter 2016; ensure independence and integrity of the specialized anti-corruption prosecution office; ensure that the National Agency for Corruption Prevention is fully operational in the first quarter 2016 and verification of assets and potential conflicts of interests of public officials in areas and positions most vulnerable to corruption will be launched immediately after; and to adopt legislation on procedures concerning seizure of assets and special confiscation with a view to make the Asset Recovery Office fully effective.

Kyiv is also obliged to ensure in the state budget for 2016 and onwards the necessary financial resources for the well-functioning anti-corruption institutional framework, including the National Anti-Corruption Bureau.

According to the procedure, European Commission must submit a recommendation to European Council and European Parliament to take a decision over establishment of the visa free regime for the citizens of Ukraine.

CZECH COMPANY VOP WILL HELP UKROBORONPROM BRING DOZOR-B ARMORED VEHICLES TO NATO STANDARDS

Lviv. Dec 21 (Interfax-Ukraine) – Ukroboronprom Concern and the Czech state company VOP have signed a memorandum of cooperation within which Dozor-B armored vehicles will be brought to NATO standards.

The memorandum was signed by the representatives of both companies in the territory of Lviv Armored Plant producing Dozor armored vehicles on December 21.

Ukroboronprom Deputy Director Artur Kheruvimov told reporters the essence of the memorandum is that the Czech partners involved in production of armored vehicles will help bring Ukrainian armored vehicles to NATO standards.

“We are talking about the difference in weapons caliber, radio communications and other nuances, on which Ukrainian arms differ from weapons in NATO countries. VOP will also assist in the certification of Dozor vehicles in European states,” he said.

According to Kheruvimov, Dozor-B vehicles have passed state tests and their mass production has been started.

“The first contract has been signed with the Ministry of Defense, and the first batch of Dozors will be supplied to the army in spring next year,” he said.

 

UKRAINE TO SUPPLY 30 NEW TRANSPORT AN-178 AIRCRAFT TO SAUDI ARABIA’S AIR FORCE

KYIV. Dec 21 (Interfax-Ukraine) – Ukraine plans to supply 30 new multipurpose An-178 aircraft with a carrying capacity of 18 tonnes to the Air Force of Saudi Arabia.

The cooperation plans are outlined in a memorandum signed by Antonov State Enterprise (Kyiv) and Taqnia Aeronautics (Saudi Arabia) on December 17, 2015 in Kyiv, the press service of the state enterprise reported on Friday.

Retired Major General Ali Mohammed Al−Ghamdi, Chief Executive Officer of Taqnia Aeronautics company, said after the signing of the document that Saudi Arabia considers the signing of the memorandum as an important step in developing cooperation.

He said that Saudi Arabia selected An-178 aircraft, taking into account the characteristics of the new Ukrainian transport aircraft.

“The important advantages of An-178 compared to other aircraft of this type are its price and low exploitation expenses,” he said.

“We will conduct a joint marketing policy to promote An-178 to the Middle Eastern region markets and plan joint production of these aircraft,” he said.

Antonov Vice President Oleksandr Kotsiuba said that Ukraine considers plans to cooperate with Air Force of Saudi Arabia in the An-178 program as the confirmation of mutual desire to establish strategic partnership between Ukraine and Saudi Arabia in the aircraft building sector.

TURBOATOM TO UPGRADE POWER UNIT AT ZMIYIVSKA TPP FOR USING UKRAINIAN COAL OF ALL GRADES

KYIV. Dec 18 (Interfax-Ukraine) – PJSC Turboatom (Kharkiv) will participate in the modernization of one of the largest thermal power stations in Ukraine – Zmiyivska TPP (Kharkiv region) so that it could transfer to the use of Ukrainian coal of all grades to remove energy dependence on deficient anthracite coal.

“Because of the complicated situation in the fuel and energy market of Ukraine, Kharkiv region selected the transition of power units, using anthracite coal, to Ukrainian coal of all grades, as the main anti-crisis measure for the energy sector rehabilitation,” Head of Kharkiv Regional State Administration Ihor Rainin said in an interview with the Uriadovy Kurier newspaper.

For this purpose, the Energoprogres and Kotloturboprom design bureaus drafted a plan for the re-equipment of coal power blocks at Zmiyivska TPP using the equipment of Kharkiv plants, in particular, Turboatom.

Turboatom, Ukraine’s largest producer of turbine equipment, in January-September 2015 saw a net profit of UAH 1.288 billion, which is 56.5% more than in the same period in 2014, its net income rose by 35%, to UAH 2.077 billion.

BELAVIA PREDICTS FURTHER INCREASE IN PASSENGER FLOW VIA MINSK TO UKRAINE

MINSK. Dec 18 (Interfax-Ukraine) – Belavia airline predicts that the passenger flow via Minsk to Ukraine will continue growing along with the opening of the flight from Minsk to Kharkiv on Thursday, Deputy Marketing and Foreign Operations Director of Belavia Igor Cherginets has said.

“Now, taking into account the additional flight to Kyiv and the opening of the flights to Odesa in November, passenger flow to Ukraine has tripled. Today we open the flight to Kharkiv. I think that the number of passengers on the Belarus-Ukraine route will continue growing,” he told reporters in Kharkiv.

He said that the occupancy of seats for Kyiv flights is very high, and the Odesa flights are approaching this level.

Belavia does not plan to increase frequency of flights from Minsk to Moscow.