Business news from Ukraine

STATE STATISTICS SERVICE: VOLUME OF INDUSTRIAL GOODS SOLD IN UKRAINE 18% UP IN 2016

KYIV. Feb 3 (Interfax-Ukraine) – The volume of industrial goods and services sold in Ukraine in 2016 amounted to UAH 1.766 trillion, which is 18% more than in 2015 (UAH 1.496 trillion), in particular exports stood at UAH 466.6 billion (UAH 418.8 billion), the State Statistics Service has said.

According to the service, in the total sales the share of food, beverages and tobacco products was 21.6%, that of supply of electricity, gas, steam and conditioned air 21.5%, metallurgical production and production of finished metal goods 17.1%, mining and quarrying 13%.

In December 2016 compared to December 2015 the volume of mining and processing industry sales increased by 24.4%, in particular mining and quarrying by 48.6%, processing industry by 20.6%.

UKRZALIZNYTSIA PROPOSES TO SIGN COMPANY LONG-TERM PRICE POLICY AGREEMENT TO BUSINESSMEN

KYIV. Feb 3 (Interfax-Ukraine) – Public joint-stock company Ukrzaliznytsia has proposed to business to sign the company long-term price policy agreement, Ukrzaliznytsia Board Chairman Wojciech Balczun said when discussing a draft order of the Infrastructure Ministry to increase freight transportation tariffs by 25% at the State Regulatory Service on Thursday.

“We propose to sit and sign the agreement on the long-term price policy at Ukrzaliznytsia. The market would be able to plan. I absolutely support the expansion of our prospects for more than one year. Ukrzaliznytsia has never had a long-term strategy. The financial plans are drawn up only for one year. We can sign contracts only for one year. Tell this to Germans who sign contracts for 15 years… Now we should hold a tender to buy rolling stock during three years as we did it in Poland. I cannot do this, as even the financial plan for 2017 has not yet been approved,” he said.

Business representatives criticized the draft order to increase the tariffs during the discussion. The decision would affect both Ukrzaliznytsia due to a fall in the volume of transportation and the Ukrainian economy. They voiced support to strengthening transparency in spending the funds of the company, increasing efficiency of its operations and rational use of funds.

After the discussion the State Regulatory Service refused to approve the draft order and decided to create a working group jointly with business to set a compromise tariff.

UKRAINE BOOSTS INSTALLED GENERATING CAPACITY OF EQUIPMENT BY 505.6 MW IN 2016 – UKRENERGO

KYIV. Feb 3 (Interfax-Ukraine) – The entire installed generating capacity of equipment operating in the Ukrainian power grid in 2016 grew by 505.6 MW, to 55,331 MW, the press service of national energy company Ukrenergo has reported.

The figure takes into account 3,943 MW of generating facilities located in the occupied areas of Donbas.

Unit three of Dnistrovska hydroelectric pumped storage power plant with the installed capacity of 324 MW was launched last year.

Unit two of Trypilska thermal power plant (TPP) with the generating capacity of 25 MW, unit six of Burshtyn TPP (10 MW), unit five of Burshtyn TPP (7 MW) and units of large hydroelectric power plants (HPPs) were reconstructed.

Last year new solar power plants with the installed generating capacity of 98.8 MW, wind farms (11.6 MW), biofuel power plants (10.2 MW), new and restored HPP (2.8 MW) were launched.

Cogeneration unit with the capacity of 2.5 MW was launched last year and the capacity of one of the gas-fueled reciprocating power plants was increased by 3.9 MW.

However, Alzhyhorska wind farm with a capacity of 0.65 MW was dismantled.

In 2016, the share of TPP of the total installed generating capacity of Ukrainian power grid was 50.3% (27,845 MW), nuclear power plants (NPPs) – 25% (13,835 MW), combined heat and power plants (CHPP) – 11.7% (6,469 MW), HPP – 8.5% (4,711 MW).

PHILIP MORRIS RAISES PRODUCE SHIPMENTS IN UKRAINE BY 14.7% IN 2016

KYIV. Feb 3 (Interfax-Ukraine) – Philip Morris International Inc. (PMI), one of the world’s largest manufacturers of tobacco products, 2016 increased shipments of cigarettes in Ukraine by 14.7%in 2016, to 22.014 billion pieces.

According to an annual report published on Thursday, for the full year, the estimated total cigarette market increased by 2.9%, to 72.7 billion pieces, mainly driven by a lower prevalence of illicit trade.

The company said that in Q4 2016 the estimated total cigarette market decreased by 6.4%, to 17 billion pieces, principally driven by the impact of price increases in 2016. PMI shipments in Q4 2016 fell by 0.5%, to 4.8 billion cigarettes.

The PMI share of the Ukrainian market in 2016 narrowed by 0.1 percentage points, to 29.9% due to a decline of the Marlboro brand’s share by 0.6 percentage points, to 3.2% and the share of other PMI brands – by 1.4 percentage points, to 13.6%. Bond Street share grew by 1.8 percentage points, to 10.1% and Parliament – by 0.1 percentage points, to 3%.

Philip Morris International is one of the world’s largest manufacturers of tobacco products. It produces cigarettes at more than 50 factories, sells them in 160 countries.

The company has been operating in Ukraine for more than 15 years. It manufactures products at the factory in Kharkiv region.

 

AGROTRADE TO SEND SOME $40 MLN FOR SPRING SOWING CAMPAIGN IN 2017

KYIV. Feb 2 (Interfax-Ukraine) – Agrotrade agroindustrial group will send near $40 million for its spring sowing campaign in 2017.

“Around $40 million will be sent for the 2017 sowing campaign. All 17 enterprises of the group have all the required machinery, seeds, plant protection agents and other things,” the group’s press service reported on Wednesday.

Since 2006 Agrotrade has been cooperating with many financial structures. Its loan portfolio includes contracts with Credit Agricole Bank, Raiffeisen Bank Aval and other banks.

“2017 started favorably and early this year all limits to finance the sowing campaign were approved by the banks,” the group said.

As reported, Agrotrade invested around UAH 10 million in the launch of organic production on 2,000 ha in Chernihiv, Sumy and Kharkiv regions.

Since spring 2017 the company will start producing own organic crops – soybeans, peas and buckwheat. The crops will be sold to the EU and the United States.

Agrotrade is a vertically integrated holding, engaged in production, processing, storage and trade in agricultural products.