Business news from Ukraine

KYIV, HELSINKI AGREE ON COOPERATION IN ENERGY EFFICIENCY, ‘GREEN ENERGY’ AND ALTERNATIVE FUELS

HELSINKI. Jan 24 (Interfax-Ukraine) – The authorities of Ukraine and Finland have signed a memorandum on cooperation in the areas of energy efficiency, renewable energy (‘green energy’) and alternative fuels.

The document was signed on Tuesday by Ukrainian Deputy Prime Minister Hennadiy Zubko and Minister for Foreign Trade and Development of Finland Kai Mykkanen in the framework of the official visit of President of Ukraine Petro Poroshenko in Helsinki, according to the Kyiv-based Interfax-Ukraine news agency.

OVOSTAR UNION POSTS 24% RISE IN SHELL EGG PRODUCTION IN 2016

KYIV. Jan 24 (Interfax-Ukraine) – Ovostar Union, a leading egg producer in Ukraine, produced 1.479 billion eggs in 2016, and this is 24% more than a year ago.

The company said on its website that egg sales last year rose by 22%, to 1.054 billion. Exports grew by 34%, from 229 million in 2015 to 307 million in 2016.

The company processed 407 million eggs (2015: 347 million eggs). Sales volume of dry egg products increased by 9% to 2,125 tonnes (2015: 1,941 tonnes), while volume of dry egg products exported went up by 45% to 1,320 tonnes. Sales volume of liquid egg products increased by 30% to 8,689 tonnes (2015: 6,692 tonnes), while volume of liquid egg products exported amounted to 2,161 tonnes mostly due to sales to the EU countries.

Average selling price of shell eggs remained mostly the same and amounted to 1.348 UAH/egg compared to 1.374 UAH/egg in 2015. Average selling price of dry egg products increased by 13% year-on-year to 121.44 UAH/kg; average selling price of liquid egg products increased by 10% to 29.56 UAH/kg.

As at December 31, 2016 the total flock increased by 16% to 7.6 mln hens (2015: 6.5 million hens). The laying hens flock reached 6.5 million hens, up by 22% year-on-year from 5.3 million hens.

“In 2016 the company continued to follow its organic growth strategy. We managed to achieve significant growth rates in all operating indicators. I would like to note that the company started to systemically deliver the liquid egg products to the EU countries,” Ovostar Union CEO Borys Bielikov said.

JAPANESE SHIPPING COMPANY INTERESTED IN WORK AT CHORNOMORSK PORT

KYIV. Jan 24 (Interfax-Ukraine) – Representatives of the Japanese shipping company NYK Line have visited Chornomorsk seaport, the practical result of the meeting might become the first NYK Line vessel entry to the port in the first quarter of 2017.

According to the website of the port, the purpose of the visit was to familiarize with the production capacities of Chornomorsk seaport, particularly the ferry terminal and other facilities.

“The NYK Line representatives gave a satisfactory estimate of the port infrastructure and the prospects of its development,” the report reads.

Chornomorsk seaport is a universal international port, one of the largest on the Black Sea. The enterprise has specialized terminals and systems, which allow overloading a wide range of goods: liquid, bulk, general. Its 29 berths are capable of receiving ships with a carrying capacity of up to 100,000 tonnes. The annual designed capacity of the port is more than 30 million tonnes.

The port’s capacity of container handling is 1.15 million TEU. Since 2007 the port has been capable of providing the simultaneous accepting of three ocean-going container ships with a capacity of more than 5,000 TEU and a length of up to 300 meters.

EBRD SUPPORTS EXPANSION OF FOOD RETAIL CHAIN RUKAVYCHKA WITH UAH 135 MLN LOAN

KYIV. Jan 23 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) is extending a hryvnia denominated loan of UAH 135 million (equivalent of $5 million) to Rukavychka group, a major food retailer operating 110 convenience stores in western Ukraine for the expansion of the company’s operations.

“A six-year loan by the EBRD will support Rukavychka’s investment program, which envisages the opening of 42 new stores across western Ukraine by the end of 2018, modernization and energy efficiency improvements in the existing stores and the development of a logistics centre,” the bank said.

The project will also benefit from an incentive grant of almost $200,000 extended under the EBRD Finance and Technology Transfer Centre for Climate Change (FINTECC) program designed to transfer technology in the area of climate change mitigation and adaptation, launched in Ukraine in February 2016.

“The grant to the Rukavychka group will cover introduction of a wide range of energy efficiency measures including the installation of heat recuperation systems and biomass boilers as well as the replacement of the existing cooling compressors and other equipment in the stores of the Rukavychka chain,” the bank said.

The bank said that the EU4Business Initiative groups together all the EU support for small and medium-sized enterprises in the region of the Eastern Partnership which brings together the EU, its member states and six partner countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.

Lvivkholod trade and industrial company LLC, founded in 2004, develops the Rukavychka store chain.

As of January 20, 2017 the chain had 110 supermarkets in Lviv, Ternopil, Ivano-Frankivsk, Khmelnytsky and Rivne regions.

INTERNATIONAL ORGANIZATIONS TO PROVIDE $2.5 MLN FOR HEALTHCARE SYSTEM IN POLTAVA, LVIV REGIONS

KYIV. Jan 23 (Interfax-Ukraine) – The World Bank and Swiss Cooperation Office would provide $2.5 million as technical and organization assistance to Lviv and Poltava regions to reform the healthcare system, the press service of Ukraine’s Health Ministry has reported.

“Lviv, Poltava and other regions which will launch the medical reform first would receive technical and organization assistance under the trilateral project with the participation of the World Bank, Swiss Cooperation Office and Health Ministry,” the ministry said.

The project will be implemented in 2017-2020. Its consists of two elements – technical assistance to the regions to introduce top priority directions in healthcare reform and increase institutional ability aimed at improving the healthcare system management, fighting corruption, monitor procurement and financial operations under the Serving People, Improving Health Project for Ukraine.

“The project is important in the context of implementing the World Bank’s Serving People, Improving Health Project for Ukraine envisaging the use of a $214.73 million loan,” the press service said.

In March 2015, the World Bank’s Board of Executive Directors approved a $214.73 million loan provided by the International Bank for Reconstruction and Development (IBRD) to implement Serving People, Improving Health Project. The project will seek to develop medical infrastructure and improve the quality of health services in eight regions across the country: Vinnytsia, Volyn, Dnipropetrovsk, Zakarpattia, Zaporizhia, Lviv, Poltava and Rivne regions.

KHARKIV-WARSAW FLIGHTS TO BECOME DAILY FROM JUNE 4

KYIV. Jan 23 (Interfax-Ukraine) – Poland’s LOT airline on June 4, 2017 will increase frequency of regular flights from Kharkiv to Warsaw from six times a week to seven, the press service of the Kharkiv International Airport has reported.

“From March 5, 2017 LOT will send planes to Warsaw from Kharkiv on Mondays, Tuesdays, Wednesdays, Thursdays, Saturdays and Sundays, and from March 31 through June 3 all days of the week, apart from Saturday,” the airport said.

LOT commenced servicing regular flights from Kharkiv to Warsaw in March 2016, starting from five times a week and expanding to six.

In 2016, the airport saw a 61% rise in passenger flow in 2016, to 599,700, and this is almost the same as the record-breaking figure of 2013 (605,000 passengers).

Kharkiv airport has a runway with a length of 2,220 meters and a width of 50 meters. It has two passenger terminals with a capacity of 100 and 650 persons per hour.

The airport is operated by DCH through New Systems AM.