Business news from Ukraine

UKRZALIZNYTSIA, POLAND’S NEWAG GROUP TO COOPERATE IN UPGRADING LOCOMOTIVES

KYIV. Aug 19 (Interfax-Ukraine) – PJSC Ukrzaliznytsia and Newag Group (Poland) signed a memorandum of cooperation to upgrade locomotives in Kyiv on August 17.

According to the press service of the Ukrainian company, the parties agreed to study the issue of creating locomotives and implementing solutions for their modernization. The realization of specific tasks will be carried out under separate contracts.

The next step in establishing cooperation will be consultations between technical experts.

“Ukrzaliznytsia intends to invest in rolling stock, therefore in recent years it has signed memorandums with the leading world producers. We are studying all proposals to objectively choose a partner who will provide the most attractive offer both economically and in terms of technology,” Ukrzaliznytsia Board Chairman Wojciech Balczun said.

In addition, according to him, one of the main requirements for the future partner is the willingness to use modern technology at the national production facilities.

Newag S.A. is a company based in Poland and specializing in manufacture, maintenance and modernization of rolling stock.

 

DE NOVO LAUNCHES PROTECTED CLOUD FOR STATE-RUN INSTITUTIONS, ENTERPRISES

KYIV. Aug 19 (Interfax-Ukraine) – De Novo IT company has launched a first in Ukraine protected cloud – G-Cloud designed for the use by Ukrainian state-run institutions and enterprises, the company reported on Wednesday.

“This cloud guarantees high availability of resources and protection of data. It is certified under public standards. We are ready to present a reliable and protected site for e-government and other state-run IT projects,” the press service reported, citing Director General Maksym Aheyev.

The company said that G-Cloud is a protected cloud with good fail-safe features and protection from external threats. It provides IaaS class services.

“New methods for certifying cloud infrastructures under public standards applied to sophisticated information protection systems have been created to certify G-Cloud,” the company said.

G-Cloud opens new prospects for growth of the cloud market in Ukraine and relaxes the certification for suppliers of cloud services.

The company recalled that in the past two years the State Agency for E-Government in Ukraine, Economic Development and Trade Ministry, Odesa Regional Administration, Lviv City Council, Kyiv Metropoliten, Ukrspyrt and other state-run enterprises used their cloud services in the past two years.

The investors in the company are KM Core holding, Intel Capital investment fund and the International Finance Corporation (IFC), part of the World Bank Group.

NAFTOGAZ WILL AGAIN HOLD TENDER TO PROCURE LEGAL SERVICES TO REPRESENT COMPANY’S INTERESTS ABROAD

KYIV. Aug 19 (Interfax-Ukraine) – Naftogaz Ukrainy will again hold a tender for procurement of legal services to represent’s the company’s interests abroad, the company’s press service has said.

“The previous bidding announced on June 16, 2016 was canceled due to mismatch between proposals from bidders and qualification criteria. Shearman & Sterling LLP and King & Wood Mallesons LLP filed an incomplete package of necessary documents, confirming the availability of branches and staff of the appropriate qualification,” the report reads.

The expected price of legal services purchase is UAH 30 million, the deadline for submitting proposals is until September 19, 2016. The term of providing services is up to December 31, 2017.

Bidders must meet the eligibility requirements, in particular, have offices in at least three European Union countries (including Britain), the Middle East, the United States and China. Qualified personnel should be also confirmed.

INDIA’S AZAD COULD START ELECTRIC BUS PRODUCTION AT KHERSON MACHINE BUILDING PLANT

KYIV. Aug 19 (Interfax-Ukraine) – AZAD group of companies (India), a large manufacturer of public transport, could begin production of electric buses in Kherson, according to the website of Kherson Regional State Administration.

According to the report, with reference to administration chairman Andriy Hordeyev, a relevant memorandum on the launch of production will be signed on August 18 following his meeting with AZAD representatives.

“We are ready for cooperation, therefore we intend to sign a five-sided memorandum and jointly with AZAD we will develop a project to obtain an eco-loan from the EBRD,” the press service said citing Hordeyev.

According to investors’ conclusions, today Kherson machine building plant is most suitable for production, therefore it will be one of the parties to the memorandum.

“Kherson region is attractive for the start of production due to the warm climate and production sites that meet the relevant requirements,” the report reads.

During the meeting AZAD Group presented information about the buses it produces (urban, intercity, tourist, school, etc.), technical indicators of production, the companies that cooperate with it.

The cost of electric buses made by the company ranges from $200,000 to $500,000.

ACTIVE ENERGY GROUP RAISES GBP2.05 MLN TO EXPAND WOOD PROCESSING CAPACITY IN UKRAINE

KYIV. Aug 19 (Interfax-Ukraine) – Active Energy Group Plc (AEG), whose shares are traded on the London Stock Exchange, in early August attracted GBP2.05 million ($2.67 million at the current exchange rate) to expand the capacity of its AEG WoodFibre wood processing plant in Yuzhny port in Ukraine, as well as replenish working capital.

“We plan by the end of the year to launch a fully automated production line for hardwood capable of processing about 3,000 tonnes of raw materials per day, a new production line for softwood with a capacity of 1,000 tonnes per day,” a company report reads, with reference to its CEO Richard Spinks.

According to him, the short-term projects of capital investment in AEG WoodFibre in Yuzhny port also suggest the acquisition of mobile crushers and lift-and-carry equipment.

The report states the company with the help of Northland Capital Partners broker sold 77.358 million new shares at a price of GBP0.0265 per share to new and existing shareholders, which corresponds to a 16.5% discount to the closure price on August 2.

As reported, AEG has ten-year contracts to buy wood and process it into fire wood chips (in Ukraine) and supply products to energy facilities (in Poland). Liuboml forestry (Volyn region) supplies up to 100,000 of wood a year at the fixed price. Volyninvestbud makes fire wood chips from it at the fixed tariff and supplies up to 80,000 tonnes of finished products a year. Medium Sp. Z o.o. buys all products to deliver them to energy facilities in Poland.

INFRASTRUCTURE MINISTRY TO PRESENT NATIONAL TRANSPORT STRATEGY UNTIL 2030 IN THREE OR FOUR MONTHS

KYIV. Aug 18 (Interfax-Ukraine) – Ukraine’s Infrastructure Ministry intends to present the national transport strategy until 2030 in three or four months, Minister Volodymyr Omelyan has said.

“We are working on it with our European partners. We have finished a first phase of drawing up a draft national strategy of Ukraine until 2030. This must be an essential document to specify development of infrastructure that should become a driver of the Ukrainian economy,” he said at a briefing in Kyiv on Tuesday.

The minister said that among key top-priorities of the strategy is efficiency of public administration in the transport area, provision of high-quality and effective transport services, stable financing of transport, increase of safety and reliability and city mobility and regional integration.