Business news from Ukraine

MERCY CORPS HAS PROVIDED 200 GRANTS TO SMALL BUSINESS IN LUHANSK REGION – ADMINISTRATION HEAD

KYIV. Nov 19 (Interfax-Ukraine) – Luhansk regional military civilian administration head Heorhiy Tuka has said that Mercy Corps international organization has provided 200 grants to develop small business in the region.

“Positive: Mercy Corps international organization reports on first success in provision of international grants to develop small business in Luhansk region. A person received a grant to develop a center to grow ornamental plants in Starobilsk district, a practitioner in Novopskovsk organized provision of the ultrasound scan service, a souvenir workshop in Bilokurakine, cattle breeding in Hannivka. In general, the organization has provided 200 grants!” Tuka wrote on his Facebook page on Wednesday.

He also said that jointly with MP Natalia Veselova he continues working on drawing up amendments to the law and procedure for refunding for the apartments lost during hostilities in the east. Tuka said that over 500 houses have been destroyed in Luhansk region.

He said that restoration works in Svatove at social facilities and private houses are underway.

KHERSON STATE PLANT PALLADA TO BUILD NEW FLOATING DOCK FOR VESSEL REPAIRS

KYIV. Nov 18 (Interfax-Ukraine) – Kherson State Plant Pallada, part of Ukroboronprom state concern, has built a floating dock at the request of a South African company, the press service of the state concern has said.

According to the report, the order that the Kherson plant received will become one of the largest orders at the enterprise.

The company told Interfax-Ukraine that under the contract worth $10 million, the plant will provide a new composite floating dock with a lifting capacity of 8,500 tonnes for civil fleet repairs, including vessels for shelf development.

As part of the order, the plant will build a new dock.

“Today the African region operates six docks produced by Kherson State Plant, including two in the Republic of South Africa, and all they had a certain period of operation before supply,” he said.

Kherson State Plant Pallada is the world’s only shipyard specializing in building composite floating docks of the next generation for servicing civilian and military fleet ships. The warranty period of the equipment made is 50 years.

Among the customers of the company are Japan, South Korea, Finland, Bulgaria, Turkey, Algeria, Croatia, France, and South Africa.

Kherson State Plant Pallada under the decision of the government of Ukraine has been part of Ukroboronprom state concern since April 2011.

UKRAINE, BULGARIA PLAN TO RESUME DIRECT TRAIN TRAVEL, WINDROSE TO LAUNCH FLIGHTS TO SOFIA

KYIV. Nov 18 (Interfax-Ukraine) – Ukraine and Bulgaria plans to resume direct train travel between Kyiv and Sofia.

The Infrastructure Ministry of Ukraine said that restoring trains between Kyiv and Sofia was discussed at a meeting of Ukrainian Infrastructure Minister Andriy Pyvovarsky and Bulgarian Minister of Transport, Information Technology and Communications Ivaylo Moskovski in Sofia on November 13.

Pyvovarsky informed his counterpart that today passengers go to Sofia via Budapest, as the through-passenger car of the Moscow-Sofia train was cancelled.

He expressed hope that active work by the railway administrations of Romania, Bulgaria and Moldova will restore the through-passenger cars of Ukrzaliznytsia on the Kyiv-Sofia route for 2016-2017.

Both ministers agreed to work on the issue at the level of railway administrations and ensure railway communications between Kyiv and Sofia in the near future.

Bulgaria reaffirmed its readiness to liberalize air transportation between the two countries and pointed out the plans of the Ukrainian airline Windrose to launch Kyiv-Sofia-Kyiv regular flights in December 2015, to run three times a week.

NOVA POSHTA LAUNCHES FREIGHT, MAIL DELIVERY TO OVER 200 COUNTRIES

KYIV. Nov 18 (Interfax-Ukraine) – Nova Poshta delivery company (Kyiv) launched freight and mail delivery to over 200 countries on November 17

Co-owner of the company Viacheslav Klimov said at a press conference in Kyiv on Tuesday that international delivery has already been launched to Georgia and Moldova.

He said that initially, the service will be available in Kyiv, by March 2016 it will be available in cities with a population of over one million, and by autumn – all over Ukraine.

Deliveries can be made within seven days or three days.

Clients will be able to fill in all the required applications online, before subsequently bringing the parcels to the delivery department or handing them over to the company’s couriers. Additionally, clients can track the delivery of the parcels.

Nova Poshta has created a separate company in its structure – Nova Poshta International. Tymur Kohan, a member of Nova Poshta’s supervisory board, is the director of the new company.

Kohan said that the company expects that the international delivery market will double in three or four years and the company plans to increase its share of the market to 20%.

Kohan said that there are plans to communicate with international companies, logistics operators, and online trade market players.

“We’ve built a chain of business partners from international companies, own transport and logistics chain and we plan to open two more hubs in Asia and the United States next year,” he said.

At present, the company has delivery hubs in the Czech Republic, Poland, Georgia and Moldova.

Kohan said that the delivery of documents weighing 500 grams to Europe will cost from $18, parcels of 22 kilograms – from $34.

He said that UPS, DPD, and DB Shenker are among the partners of the company.

Nova Poshta is private postal delivery company in Ukraine. Its network consists of more than 3,000 offices in more than 900 settlements in the country.

 

PROMETEY GROUP WANTS TO BUY FOUR ELEVATORS IN KIROVOHRAD, KHMELNYTSKY REGIONS

KYIV. Nov 18 (Interfax-Ukraine) – The Prometey (Prometheus) group of companies (Mykolaiv region) plans to buy four elevators in Kirovohrad and Khmelnytsky regions soon, boosting their total number to 12.

“Today Prometey is buying four more large elevators in Kirovohrad and Khmelnytsky regions. We have eight elevators and then we will have 12, and we’re going to enter the list of large elevator owners, as we would have a storage capacity of 500,000 tonnes. Right now, our elevators can store 350,000-400,000 tonnes,” Prometey President Rafael Horoyan told reporters at the Global Grain Geneva 2015 conference.

He did not disclose the name of the company that would sell the elevators.

He said that over the past two years the Prometey elevator chain has grown from three to eight. Its truck fleet was expanded by 27 large-capacity grain carriers, and sales have tripled, to 350,000 tonnes.

“I will try to not increase the storage fees for as long as possible. This year we accept grain free of charge and pre-sales storage as well if later suppliers sell grain to Prometey. I hope that at the end of this agricultural year we will reach 500,000 tonnes in sales,” he said.

In November 2015, Prometey opened a second office in Kirovohrad.

In late July 2015, Prometey bought an elevator complex in Mykolaiv region.

Prometey provides grain and sunflower seeds storage and logistics services on the basis of eight elevators in Mykolaiv, Kirovohrad and Kyiv regions.

 

CEREAL UKRAINE SEES 10-FOLD RISE IN NET PROFIT IN JAN-SEPT 2015

KYIV. Nov 17 (Interfax-Ukraine) – The Cereal Ukraine group of companies, one of the leading cereal producers in Ukraine, saw EUR 2.756 million in net profit in January-September 2015, which is 10 times up year-over-year (EUR 277,000), the holding company of the group – Cereal planet Plс ( Cyprus) said on the NewConnect market of the Warsaw Stock Exchange (WSE).

The company said that its revenue fell by 10.7%, to EUR 14.925 million, and gross profit grew by 11%, to EUR 3.905 million.

Net cash flow from operating activities over the period was EUR 2.775 million compared to EUR 278,000 a year ago.

Assets grew by 16%, to EUR 8,991 from EUR 7,757.

Cereal Ukraine boosted cereal output by 25%, to 26,775. The group linked the increase in the indicator with the growth of peas and millet sales.

Buckwheat production was 6,336 tonnes (a rise of 4.4% year-over-year), corn grits – 1,080 tonnes (36% down), pearl barley – 1,530 tonnes (5.7% down), peas – 11,266 tonnes (2.7 times up), flakes – 651 tonnes (2% down), pasta – 1,117 tonnes (8.3% up), millet – 1,858 tonnes (47 tonnes a year ago).

Cereal Ukraine is one of the leaders in cereal production in Ukraine. The company produces products under the Olimp, Kashka-Vkusniashka and Vershyna Yakosti trademarks. Its enterprises produce 4,000-4,500 tonnes of cereal per year.