Business news from Ukraine

UKRAINIAN BUSINESS RETAINS POSITIVE EXPECTATIONS FOR THIRD CONSECUTIVE QUARTER – NBU

KYIV. July 13 (Interfax-Ukraine) – Ukrainian enterprises of all types of economic activity expect revival of business activity for a third quarter in a row, according to the results of a second survey of company chiefs conducted by the National Bank of Ukraine (NBU) in the second quarter of 2017.
“Optimistic expectations are based on improving respondents’ forecasts regarding investment expenditures, the financial and economic situation of enterprises, as well as maintaining high expectations regarding total sales of products,” the central bank said in a statement.
In addition, interviewed top managers continue to expect improvement in the macroeconomic situation in Ukraine.
“At the heart of optimistic forecasts of respondents is the expectation of faster growth in production volumes, business activity revival, continued slowdown in inflation and weakening of devaluation processes,” the NBU said.
According to the National Bank, maintaining stability in the foreign exchange market in the second quarter of 2017 contributed to a weakening of inflationary and devaluation business expectations.
“According to the estimates of top managers, the growth of consumer prices in the next 12 months will be 9.9%, while four out of 10 respondents predict that inflation will not exceed 9% or decrease. The number of respondents, who believe that the hryvnia exchange rate against the U.S. dollar will remain unchanged or strengthen, has almost doubled, to 24.6%,” the National Bank said.
At the same time, for the first time since the first quarter of 2014, business said that the impact of the exchange rate factor is not the key factor for the growth of consumer prices. Interviewed businessmen believe that the dynamics of consumer prices, mainly, will determine the cost of production.
The National Bank also reports that the index of business activity rose to 114.3% from 113.3% in the previous quarter. The most optimistic are agricultural producers, representatives of the sphere of trade and processing industry.
Respondents also expect that the growth of production of goods and services in the next 12 months will accelerate. The most optimistic are companies of the processing industry, energy and water supply.

UKRGASBANK TO ISSUE EUR7.1 MLN TO DTEK FOR BUILDING SOLAR PLANT

KYIV. July 13 (Interfax-Ukraine) – PJSC Ukrgasbank and DTEK energy holding’s division Tryfonivka Energy have signed a loan agreement for EUR7.1 million for the construction of a solar power plant in Kherson region, the holding’s press service has reported.
“The construction of the 10 MW Tryfonivka solar power plant will be completed in 2017. Electricity supply will be 11-12 million kWh per year. Through the launch, the station will be able to supply electricity to more than one-third of Velyka Oleksandrivka district of Kherson region. Tryfonivka solar power plant is DTEK’s pilot project in solar energy, the results of which will become the basis for the formation of the company’s strategy in the segment of renewable energy sources,” the report said.
As reported, DTEK is considering the possibility of building up to 1 GW of “green” generation capacity in the next five years.

POROSHENKO: INVESTMENT IN UKRAINE ON THE RISE

KYIV. July 13 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko says foreign investment in Ukraine has significantly increased.
“An increase in foreign direct investment as of today is over $0.5 billion, and the total sum last year exceeded $4 billion,” Poroshenko said during a working visit to Sumy on Wednesday.
Ukraine has been implementing a number of important reforms while countering military aggression, he said.
“But this does not prevent us from believing in Ukraine’s future, believing in the effectiveness of Ukrainian reforms and we will resolutely continue these reforms,” he added.

EBRD RAISES COMPENSATION UNDER IQ ENERGY PROGRAMME TO 35%

KYIV. July 12 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) has increased the amount of compensation for loans received for implementation of energy efficient activities within the IQ Energy programme to 35% of the loan amount from 15% and 20% earlier, according to a press release from the bank.
“By decision to increase the size of grants up to 35% of the total loan amount we aspire not only to help the citizens of Ukraine to insulate and rehabilitate their houses, but also, which is much more important in the long run, to consciously shift to sustainable consumption of energy resources through the use of modern energy-efficient technologies,” EBRD Director for Ukraine Sevki Acuner said.
In addition, a new category of equipment, which can be compensated for when upgrading housing – recuperators, has been added to the IQ Energy program.
According to the report, the maximum amount of the grant available per one individual, remained unchanged totalling EUR 3,000.
The EBRD said that grants will be paid within 3 to 5 weeks after the electronic approval of the application. It will be available not only for the main equipment, but also for the related products, as well as the cost of installation works, if these were purchased on credit from the partner banks of the program together with the main equipment.
Agreements on cooperation under the IQ energy program were signed with Raiffeisen Bank Aval, UkrSibbank and OTP Bank.
As reported, head of the IQ Energy program Oksana Bulhakova said that partner banks started issuing first loans to individual households for purchase of energy efficient equipment and materials under the IQ Energy program in June 2016. As of the end of June 2017, about 2,500 households benefited the program.
As of July 11, 2017, the loans under the IQ energy programme totaled some UAH 60 million. Average size of a loan is near UAH 25,000. Total amount of compensations paid by the EBRD to households is around EUR 190,000.
The total financing of the IQ Energy programme in Ukraine will be around EUR 75 million, and EUR 15 million has been provided for compensations to individuals and homeowner associations now.
The IQ energy programme was designed by the European Bank for Reconstruction and Development (EBRD) and supported by grant funding of up to EUR 15 million from the Eastern Europe Energy Efficiency and Environment Partnership (E5P), to which the European Union is the largest contributor.

ARTYOMSOL SEES 31% RISE IN PRODUCTION IN H1 2017

KYIV. July 12 (Interfax-Ukraine) – The state-owned enterprise Artyomsol (Donetsk region) saw a 31% rise in salt production in January-June 2017 year-over-year, to 780,000 tonnes.
The enterprise said in a press release on Tuesday that in H1 2017 the enterprise fully recovered the loss of the Russian market thanks to the increase of supplies to other countries.
In H1 2017, 391,000 tonnes of products were shipped to European consumers, which is five times more than a year ago. Exports to Hungary, Poland, Romania and Slovakia significantly grew. Shipments to the domestic market also expanded.
Artyomsol said that in H1 2016, 236,000 tonnes of salt was sent to Russia.
This year the enterprise will start producing edible salt purified using photo separation. At the first stage the new product will be exported. The enterprise plans to continue re-equipping salt mines and switch to production of separated salt at all production lines.

UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY TO CREATE ANTI-CRISIS CENTER FOR BUSINESS CYBER SECURITY

KYIV. July 12 (Interfax-Ukraine) – The Chamber of Commerce of Industry of Ukraine plans to create an anti-crisis center for consulting business in cyber security issues in the near term, the Chamber said in a press release on Wednesday.
“The anti-crisis center specialists will consult business suffered from cyber attacks free of charge and help to prevent possible cyber threats in the future,” the Chamber said.
The Chamber told Interfax-Ukraine that the premium is to approve the decision on the creation of the anti-crisis center at the end of July.
“The business should be prepared for the fact that cyber attacks will continue, and during the discussion we assessed the problem on the basis of what we have heard, to develop an effective mechanism for protecting domestic entrepreneurs and preparing for a new wave of attacks. In addition to creating an anti-crisis cyber security center for business, a working group will be formed. An appeal to government bodies to establish the main reserve channels for the transfer of social information would be sent,” Chairman of the committee for e-communications at the Chamber Volodymyr Koliadenko said.