Business news from Ukraine

FOOD AND GRAIN CORPORATION MULLING FLAKED GRAIN EXPORTS TO CHINA

KYIV. Nov 10 (Interfax-Ukraine) – PJSC State Food and Grain Corporation of Ukraine plans to export flaked grain produced at the corporation facilities in Novoukrainka (Kirovohrad region).

According to a press release, now the corporation is mulling their exports to China.

Over the four months of the 2016/2017 marketing year (MY, July-June) the corporation branches processed 71,600 tonnes of grain, of which 67,600 tonnes of wheat and 4,600 tonnes of rye.

“Over the year, in accordance with the plan, we have to process 320,000 tonnes of grain. However, we have an ambitious task to ensure growth in the share of our refined products in the domestic market and increase exports of finished products to other countries, develop new market areas,” the director of the department of elevator operations and finished products sales, Hennadiy Hordiyenko said.

BANK TRUST TO ATTRACT INVESTOR TO INCREASE CHARTER CAPITAL BY 2.5 TIMES

KYIV. Nov 10 (Interfax-Ukraine) – Bank Trust (Kyiv) will attract an investor to increase charter capital by 2.5 times, to UAH 300 million, the bank has said.

“A meeting of Bank Trust shareholders will be held on December 12, 2016, at which a decision will be made as for increasing charter capital by issuing new shares, including for a new investor – Flexinvest Plc. The investor highly praised the current business model of PJSC Bank Trust and confirmed to the National Bank of Ukraine its readiness to increase the bank’s charter capital by UAH 180 million,” a statement reads.

According to the bank, the planned completion of investing is February 2017.

The bank told Interfax-Ukraine Flexinvest Plc is a Russian company investing particularly in the banking sector.

Bank Trust was founded in 2007.

According to information on the NBU’s website, as of February 22, 2016 the owners of Bank Trust were Volodymyr Avramenko (78.9%), Russian citizen Sergey Belyaev (16.1%), and Sorin Mayerian (5%).

Bank Trust ranked 60th among 101 operating banks in the country on October 1, 2016 by total assets (UAH 825.045 million), according to the National Bank of Ukraine.

UKRAINE EXPORTS ELECTRICITY FOR $123 MLN IN JAN-OCT

KYIV. Nov 9 (Interfax-Ukraine) – Ukraine in January-October 2016 exported electricity worth $123.288 million, in particular in October for $9.003 million.

According to the State Fiscal Service, electricity delivered to Hungary amounted to $93.734 million for the eight months, to Poland to $29.199 million, Moldova to $347,000, other countries to $7,000.

In addition, in January-October 2016 Ukraine imported power worth $3.006 million from Russia, $57,000 from Belarus.

As reported, Ukraine in January-October 2015 exported electricity for $125.689 million, in particular to Hungary for $121.797 million, Poland for $1.672 million, Slovakia for $1.115 million, and other countries for $1.105 million.

 

GERMANY TO PROVIDE EUR 32.5 MLN TO UKRAINE FOR UPGRADING TRANSFORMERS, POWER LINES

KYIV. Nov 9 (Interfax-Ukraine) – Germany would provide a loan of up to EUR 32.5 million to Ukraine for the period of up to 30 years and the grace period of 10 years under the second phase of the project on increase of energy efficiency in power transmission (modernization of transformer substations) by the end of this year, the Economic Development and Trade Ministry of Ukraine reported on Tuesday.

“The project is intended to increase quality of power supply thanks to restoration of transformer substations and strengthening power lines,” the ministry said.

The ministry said that the agreements were reached during a visit of a ministry’s delegation to Berlin on November 3 and November 4 and negotiations with representatives of Germany’s Federal Ministry for Economic Cooperation and Development, KfW Bankengruppe and GIZ.

The total volume of the financial assistance from Germany to be provided by the end of 2016 would be EUR 72 million, the head of the Ukrainian delegation and Deputy Economic Development and Trade Minister Maksym Nefyodov said.

Some EUR 16 million is provided for developing democracy, civil society, public administration, regional development and decentralization, EUR 36 million for energy efficiency and EUR 20 million to build and reconstruct houses for internally displaced persons (IDPs).

Along with this loan, up to EUR 24.5 of financial assistance million would be provided as grants for support of the implementation of projects aimed at strengthening Ukrainian local self-government, construction and reconstruction of houses for IDPs, and the rest of the funds is technical assistance for decentralization, public administration reforms and local energy efficiency projects.

The ministry said that since 2002, Germany has provided EUR 500 million of assistance to Ukraine.

GERMANY TO PROVIDE EUR 20 MLN TO FINANCE CONSTRUCTION OF HOUSES FOR IDPS IN 2017

KYIV. Nov 9 (Interfax-Ukraine) – The German government intends to provide EUR 20 million to finance projects to build and reconstruct houses of internally displaced persons (IDPs) in 2017.

The press service of the Ministry for the Temporarily Occupied Territories and Internally Displaced Persons of Ukraine, the ministry is responsible for distribution of the funds.

The money will be provided in the form of grants to support construction and reconstruction projects.

The total sum agreed on by the governments of the two countries as part of technical and financial cooperation is EUR 72 million.

UKRGAZVYDOBUVANNIA SEEKS TO INVEST $3 BLN IN DRILLING BY 2020

KYIV. Nov 9 (Interfax-Ukraine) – Public joint-stock company Ukrgazvydobuvannia seeks to invest $3 billion to purchase and modernize drilling rigs by 2020, as well as to attract external contractors to carry out the works at the company’s fields, Ukrgazvydobuvannia Head Oleh Prokhorenko has said.

“We assess drilling at $3 billion by 2020. This includes modernization of equipment and works,” he said at the 14th Fuel & Energy Complex of Ukraine: the Present and the Future international forum in Kyiv.

Prokhorenko said that the program includes acquisition of 30 new drilling rigs (by 2020), modernization of 32 existing rigs (in 2016-20180 and drilling of around 660 new wells (71 wells in 2016), 88 wells in 2017, 131 wells in 2018, 166 wells in 2019 and 201 wells in 2020). The company intends to attract 15 rigs of international contractors in 2017.

“The task is to expand our fleet and the fleet of contractors. We will try to have 114 rigs in operation by 2020 and increase the speed of commercial drilling,” he said, adding Ukrgazvydobuvannia now drills 297 meters per rig a month, while the figure of external contractors is around 900 meters per rig a month.

Prokhorenko believes that $3 billion of investment into the expansion of drilling in 2016-2020 is not a sky-high figure. He took $54 billion Ukraine sent to import Russian gas in 2009-2013 as an example.

He also said that investment of $500 million in outsourcing would help to drill 90 wells by 15 rigs and get an additional 3.3 billion of cubic meters of natural gas a year. This is a good figure for saving compared to purchases of imported gas.

He said that the company would conduct 3D seismic works on 17 fields with gross area of 1,500 square meters in coming years.