Business news from Ukraine

CHINA’S TBEA STUDYING CONSTRUCTION OF LARGE WIND FARM IN UKRAINE – ENERGY MINISTRY

KYIV. July 14 (Interfax-Ukraine) – China’s TBEA International Ltd. Is studying the issue of building a 0.5 GW wind power plant in Mykolaiv region, the press service of the Ministry of Energy and Coal Industry of Ukraine has said.
According to the agency, the pilot project in the field of renewable energy, which the company plans to implement in Ukraine, has already passed all the necessary expertise.
The ministry said TBEA is a manufacturer of modern power equipment.

FARMERS RECEIVE ALMOST UAH 529 MLN OF SUBSIDIES FROM GOVT FOR MAY – MINISTRY

KYIV. July 14 (Interfax-Ukraine) – Ukraine’s State Treasury Service has sent UAH 528.86 million of budget subsidies for May, Ukraine’s Agricultural Policy and Food Ministry reported on its website on Thursday.
The ministry said that in May 700 agricultural producers received subsidies. The rest of subsidies in the amount of UAH 105.6 million will be transferred to next month.
In 2017, farmers have received UAH 1.3 billion.
As reported, State Treasury Service sent UAH 473.47 million of budget subsidies to farmers for April, UAH 241.8 million for March and UAH 79.8 million for February.
The government allocates UAH 4 billion for the subsidy system in agriculture in 2017.

POROSHENKO TO SIGN SEVERAL DOCUMENTS IN GEORGIA TO UNLOCK MUTUAL INVESTMENT POTENTIAL – PRESIDENTIAL ADMINISTRATION

KYIV. July 14 (Interfax-Ukraine) – Deputy Head of the Presidential Administration of Ukraine Kostiantyn Yeliseyev has said that during the visit of Ukraine’s President Petro Poroshenko to Georgia on July 17-19, a number of documents aimed at realizing the economic and investment potential of the two countries will be signed.
“Recently, we have significantly intensified our relations with Georgia, a new ambassador has been appointed. We expect strengthening our strategic partnership with Georgia and of course a number of important bilateral treaties will be signed, as well as the documents that will allow us to unlock the economic and investment potential of our cooperation,” he said on the air of Channel 5 on Thursday.
Yeliseyev said the state visit of the president of Ukraine to Georgia will take place on July 17-19.

NOVA POSHTA SEES 32% RISE IN PARCEL DELIVERY IN JAN-JUNE

KYIV. July 13 (Interfax-Ukraine) – The Nova Poshta Group delivered over 64 million parcels in January-June 2017, which is 32% up on January-June 2016.
The group said in a press release that the most popular devilry was parcels weighing up to 2 kg.
“The upward pace of online sales and growth of demand on the door-to-door delivery service continues influencing the company’s indicators,” the group said.
Nova Poshta delivered over 14 million parcels for e-commerce segment clients in January-June 2017 (31% up year-over-year). Nova Poshta couriers delivered 7.3 million parcels to the recipients, and this is almost 50% more than in H1 2016.
“The Nova Poshta clients started using automatic parcel terminals more often. Compared to H 1 2016 the number of parcels received via automatic parcel terminals grew by almost 30%,” the group said.
“This year the company opened its first depot in Milan (Italy) and expanding opportunities for consumers of the Nova Poshta Shopping service, expanding its list of shops with shops from Britain, Germany, Italy and Poland. The Nova Poshta mobile application allows changing the delivery address, register the return of the parcel to the sender and pay for the company’s services,” the group said.

GOVT IMPROVES CONDITIONS OF CREDIT RATE COMPENSATION PROGRAM FOR SMALL FARMERS

KYIV. July 13 (Interfax-Ukraine) – Small farmers with net sales revenue up to UAH 10 million and farmers who breed cattle would be able to receive compensation for credits in the size of the refinancing rate of the National Bank of Ukraine (NBU).
According to the decision the government made at a meeting on Wednesday the rest of farmers will receive compensation for credits in the amount of 50% of the NBU’s refinancing rate.
The 2017 budget foresees the allocation of UAH 300 million for the credit rate compensation program for farmers.
Now the refinancing rate is 12.5% per annum.

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.