Business news from Ukraine

KYIVKHLIB SEEKS TO START EXPORTS TO U.S., CANADA IN 2016

KYIV. April 26 (Interfax-Ukraine) – Public joint-stock company Kyivkhlib, a large bread producer in Kyiv, seeks to export its cakes to the United States and Canada.

According to a company report, the company in 2015 exported crackers, round cracknels and confectionary products to Germany, Lithuania, Kazakhstan, Azerbaijan, Georgia, Bulgaria and the Netherlands.

Kyivkhlib last year designed 29 new products: 20 bread products and nine confectionary products.

Bread and bread products output last year totaled 168,373 tonnes, confectionary products – 7,227 tonnes, semi-finished products – 5,400 tonnes, macaroni – 34,300 tonnes and bread crumbs – 2,233 tonnes.

The share of crackers and round cracknels of total sales in 2015 increased by 0.7% and cake and pastry sales – by 1.7%. The share of rich fermented goods decreased by 0.1%, popular bread – 1.2% and good-quality bread – 1.1%.

The company in 2016 seeks to retain its positions on the bread market in Kyiv, launch production of new types of goods and settle the issue of producing ordered cakes.

 

EBRD PRESIDENT CALLS FOR REMOVING BUREAUCRATIC, LEGAL OBSTACLES TO PROJECTS IMPLEMENTATION

KYIV. April 26 (Interfax-Ukraine) – Ukrainian Prime Minister Volodymyr Groysman and President of the European Bank for Reconstruction and Development (EBRD) Suma Chakrabarti at a meeting in Kyiv have discussed the prospects and directions of bilateral cooperation.

“I would like us to synchronize our watches to make our interaction more qualitative,” Groysman said.

He thanked the EBRD for support in overcoming the consequences of the Chornobyl disaster.

“You know how tragic this event was for our country. I hope we’ll manage to work together to complete what is necessary to stabilize the situation in this area in particular and in the whole country,” he said.

Chakrabarti, in turn, assured the EBRD is ready to support Ukraine on the path of reforms.

At the same time, the press service of the Cabinet said the EBRD representatives pointed to the need to remove bureaucratic and regulatory barriers to the use of funds issued by the bank for various projects in Ukraine and urged the prime minister to promote carrying out reforms in the country.

SOME UAH 19 BLN WILL BE USED FOR ROAD REPAIRS, CONSTRUCTION IN UKRAINE IN 2016 – GROYSMAN

KYIV. April 26 (Interfax-Ukraine) – The Cabinet of Ministers will spend UAH 18-19 billion on road repair and construction across the country, Prime Minister of Ukraine Volodymyr Groysman has said.

“Today we are closer to solving the problem of large-scale road repairs and construction in Ukraine, we’ll allocate about UAH 18-19 billion to do as much as possible in this work across the country,” he said in a video message posted on his personal Facebook page.

Groysman noted that the procedure would take several months “because time was lost, but we’ll cope with that.”

UKRAINE TO DEEPEN COOPERATION WITH U.S. IN ENERGY – ENERGY MINISTER

KYIV. April 26 (Interfax-Ukraine) – Ukraine is interested in deepening and expanding bilateral cooperation with the United States in the energy sector, in particular, intends to increase the supply of nuclear fuel produced by U.S. Westinghouse to 30% of the demand, Ukraine’s Minister of Energy and Coal Industry Ihor Nasalyk has said at a meeting with U.S. Ambassador to Ukraine Geoffrey Pyatt in Kyiv.

“Further cooperation with Westinghouse is important for Ukraine to diversify nuclear fuel sources at Ukrainian nuclear power plants,” the official said.

The minister expressed commitment to deep and systemic reforms in Ukraine, noting that structural reforms in the energy sector of the country are carried out largely through the support of the United States.

Nasalyk also assured the U.S. official of the implementation of all obligations to transform the energy sector within the framework of the Third Energy Package. In particular, he informed the American colleagues about the situation on the reform of NJSC Naftogaz Ukrainy and confirmed the statement on the creation of transparent and clear structures instead of a monopoly company.

OSCHADBANK SEES 29% RISE IN PROFIT IN Q1 2016

KYIV. April 26 (Interfax-Ukraine) – State-run Oschadbank (Kyiv) saw a 29% profit rise in January through March 2016, to UAH 112 million, the bank has said in a press release.

“Oschadbank in the first quarter of 2016 saw UAH 112 million in net profit, and this was UAH 25.2 million or 29% up year-over-year. Net interest income was UAH 1.809 billion and net fee income – UAH 477.9 million,” the bank said.

Oschadbank was founded in 1991. Its sole owner is the state.

The bank ranked second among 123 operating banks in the country on October 1, 2015 by total assets (UAH 156.596 billion), according to the National Bank of Ukraine.

OTIS ELEVATOR PRODUCER SEES 23.5% RISE IN SALES IN 2015

KYIV. April 25 (Interfax-Ukraine) – Private joint-stock company Otis lift producer (Kyiv) made 849 lifts in 2015, and this was 16.6% up on 2014. The company sold 830 elevators (23.5% up year-over-year).

The company said that the share of lifts of total production in money terms was 47.2% or UAH 322.94 million and of total sales – 41.7% or UAH 305.44 million.

The share of lift doors production decreased to 43.6% (from 48.6% in 2014) and lift door sales – to 39.9% (from 48.3%).

Otis in 2015 made 60,885 lift doors worth UAH 298.22 million and sold 60,000 doors worth UAH 291.89 million.

Earlier the company said that lift doors are supplied to Russia.

Otis last year provided UAH 63.08 million worth of lift services (UAH 64.9 million a year ago).

Otis’ net income under Ukrainian accounting standards grew by 21.5% in 2015, to UAH 731.66 million and net profit decreased to UAH 1.93 million compared to UAH 37.23 million in 2014.

Gross profit slid by 29.6%, to UAH 55.91 million and operating loss was UAH 1.55 million compared UAH 28.76 million of profit a year ago.

Otis has been operating on the Ukrainian market since 1992. It is part of U.S. Otis Elevator, the world’s leading manufacturer of elevators, escalators, and moving walkways. Otis Elevator is a subsidiary of United Technologies Corporation (UTC).