Business news from Ukraine

FIRST BATCHES OF NUT-CONTAINING SWEET PRODUCTS FROM UKRAINE ARRIVE TO EU MARKET

KYIV. Feb 12 (Interfax-Ukraine) – Ukraine has removed barriers regarding the health certificates that allows exporting confectionary nut-containing products to the EU.

“Our one-year saga to remove one of the barriers to export Ukrainian confectionary products to the EU successfully finished. In 2014, the technical regulations took effect in the EU that required health certificates for our nut-containing confectionary products. No Ukrainian power agency took responsibility for the issue of the certificate,” President of Ukrkondprom Association Oleksandr Baldyniuk wrote on his Facebook page.

In November 2015, the issue was put on the table of Deputy Agricultural Policy and Food Minister for European Integration Vladyslava Rutytska. The State Veterinary and Biosecurity Service of Ukraine has drawn up the required procedure under her control and started issuing the certificates to exporters.

“Last week first batches of these products went to the European Union,” he said.

UKRAINE SEES IRANIAN MARKET AS PROMISING FOR ITS PRODUCTS

KYIV. Feb 12 (Interfax-Ukraine) – Kyiv believes it will be able to promote its products on the Iranian market after the lifting of international sanctions, Deputy Economic Development and Trade Minister, Trade Representative of Ukraine Natalia Mykolska has said.

“Iran is a promising market for us, not only for agricultural products, but also for the industrial enterprises products,” she said during a meeting at the Infrastructure Ministry on Friday.

At the same time, Mykolska noted specific nature of the Iranian market and the associated difficulties in promoting Ukrainian goods.

For his part, Ukraine’s Infrastructure Minister Andriy Pyvovarsky stressed Iran’s interest in Ukrainian products, in particular in the railway products.

REVENUE FROM TOBACCO EXCISE DUTIES GROW BY ALMOST ONE FOURTH IN 2015, TO UAH 22.2 BLN

KYIV. Feb 11 (Interfax-Ukraine) – Revenue of the national budget from the excise duties on tobacco grew by almost one fourth in 2015, to UAH 22.2 billion, the Ukrainian Center for Tobacco Control reported on Tuesday.

The increase in revenue by over UAH 4 billion was recorded without a rise in sales of cigarettes that did not change compared to the previous year – 73 billion cigarettes. Budget revenue grew, as in July and September 2015 the excise duties were increased. In addition, in January 2015, the tax on unfiltered cigarettes was increased to the level of filtered cigarettes. Finally, the average price of a package of unfiltered cigarettes grew from UAH 6 to UAH 11, and their sales fell from 12.7 billion in 2014 to 5.8 billion in 2015. Imports of cigarettes fell last year from 6.5 billion to 4 billion.

Cigarette production in 2015 grew by 8%, to 93 billion from 86 billion. This is linked to a rise of exports to 23 billion from 18 billion and a decline in imports.

The center said that in the fourth quarter of 2015 sales of cigarettes grew to 22 billion, while in the previous three quarters it was 17 billion on average. Growth in sales was artificial provoked by price wars of tobacco corporations starting from October 2015. They aimed at not allowing growth of the excise duties in 2015.

“Despite price wars budget revenue in the fourth quarter grew to UAH 6.6 billion, while in the previous quarters they were UAH 5.2 billion,” Head of the tobacco control department of the Ukrainian Institute for Strategic Studies of the Health Ministry of Ukraine Kostiantyn Krasovsky said.

Tobacco corporations artificially increased cigarettes sales in the fourth quarter of 2015, waiting for a large rise in the excise duties from January 2016. Thus, the excise duty was paid at the rates of 2015, and cigarettes were left at warehouses and were sent to the retail chains in 2016. A temporary fall in sales of cigarettes in the first months of 2016 could be seen. If sales of cigarettes in 2016 falls to 66 billion (10% down on 2015), thanks to a rise in the excise duties budget revenue this year would be at less than UAH 28 billion.

AGRICULTURE MINISTRY PREDICTS RISE IN GRAIN EXPORTS IN 2015/16 AGRI-YEAR TO 37 MLN TONNES

KYIV. Feb 11 (Interfax-Ukraine) – The Agricultural Policy and Food Ministry of Ukraine predicts that grain exports in 2015/16 agricultural year (July-June) will expand to 37 million tonnes.

“With the revision of figures we do not see 36 million tonnes, but 37 million tonnes [for exports],” Agricultural Policy and Food Minister of Ukraine Oleksiy Pavlenko said in Kyiv on Wednesday.

He said that it is planned to export 15 million tonnes of grain in the next five months, while since the beginning of the agricultural year 22 million tonnes of grain has been exported.

Earlier it was reported, referring to the Ukrainian Grain Association (UGA) that since early 2015/16 agri-year as of February 3, 2016, Ukraine exported 23.85 million tonnes of grain, including 11.066 million tonnes of wheat, 3.94 million tonnes of barley and 8.691 million tonnes of corn. UGA President Volodymyr Klymenko said that in general exports of grain and flour reached 24.092 million tonnes.

TURBOATOM’S PORTFOLIO OF ORDERS FOR 2016 INCLUDES ONLY EXPORT CONTRACTS – CEO

KYIV. Feb 11 (Interfax-Ukraine) – PJSC Turboatom, the largest Ukrainian producer of turbine equipment, 75% of whose shares belong to the state, currently has a portfolio of orders for the current year, however it is formed at the expense of export orders, while there are no orders from Ukrainian companies, Plant CEO Viktor Subotin has said.

“Against the backdrop of the overall difficult situation in Ukraine, energy machinery manufacturers, of course, have fewer orders this year than two or three years ago. But our main problem is that, for example, in total sales in 2015 only 26% were deliveries in Ukraine. And if last year there was one order – the delivery of a condenser to Yuzhnoukrainsk nuclear power plant, then this year there are no domestic orders at all. Ihor Bilous [the head of the State Property Fund] meant this,” Subotin said, commenting on Bilous’ statement about absence of orders at Turboatom in an interview with the Ukrainska Pravda edition.

Subotin noted that he appealed to the SPF head with the request to assist in obtaining orders from Ukrainian companies.

INFRASTRUCTURE MINISTRY TO CREATE UKRAINIAN ROADS GEOINFORMATION SYSTEM THANKS TO EU FINANCIAL AID

KYIV. Feb 11 (Interfax-Ukraine) – The Infrastructure Ministry of Ukraine will create a Ukrainian roads geoinformation system thanks to funds received as part of the technical assistance from the European Union (EU), the director of the road market and transportation strategic development of the ministry, Roman Khmil wrote on his Facebook page.

“We’ve received financing for the creation of the Ukrainian roads geoinformation system. We want to create an integrated system that would be useful both for road workers, sector managers and the public,” he said.

Khmil said that earlier similar projects were created by volunteers, although they had restricted opportunities.

“The next step is designing of technical specifications that would describe the requirements to the system. Then we put it for the open and transparent tender,” Khmil wrote.

The ministry’s press service told Interfax-Ukraine that the EU technical assistance for the projects in the transport area will reach UAH 294 million, and some of the funds will be sent to the creation of the geoinformation system.