Business news from Ukraine

KSG AGRO PORK SALES RISE 24% IN Q2 2015

KYIV. July 30 (Interfax-Ukraine) – KSG Agro agroholding saw a 24% rise in sales of live weight pork year-over-year, to UAH 62 million (VAT included), the company said on its website.

The company said that its revenue from pork sales totaled UAH 112 million in H1 2015 (VAT included).

Most of the produce was sold under long-term contracts and 67% of sales were secured by meat-packing plant Yuvileiny and Fozzy-Food LLC. About 20% of the products were sold to Dnipro meat processing plant.

“Production growth in a difficult economic situation has been achieved thanks to the professionalism of the employees and their responsible attitude to work,” the company said.

KSG Аgro is a vertically integrated agricultural group, working in almost all the segments of the agricultural market, including the production, storage, processing, and sale of agricultural products. The total arable land leased by the company is around 65,000 hectares.

UKRAINE, IRAN TO HOLD TALKS ON ECONOMIC COOPERATION AT LEVEL OF INTERGOVERNMENTAL COMMISSION ON SEPT 15

KYIV. July 30 (Interfax-Ukraine) – Ukraine and Iran will on September 15 hold talks on economic cooperation at the level of an intergovernmental commission for the first time in ten years, Mykhailo Bno-Airiian, head of the Ukrainian ministry’s Department for European Integration, said at a press conference in Kyiv on Wednesday.

“On September 15, if everything is good, we will hold a meeting of the Ukrainian-Iranian intergovernmental commission in Teheran. The energy minister [of Ukraine Volodymyr Demchyshyn] and the agriculture minister of Iran [Mahmoud Hojjati] will co-chair the commission. I think that it would be the first meeting in ten years, so you can understand the importance of the event,” he said.

He added that the first meeting of the Ukrainian-Norwegian intergovernmental commission on trade development is scheduled for H2 2015.

In addition, Ukraine plans to hold a meeting of the working group for energy with the Czech Republic and Sweden in H2 2015.

 

UKRAINE, AUSTRALIA PLAN TO COOPERATE IN UCG AREA

KYIV. July 28 (Interfax-Ukraine) – The Energy and Coal Industry Ministry of Ukraine has signed a memorandum of cooperation in Underground Coal Gasification (UCG) with Linc Energy Ltd. and Bond Bros Contracting Pty Limited (both based in Australia), the ministry’s press service has reported.

“This project is one of the most promising projects of trade and investment cooperation between Australia and Ukraine, and I hope sincerely that it would develop,” Australia’s Ambassador to Ukraine Douglas Trappett said.

First Deputy Energy and Coal Industry Minister Ihor Martynenkov said that Ukraine also plans to expand cooperation in other energy segments with Australia.

As reported, DTEK announced plans to cooperate with Linc Energy in production of synthesis gas using UCG in December 2012.

Linc Energy uses UCG for 15 years in Australia.

 

AZOVSTAL MORE THAN QUADRUPLES PROFIT IN H1, 2015

KYIV. July 29 (Interfax-Ukraine) – Azovstal Metallurgical Plant (Mariupol, Donetsk region), part of Metinvest Group, in January-June 2015 saw net profit rise by 4.2 times compared to the same period in 2014, to UAH 351.748 million.

As reported in a company quarterly report, published in the information disclosure system of the National Commission on Securities and the Stock Market, its pretax positive financial result for the period increased by 4.3 times, to UAH 434.257 million.

The company for the six months increased net income by 33%, to UAH 14.267 billion.

As of June 30, 2015 retained earnings amounted to UAH 4.16 billion.

As reported, Azovstal in the first quarter posted a net profit of UAH 952.776 million, while in the first quarter of 2014 its net loss was UAH 317.703 million. Its pretax positive financial result amounted to UAH 1.176 billion. The company increased its net income by 77.3%, to UAH 7.410 billion.

The company is part of Metinvest Group, the major shareholders of which are Donetsk-based PJSC System Capital Management (71.24%) and Smart-holding (23.76%).

Metinvest Holding is the managing company of Metinvest Group.

JAPAN PROVIDES $800,000 TO CREATE NEW JOBS FOR PEOPLE DISPLACED FROM DONBAS LIVING IN DNIPROPETROVSK REGION

DNIPROPETROVSK. July 29 (Interfax-Ukraine) – The Japanese government under the UN project provides $800,000 for providing persons displaced from Donetsk and Luhansk regions with new jobs and allowing them to develop own business who are living in Dnipropetrovsk region now.

The press service of Dnipropetrovsk Regional Administration reported that the project foresees that displaced persons who are living in Dnipropetrovsk region will be able to change profession, taking into account professions that are of demand now. There is demand on IT specialist, and the top-priority will be given to this sector.

UN will co-finance wages with the purpose of getting the interest of employers.

“The creation of opportunities for earning money would allow settling many issues. Employment of people is our top-priority,” Project Head Ruslan Fiodorov said at a meeting with an advisor to Head of Dnipropetrovsk Regional Administration Vitaliy Lytvyn.

In addition, UN would help the displaced persons who decided to start own business. Grants and consultations on opening own business would be presented.

“We would continue any business plans. The main condition is that they must be competitive,” Fiodorov said.

The press service said that up to $10,000 would be provided for the realization of one business plan.

GEOLOGY SERVICE SELLS FIVE OIL AND GAS FIELDS FOR UAH 38.5 MLN

KYIV. July 29 (Interfax-Ukraine) – The State Geology and Deposits Service of Ukraine has sold five oil and gas fields for UAH 38.471 million, according to materials of Ukrainian Universal Exchange where the auction was held on July 24.

The starting price of four out of five licensed oil and gas fields was considerably increased.

Horizons LLC won the auction for the Bunivska field (Lviv region). The company paid UAH 3.287 million for the field with the starting price of UAH 137,000.

Project-Bud private enterprise won the auction for the Rudnykivska field (Lviv region). The company paid UAH 11.555 million for the field with the starting price of UAH 295,000.

Nordik private enterprise won the auction for the Kolodnytska field (Lviv region). The company paid UAH 6.298 million for the field with the starting price of UAH 149,000.

Naftogazrozrobka LLC won the auction for the Khoroshivska field (Kharkiv region). The company paid UAH 16.565 million for the field with the starting price of UAH 5.085 million.

Gas Oil Investments LLC won the auction for the Batynetsko-Pereshpynska field (Lviv region). The company paid UAH 766,000 for the field with the starting price of UAH 727,000.

Ultimate beneficiaries of Horizons LLC are Lviv businessman Zinoviy Kozytsky and Czech Karel Komarek. Kozytsky also fully controls Project-Bud and Nordik.

Naftogazrozrobka LLC belongs to DTEK of Rinat Akhmetov and ultimate beneficiaries of Gas Oil Investments LLC are Vasyl Stets and Israel’s Advanced Technical Geological Consulting.