Business news from Ukraine


KYIV. Sept 16 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) could provide up to $40 million to GN Terminal Enterprises Ltd. (Cyprus), which belongs to the GNT group, to finance the expansion of the existing grain terminal at Odesa port, the bank said on Monday.

The bank said that its board will discuss the issue on October 14.

The total cost of the Serseris Grain Terminal project includes the expansion of the terminal’s capacity and its storage facilities, and is assessed at $69 million.

Serseris Holdings Limited (Cyprus) is a subsidiary of CHS Europe SA, which is part of U.S. CHS Inc.

CHS Inc. in spring 2009 said that the corporation had started investing in a joint project with GN Terminals (Odesa) on the creation of an export grain terminal in Ukraine on the Black Sea coast in Odesa with a capacity of 2 million tonnes a year.


KYIV. Sept 16 (Interfax-Ukraine) – Odesa International Airport saw a 10.7% rise in passenger flow in January-August 2015 year-over-year, to 650,400 people, the airport’s press service has reported.

In August 2015 alone, the airport serviced 116,600 passengers, which was 34.1% up on August 2014.

A total of 24,000 passengers were serviced on domestic routes, which was 25% up on August 2014.

The press service said that the number of passengers who flew international routes was also on the rise, 37% up, to 92,500 people.

The most popular destinations outside Ukraine were Antalya, Batumi, Warsaw, Vienna, Vilnius, Istanbul, and Tbilisi.

Since the beginning of 2014, the airport has begun to work with seven new airlines. During summer, the airport handles up to 46 flights every day.

Odesa airport’s main buildings were built in 1960-1961. A cargo terminal was built in 1982.

Odesa airport services the flights of about 20 domestic and foreign airlines to 60 countries.


KYIV. Sept 15 (Interfax-Ukraine) – Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, produced goods worth UAH 2.404 billion in January- August 2015, 62.6% up on the figure for January- August 2014.

According to the UkrPapir association, in January- August 2015, the mill increased its production of corrugated cardboard packaging by 2.1%, to 127 million square meters. The mill increased its production of cardboard by 0.5%, to 135,640 tonnes, including a rise of 10.2% in production of commodity cardboard, to 82,700 tonnes and a decline of 11.7% in production of box cardboard, to 52,950 tonnes.

Production of base paper (for sanitary products) decreased by 13%, to 46,140 tonnes, while production of toilet paper fell by 15.5%, to 255.6 million rolls.

In January-August cardboard packaging production in Ukraine fell by 17.2%, to 479.64 million square meters, and cardboard and paper output dropped by almost 10%, to 528,980 tonnes.

Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It mainly produces goods from wastepaper. Its capacity for processing wastepaper exceeds 850 tonnes a day. The mill exports its products to CIS states and other countries.



KYIV. Sept 15 (Interfax-Ukraine) – Ukraine will revoke special duties on imports of passenger cars with petrol engines with a capacity of 1,000-2,200 cubic centimeters irrespective of their origin, imposed on April 28, 2013, for a period of three years starting on September 30.

The interagency commission for international trade said in the Uriadovy Kurier newspaper on Saturday that the decision was made on September 10, 2015 after consideration of the recommendations of the Economic Development and Trade Ministry to lift the restrictions.


KYIV. Sept 15 (Interfax-Ukraine) – Weidmann Malyn paper factory (MPF, Zhytomyr region), the only producer of electrical insulating board for power engineering machines in Ukraine, increased production by 82.8% % in January- August 2015 year-over-year, to UAH 271.1 million.

According to statistics of the Ukrpapir association, cardboard output in natural terms rose by 43%, to 3,450 tonnes, while paper production fell by 30%, to 2,940 tonnes.

The mill produces electrical insulating board, filter paper, stained base paper and cardboard, as well as a wide range of packaging and special types of paper. Raw materials are supplied from Russia, Austria and Sweden.

In 2014, electrical insulating board exports accounted for almost 70% to Ukraine and 25% to the CIS countries.

Transformer boards produced by the plant are sold in Ukraine (20%), CIS states (30%) and non-CIS states (50%).

As reported, in 2014 Malyn paper factory increased production by 7.1% against 2013, to UAH 217.51 million, while paper production fell almost by 11%, to 6,040 tonnes, transformer board production dropped by 24.4%, to 3,140 tonnes.

Wicor Holding AG (Switzerland) owns a 94.6% stake in Malyn factory.



KYIV. Sept 15 (Interfax-Ukraine) – The authorities of Cherkasy region have cut the amount of time required to register a business to 24 hours and also cut the tax rate for commercial property to 0.5% of the minimum wage per square meter, and in some districts of the region – to 0.2%, Head of Cherkasy Regional Administration Yuriy Tkachenko said at a press conference at Interfax-Ukraine on Monday.

“Tax on commercial property in Cherkasy is 0.5% per square meter. If we compare this with Odesa and Kharkiv regions, of course, they [the taxes] are four and even more times larger,” Tkachenko.

He said that the Cherkassy authorities liquidated the land commission in the regional administration which would discuss documents submitted by applicants over one month, and that now, the agro-industrial development department and the regional department of the state service for geodesy, mapmaking and cadastre considers applications within ten days. Tkachenko said that Cherkasy region has become the first region where extracts from the state service for geodesy, mapmaking and cadastre on land parcels can be received remotely.

Tkachenko said that on September 18, the Cherkasy Investment Forum will be held in Kyiv with the participation of leading companies, where the region will offer attractive land parcels and property to investors.

He said that the region is especially interested in foreign investors. Their share of total capital investment in the development of the region is small – only UAH 7.4 million out of over UAH 4 billion in 2015.

Tkachenko also spoke about the investment projects which are being introduced. Saturn household appliances producer plans to produce household appliances for vulnerable parts of the population.

Among the other projects which are being run with foreign investment is a project to produce brown coal being realized by Energy Investment Company LLC since 2014 and the signing of a memorandum with China’s Runh Power Corp. on the construction of a power plant.

He said that two investors from the United Arab Emirates invest fund are developing solar energy in the region, and a project on the construction of an elevator on the Dnipro River is being realized jointly with a French company.

The governor said that representatives of the region are working on attracting investors in the creation of imports-replacing production facilities and on defining production of dehydrated potato powder, household chemicals and personal-care products as top-priority directions.

Tkachenko said that over 10 companies from Donetsk and Luhansk regions have started producing goods in vacant facilities of Soviet enterprises in Cherkasy region (Orion, etc).

Board Chairman of APK Mais Serhiy Tereschuk said at the press conference that Cherkasy region has all the conditions to develop its agrarian industry: skilled staff, good soil, climate, waterways, and favorable geographical location and logistics advantages. He also said that a favorable investment environment is being created: authorities, business and community of the region have united as a part of decentralization.

Leader of the movement ‘For Prosperous Cherkasy Region’ Natalia Netovkina said that the nut, apple and honey production cluster is a top-priority for the region. It is planned to create cooperatives, including by Anti-Terrorist Operation solders, who receive 1.5-2 hectares from rural councils.

Tkachenko said that authorities and business are implementing a partner project on developing tourism in the region, in particular, in towns of Kaniv, Chyhyryn and Uman.