Business news from Ukraine

UKRAINIAN PRODUCERS NEED HELP ENTERING EU MARKETS – UKRAINIAN DEPUTY PM

KYIV. April 18 (Interfax-Ukraine) – Ukraine’s Deputy Prime Minister for European Integration Ivanna Klympush-Tsintsadze deputy prime minister for European integration has said that a main task in her post is to help Ukrainian producers to enter the European markets as much as possible.

“The top priority for me is to make the Association Agreement real. It must work for Ukrainian reforms. Barriers on the way of assistance that both the European Commission and EU members are ready to provide should be removed, as this hinders the acceptance of this assistance and its absorption. Another main task is to help our regions and Ukrainian producers to enter the EU market as much as possible (of course, in cooperation with the Economic Development and Trade Ministry),” she said in an interview with the Ukrainian weekly newspaper Dzerkalo Tyzhnia.

She said that after preliminary consultations with Volodymyr Groysman I had an impression that he understands a certain institution is required to have the post of Deputy Prime Minister for European Integration effective.

“I hope that we will manage to distribute duties and colleagues would back me that the deputy prime minister for European integration gets a chance of really influence the coordination, implementation monitoring and promotion of important steps in European integration. I think that the issue will be settled via distribution of duties among deputy prime ministers,” she said.

She said that a large group of professionals has been gathered in the office of the envoy for European integration.

“It could be used to continue forming the full-featured office (bureau) with a team of professionals,” she said.

“I hope that we will manage to attract funds of the European Commission to additionally engage specialists who maybe at first would not go to the civil service, but they will cooperate in a certain form with the office of the deputy prime minister. Then we will actively start introducing the reform of the civil service. These people could later come to the civil service, which I think will become more interesting and attractive for everyone who has knowledge and desire to work with the state,” she said.

KYIV INVESTMENT AGENCY: KYIV ZONING PLAN COULD BE READY IN JUNE-JULY 2016

KYIV. April 15 (Interfax-Ukraine) – The development of a plan for zoning Kyiv could be completed in June-July 2016, Head of Kyiv Investment Agency Oleh Mistiuk considers.

“A decision has been made to develop town-planning documentation as zoning. This will be done in two or three months. I think zoning for the whole of Kyiv will be developed by the middle of this year,” Mistiuk said, speaking in the debate “Decentralization: topical issues of investment and development” in Kyiv.

According to the agency head, the finalization and approval by Kyiv City Council of the zoning plan will allow the city to allocate land plots and change their purpose for the construction of new facilities even without developed and approved projects of detailed area plans.

“We can expect that in a few months Kyiv City Council will begin to allocate land plots for renovation or new construction,” the expert said.

At the same time, Kyiv City Council Secretary Oleksiy Reznikov noted that the process of approval of the zoning project by the city authorities might be delayed until the end of the year, as will cause a broad discussion in Kyiv City Council, as well as by public organizations.

INVESTMENT IN CONSTRUCTION SHOULD BE FOCUSED ON INFRASTRUCTURE PROJECTS – GROYSMAN

KYIV. April 15 (Interfax-Ukraine) – Public investment in construction should be focused on the development of infrastructure projects, Prime Minister of Ukraine Volodymyr Groysman has stated.

“A preliminary analysis of the current budget showed that the state invests money in the objects that are 5-7% completed over a year to bring the level to 10%. Simply put, funds are invested in construction pits and turn into eternal construction. If we focus on infrastructure projects, the program of repair and construction of Ukrainian roads, we’ll get several results and make a really useful thing for the country,” Groysman said, when presenting the program of the new government in the Verkhovna Rada.

He also noted that it is necessary to spend public investment on energy efficiency and the development of infrastructure objects, while providing control over the use of the allocated funds and the quality of implemented projects with the support of international organizations.

“In fact, we need to start the overhaul of the country,” the premier added.

ZHYTOMYR PHARMACEUTICAL FACTORY POSTS 12% RISE IN NET PROFIT IN 2015

KYIV. April 15 (Interfax-Ukraine) – Zhytomyr Pharmaceutical Factory LLC in 2015 saw net profit rise by 12.8% compared to 2014, to UAH 11.94 million.

According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market, its net income increased by 29.2%, to UAH 292.069 million, gross profit rose by almost 50%, to UAH 153.249 million.

As reported, in 2014 Zhytomyr Pharmaceutical Factory saw net profit fall by 21.3% compared to 2013, to UAH 10.584 million.

Zhytomyr Pharmaceutical Factory produces medicines mainly based on raw materials of vegetable and animal origin under the trademarks of Vishpa and Zhytomyr Pharmaceutical Factory. When forming the product portfolio, the company gives priority to production and development of drugs that are used in urology, gynecology, rheumatology and pediatrics.

GROYSMAN GOVERNMENT PROGRAM INCLUDES FOREX LIBERALIZATION, COMMODITY EXCHANGE MARKET

KYIV. April 15 (Interfax-Ukraine) – The action program of the new Ukrainian government led by Prime Minister Volodymyr Groysman provides for the gradual liberalization of foreign exchange regulation as part of the financial sector reform.

Under the program, this reform also envisages the formation of modern stock exchange infrastructure and conditions for the functioning of commodity exchange market.

In addition, Groysman intends to continue the harmonization of Ukrainian legislation with that of the European Union. The program provides for the adoption of new legislation based on EU standards, in particular that on limited liability companies, and the introduction of a mechanism of corporate agreements.

The program also provides for the simplification and adoption of international accounting standards, transparent privatization of state-owned enterprises, and the introduction of international accounting standards and independent management at state-owned enterprises.

In addition, the new cabinet will take care of improving the efficiency of public investment management and the reform of the State Audit Service.

INFRASTRUCTURE MINISTRY TO ATTRACT CHINESE INVESTOR FOR KYIV-LVIV-WARSAW-BERLIN HIGH-SPEED LINK

KYIV. April 15 (Interfax-Ukraine) – Ukraine’s Infrastructure Ministry is preparing a memorandum with the largest Chinese investor to develop a feasibility study for the development of high-speed rail link on the Kyiv-Lviv-Warsaw-Berlin route, as well as the Kyiv-Odesa direction, Minister Volodymyr Omelian has said during “The hour of questions to the government” in the parliament.

“We are preparing a memorandum for signing with one of the largest Chinese investors, first of all, on a feasibility study for high-speed rail link on the directions of Kyiv-Lviv-Warsaw-Berlin and Kyiv-Odesa with extension to Crimea when it is returned to Ukraine,” the minister said.

Omelian has not specified other project details.

As reported, in March Lviv authorities reported on the plan to build a narrow gauge railway to Warsaw.