Business news from Ukraine

GOVERNMENT APPROVES LICENSE TERMS FOR TOUR OPERATORS’ ACTIVITIES

KYIV. Dec 8 (Interfax-Ukraine) – The Cabinet of Ministers has approved license terms for the activities of tour operators.

The corresponding solution is fixed in government decree No. 991 of November 11, 2015, posted on its web portal.

Under the document, the license terms define the procedure for tour operators’ obtaining licenses to conduct such activities, as well as establish organizational, human and technological requirements for the licensee companies, the implementation of which is required for performing tour operators’ activities.

According to the license conditions, the head of a tour operator company, its branch or any other unit should have a higher profile education, and its staff should include at least 30% of employees with higher education in the field of tourism and experience in this field for at least three years.

REPRESENTATIVE OFFICE OF BRUNO SFORNI S.P.A TO START OPERATING IN UKRAINE EARLY 2016

KYIV. Dec 8 (Interfax-Ukraine) – A representative office of Italy’s Bruno Sforni S.p.A, the insurance and reinsurance broker, plans to finish its registration in Ukraine by the end of this year and it plans to start operating on the market late January or early February 2016, CEO Bruno Sforni told Interfax-Ukraine on Monday.

He said that Bruno Sforni S.p.A has been present on the Ukrainian market for five years. At present, it is actively operating with the Agrarian Insurance Pool and pool-member companies. The obligatory reinsurance agreement for the Agrarian Pool is being agreed now with PartnerRe.

“When the subsidiary is registered, the list of clients will be expanded. This will be not only pool-members, but other insurers,” he said.

He said that Bruno Sforni S.p.A is one of the oldest brokers in Europe (over 100 years). In Italy, this is the largest broker working with all types of insurance, and it is planned to provide these services to Ukrainian companies in the future. The company also has an underwriting agency in Italy working with surveyors. It is planned to provide these services in Ukraine not only to insurance companies, but farmers.

“Five years ago, when we started, it was stability: there were subsidies, and it was easier to work. The situation has got complicated by hostilities and violation of economic stability. Recently, especially when the pool started actively operating and initiated the legislative changes, it has become easier to work. There is a desire to stay on the market, which has a large potential of growth,” he said.

The Agrarian Insurance Pool said in a press release that early December 2015 Bruno Sforni S.p.A declared the start of the cooperation program with the pool.

INVESTMENT CLIMATE IN UKRAINE IMPROVING, STATE SHOULD FOCUS MORE ON REFORMS – EUROPEAN COMMISSIONER

KYIV. Dec 8 (Interfax-Ukraine) – The European Commission points at the improvement of the investment policy in Ukraine, although the commission calls to focus more on the reforms in the next four years without election, Commissioner for the European Neighbourhood Policy and Enlargement Negotiations Johannes Hahn has said.

“We witness certain improvement of the economic environment in Ukraine, which will be even more attractive for investors. Of course, combating corruption is another important vector in this area,” he said at a joint press conference with EU High Representative on Foreign Affairs and Security Policy Federica Mogherini and Ukrainian Prime Minister Arseniy Yatseniuk in Brussels on Monday.

Hahn said that now Ukraine received a chance to live four years without election if there were no early election.

KHARKIV AVIATION PLANT SOON TO BE TIGHTLY INTEGRATED INTO ANTONOV’S PRODUCTION CYCLE – OFFICIAL

KHARKIV. Dec 7 (Interfax-Ukraine) – Kharkiv State Aircraft Manufacturing Company (KSAMC) soon will be tightly integrated in the production and technical cycle of Antonov State Enterprise, Deputy Director General of Ukroboronprom State Concern Yuriy Paschenko has said.

“We could say that this will be specialized enterprise which will be soon tightly integrated in the production and technical cycle of Antonov State Enterprise. It would not be its workshop or a part of it. I mean cooperation,” Paschenko told reporters in Kharkiv on Thursday.

He said that the plant will be involved in production of composite knots.

The plant also should finish and implement the An-140 and An-74 projects, which are in the different stages of readiness.

As reported, on June 16, 2015, the Ukrainian government transferred KSAMC and 410 Civil Aviation Plant (Kyiv) to the management of Ukroboronprom from Antonov.

Kharkiv State Aircraft Manufacturing Company is one of the leading enterprises in Ukraine’s aviation industry, and is the manufacturer of the multipurpose An-74 and short-haul An-140 aircraft.

 

LOAN AGREEMENT WORTH EUR 400 MLN WITH EIB FOR INFRASTRUCTURE DEVELOPMENT SHOULD BE RATIFIED IN 2016 – MINISTRY

KYIV. Dec 7 (Interfax-Ukraine) – The Regional Development, Construction, Housing and Utilities Economy Ministry of Ukraine hopes that the agreement on the provision of EUR 400 million for development of Ukrainian infrastructure signed with the European Investment Bank (EIB) in July 2015 will be ratified in 2016, the ministry has reported referring to Deputy Regional Development, Construction, Housing and Utilities Economy Minister for European Integration Roman Chuprynenko.

He said that at present the bill and a package of documents have been sent to the Foreign Ministry and the Ukrainian president.

Chuprynenko said that the EIB is providing funds to implement the municipal infrastructure upgrade project in heating, water supply and sewage areas, energy efficiency of buildings, street lighting and waste treatment.

As reported, referring to Deputy Prime Minister and Regional Development, Construction, Housing and Utilities Economy Minister Hennadiy Zubko, The financial agreement between Ukraine and the EIB to finance Ukraine Municipal Infrastructure Project was signed on July 23, 2015.

Zubko said that the general term of paying the loan under heating supply modernization projects is 22 years, and for water supply modernization projects – 30 years. The credit rate is 2%.

UKRAINE SIGNS AGREEMENT ON $300 MLN MACROFINANCIAL LOAN WITH JAPAN

KYIV. Dec 7 (Interfax-Ukraine) – The Ukrainian government and Japan International Cooperation Agency (JICA) on December 4 signed an agreement on the second development policy loan worth JPY 36.969 billion or around $300 million, an Interfax-Ukraine correspondent has reported.

“The loan aims at increasing efficiency and transparency of the public sector, deregulation and improvement of conditions for doing business,” Finance Minister Natalie Jaresko said after signing the agreement.

Japan representatives said that one of the elements of the loan is the reform of inefficient utilities subsidies. They said that technical assistance to new agencies to fight corruption will be additionally provided.

Ukrainian Prime Minister Arseniy Yatseniuk said that the loan is issued for 20 years with the grace period of six years and JPY LIBOR + 0.5%, and today it is less than 1% per annum.

Japan in August 2014 provided the first development policy loan of $100 million.