Business news from Ukraine

DEPUTY FOREST RESOURCES AGENCY HEAD PROPOSES TO CREATE FORESTRIES MINISTRY

Deputy Head of the State Forest Resources Agency of Ukraine Volodymyr Bondar has proposed that the Forestries and Wood Industry Ministry is created, the press service of the agency has reported.
“Having a separate ministry, we will be able to bring the forest industry to a high level,” Bondar said at the fourth congress of foresters of Ukraine.
He added that the State Forest Resources Agency does not have the right to initiate legislation to speed up the resolution of a number of issues, in particular, the separation of economic and control functions, the fight against illegal logging, the drying up of forests, and the creation of a timber market.
According to the deputy head of the agency, the creation of the ministry will make it possible to develop a national forest policy, conduct a forest inventory and properly finance all work in forestries.
As reported, enterprises of the State Forest Resources Agency of Ukraine in 2018 saw UAH 466.1 million in net profit, and their net revenue rose by 23%, to UAH 16.8 billion. Enterprises of the agency logged 16.5 million cubic meters of wood and produced goods made of wood for UAH 3.139 billion.
According to the national budget for 2019, UAH 614.7 million will be provided to the State Forest Resources Agency, including UAH 462 million for forestries and hunting, protection of forests in the forest fund.
The total space of forest areas of Ukraine is almost 10.4 million hectares. The forest cover of Ukraine is 15.9%. The State Forest Resources Agency manages 7.6 million hectares of forests (73% of the forest fund of Ukraine).

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UKRAINE’S FOREST RESOURCES AGENCY SELLS 472,800 NEW YEAR TREES IN 2018

Enterprises of the State Forest Resources Agency of Ukraine sold 472,800 New Year trees in 2018 for UAH 32.8 million, Director General of the forestry innovative and analytical center of the State Forest Resources Agency of Ukraine Viktor Melnychenko has said in an interview with Interfax-Ukraine.
He said that the average price of one tree was UAH 69.
“With this level of sales, enterprises of the State Forest Resources Agency grow about 15 million trees. Thus, there is no harm to society or the environment from production of trees. At the same time, the market potential is much greater: about 10 million trees, if we assume that Ukraine has 40 million people [living in the country],” Melnychenko said.
He also said that in recent years, the State Forest Resources Agency has grown more trees in pots.

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CREATION OF UKRAINIAN EXPORT-CREDIT AGENCY REQUIRES EXTRA FINANCING OF UAH 80 MLN

The Export-Credit Agency could start operating in the fourth quarter of 2018 only if the budget for 2018 is reviewed and the financing is expanded by UAH 80 million, First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has said.
“To take legal and organizational measures [to start the Export-Credit Agency], an additional amount of UAH 80 million is required… We insist in the past six months that the specified amount is provided for in the budget amendments for 2018,” he told the press conference on Tuesday, answering a question of Interfax-Ukraine.
He also recalled that the national budget for the current year provides funding of UAH 200 million to the Export-Credit Agency. Earlier, the Ministry of Economic Development and Trade estimated the need for additional financing at UAH 146 million.
Former Ukraine’s trade representative Natalia Mykolska earlier said that she expects that first pilot products of the Export-Credit Agency will be seen at the end of 2018.

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POLAND’S DEVELOPMENT AGENCY ARRANGES FOR ACQUISITION OF GDAŃSK SHIPYARD FROM UKRAINIAN BUSINESSMAN TARUTA

The Industrial Development Agency of Poland (IDA) has reported that the first, most important stage of negotiations on the acquisition of the stake belonged to Ukrainian businessman Serhiy Taruta in Gdańsk Shipyard S.A. and GSG Towers Sp. z o.o has been completed.
“On March 28, the sides signed an agreement (the so-called term sheet) regarding the main terms of the final deal… The sides approved the key conditions of the deal and the schedule for the transfer of control over companies to the IDA,” the IDA said on its website.
The agency said that the offer was preceded by several weeks of intensive talks launched in January 2018 after the IDA filed an application to purchase assets from the Ukrainian owner.
Earlier Taruta told Hromadske TV that his daughter held the negotiations, as he is not involved in business now.
According to the report, of the IDA, its offer is of the market nature. The finalization of the deal still requires the observation of some conditions approved by the two sides, including the approval from the Poland’s antimonopoly agency.
The IDA plans to stabilize the situation at the two enterprises and continue building ships and towers for wind farms.
The IDA now owns 18.59% in Gdańsk Shipyard and 50% in GSG Towers, while the rest of the shares belong to the Ukrainian investor.

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