Business news from Ukraine

KYIV MAYOR VITALI KLITSCHKO SIGNS MEMO WITH FRENCH VEOLIA COMPANY ON COOPERATION IN SOLID WASTE MANAGEMENT

Kyiv Mayor Vitali Klitschko has signed a Memorandum with the French company “Veolia Central & Eastern Europe S.A.” on cooperation in the field of solid waste management, the press service of the Kyiv city state administration has reported. “Kyiv is committed to working with reputable international companies with successful experience in implementing projects in the field of waste management. The Veolia Group is one of the world leaders in developing solutions for managing water supply systems, waste and energy. Therefore, I am pleased to announce that today we are signing a Memorandum of Cooperation with the French company Veolia Central & Eastern Europe S.A.,” Klitschko said.
The mayor of Kyiv noted that the capital has clear plans for a gradual departure from the technology of dumping garbage – both from an outdated and environmentally dangerous methodology.
In July, the city authorities intend to launch pilot projects on the separate collection of municipal solid waste in the capital.
“We plan to install up to 3,000 containers for individual fractions – plastic and glass. We met with the carriers of garbage and offered them to develop and implement a pilot project of separate collection in the territories where they work. It is very important that these are different models proposed by enterprises and we will determine the most effective ones,” he added.
The plans of the mayor include developing utility-type waste sorting, transferring of recycled materials for recycling, and also he plans to create a garbage processing complex with equipment for efficient processing of organic and other fractions.
“We plan to build a waste recycling complex, which will have a total processing capacity of 700,000 tonnes per year and will include a sorting stage. We plan to place this waste recycling plant next to the Energia plant, which will be made ecologically safe,” Klitschko said.
The Veolia company expressed hope that cooperation with Kyiv would be effective.

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UKRAINE INTERNATIONAL AIRLINES STARTS COOPERATION WITH DUTY FREE AMERICAS

Ukraine International Airlines (UIA, Kyiv) has announced the launch of a strategic partnership with the U.S. network of duty free shops Duty Free Americas (Florida), UIA Vice President Serhiy Fomenko and the vice president of Duty Free Americas have said at a press conference at Boryspil International Airport (Kyiv).
According to them, in particular, UIA and Duty Free Americas are launching a pre-order duty free service.
Fomenko said the pre-order duty free service will provide passengers with the opportunity to order duty free goods not at the airport but online, along with an invitation to check-in.
There will be 5,000 goods in the catalog. It will be available to passengers on the airline’s website in July 2019.
Duty Free Americas is a network of duty free shops in the United States, Mexico and Latin America. It was founded in 1983 and is based in Hollywood (Florida, the United States). Previously, the company was known as World Duty Free Americas, and was renamed Duty Free Americas in October 2001.

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UKRAINIAN UKREXIMBANK SIGNS AGREEMENT ON COOPERATION WITH CHINA EXPORT & CREDIT INSURANCE CORPORATION

Ukreximbank (Kyiv) and China Export and Credit Insurance Corporation (Sinosure) on April 17 signed a framework agreement on cooperation in Kyiv, a press release from the bank said. The agreement foresees that Sinosure will provide insurance support for those projects for the which applications were filed through Ukreximbank and contracts were concluded by Chinese enterprises in Ukraine. In particular, the matter concerns the implementation of construction projects in Ukraine and other countries, in which Ukreximbank is involved, as well as projects in the field of infrastructure, agriculture, energy, transportation, oil, gas and chemical industries.
The total limit of Sinosure financial insurance for use by Ukreximbank will be $500 million. The loan term will be set depending on the parameters of each contract and could reach 15 years, the report said.
“An agreement on cooperation for the first time signed between the Ukrainian bank and China Export and Credit Insurance Corporation is a landmark event, as it opens up great potential for expanding external financing channels for the key sectors of the national economy,” the press service of Ukreximbank said, citing chairman of the bank board Oleksandr Hrytsenko.
Sinosure is the official export credit agency of China, founded in 2001. Sinosure is the only state-financed insurance organization.

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EIB CONSIDERS KHRAKIV REGION AS ONE OF PRIORITY REGIONS FOR COOPERATION IN UKRAINE

The European Investment Bank (EIB) is considering Khrakiv region as one of the priority regions for cooperation in Ukraine and the bank is negotiating with Kharkiv authorities on the participation in the Safe City project, Head of EIB Resident Representation for Ukraine Jean-Erik De Zagon has said. In order to develop small and medium-sized enterprises (SME), it is necessary to create a good climate, De Zagon said at a briefing before the start of the Kharkiv SME Day Forum in Kharkiv on Tuesday.
The bank sees that in Kharkiv region there is indeed development in the medical field, as well as in the field of transport and education, much is being done to improve the infrastructure and living conditions, he said, adding that this is done thanks to the efforts of the local authorities and the bank.
His bank has already sent EUR 1.5 billion to the development of SME in Ukraine in general and plans to continue financing projects for SME,” the head of the EIB Resident Representation for Ukraine said.
Answering journalists’ questions, de Zagon confirmed that the EIB is negotiating with the authorities of Kharkiv on participation in the Safe City project.
The bank is at the negotiation stage. The bank has not yet reached any specific agreements, but we are moving very fruitfully along this path, de Zagon said.
Yesterday, in particular, he was shown a pilot dispatch center for city traffic control center that will be used for the road network and infrastructure to work well. The bank has already provided EUR 21 million for this and will continue to cooperate, he said.

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UKRAINE IS INTERESTED IN DEVELOPING DEFENSE COOPERATION WITH CAIRO

Kyiv is interested in developing defense cooperation with Cairo and offers Egypt cooperation in modernizing its air defense system.
The press service of the Ukroboronprom state concern reported on Thursday that cooperation plans were discussed by Ukroboronprom Head Pavlo Bukin and Director for Production of the National Organization for Military Production (NOMP) of the Egypt’s Ministry of Military Production Hassan Ahmed Abdel-Mageed at the IDEX 2019 international defence exhibition held in Abu Dhabi (the UAE).
“In accordance with the agreement, the Ukrainian side will provide proposals for the modernization of anti-aircraft missile systems and other air defense systems used by the Egyptian Armed Forces. Comprehensive modernization may include a complete replacement of the outdated element base with modern solid-state elements: along with the modernization of anti-aircraft missiles, this will allow increasing the range of target detection and destruction by several times,” the concern said.
According to the press service, the prospects for cooperation in the ammunition sphere were also discussed at the meeting.
“Currently, the parties are considering a project to establish a joint production of precision and conventional ammunition for artillery systems of various calibers,” the concern said.

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NATIONAL BANK COUNTS ON FURTHER COOPERATION WITH IMF

The National Bank of Ukraine (NBU) counts on continuation of cooperation of Ukraine with the International Monetary Fund (IMF) after the expiration of the currency Stand-By Arrangement (SBA), according to an inflation report for January 2019 posted on the website of the central bank.
The document, in particular, has the key assumptions for the macroeconomic forecast of the NBU for 2019-2021, including payments to the public sector from donors in 2019-2021 ($6.5 billion from the IMF, $1.6 billion each from the EU and the World Bank), along with the placement of government external loan bonds for $8.5 billion, will allow refinancing most of the payments on external obligations.
As reported, the IMF Executive Board, following a meeting on December 19, 2018, approved a new program of cooperation with Ukraine under the stand-by arrangement. The amount of the 14-month program is equivalent to SDR 2.8 billion, or about $3.9 billion. Some SDR 1 billion (about $1.4 billion) was provided immediately, while the remaining funds will be provided based on the results of the program reviews in May and September 2019. The NBU thus plans to raise some $4 billion from the IMF in 2020-2021.
In addition, at the end of January 2019, the NBU said that it had laid out macroeconomic forecasts for the country to place eurobonds worth $2 billion in 2019. Thus, the National Bank expects an increase in sovereign eurobonds in subsequent years to more than $3 billion.
As reported, Ukraine in October 2018 placed two tranches of eurobonds: $750 million five-year bonds and $1.25 billion 10-year bonds.
The yield on the five-year bonds was 9% per annum, and for the 10-year bonds it is 9.75%.
BNP Paribas, Citi, Goldman Sachs and J.P. Morgan acted as organizers of the issue.

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