Business news from Ukraine

GOVERNMENT TO CREATE PROMOTION OFFICE TO SUPPORT SMALL AND MEDIUM-SIZED ENTERPRISES

The Cabinet of Ministers of Ukraine has approved a strategy for developing small and medium-sized enterprises (SME) until 2020, which in particular, envisages the creation of the SME Promotion Office and a network of business support centers. The decision was made on May 10.
The draft action plan of the strategy, a copy of which has been sent to Interfax-Ukraine, includes the implementation of a pilot project on partial securing loans for SME and designing of proposals on the possible schemes of securing these loans.
In addition, the Strategy provides for simplification of the procedure for closing down an enterprise, improving the licensing and permitting system, as well as improving the access of SME to public procurement, according to the document. In particular, the draft plan provides that the state-owned enterprise ProZorro should, by the end of the year, introduce separate sections for the business entity category in the participant registration card in the electronic procurement system, depending on the number of employees and revenues from any type of activity for the year, according to the action plan.
The government also finally abolished the use of seals.

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GOVERNMENT APPROVES STRATEGY FOR REVIVAL OF UKRAINIAN AIRCRAFT INDUSTRY

The government of Ukraine has approved the strategy for the revival of the national aircraft industry for the period until 2022.
The relevant draft resolution of the Cabinet of Ministers, developed by the Ministry of Economic Development and Trade, was adopted at a government meeting on May 9 without discussion. The Ministry of Finance was instructed to finalize the document within three days.
According to the draft document available to Interfax-Ukraine, the main activities of the strategy include expanding opportunities for the industry’s participation in public-private partnership projects through amending the list of state property objects that can be transferred to concession, approved by the Cabinet in 1999; improving the procedure for obtaining by aviation industry enterprises of licensing documents in the field of export control; cheapening of loans of Ukrainian banks for the development of new aircraft models; certification of aircraft engines of Ukrainian production in the EU; carrying out work on substitution of Russian components import; the development and approval of the concept of the state targeted scientific and technical program for the development of the aviation industry for 2018-2022, as well as the state program itself.
Among the main measures of the strategy are also the reorganization of state enterprise Antonov into Antonov holding company; organization of modernization and production of Mi-2MSB and Mi-8MSB helicopters for the needs of the army and law enforcement agencies, as well as for exports; the creation and organization of a multipurpose light helicopter with a take-off mass of 4-5 tonnes within the framework of Korolek MSB-2; the organization of production of a helicopter with a take-off weight of 7-8 tonnes; the organization of production of blades and helicopter gearboxes for the Mi family helicopters.

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GOVERNMENT APPROVES LIST OF LARGEST FACILITIES FOR PRIVATIZATION FOR LATE AUTUMN

The Ukrainian government at a meeting on May 10 is to approve a list of largest facilities for privatization in 2018, which will launch the process of preparation of them for privatization which could start at the end of this autumn, acting Head of the State Property Fund of Ukraine (SPF) Vitaliy Trubarov has said. “If we have the timing of all the procedures in a single thread, then we get actual privatization – this is the end of the autumn, relatively speaking, from the middle of October through December,” he said on Channel 5 TV.
Trubarov said that the SPF as soon as possible after the meeting of the Cabinet of Ministers will launch all the required procedures, including selection of advisers.
“There is a danger that the procedures that we will launch this year will not be finished before the end of the year. We will transfer some of the facilities to the beginning of 2019,” he said.
Answering the question about the term of the privatization of the Odesa Port-Side Plant, which tenders in 2017 ended twice as a failure, Trubarov called this facility “the most problematic” and urged not to hurry with a new attempt of selling it because of the unsolved debt problem. “The most important problem is its debts, which are fixed by the court decision. Unfortunately, at the moment we are just approaching the decision together with our international advisors to the issue related to the possibility of debt restructuring,” he said. “So far we have not found a solution to what to do with the debt. We do not need to put it up for sale now. We still have time, in this situation it is better not to rush,” the head of the SPF said.

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GOVERNMENT APPROVES FINANCIAL PLAN OF BORYSPIL AIRPORT

The Cabinet of Ministers of Ukraine has approved a financial plan of state-owned enterprise (SOE) Boryspil International Airport (Kyiv), the largest airport of the country, for 2018 with the projected net profit of UAH 1.388 billion. This is outlined in a government resolution passed at a meeting on April 11, 2018, a copy of which is available to Interfax-Ukraine.
According to the document, net revenue in 2018 is planned in the amount of UAH 3.93 billion, gross profit – UAH 2.156 billion, earnings before interest, taxes, depreciation and amortization (EBITDA) – UAH 2.473 billion, and EBITDA margin – 69.9%.
Pretax profit could be UAH 1.695 billion, payments to the state – UAH 1.923 billion and capital investment – UAH 2.263 billion.
Boryspil International Airport is the main airport of Ukraine. The airport has two runways: one with a length of 4,000 meters and a width of 60 meters, and the second with a length of 3,500 meters and a width of 63 meters. Four passenger terminals, postal and cargo complexes are located on the territory of the airport.

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GOVERNMENT APPROVES REPORT ON NATIONAL BUDGET FULFILLMENT IN 2017

The Cabinet of Ministers of Ukraine approved a report on the national budget fulfillment in 2017, an Interfax-Ukraine correspondent has reported. “This budget, the law on the national budget of Ukraine, for 2017 first in a long period of time was passed in due time, which allowed holding eligible discussion in the government and eventually with lawmakers. This discussion allowed providing for financial support of the salary increase, financing the pension reform and road repair… We continued focusing on the reduction of the deficit of the budget,” Ukrainian Finance Minister Oleksandr Danyliuk said.
He said that with the approved figure for the deficit of the national budget at 2.7% of GDP last year it was 2.6%.

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