Business news from Ukraine

TRADE REPRESENTATIVE OF UKRAINE EXPECTS SIGNING INDUSTRIAL VISA-FREE AGREEMENT BY LATE 2021

Deputy Minister of Economy – Trade Representative of Ukraine Taras Kachka expects to sign an agreement on the so-called industrial visa-free regime with the EU (ACAA Agreement) by the end of 2021.
“I hope that by the end of the year we will come to the signing of the ACAA Agreement. The main effect will be in one thing – this is the greatest investment in the confidence in Ukrainian producers,” the Ministry of Economy quotes Kachka in a press release.
He added that the second phase of the quality infrastructure assessment is scheduled for September.

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UKRAINIAN INTERPIPE PROCEEDS TO EXPAND PRESENCE IN EXPORT MARKETS

The Ukrainian industrial company Interpipe proceeds to expand its presence in the export markets, signing a three-year contract with Société Nationale Industrielle et Minière (SNIM) for supplying of 1,076 mm locomotive wheels according to the AAR standard.
The company said in a press release on Tuesday that SNIM is the only owner of 704 km railway infrastructure in Mauritania and is mainly operates large-scale freight transport.
The railway line connects the city of Zouérat, the center of country’s iron ore industry, with the port of Nouadhibou. The length of a single rolling stock consisting 200 wagons may be up to 2.5 km, so from two to four locomotives are usually used at the head of the railway train.
Director of Interpipe Railway Products Division Oleksndr Garkavij said that locomotive wheel is a technically complex product for North African countries. “Their wear resistance indicators have to be at a high level in sandy deserts. Moreover, Mauritanian trains are one of the longest and heaviest in the world. Our strategy is to continue increasing the share of export deliveries of railway products,” he said.
Interpipe is global producer of steel pipes and railway wheels, based in Ukraine. The company’s products are marketed in more than 80 countries all around the world via the network of sales offices located in key markets of Ukraine, Europe, North America and the Middle East. In 2020, Interpipe supplied 662,000 tonnes of finished goods, including 192,000 tonnes of railway products.
The ultimate owner of Interpipe Limited is Ukrainian businessman Victor Pinchuk and his family members.

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UKRAINE WANTS TO RE-LAUNCH INDUSTRIAL PARKS

The Verkhovna Rada adopted bill No. 4416-1 on re-launch of the mechanism of industrial parks, which provides incentives for residents of such parks. As the agency’s correspondent reports, 260 MPs voted for the bill at the first reading with the required 226 votes.
The bill provides for such incentives for residents in industrial parks as compensation for the share of investments from 15% to 70% of capital expenditures in the first three years depending on the volume of the company’s exports, compensation for the share of interest payments on a loan from 30% to 70% depending on the volume of exports, as well as compensation in the amount of 50% of the cost of connecting to the power grids.
In addition, the bill defines the objects that can be located in the industrial park. For example, in the industrial park it is proposed to permit the placement of offices of a management company, financial institutions, marketing and advertising objects, institutions of higher and vocational education, business campuses, accelerators, foundations, resident companies, and laboratories for the development of innovative technologies. The document also proposes to allow the deployment of fire departments, production and engineering structures and other facilities there.

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INDUSTRIAL PRODUCTION IN UKRAINE 1.3% DOWN IN SEPT

Industrial production in Ukraine in September 2018 decreased by 1.3% compared to September 2017, while in August it fell by 0.5% compared to August 2017, in July the growth was 2.9%, in June this figure was 2.2%, and in May some 2.5%, the State Statistics Service has said. The agency said that with the adjustment to the effect of calendar days, industrial production in September 2018 also fell by 0.7% from September 2017, while in August 2018 from August 2017 the decline was 0.5%, in July 2018 the growth was 2.3%, in June 2018 some 2.5%.
The service said industrial production in September of this year increased by 1.7% compared to the previous month, and taking into account the seasonal factor it was the same as in August 2018.
In the nine months ending September 2018, the growth of industrial production in Ukraine slowed to 1.8% compared to the same period in 2017, while this figure stood at 2.2% for the eight months, at 2.6% for the seven months, and at 2.5% for the six months.
The supply of electricity, gas and steam in the nine months grew by 2.2%, while the processing industry saw a 1.6% increase, and output in the mining industry grew by 2.0%.
In September 2018 alone, the processing industry reduced production by 1.6% from September 2017, while the supply of electricity, gas and steam fell by 3.9%, and the mining industry saw a 0.7% increase in output.
The State Statistics Service said that industrial production in Luhansk region in September 2018 compared with September 2017 did not change, while Donetsk region saw a 1.2% decrease in industrial output.
As for other regions, a positive result in industry in September this year was recorded in Sumy region (growth by 41.7%), Ternopil region (4.9%), Zaporizhia region (by 4.4%), Zakarpattia (by 3.2%) Ivano-Frankivsk region (2%), Poltava region (1.2%), and Kyiv region (1.5%).
The following regions posted a decrease in industrial production: Odesa region by 14%, Volyn region by 10.3%, Lviv region by 5.4%, Zhytomyr region by 5.1%, Rivne region by 4.9%, Kirovohrad region by 3.4%, Cherkasy region by 3.3%, Kharkiv region by 3%, and the city of Kyiv by 6.3%.
As reported, industrial production in Ukraine in 2017 decreased by 0.1% after growing by 2.4% in 2016. This was preceded by four years of decline: in 2015, industrial production decreased by 13%, in 2014 by 10.1%, in 2013 by 4.3%, in 2012 by 0.7%.

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