Business news from Ukraine

MINISTRY OF INFRASTRUCTURE WILL PROPOSE GOVERNMENT TO COMPENSATE INVESTMENTS IN SEAPORTS

The Ministry of Infrastructure of Ukraine in the near future might submit a draft resolution on compensation of investments in the port industry to the Cabinet of Ministers for consideration, Deputy Prime Minister Volodymyr Kistion has said. “We are talking about compensation of investments in the port industry of Ukraine, legalization of objects of port infrastructure that are not registered for objective reasons, both public and private,” he said at the Ukrainian Ports Forum 2018 in Odesa. In addition, the official expressed confidence that the ministry will soon complete the development of a new methodology for calculating port dues, as well as preparation of other legislative acts that will promote the development and modernization of seaports and will further provide opportunities to reduce port rates. At the same time, Kistion noted that since the beginning of the year the government has reduced port rates by 20%.

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CAPITAL INVESTMENTS IN UKRAINE 37.4% UP IN Q1, 2018 – STATISTICS

Capital investments in Ukraine in January-March 2018 increased by 37.4%, while in January-March 2017 by 21.4%, the State Statistics Service has reported.
Capital investments in Ukraine in 2017 increased by 22.1%, in the first nine months of the year by 20.7% and in the first half of the previous year by 22.5%.
According to the service, in the first quarter of 2018 some UAH 89 billion of capital investments were used (excluding the temporarily occupied territory of Crimea, Sevastopol and Donbas), which is 37.4% more than the volume of capital investments for the corresponding period of 2017.
In terms of regions, the largest increase in capital investments in the first quarter of 2018 compared to the same period in 2017 was recorded in Donetsk (2.3 times), Chernihiv (2 times) Zhytomyr (64.6%), Zakarpattia (49.9%), Cherkasy (47%), Ivano-Frankivsk (44.6%), Rivne (53.3%), Cherkasy (47%), Sumy (39.6%), Vinnytsia (37.3%), Volyn (36.7%), Poltava (26.4%), Dnipropetrovsk (21.3%), Ternopil (20.6%), Kirovohrad regions (16.5%), and Kyiv city (61.1%).
According to statistics, capital investments during the reporting period decreased in Luhansk (by 23.9%) and in Chernivtsi regions (by 0.5%).
In terms of sectors, the highest growth of capital investments in the first quarter of this year was recorded in information and telecommunications (2 times), financial and insurance activities (80.2%), transport, warehousing, postal and courier activities (69.3%), operations with real estate (59.1%), state administration, defense and compulsory social insurance (56%), education (50.8%), wholesale and retail trade, repair of motor vehicles and motorcycles (49.9%), industry (46.3%), information and telecommunications (2 times), professional, scientific and technical activities (23.7%), scientific achievements and developments (25.5%), in the sphere of art, sports and entertainment (14.7%), and agriculture (10.2%).

NESTLE INTENDS TO INCREASE INVESTMENTS IN UKRAINE IN 2018

Nestle, one of the world’s largest food producers, intends to invest about UAH 390 million in Ukraine in 2018, Nestle Director for Ukraine and Moldova Ansgar Bornemann has said. “In 2017 Nestle invested more than UAH 128 million in Ukraine. And investments were used in certain parts at each of the three factories. And in 2018 we plan to triple investments to UAH 390 million,” he told Interfax-Ukraine.
He said total sales in 2017 reached UAH 7 billion. “The most significant contribution to this figure was made by the culinary business (Torchyn and Mivina), confectionery products (Svitoch, Lion, KitKat) and beverages (Nescafe) .The business of baby food, animal feed, NestleProfessional, ready-to-eat breakfasts also demonstrated a significant growth,” he said, adding that in 2018 the company expects sales growth.
The company’s exports in 2017 increased by 10%. The company supplies goods to 17 countries, including Great Britain, Germany, Spain, Holland, Poland, France, Hungary, the Baltic States, Georgia, Armenia, and Azerbaijan. In addition, in small quantities the products are exported to the United States and Canada.
Nestle began operations in Ukraine in 1994. The Nestle business in Ukraine is represented by the following directions: coffee, drinks, confectionery goods, cooking (cold sauces, seasoning, soup), fast food products, baby and special meals, ready meals, and pet food.

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GERMAN FIXIT GRUPPE TO BUILD DRY CONSTRUCTION MIXES PLANT IN UKRAINE

FIXIT Gruppe (Germany) would build a dry construction mixes plant in Pustomyty district of Lviv region, the press service of the Lviv Regional Administration has reported. Head of the investment policy department of the Lviv Regional Administration Roman Matis said that it is planned to start building the plant in June and finish in winter before strong frosts. “Within three weeks, the company must provide us with all the documents for permitting them to start construction. If we have any difficulties, we will try to help. Construction will begin in June,” he told Interfax-Ukraine.
According to Matis, the plant will produce dry building mixes under the Kreisel trademark, in particular, primers, waterproofing materials, mixes for floors, grout and masonry, glue mixes, plasters, building paints, and other products.
He recalled that one plant of FIXIT Gruppe already produces goods under the Kreisel trademark in Fastiv (Kyiv region). This product is in great demand in the market of Western Ukraine, which prompted the company to build a plant in Lviv region.
The new plant near Pustomyty will create about 70-80 jobs, and most of the production processes will be automated. According to the Lviv Regional Administration, FIXIT Gruppe is part of the Hazlberger Group, one of the largest producers of dry building mixes in the EU, primarily in Germany, Switzerland and Austria. FIXIT Gruppe was established in 2006. It has 68 production sites in 19 countries. The headquarters is located in Switzerland.

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