Business news from Ukraine

FLEXIBLE PACKAGING MANUFACTURER TATRAFAN RECEIVES EUR 3.1 MLN LOAN

Piraeus Bank Ukraine (PBU) has provided a loan of EUR 3.1 million to the Ukrainian producer of flexible packaging Tatrafan LLC (Lutsk), and the European Bank for Reconstruction and Development (EBRD) takes half of the risk on its books under the EBRD Risk Sharing Facility (RSF), according to an EBRD press release.“The European Bank for Reconstruction and Development (EBRD) and Piraeus Bank Ukraine (PBU) are joining forces to support Tatrafan LLC, a Ukrainian producer of flexible packaging. Tatrafan will use the financing to increase its production capacity as well as to cover working-capital and capital-expenditure needs,” the EBRD said in a statement on Monday.Tatrafan is part of a broader group of companies active in the production of plastic packaging in Bulgaria, Finland and the Slovak Republic. At the facilities in Lutsk, it manufactures flexible wrapping films, which are used to produce packaging for food and for fast-moving consumer goods.According to the information on the Tatrafan website, it is a joint venture of Finnish Ab Rani Plast Oy and Slovakian Chemosvit, a.s.In 2020, OOO Tatrafan received UAH 12.35 million of net profit against a small loss a year earlier with a 48.3% reduction in revenue to UAH 324.12 million.Piraeus Bank Ukraine is a subsidiary bank of the Greek Piraeus Group. Early 2020, the EBRD organized a financing package for PBU, which included a loan in local currency of up to the equivalent of $5 million for further lending to small businesses, as well as EUR 10 million of financing under the RDP.According to the National Bank of Ukraine, as of September 1, 2021, Piraeus Bank ranked 38th in terms of total assets (UAH 4.62 billion) among 72 banks operating in the country.The EBRD is a leading institutional investor in Ukraine. To date, the Bank has invested more EUR 15.5 billion in 507 projects across the country.

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UKRAINIAN MANUFACTURERS INITIATE RESTRICTIONS ON IMPORT OF SULFURIC ACID AND OLEUM

The Interdepartmental Commission on International Trade on August 5 made a decision to revise special measures that are coming to completion – quotas in relation to the import of sulfuric acid and oleum to Ukraine (foreign economic activity code 2807 00 00 00).
According to the commission’s publication in the Uriadovy Kurier government newspaper, the initiators of extension of the special measures were Skhidny (Eastern) Ore Mining and Processing Plant, PJSC Sumykhimprom, Scientific and Production Enterprise Zorya and First Chemical Association.
“The commission found that the appeal contains enough information indicating that the use of special measures had a positive effect on the applicants’ activities, but did not completely eliminate the consequences of the harm caused to them, the appeal provides enough information indicating that the applicants may be in the process of adapting to conditions of competition,” the report says.
The Ministry of Economy has been entrusted with the revision of the restrictions, and it carries out the registration of interested parties by August 13.
As reported, in the summer of 2018, the commission introduced quotas for these products for three years. For the first year, the import quota for sulfuric acid and oleum from Belarus amounted to 30,800 tonnes, Russia – 8,600 tonnes, other countries – 4,300 tonnes. In the second year, quotas were increased, respectively, to 32,300 tonnes, 9,100 tonnes and 4,500 tonnes, in the third year – to 33,900 tonnes, 9,500 tonnes and 4,800 tonnes.
The special measures do not apply to imports from about 50 countries, including Kazakhstan.
A number of Ukrainian metallurgical companies opposed the introduction of restrictions on the import of sulfuric acid, while chemical enterprises insisted on their introduction.

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UKRAINIAN MANUFACTURER OF AGRICULTURAL MACHINERY FREGAT CUTS LOSSES IN 2020

A large Ukrainian manufacturer of agricultural machinery, JSC Plant Fregat (Pervomaisk, Mykolaiv region) ended 2020 with a net loss of UAH 470,000, while in 2019 it was UAH 26.5 million.
According to the financial statements of the enterprise, published on Tuesday in the information disclosure system of the National Securities and Stock Market Commission, last year it increased its net income by 21.7%, to UAH 479.23 million.
According to the information of the plant, 53% of the total volume of manufactured products fell on for safety barriers roads and metal structures, 32% – the production of agricultural machinery for crop production, and other types of products accounted for 15%.
The enterprise exports road safety barriers to Germany, the Netherlands, China, the CIS countries; and agricultural machinery is mainly exported to the CIS countries.
Plant Fregat offers complex solutions in the field of irrigation systems, road barriers, metal structures for various purposes, as well as mechanical engineering products.
The agricultural machinery of the enterprise is included in the list of agricultural machinery, upon purchase of which 25% of its cost is compensated to the agrarians from the state budget.
This year, the plant also expects to expand the geography of deliveries of irrigation machines, in particular, an agreement has been signed for the supply of 50 machines to Uzbekistan, and deliveries are planned to Kyrgyzstan. Also, work is underway to establish cooperation with the farmers of Romania, Bulgaria and expand partnership with Poland.

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LEADING UKRAINIAN MANUFACTURER OF STOVES ENDS 2020 WITH NET PROFIT

JSC Greta (previously – Druzhkivsky plant of gas equipment, Donetsk region), a leading Ukrainian manufacturer of gas, electric and combined stoves, ended 2020, according to preliminary data, with a net profit of UAH 5.46 million, while in 2019, its loss amounted to UAH 8.52 million.
According to the information on the agenda of the general meeting of shareholders on April 8, published in the disclosure system of the National Securities and Stock Market Commission of Ukraine, the retained earnings of the company as of January 1, 2021 amounted to UAH 107.34 million (as of the same date in 2020 – UAH 101.88 million).
The shareholders at the meeting plan to consider the distribution of profits and the procedure for covering losses, while the draft decision is supposed to send the net profit to the development of production, not to pay dividends.
Over the past year, the company’s current liabilities grew by 16.6%, to UAH 76.07 million, noncurrent by 15.5%, to UAH 122.58 million.
The total accounts receivable of Greta increased by 18.5%, to UAH 9.54 million, assets in general – by 11.7%, to UAH 312.48 million.
The company’s equity capital by the beginning of this year is UAH 113.84 million, including the charter capital being UAH 5.198 million.

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UKRAINIAN ECONOMY MINISTER COUNTS ON BILL ON LOCAL CONTENT WITH SUPPORT OF MANUFACTURER

Minister of Economy Ihor Petrashko expects to find such a version of the bill on amendments to the law on public procurement, which will satisfy international partners and will support the Ukrainian manufacturer.
“Without stimulating production in Ukraine and using public funds to purchase goods produced in Ukraine, there will be no significant progress in the country,” Petrashko told a news conference during the Ukrainian Forum “Ukraine 30. Coronavirus: Challenges and Responses” held on Tuesday.
According to the minister, all countries of the European Union and the United States use incentives to ensure that public funds primarily go to the purchase of those goods that are produced in their countries.
Petrashko said that at the moment consultations with the EU and the United States on the local content bill (No. 3739 on amendments to the law of Ukraine on public procurement) are underway, as the reaction to it is ambiguous.
The minister added that the use of non-price criteria will benefit Ukraine’s trade with the European Union and the United States.
“Therefore, we want to find a format of persuasion and find the version [of the bill] that will allow us to support the manufacturer,” Petrashko said.

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UKRAINIAN WINE MANUFACTURER SHABO OPENS THIRD BRAND STORE IN CHINA

Shabo, a large Ukrainian wine manufacturer (Odesa region) on July 28 opened its third brand store in China, Fuzhou, the previous two working in Guangzhou and Xi’an.
According to the company’s website, the official store opened at the end of the previous month became the largest of the three stores. Shabo has been exporting its products to China since 2013. The first brand store was opened here two years ago.
“This is the third Shabo store with the products represented in China under the Master Tardan trademark, the previous two are successfully operating in Guangzhou and Xi’an,” the company said.
The new store in China has 240 square meters of stands with products, a wine storage, a tasting room, and office premises.
“This is the third store we’ve opened in three years and we plan to move forward at the same pace. I believe that by 2021 the Shabo brand store will open its doors to Shanghai residents as well,” Stanyslav Kobyletsky, the company’s export director, said.
The company noted that Shabo products are now exported to 18 countries of the world.
Shabo was established in 2003. The company is engaged in growing and processing grapes, production, and sales of alcohol products.
The company has been producing cognacs and brandy since 2005, and Shabo grape vodka since 2013. The manufacturing capacity of the complex, occupying more than 10,000 square meters, provides a full cycle of production of strong alcoholic drinks of grape origin.
The range of Shabo products is presented in all regions of Ukraine, as well as in Georgia, Israel, China, Poland, Latvia, Estonia, Belgium, France, Denmark, the Czech Republic, the United States, Brazil, Canada, Azerbaijan, Japan, Norway, and the United Kingdom.
The company owns processing capacities for the season amounting to more than 20,000 tonnes of red and white grapes. The Shabo vineyard covers a total area of about 10,000 square meters. Shabo produces 50 million bottles a year, with a total of about 80 items of products. Bottling is performed at nine filling lines.
Based on the state register of legal entities and individual entrepreneurs, the ultimate beneficiary of Shabo Industrial-Trade Company LLC is Eldar Iukuridze, Agrofirma Shabo LLC (both in Odesa region, the village of Shabo) Eldar Iukuridze and Bela Cholikidze.

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