Business news from Ukraine

MARIUPOL SEAPORT INCREASES CARGO HANDLING BY 5.5%

Mariupol seaport (Donetsk region) in January-October 2019 increased cargo transshipment by 5.5% compared to the same period in 2018, to 5.285 million tonnes.
According to the Ukrainian Sea Ports Authority, over this period the port increased transshipment of exported cargo by 1.8%, to 4.333 million tonnes, imported by 33.5%, to 946,480 tonnes and significantly reduced transshipment of cabotage goods, to 5,500 tonnes. At the same time, the port did not transship transit cargo.
According to the nomenclature of goods, for the ten months of 2019 Mariupol port increased transshipment of liquid cargo by 10.2 times, to 125,200 tonnes, dry cargo by 42.8%, to 1,976 tonnes and reduced the handling of packaged goods by 11.9%, to 3.184 million tonnes.
As reported, the volume of cargo transshipment in Mariupol seaport in 2018 decreased by 9.62% compared to 2017, to 5.89 million tonnes.
Mariupol seaport is one of the largest ports in Ukraine. Its capacities allow transshipment of over 17 million tonnes of cargo per year.

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UKRAINIAN SEA PORTS AUTHORITY, COFCO AGRI RESOURCES UKRAINE AGREE TO ATTRACT UAH 1.3 BLN IN DEVELOPMENT OF MARIUPOL PORT

State-owned enterprise (SOE) Ukrainian Sea Ports Authority, COFCO Agri Resources Ukraine (the agricultural exporter), SOE Mariupol Maritime Merchandise Port and STT LLC signed a memorandum of cooperation to develop the Mariupol port during the RE:think. Invest in Ukraine forum, held in Mariupol on Tuesday.
Ukrainian Sea Ports Authority Head Raivis Veckagans, Ukrainian Infrastructure Minister Vladyslav Krykliy, Director of Mariupol Maritime Merchandise Port Oleksandr Oliynyk, COFCO Agri Resources Ukraine Director General Volodymyr Osadchuk and STT Head Volodymyr Sudeiko signed the document.
“The memorandum provides for the implementation of an infrastructure project in the port of Mariupol, which will ensure the attraction of a total of more than UAH 1.3 billion of investment in infrastructure development and increase cargo traffic by 2.3 million tonnes,” Krykliy said.
According to him, within the framework of this document, reconstruction of two berths, construction of the second stage of the grain terminal and the creation of a single transshipment complex of food and liquid food cargoes are also planned.
Veckagans said told Interfax-Ukraine that, in particular, within the framework of cooperation, an increase in the cargo flow of the Mariupol port in grain, meal and oil to 1.2 million tonnes is expected.
“Today, we see an increase in the agro-industrial business [in ports], which was smaller before and this leads to a better result. Business, for its part, and our customers are targeted for prospects and we must support this,” he said.

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INVESTMENT FORUM IN MARIUPOL (DONETSK REGION) TO BE HELD ON OCT 29

The investment forum in Mariupol (Donetsk region) will be held on October 29, Ukrainian Prime Minister Oleksiy Honcharuk has said.
“We expect that on October 29 we will hold a large investment forum in Mariupol,” he said, speaking at the 16th Annual Meeting of the Yalta European Strategy (YES) in Kyiv on Saturday.
Honcharuk added that it is planned to present areas in the forum that are worth investing in.
According to him, the task of the government is to minimize risks for investors who are not afraid to go to Ukraine.
“In the 21st century, those who are not afraid to take risks will be successful,” the prime minister said.

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UKRAINE’S STATE EMERGENCY SERVICE OPENS DEMINING CENTER IN MARIUPOL

Ukraine’s State Emergency Service has opened a demining center in Mariupol, Donetsk region, the Interior Ministry said on Facebook on Saturday. The ceremony was attended by President of Ukraine Volodymyr Zelensky and Interior Minister Arsen Avakov. “Currently we are at war and we all want this war to be over. We understand that yours is a very serious role because after the end of the war, when we have definitely reclaimed our territories, you will have a very serious responsibility… The war of demining will continue,” Zelensky said at the ceremony.
Modern equipment and demining robots were purchased for the center, the president’s press service said.
“Currently, 7,000 square kilometers of the Donbas area controlled by Ukraine is set with landmines,” it said.
It was reported that on Saturday Zelensky was visiting Mariupol on the occasion of the fifth anniversary of the city’s liberation.

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RADA RATIFIES AGREEMENT WITH FRANCE ON PROVISION OF EUR 64 MLN LOAN FOR DRINKING WATER PROJECT IN MARIUPOL

The Verkhovna Rada has ratified an agreement between the governments of Ukraine and France regarding the official support of a project on supply of drinking water to the city of Mariupol (Donetsk region). An Interfax-Ukraine correspondent has reported that a total of 258 lawmakers backed the agreement. According to the Framework Agreement, the French side provides Ukraine with a loan in an amount not exceeding EUR 64 million for the project on supply of drinking water to Mariupol.
The agreement also provides for the development of a master plan for improving the water supply and drainage system of Mariupol until 2040.
According to an explanatory note to the bill on ratification, the project will include the construction and launch of modern filtering stations in Mariupol, as well as the modernization of the existing centralized water supply pipelines and drainage system to reduce the consumption of drinking water and discharge of sewage into the environment.

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INTERNATIONAL FINANCE CORPORATION PROVIDES EUR 12.5 MLN FOR TRANSPORT DEVELOPMENT IN MARIUPOL

The International Finance Corporation (IFC), part of the World Bank Group, has signed a loan agreement on providing financing in the amount of EUR 12.5 million to buy 64 large buses, the press service of the Finance Ministry has reported.
According to the press release, the funds are also sent to the reconstruction of the city bus depot, the renovation of repair equipment and the development of the city’s transport infrastructure management. The project will increase the capacity of public transport in the city and reduce hydrocarbon emissions into the atmosphere.
“Since 2014, decentralization is one of the key priorities of the government, and we have already transferred many financial resources to municipalities, and with them responsibility. Therefore, it is extremely important for us that international partners support this approach with financial resources. IFC investments in Mariupol infrastructure, 30 km from the front line is the best proof of our partners’ confidence in Ukraine. We hope that the financing of municipalities will become one of the important activities of the IFC in the future. We would be very grateful if IFC could become the first IFI [international financial institution] that provides such funding in hryvnia, and the Ministry of Finance is ready to support this idea,” the press service of the ministry reported, citing Deputy Minister for European Integration Yuriy Heletei.
As reported, referring to IFC, the loan will amount to 14% of the city’s projected multi-sectoral capital investment program of $90 million in 2019-2010.
IFC, a member of the World Bank Group, is a large international investor focused on the private sector in Ukraine. The total amount of its investment in long-term projects in various economic sectors of Ukraine has reached over $3.2 billion.

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