Business news from Ukraine


Mykolaiv Locomotive Repair Plant has reached an agreement with the leading machine-building company Liebherr on a long-term cooperation involving the installation of diesel engines on locomotives operating in Ukraine, as well as carrying out a number of works on railway transport, the plant reported on its official Facebook page.
The relevant agreements were reached during a visit by the plant management to the Liebherr production base in France and Switzerland.
“Liebherr is the world’s leading company in the mechanical engineering industry, and it was important for them to find a reliable partner in Ukraine in the field of locomotive modernization. Mykolaiv Locomotive Repair Plant has been implementing the most modern technologies in this direction for several years, so our plant was invited to become such a partner,” the founder of the enterprise, Yevhen Simchenko, is quoted in the message.
As the plant’s press service told Interfax-Ukraine, the main advantages that allowed Liebherr to make a choice in favor of the enterprise were the experience in modernizing diesel locomotives in Ukraine and the availability of highly qualified workers.
“Mykolaiv Locomotive Repair Plant has modernized more than 40 diesel locomotives with the installation of various diesel engines, such as Cummins, ABC and Caterpillar. Also, a great role was played by the fact that we have our own design bureau, which develops all modernization projects,” the press service said.
According to it, the share of modernization of locomotives in the company’s total turnover is gradually increasing, and this year it is about 70%.
“In Ukraine, only industrial enterprises [ArcelorMittal Kryvyi Rih, Ferrexpo, Metinvest] modernize the locomotive fleet. Ukrzaliznytsia has not yet decided whether it will follow the path of modernization, the effectiveness of which is shown by world practice, or will ‘reinvent the wheel,'” the press service said.
At the same time, the company stressed, modernization is becoming more and more important given the aging of equipment, and intensive wear of the main components that need to be replaced.
“Since most of the locomotives were designed and built back in the USSR, now they are morally and technically outdated. In addition, the main components are of Russian origin. Therefore, we believe that today in Ukrainian realities the only correct and effective option is modernization of locomotives with the installation of modern systems and components, which are used all over the world,” the plant notes.
The agreement with Liebherr also provides for co-financing of projects in Ukraine, however, the company does not disclose details, citing confidentiality.
Mykolaiv Locomotive Repair Plant, established in 2010, specializes in maintenance, current and overhaul of diesel locomotives, as well as traction units (industrial electric locomotives).
Established in 1949, the family-owned company Liebherr currently has 13 production areas (including refrigeration and freezing technology, construction, mining, transshipment equipment, port equipment and wind energy). It includes more than 140 enterprises all over the world and employs about 48,000 people.

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The United States may provide Ukraine with a credit line totaling $4 billion for the period 2022-2030 to reform the system of public administration in the irrigation industry, as well as to attract investments in the renovation and modernization of irrigation infrastructure facilities.
The relevant information was published by deputy of the Verkhovna Rada from the European Solidarity faction Oleksiy Honcharenko on the Telegram channel, who presented a list of possible Ukrainian-American projects presented by President of Ukraine Volodymyr Zelensky during his working visit to the United States.
According to the deputy, Ukraine applied to the United States for a loan of $4 billion for the period 2022-2030 for the implementation of the project to restore the engineering infrastructure of irrigation systems and the development of irrigated agriculture in Ukraine, since the country’s financial capabilities do not allow it to independently implement this project.
As reported, on Thursday, Minister of Agricultural Policy and Food Roman Leshchenko said that large international agricultural companies Cargill and Lindsay had confirmed their desire to assist in the implementation of irrigation reform in Ukraine, since they see this project as a long-term strategic perspective. According to him, the ministry is negotiating with companies from Israel, the US, France and China regarding public-private cooperation in the reconstruction of irrigation systems in the southern regions of Ukraine.
In April 2021, the Cabinet of Ministers called on the restoration of irrigation systems for agricultural lands in the southern regions of the country by the end of this year.
The restoration of the reclamation industry has become a national project until 2024. In 2021, the Ministry of Agrarian Policy launches a pilot project to restore irrigation systems in Odesa, Kherson, Mykolaiv and Zaporizhia regions.



Mykolaiv Locomotive Repair Plant has entered into a cooperation agreement with the official representative of the Egyptian National Railways for the modernization of 55 locomotives of the AD Tranz series, the enterprise’s press service said on Facebook.
“The modernization will be carried out both at the facilities of our plant and at the facilities of Egyptian colleagues and partners who own locomotive repair plants in Egypt,” the report said, citing Director of Mykolaiv Locomotive Repair Plant Serhiy Roi.
According to him, a deep modernization of locomotives will be carried out with the installation of new diesel engines, new power and support equipment and microprocessor control systems, which will significantly improve the performance of locomotives and reduce the cost of their service.
“The partnership is planned for a long-term, since the declared number of locomotives in the future can be increased to 200 units,” Roi said.
The agreement, the value of which has not been disclosed, also provides for further maintenance of locomotives, in particular, the creation of a service department in Egypt, where representatives of Mykolaiv Locomotive Repair Plant will carry out engineering work for servicing locomotives.
The report notes that Egyptian locomotives are “younger” than those operated in the post-Soviet space and those the plant previously dealt with – they were produced in 1996-2010.
Mykolaiv Locomotive Repair Plant, established in 2010, specializes in maintenance, minor repairs and overhaul of locomotives, as well as other locomotive parts and assemblies.

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Smart Maritime Group (SMG) of Smart-Holding, combining Kherson and Mykolaiv shipyards, will modernize six coastal vessels of the Koster class (a vessel with a limited navigation area from the coast) by order of the Dutch company Handelskade Shipsales B.V.
According to a SMG’s press release on Wednesday, under the terms of the contract, each vessel’s length will be increased by 12 meters during the modernization by installing an insert and a partition. The shipyard specialists will also paint ballast tanks, outer hull and cargo holds, lay new piping systems and install new hatch covers.
In addition, a self-ejecting boat will be installed in the stern of the vessel. About 190 tonnes of metal will be used to modernize each vessel.
At the same time, it is noted that the modernization will significantly improve the technical and economic characteristics of the ships, they will become two-hold (now one), the deadweight will increase, on average, by 20%.
The first two vessels are expected to be delivered to SMG for repairs in the second decade of January. It is planned to complete the modernization of all vessels by July 2021.
The total cost of the contract will be about UAH 100 million.
“The company has already started cutting and processing high-quality metal purchased for this order at the enterprises of the Metinvest holding,” the press release said.

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In 2021, Canada and Ukraine will modernize the free trade agreement (FTA), Ambassador of Canada to Ukraine Larisa Galadza said.
“This year will be important because its [the agreement] modernization, including services, is envisaged. Therefore, I look forward to working in this direction,” Galadza said at an online discussion at Kyiv Security Forum on Friday.
She said that Ukraine needs to continue to work towards reforming the justice system.
“This is extremely important for Ukrainian citizens and also for bilateral relations, if we want to strengthen them, especially trade relations,” Galadza said.
The ambassador also expressed her hope that in 2021 there will be an opportunity to simplify the process of travel between Canada and Ukraine. “Connections between people are exactly what shapes our bilateral relations. I mean those people who travel from Ukraine to Canada and vice versa. I think that over the next year we will have opportunities to simplify this process, clarify, something like a normal life after a year that has passed,” she said.
In addition, the diplomat said that on January 1, an agreement between Canada and Ukraine on the joint production of audiovisual products comes into force.
Galadza said that another area of bilateral cooperation between Ukraine and Canada is the continuation of work towards ensuring fairness, accountability, transparency regarding the shooting down of UIA flight by Iran.
“We must ensure justice, transparency for families, and we will continue to work together to make the skies safer for all people who fly and, unfortunately, who have to travel to conflict areas,” she said.
The ambassador said that Canada will continue to stand shoulder to shoulder with Ukraine.
“Ukraine can certainly rely on the fact that Canada will invariably and uncompromisingly support territorial integrity, not only through tactical exercises that we organize for the Armed Forces of Ukraine as they prepare to be deployed in Donbas, but also in the format of multilateral forums and initiatives, like the Crimean platform,” the diplomat said.
She said Canada will also continue to accompany Ukraine on the path of reforms.

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PrJSC Ukrainian Danube Navigation plans to raise up to EUR 200 million in the next five years to modernize the fleet, acting chairman of the board of the Ukrainian Danube Navigation Oleksiy Khomiakov has told Interfax-Ukraine.
He also estimates the size of investments in the new fleet or in-depth modernization of the existing fleet of all market players that will be necessary to implement the full potential of the Dnipro River in the next five years in the amount of about EUR 1.7 billion.
“In the next five years, we plan to raise up to EUR 200 million, which will be used to modernize the fleet that is in the holding anchorage, as well as the possible construction of new units in cooperation with leading shipyards in the world,” Khomiakov said.
According to him, the Ministry of Infrastructure of Ukraine evaluates the Ukrainian Danube Navigation as the main national carrier, served to make up for the missing system offer to the main exporters of Ukraine for transportation along the Dnipro River.
He said that the company is negotiating with the institutional investors, who are interested in collaborating and investing in a new, more environmentally preferred and efficient fleet, capable of fully meeting Ukraine’s export needs for decades ahead, complementing the overloaded railway and automobile infrastructure.
“However, we still need to overcome a number of obstacles by creating an effective model of enterprise management, having an international audit performed, raising government guarantees and then come close to receiving relevant financing from the EBRD, the IFC, etc.,” Khomiakov said.

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