Business news from Ukraine

MORE THAN 15 INVESTORS INTERESTED IN PURCHASE OF MACHINE-BUILDING PLANT BILSHOVYK

More than 15 potential investors have shown interest in acquiring JSC First Kyiv Machine-Building Plant (formerly the Bilshovyk plant) at a privatization auction, the press service of the State Property Fund (SPF) of Ukraine has reported.
“As a result of high-quality preparation [of the enterprise for privatization], more than 15 potential investors have already shown interest in this asset, as evidenced by the non-disclosure agreements they signed to obtain detailed information on the enterprise,” the SPF said in a Friday press release.
The press service recalled that the SPF carried out “comprehensive work to stabilize this asset, defended the state interest in courts and returned the illegally alienated property, provided a deep audit of the enterprise and, despite all the obstacles, prepared the Bilshovyk plant for the privatization auction.”
The press service of the State Property Fund also declared attempts to impede the transparent privatization of the enterprise, and called them evidence of “the helplessness of the shadow employees separated from the large-scale state asset.”
“It is such a large-scale facility that the Bilshovyk plant is, which for decades was destroyed and was brought to a critical state: UAH 500 million in debt, seized property and destroyed production turned this facility into ruins – only for the illegal income of some individuals,” the press service said.

, , ,

STATE-RUN UKRZALIZNYTSIA MAY ANNOUNCE OPEN INTERNATIONAL TENDER FOR PURCHASE OF TRAINS

JSC Ukrzaliznytsia plans to announce an open international tender for the purchase of rolling stock for the City Express project at the end of September, acting chairman of the board Oleksandr Kamyshin said.
“In February, the president [Volodymyr Zelensky] announced the City Express project in Kyiv, Dnipro and Kharkiv. Ukrzaliznytsia has intensified work in this direction. Today we are designing stations, completing a feasibility study of the project and terms of reference for the purchase of rolling stock for the Kyiv hub. In the near future we will send terms of reference for all Ukrainian and international potential participants in the purchase of rolling stock. At the end of September, we plan to announce an open international tender, where we will be glad to see both Stadler and other ready-made suppliers of rolling stock,” he said during the presentation of a five-car electric train Stadler Flirt of the Swiss company Stadler.
Kamyshin said that Stadler Flirt has been tested in Ukraine for a week.
“It is important for us to understand how good the technical and service indicators of this train are. We will be testing it for several more weeks. I think Ukrainians deserve a train of this level,” he said.
According to Stadler Rail Group CEO Peter Spuhler, the company has already sold about 2,000 units of Stadler Flirt.
Stadler Flirt is a family of passenger electric and diesel trains manufactured by the Swiss company Stadler Rail AG. FLIRT is an abbreviation (Flinker Leichter Innovativer Regional-Triebzug – German, translated as a high-speed light innovative regional train). The first train was designed and delivered in 2004. The maximum train speed is 160-200 km/h.

, , ,

UKRAINE REFUSES TO PURCHASE ELECTRICITY OF BELARUSIAN NPP

Ukraine has refused to buy electricity from the Belarusian nuclear power plant (NPP), Lithuanian Prime Minister Ingrida Šimonytė said following talks with Ukrainian Prime Minister Denys Shmyhal in Vilnius on Thursday.
At a joint press conference, she welcomed Ukraine’s withdrawal from dangerous suppliers and its desire to join the European ENTSO-E electricity market.
According to her, the “green” transition is also important.

, ,

PRESS CONFERENCE ‘NEW DECREE OF CABINET OF MINISTERS OF UKRAINE: HOW DOES STATE PUT NEW OBSTACLES FOR UKRAINIAN CITIZENS FOR PURCHASE OF CARS?’ TO BE HOLD IN KIEV

On Wednesday, July 8, at 11.00, the press center of the Interfax-Ukraine News Agency will host a press conference entitled: “‘New Decree of the Cabinet of Ministers of Ukraine: How does State Put New Obstacles for Ukrainian Citizens for Purchase of Cars?.” Participating will be Columb Trade Co-founder Volodymyr Kovel, Columb Trade Co-founder Pavlo Kazaryan, lawyer Roman Voloshyn (8/5a Reitarska Street).The broadcast will be available on the YouTube channel of Interfax-Ukraine. Admission requires press accreditation.

, , ,

UKRAINIAN BATTERY MANUFACTURERS ASK PRESIDENT TO HELP LEGALIZE PURCHASE OF MATERIALS

Megatex LLC (Konstantynivka, Donetsk region), the manufacturer of batteries from used batteries, has asked President of Ukraine Volodymyr Zelensky to help solve the problem of legalizing the purchase of recyclable materials.
“We produce accumulator batteries from used batteries, and now when buying recyclable materials (any), a company engaged in cashing money flows is at the end of some link, while the plants recycling this raw material take the punishment from the tax service and prosecutor’s offices. If this is brought to the legal business, the government will receive UAH 4-5 billion of additional receipts,” Head of the company Yuriy Shapran said during a meeting between the president and business representatives of Khmelnytsky region on Wednesday, June 3.
In his opinion, a solution of this problem could be a tax of 3-4%, which the processor would pay for the supplier of raw materials.
“If buyers of recyclable materials pay a tax of about 3-4% for the supplier, then this money will go to the budget. Today, I can frankly say this, this is the cost of the services of cashing companies and it will be easier for business to work, it will not spend time on all these troubles with the law,” Shapran said.
He said that in this case there will be no avoidance of identifying a supplier, which the EU is opposed to.
“We identify him (the supplier), but we pay this tax for him and then he is free, he is honest. The company paid the tax for him and it will not require any additional taxes afterwards,” Shapran said.
In addition, he considers it necessary to cancel the payment of a 5% import duty on recyclable materials for the production of batteries.
“We import raw materials from abroad, and we have a 5% duty, while there is no any duty on other raw materials. We have very low margin, so it is very difficult,” the head of the company said.
He also said that the company is ready to work, it has prospects and more and more foreign partners (it exports 75% of its products), and it is also ready to increase production volumes.
“There were problems under the previous government authority, namely Vesta plant in Dnipro, where former MP Dzenzersky [Denys Dzenzersky, MP of the seventh convocation] worked completely off the books. They were bankrupt, but they worked and the tax service did not come there, while we were unprofitable for four years,” Shapran said.
“That is, there are two problems, namely, to legalize the purchase of recyclable materials and remove the import duty on raw materials,” he said, providing Zelensky with the prepared materials.
Since 1993, Megatex LLC has been producing various lead alloys and is engaged in the production and maintenance of accumulator batteries, their purchase and recycling.

, , , ,

PURCHASE OF FOREIGN CURRENCY BY NATIONAL BANK OF UKRAINE IN INTERBANK MARKET AMOUNTS $678 MLN IN APR

The National Bank of Ukraine (NBU) in April 2020 bought $723.3 million, while sold $44.5 million in the interbank foreign exchange market, while in March it spent $2.2 billion on supporting the hryvnia. According to the NBU, in the period from April 27 to April 30, the regulator bought $115.5 million at a single rate in the interbank market, which is four times more than a week earlier. This week, the central bank was only buying currency.
Most of all, in March the National Bank bought in the interbank market from April 6 to April 10 ($327.7 million), and only that week it sold foreign currency ($44.5 million).
In general, since the beginning of the year, the central bank bought $2.069 billion for reserves and sold $2.793 billion.
This week, the national currency rate in the interbank market strengthened and reached UAH 26.945/$1 on Wednesday, after which it slightly weakened on Thursday to UAH 26.955/$1. Starting from April 2, the hryvnia exchange rate did not fall below the level of UAH 27.5/$1, stabilizing after a rapid fall in March.

, ,