Business news from Ukraine

UKRSPYRT INCREASES NET PROFIT BY 1.6 TIMES

The state-owned enterprise Ukrspyrt increased net profit 1.6 times, up to UAH 28.1 million, in January-September 2020 compared to the same period last year.
According to acting director of the state-owned enterprise Ukrspyrt Serhiy Bleskun, alcohol production increased by 19.6% up to 4.72 million decaliters in the nine months this year.
“We have a great trend since 2019, but the pace in the third quarter has slowed down. This was influenced by such objective factors as demonopolization (since July 1, buyers can buy alcohol from other state-owned producers) and the rise in the price for raw materials such as maize and wheat. This led to deterioration in profitability in the third quarter,” Bleskun wrote.
He also noted that over the past two weeks, the State Property Fund (SPF) has privatized three objects of the state-owned enterprise Ukrspyrt totaling almost UAH 160 million.
As reported, President of Ukraine Volodymyr Zelensky on December 11, 2019 signed a law on the abolition of state monopoly on alcohol production from July 1, 2020, adopted by the Verkhovna Rada on December 3, 2019.
The State Property Fund expects to attract about UAH 2 billion from the privatization of alcohol producers of the state-owned enterprise Ukrspyrt and the concern Ukrspyrt. The first auction is scheduled for October 15, 2020.

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STATE ENTERPRISE UKRSPYRT GETS LICENSE FOR PRODUCTION OF ETHYL ALCOHOL

State Enterprise Ukrspyrt has received another license for production of ethyl alcohol non-denatured for five years, until January 10, 2025, from the State Tax Service
“Our state-owned enterprise received, probably, the last license in its history for production of alcohol. It is issued for five years. After the successful completion of privatization, such licenses in Ukraine will be received by private distilleries. In the meantime, we are competing in the market with other state-owned factories, which, after demonopolization on July 1, are also fighting for buyers in the market,” acting director of Ukrspyrt Serhiy Bleskun said.
The issued license for production of ethyl alcohol will be valid until January 10, 2025. Over the next five years, Ukrspyrt can produce all types of non-denatured ethyl alcohol: rectified (food) raw ethyl alcohol, ethyl alcohol.

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UKRAINE PLANS TO START PRIVATIZATION OF STATE-RUN UKRSPYRT’S FACILITIES

Head of the State Property Fund (SPF) Dmytro Sennychenko has announced the Fund’s readiness to begin the process of privatization of objects of the State Enterprise Ukrspyrt, the department has already received 12 proposals for privatization.
According to the Fund’s press release posted on Tuesday, the privatization of the alcohol industry at the first stage provides for the placement of Ukrspyrt facilities for transparent auctions. The total number of objects ready for the privatization process is 41.
The Chairman of the State Property Fund also drew attention to the fact that the key condition for the successful privatization of assets in the alcohol industry is the prompt approval by the government of the Program for the Reform and Development of the Alcohol Industry, which will provide for the procedure and conditions for the sale.
“Potential investors in the alcohol production industry are not only food alcohol producers, but also pharmaceutical companies, automotive fuel producers and agricultural companies that are interested in processing their own products,” the SPF’s press service quoted Sennychenko as saying.
According to him, until recently Ukraine, together with Belarus, were the only countries in the world with a state monopoly on alcohol production.
“This has led to the fact that over the past decade, the production of legal potable alcohol in Ukraine has decreased four times, and the share of its shadow turnover has increased from 10% of total consumption in 2007 to 55% in 2019,” said the head of the SPF.

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STATE-RUN UKRSPYRT LAUNCHES TWO EXTRA PLANTS TO PRODUCE RAW MATERIALS FOR ANTISEPTICS

State-owned enterprise Ukrspyrt has produced and supplied 3.3 million liters of raw materials for antiseptics to Ukrainian companies within three weeks from the start of production.
“Over three weeks, Ukrspyrt delivered 3.3 million liters of disinfectant to manufacturers. If we mathematically transfer this to products, then approximately 85 million pocket sanitizers of 50 ml or 17 million of 250 ml can be made from raw materials sold by Ukrspyrt,” the state enterprise said.
Today, raw materials are shipped from 12 Ukrspyrt plants.
“For efficiency, over the past few weeks we have additionally launched two plants in Lviv and Cherkasy regions,” acting director of Ukrspyrt Serhiy Bleskun said.
According to him, now 36 Ukrainian producers of antiseptics are buying raw materials at Ukrspyrt.
As reported, on March 30, the Verkhovna Rada voted for bill No. 3275, which, among other things, allows the manufacture of disinfectants (raw materials for antiseptics) at Ukrspyrt factories, and the president signed the law on April 2.

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STATE-RUN UKRSPYRT LAUNCHES TWO EXTRA PLANTS TO PRODUCE ANTISEPTICS

State-owned enterprise Ukrspyrt has produced and supplied 3.3 million liters of raw materials for antiseptics to Ukrainian companies within three weeks from the start of production. “Over three weeks, Ukrspyrt delivered 3.3 million liters of disinfectant to manufacturers. If we mathematically transfer this to products, then approximately 85 million pocket sanitizers of 50 ml or 17 million of 250 ml can be made from raw materials sold by Ukrspyrt,” the state enterprise said.
Today, raw materials are shipped from 12 Ukrspyrt plants.
“For efficiency, over the past few weeks we have additionally launched two plants in Lviv and Cherkasy regions,” acting director of Ukrspyrt Serhiy Bleskun said.
According to him, now 36 Ukrainian producers of antiseptics are buying raw materials at Ukrspyrt.
As reported, on March 30, the Verkhovna Rada voted for bill No. 3275, which, among other things, allows the manufacture of disinfectants (raw materials for antiseptics) at Ukrspyrt factories, and the president signed the law on April 2.

STATE-RUN UKRSPYRT SUPPLIES FIRST BATCH OF RAW MATERIAL FOR PRODUCTION OF SANITIZERS

State-owned enterprise Ukrspyrt has supplied Ukrainian producers of sanitizers with almost 300,000 liters of disinfectant on April 2-5. “Over a short term we have supplied producers of sanitizers with around 300,000 liters of disinfectant. We have relevant contracts with 32 Ukrainian companies,” the press service cited Acting Director General of Ukrspyrt Serhiy Bleskun.
He said that cooperation with producers of sanitizers and medical institutions is a priority task for the state enterprise in April, while other directions go next. On April 2-5, Ukrspyrt shipped 300,000 liters of disinfectant to the following companies: MDM LLC, Aqua Cosmetics Group LLC, BKHIM LLC, Advent Invest LLC, Ecoplant LLC, private company Alliance of Beauty, private company Pharmstandard, Astra-Cosmetic LLC, Win Stream LLC, Difrano Union LLC.
Bleskun said that Ukrspyrt provides producers of sanitizers, which have worked with retailers in the Ukrainian market before and have relevant production plans for the production of sanitizers in various volumes, with raw material.
As reported, on March 30, the Verkhovna Rada of Ukraine adopted bill No. 3275 amending some legal acts aimed at ensuring additional social and economic guarantees in connection with the spread of coronavirus (COVID-19), which, inter alia, permitted Ukrspyrt to produce disinfectant (raw material for sanitizers) at its plants.
Ukrspyrt will produce disinfectant at its enterprises until April 30.

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