Leoni AG of Germany opened on Saturday its second car parts plant in Ukraine. Located in Kolomyia, Ivano-Frankivsk region, the EUR 16 million electric cable plant will supply General Motors, Volkswagen, Audi, Porsche, and Lamborghini. Initially, the plant will employ 800 workers, who will earn UAH 8,000 a month, about $300. The plan is to expand the payroll to 5,000 workers by 2021. At the opening, President Poroshenko asked: "Why are investors so confident? Why do the Ukrainian government and I, as the president, argue that the worst is over? Ukraine has six consecutive quarters of strong economic growth.”
• Ukrainian airline Yanair plans to develop Zhytomyr Airport, 90 minutes west of Kyiv, as a gateway for flights to new European cities, Yaroslav Agafonov, Yanair chief executive, tells Martin Rivers of Forbes. Last year, the airport reopened after Agafonov invested in modernizing the airport terminal and extending its 1,650 meter runway. Yanair uses it as a maintenance base for its Boeings. Next summer, Agafonov said, Yanair may start flights to Krakow, Poland, Paderborn or Frankfurt Hahn, Germany, as well as Cyprus, Italy and Romania. Yanair currently flies from Kyiv Zhuliany and Odessa.
• Kyiv is completing negotiations with international companies to raise about $500 million to build a modern entertainment center to replace Hydropark, Mayor Vitali Klitschko tells Novoye Vremia magazine. Referring to the 140-hectare island in the Dnipro, he said: "There are three international companies that are ready to invest in the construction of an entertainment park in this territory of Hydropark, a kind of Disneyland. Now we are at the final stage of negotiations." He also said work will start this fall on a 500-meter pedestrian bridge from Friendship Arch to Volodymyrska Hill.
• Poland's Pesa Bydgoszcz SA, which won a tender to supply 40 trams to Kyiv in August, plans to start assembling trams in Kyiv, Kyiv Mayor Vitali Klitschko told Novoye Vremia. Klitschko said Kyiv has 400 trams, 90% of them are older than 30 years. "We need to buy 165 more new trams, over 230 buses and 230 trolleybuses to fully upgrade the fleet,” he said. Referring to the new trams, he said: "This is high-tech low-deck European transport with air conditioners, video surveillance and wi-fi.”
• Ukraine is spending $50 million this year to repair and rebuild roads in its Carpathian Mountain region, President Poroshenko said Saturday while opening a new bridge across the Bystrytsia River in Ivano-Frankivsk region. Tourism in this scenic region, home to Ukraine’s only mountains, grows steadily.
• Ukraine will be able to export duty free to the EU more wheat, corn, barley, oats, honey, grape juice and processed tomatoes under a new system of ‘autonomous trade preferences’ -- essentially higher quotas -- that entered into effect Sunday. Cecilia Malmström, European Commissioner for Trade, and Nataliya Mykolska, Ukraine’s Trade Representative, said in a joint statement: “This is good news for Ukrainian exporters. Several important agricultural and industrial goods will now get better access to the EU market, as they can be exported tariff-free.”
• Ukraine has increased milk exports 81% through August, said Olena Kovaleva, Deputy Minister of Agrarian Policy and Food, according to Industrial Portal news site. She said: "Today, we see real changes, such as shifting milk production from households to agricultural enterprises, raising productivity of cows, and increasing the proportion of extra-class milk.”
• Confounding fears that Egypt had changed wheat protein rules to favor imports of wheat from Russia, Egypt has emerged as Ukraine’s top market for wheat sales, with exports up 39% percent year over year, UkrAgroConsult reports.
• Kyivkhlib, the largest Kyiv producer of bread and bakery goods, started exporting gingerbread and frozen cakes to the United States this year, company chairman Volodymyr Chereda said Friday. The bakery also ships to Germany, Israel, Canada, Central Asia, and the Baltics. The profit margin on exports is about 30%. For goods sold on the domestic market, it is 8-9%. Setting a goal of exporting half of its production, Kyivkhlib is investing about $4 million to modernize production this year.
• In advance of the European football championship matches to be held in Kyiv in May, the Football Federation of Ukraine and Polytan, a German company which is a world leader in the manufacture of artificial turf, inaugurated on Saturday Ukraine’s first artificial plant in Boryspil, near the airport. The plant has an initial capacity of 700,000 square meters of artificial turf – about 100 full football fields.
• Vindkraft Ukraina LLC, a largely Swedish company, inaugurated on Friday 15 MW of a planned 70 MW wind farm in Novotroitsk district of Kherson region. The farm uses 12 turbines made by Vestas, a Danish company. Vindkraft already has 31 MW of wind power plants in operation in Kherson region including Novorossisk, Berehova and Stavki. With a fifth farm planned for Overyanivska, the company expects to have 171 MW of wind power capacity in Kherson by the end of 2018.
• Ukraine’s total installed renewable energy sources is up 18 percent for 9 months of 2017, compared to the same period last year. With 1,320 MW now coming from renewables, Ukraine is on a drive to increase the share of renewable sources from 1% of power generation from 1% to 11% in 2020. A big driver are ‘green’ electricity rates, which pay producers more than oil, gas or nuclear.
• Prime Minister Volodymyr Groysman is confident that Ukraine will reach the national goal of independence by 2020. Citing solar power plants in Bessarabia, Kherson, Khmelnytsky and his native Vinnytsia, he wrote on his Facebook page: "We keep up with the times! We are developing the use of solar energy in the south of Ukraine, where there are the most favorable conditions… "We are steady in purpose to become fully energy independent state by 2020.”
• Hungary is top buyer of electricity from Ukraine, importing twice as much as Moldova and Poland combined. In the first half of this year, Ukraine exported 3.8 billion kWh. of electricity, and 52 percent, or 2 billion went to Hungary. Last Thursday, Hungary’s Foreign Minister Péter Szijjártó vowed to block all moves by Ukraine to integrate with the EU because of Ukraine’s new language law, which ends state education in minority languages after fifth grade.
• Following a ‘50 stores a year’ strategy, ATB, Ukraine’s largest discount store chain, plans to have more than 1000 supermarkets in Ukraine by 2020, according to statements by the corporation, headed by Gennadiy Butkevych. The next step will be expansion into the EU, probably Poland and the Baltics, according to retail analysts interviewed by The Munich Eye. There the Ukrainian chain would battle two already established German discounters, ALDI and LIDL. The newspaper writes that a “rosy prospect of entering the European markets opens up for Ukrainian entrepreneurs.”
• The Antimonopoly Committee has allowed businessman and politician Sergiy Tigipko to indirectly acquire VS Bank (Lviv), from Russia's Sberbank, according to a press release from the AMC. The acquisition of shares will provide the buyer with over 50% of the voting shares on the bank board.
• The Ministry of Economic Development and Trade forecasts:
2017 -- 1.8 percent
2018 - 3 percent;
2019 - 3.6 percent;
2020 - 4 percent.
2017 - 12.2 percent;
2018 - 8 percent;
2019 - 5.9 percent;
2020 - 5 percent.
The UBJ is now free access. Please relay our link – www.theubj.com -- to friends and business partners who support Ukraine’s free market, foreign investment development path.
For comments and story tips, email UBJ Editor in Chief James Brooke at email@example.com