Ukraine

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13:49 PM Monday, November 20, 2017
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UBJ AM Sept. 7, 2017
Ukraine cuts port fees 20 percent; Sugar exports up six times; Ukraine’s fastest growing airport, Zaporizhia, to get a $20 million passenger terminal
image/svg+xml Kyiv Lutsk Rivne Zhytomyr Lviv Ternopil Khmelnytskyi Uzhgorod Chernivtsi Vinnytsia Chernigiv Sumy Kharkiv Poltava Cherkasy Kirovohrad Lugansk Dnipropetrovsk Donetsk Zaporizhzhia Mykolaiv Odesa Kherson Simferopol Sevastopol Ivano- Frankivsk

• Ukraine plans to cut fees in its Black Sea ports by 20 percent, starting Jan. 1. Prime Miniser Volodymyr Groysman commented on the Cabinet decision: "Our ports are expensive, and businesses constantly raise the issue of reducing fees, and we are reducing fees to make the ports more competitive." According to Deputy Infrastructure Minister Yuri Lavrenyuk, there will be an overall 20% cut in tonnage, canal, light, sanitary, anchor, private, administrative harbor dues.

• Ukraine’s fastest growing airport, Zaporizhia International, is to get a new $20 million passenger terminal. Serving southeast Ukraine, Zaporizhia’s airport is expected to handle 325,000 passengers this year, 10 times the level of 2010. Displacing nearby Dnipro’s airport as Ukraine’s fifth busiest airport, Zaporizhia is served by nine airlines. The home of Motor Sich Airlines, Zaporizhia offers scheduled flights to Istanbul’s two airports, Kyiv’s two airports, Minsk and Tel Aviv. There are seasonal charters to Bulgaria, Egypt, Georgia, Montenegro and Tunisia.

• Ukraine exported almost six times the amount of sugar this year. In the marketing year that ended in August, Ukraine’s 46 sugar mills exported 769,300 tons of sugar, according to Ukrtsukor, the National Association of Sugar Producers. Ukraine has 318,000 thousand hectares planted in sugar beets and exports about one quarter of its production.

• Ukraine reserves grew 1.4% to $18 billion in August, according to the National Bank of Ukraine. Alexander Paraschiy of Concorde Capital, wrote: “In early September, we are already observing the NBU selling U.S. dollars to ease depreciation pressure on the hryvnia. For the year's remainder, the only potential sources of replacement will be an IMF loan tranche -- about $1 billion -- and potential Eurobond placement -- $500 million.”

• Russia’s VTB will probably not succeed in selling its banks in Ukraine, Andrei Kostin, the the bank's head, told reporters at the Eastern Economic Forum in Vladivostok. The VTB Group currently has two banks in Ukraine: VTB (Ukraine) and BM Bank. Kostin said Wednesday: "We'll be downsizing our business there and our expenses, selling assets little by little, withdrawing what loans we can and maybe selling all kinds of collateral. But probably nobody will let us sell anything there."

• Alfa-Bank (Kyiv) seeks to place bonds for UAH 1.1 billion, or $43 million. The National Commission for Securities and the Stock Market has approved the bank's public offering. Alfa-Bank ranked 10th among 88 operating financial institutions in terms of assets (UAH 35.165 billion), according to the National Bank of Ukraine.

• Another independent director of the Naftogaz, Charles Proctor, has resigned his position on the Supervisory Board. The website of the state gas producer: “Explaining his decision, Mr. Proctor commented that the level of government support required to deliver corporate governance reform had not been forthcoming, despite repeated commitments from government officials.” Yulia Kovaliv, the former board chairman, resigned last summer, also charging non-support from the government.

• Poland wants quadruple gas supplies to Ukraine through its Hermanowice gas hub, located three km west of Poland’s border with Ukraine, at Lviv. In a development forum for Poland’s southeast corner, Polish Energy official Piotr Naimski, said: "The Polish side wants to have the closest possible cooperation with Ukrtransgaz, and the Polish operator Gaz-System.”

• Ukrgazvydobuvannia, Ukraine’s largest taxpayer, plans to transfer about UAH 45 billion ($1.8 billion) to the national budget in 2017. Oleh Prokhorenko, the company head, said the tax payment would be about 12 percent higher than last year. Fully owned by Naftogaz, Ukrgazvydobuvannia is the country's largest gas producer, providing about 75% of total gas production.

• In Ukraine, fracking wells pay for themselves in 2-3 weeks, Ukrgazvydobuvannia head Oleh Prokhorenko said Wednesday. Speaking at a government meeting he said: "We get a fantastic return on the investments we are currently making…the payback period for hydraulic fracturing operations is from two to three weeks. It's fantastic, but it's real! We take wells that give 20,000-30,000 cubic meters of gas per day, and we get 200,000-300,000 cubic meters of output after these operations.”

• To privatize assets, state companies are now to use a new electronic auction system, ProZorro.Sales, the Cabinet of Ministers resolved Wednesday. This month, ProZorro.Sales completes a one year trial, having sold state property worth about $10 million, according to Stepan Kubiv, Minister for Economic Development and Trade.

• The Odessa Aircraft Plant has developed the Y1 Dolpine, a new lightweight aircraft. Designed for pilot training and patrolling, the four-seater, single engine plane has a range of 1,320 km. It is powered by engines built by a French company, Societe de Motorisations Aeronautiques, part of the avionics conglomerate Safran SA.

• About 63,900 cars registered in other countries are used illegally in Ukraine, without their owners paying import duties, the State Fiscal Service reports. In response, hundreds of owners of cars with license plates from Poland, Lithuania and Estonia parked outside the Verkhovna Rada Wednesday, snarling traffic throughout much of central Kyiv. The owners want the government to simplify rules for importing cars and to cut import duties.

• Kyiv Mayor Vitali Klitschko says the Verkhovna Rada will pass a new law on car parking that will reduce traffic congestion in the capital, the mayor’s press service reports. At present, cars parked on sidewalks block pedestrians. Cars parked illegally in streets block traffic lanes.

• Milkiland, a dairy based in northeastern Ukraine’s Sumy region, has won permission to export milk to the EU. Milkiland has dairy farms in Poland, Ukraine and Russia. The European Commision also has permitted two Ukrainian companies to export fish products to the EU -- LLC Busky, a canning company in Lviv, and Bester Caviar House, based in the Kyiv region. Ovostar Union, a leading shell egg producer in Ukraine, also won permission to export eggs to the EU, joining industry giants Avangard Holding and Imperovo Foods.


For comments and story ideas, please email UBJ Editor in Chief James Brooke at james.brooke@theubj.com

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