BUSINESS IN BRIEF (10/25/98)

BUSINESS IN BRIEF

New GM says P&G will stay in Ukraine

KYIV - Procter and Gamble's newly appointed general manager, Christopher Delaney, speaking at a September 25 press conference commemorating the fifth anniversary of the company's operations in Ukraine said despite the financial crisis and dropping sales, P&G Ukraine will not suspend operations. In Russia the company has slashed advertising expenditures and temporarily suspended production and shipping. P&G plant in Boryspil, outside Kyiv, has not cut production, although 80 percent of the company's products are shipped to countries affected by the turmoil in Russia. P&G Central Europe Director Herbert Schmitz insisted that, "If the government is capable of controlling the situation, we will continue operating and producing here." To mark the anniversary of its Ukrainian operations, P&G donated $100,000 (U.S.) to the Ukrainian Children's Fund for the purchase of medical equipment. Another 50,000 hrv was donated to buy assorted products for organizations working with children. Despite recent drops in sales, Director Schmitz said at the press-conference that such charitable programs remain a high priority for the company. (Eastern Economist)

Chile is interested in Ukrainian rockets

KYIV - Chile is interested in cooperation with Ukraine in the space sector and is ready to implement a project for launching satellites using Ukrainian rockets, Jaime Gasmuri, chairman of the Chilean National Congress International Relations Commission, told Deputy Chairman Viktor Medvedchuk on September 28. The Chilean delegation was visiting Ukraine to participate in a two-day seminar, which began on September 29, on the Chilean Experience in Implementing Socio-Economic Reforms. Mr. Medvedchuk said Ukraine is interested in obtaining orders from Latin American countries, in particular for aircraft from Ukraine's Antonov plant. "There is some hope that the negotiations that have started between the two countries will bring concrete results." (Eastern Economist)

UkrRichFlot traded on Vienna exchange

KYIV - JSC UkrRichFlot became the first Ukrainian company to enter an international stock market when its shares were listed in August on the Vienna stock exchange in the form of global depository receipts. The plant's shares are also eligible to be traded on other exchanges in continental Europe and Great Britain. The price of UkrRichFlot shares on the domestic stock market has not, because of a lack of capital, exceeded $2.5 U.S.; on the Vienna exchange, however, UkrRichFlot opened at $4. UkrRichFlot officials said that beginning in September its stock will also be traded in Zurich. (Eastern Economist)

AN-74 plane wins honors at airshow

FARNBOROUGH, England - The Kharkiv Aviation Plant, which recently participated in Great Britain's international aerospace exhibition Farnborough '98, was awarded an international quality certificate for its Antonov-74 plane and its modifications. The certificate was awarded by the Veritas international certification bureau. According to KAP Chief Engineer Viktor Zayats, receiving such a certificate allows the plant to offer the AN-74 on international markets and reaffirms the reliability and quality of Ukrainian planes. (Eastern Economist)

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