BUSINESS IN BRIEF (12/06/98)

BUSINESS IN BRIEF

Trade figures show Ukraine net importer

KYIV - The total volume of external trade in Ukraine for the period of January-September was $17.8 billion, with exports totaling nearly $8.2 billion and imports reaching $9.6 billion, giving a negative balance of $1.4 billion. The biggest importers of Ukrainian goods were Russia with 24.8 percent, China with 6.2 percent, Turkey with 5.8 percent and Germany with 5.0 percent, while the Ukrainian import market was dominated by Russia with 48.8 percent, Germany with 8.5 percent, the U.S. with 4.3 percent and Poland with 3.4 percent. (Eastern Economist)

Japanese firm moves into western Ukraine

IVANO-FRANKIVSK - The Ivano-Frankivsk cement and asbestos board plant signed a deal on October 15 with the Japanese Marubeni Corp. to finance the modernization of production facilities. The project will be directly financed from Japan's credit line for Ukraine at a total cost of $50 million (U.S.). The credit will be used to modernize grinding equipment. The modernization will triple the volume of production. (Eastern Economist)

McDonald's goes native in supplies switch

KYIV - By the end of the year 2000, McDonald's restaurants in Ukraine will manufacture 90 percent of food locally and export it to the other CIS countries. McDonald's Ukraine on October 22 announced a number of strategic investment projects that collectively reflect a gradual switch to Ukrainian food suppliers. In March 1999 the German company L&O, along with the meat-processing plant in Koziatyn, Vinnytsia Oblast, will set up a local manufacturing line with the capacity of 1.5 tons of meat per hour through a $1.5 million (U.S.) investment. In another project, the American company East Balt Bakeries has already started construction of a state-of-the-art production facility to manufacture hamburger buns in Dnipropetrovsk. Another $40 million investment will be allocated to production of french fries by McCain, Conagra and the Ukrainian manufacturer Chumak, based in Kherson Oblast. At present, there are seven McDonald's restaurants in Kyiv, three in Dnipropetrovsk and two in Kharkiv. The company has already invested $30 million (U.S.) in Ukraine. (Eastern Economist)

Argentineans show interest in Antonov

KYIV - Argentina is interested in assisting in developing Antonov aircraft, Argentinean Defense Minister Jorge Dominguez announced during a visit to the Antonov Design Bureau in Kyiv. The delegation was particularly interested in the AN-124-100 (Ruslan), AN-70, AN-140 and AN-72 aircraft. The delegation also observed Antonov's methods of testing the strength of aircraft. Several Latin American countries are considering collaborating with Ukraine on aircraft production after Ukraine's successful participation in the FIDAI-98 international exhibition in Chile in April. In addition, Ukraine's AN-32P plane is already participating in a tender being held by Brazil. Potential sales of AN-32Ps to the Latin American region exceed 100 planes, according to Oleksander Kovalenko, deputy director of the UkrSpetsExport state company, which deals with export and import of military technology and special services. (Eastern Economist)

Cargo plane project nears completion

KYIV - Antonov Airlines Director Kostiantyn Lushakov announced at the exhibition Transport Plus Logistics '98 that 80 percent of the testing program on the AN-225 Mriya has been completed. He said the Antonov Design Bureau is now working on a second version of the AN-225 plane, and is trying to get certification to start serial production of the AN-225, the world's largest cargo plane. Mr. Lushakov said several American companies, including Boeing, are interested in the possibility of placing orders for transportation services offered by Antonov Airlines. (Eastern Economist)

Scientists receive funding from Japan

KYIV - An official letter to the Ukrainian Science Technological Center from Japan states that Japan is providing $4 million (U.S.) to fund projects in Ukraine. The projects to receive funding include work on liquidating the consequences of the Chornobyl disaster, a device to reveal gas pipeline leaks without digging and problems related to the theory of collective oscillations. The USTC, which was founded in October 1993 by the U.S., Canada, Sweden and Ukraine, gives Ukrainian scientists the opportunity to use their knowledge for peaceful purposes instead of weapons development. Japan, although not an official sponsor, does finance some projects. (Eastern Economist)

IMI holds career day for students

KYIV - The International Management Institute held a career day for its students and graduates on November 3. The fair featured 11 companies and recruitment agencies including Procter & Gamble, WNISEF, Golden Telecom, Coca-Cola, ExecuSearch and Tetra Pak Ukraine. The IMI, founded in 1989 by the Academy of Sciences Economy Institute and the IMI-Geneva, was the first private university in the independent state. It is one of few universities in Ukraine offering Western-style MBA programs. IMI, a member of the European Foundation of Management Development (EFMD), offers graduate programs including specialized one-year MBA programs in banking and energy. The university's professors and scholars also provide consulting services, including market research for foreign companies in Ukraine. Lina Khasan-Bek, IMI-Kyiv's director of MBA programs, said that IMI soon plans to provide similar services to Ukrainian companies. (Eastern Economist)

Druzhba pipeline profiting from crisis

KYIV - By the end of 1998 Lviv's Druzhba pipeline operator will complete construction of 380 kilometers of the new 667-kilometer strategic Odesa-Brody pipeline. Company chair Liubomyr Buniak said that by the end of October 341 kilometers of pipe had been welded and another 347 kilometers of pipe purchased. He told an energy conference in Lviv that construction costs to date have totaled 210 million hrv, or $110 million (U.S.) at pre-crisis exchange rates. He attributed the project's relatively low price tag to the company's use of its own construction and transportation subsidiaries. He also noted that Druzhba is buying all of its pipes and most of its equipment domestically. The financial crisis, he noted, has made it possible to buy products cheaply, as "many enterprises are keen to get cash" and are willing to offer products at deep discounts. The pipeline was begun in 1996 and is expected to be completed by 2000. (Eastern Economist)

| Home Page |