BUSINESS IN BRIEF (07/25/99)

BUSINESS IN BRIEF

Millions lost as Ukrainian ships remain at anchor

KYIV - Ukraine's Transport Ministry announced July 19 that over 1,000 ships of numerous companies from the world over are currently standing idle as a result of air strikes on Yugoslav bridges spanning the Danube River. Ukraine's Danube Shipping Company (DSC) appears to be the most badly hit with 100 of its ships locked at anchor in the upper Danube. Of the DSC's 800-strong fleet, 700 vessels have been affected. DSC representatives explained that 75-80 percent of all company shipments must navigate the Danube. They estimated daily losses at $300,000 (U.S.). Since May 1, officials have recorded approximately $9 million (U.S.) in lost revenue and predict total losses to reach $86 million. In an attempt to coordinate remediation of the current situation, the DSC is planning a meeting of all shipowners affected by disrupted Danube navigation, including Bavarian Lloyd of Germany, 155 of whose ships are stranded, DDSG, Austria, with 85 ships idle, and the Bulgarian river shipping company, with 82 stranded ships. Over the past three months, direct losses to idled Ukrainian enterprises caused by NATO strikes against Yugoslavia stand at $11.237 million (U.S.). Analysts estimate Black Sea ports will lose a total of $7.67 million in 1999. Ukraine's two ship-repairing works have incurred losses totaling $352,000 and forecast a total loss of $2.745 million for the year. According to the Transport Ministry, Ukraine has incurred losses caused by the 1992-1995 embargo totaling $508.09 million. (Eastern Economist)

German and Ukrainian business contacts grow

KYIV - Ukrainian-German economic and commercial relations entered a new stage, it was announced at the June 4 meeting of the Ukrainian Chamber of Commerce and its German counterpart, the Chamber of Industry and Commerce. The two-stage program has produced impressive results: 2,200 firms became clients of the partnership project and 530 individual meetings between representatives of both countries were held. In addition, German consultants visited Ukraine and 500 Ukrainian entrepreneurs were trained in Germany. The next step in the project is to expand the services of enterprises and to develop existing business contacts. (Eastern Economist)

Kovbasa machines processed in Cherkasy

CHERKASY - The Temp company has produced its first consignment of an automatic sausage-making machine, designed by the factory's own engineers. Prototypes installed at meat-processing facilities in Kyiv, Cherkasy and Zhytomyr were successfully tested. They are cheaper to operate than similar foreign models and will soon go into serial production. (Eastern Economist)

Cabinet allocate cash for Microsoft products

KYIV - The Cabinet has decided to earmark $13 million (U.S.) from the Cabinet of Ministers reserve fund to buy licensing for Microsoft software to be used within the executive and other budget-funded institutions and organizations. (Eastern Economist)

AN-74 plane attracts interest at air show

KHARKIV - The June 13-20 La Bourge air show in France showed the AN-74 plane produced at the Kharkiv aviation plant attracted much interest from air companies. According to the Deputy GM Mykhailo Ternov, the AN-74TK cargo and passenger plane gave daily demonstration flights so that exhibition visitors could see the plane's capabilities. The plane can carry 10 tons of cargo, has a short take-off and landing, and can easily be transformed from a cargo to passenger plane. (Eastern Economist)

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