BUSINESS IN BRIEF (08/22/99)

BUSINESS IN BRIEF

U.S. anti-dumping duties are dropped

KYIV - Ukraine won a legal action against the United States over re-negotiating an anti-dumping duty of 104.18 percent for Ukrainian ferrosilicon supplies to the U.S., Oleh Riabokon, a director of Magister & Co., a law firm, reported on August 12. He said that all such duties, introduced in the U.S. in the beginning of 1990s on Ukrainian ferrosilicon sold on the US market, will now be canceled. (Eastern Economist)

Ukraine's foreign trade decreases

KYIV - The State Statistics Committee on August 12 reported that Ukraine's foreign trade from January through June fell to $10.8 billion (U.S.), down 24.6 percent when compared with the same period last year. Foreign investment in the first six months of 1999 totaled $265 million, down 48.8 percent from the same period in 1998. (RFE/RL Newsline)

Bank offers 10-year homeowner loans

KYIV - Pravex Bank has become the first domestic bank to begin issue loans for the purchase of residential space. A total of 10 million hrv has been allocated towards the new program. Loans are given at 30 percent per year and the buyer must give a down payment of at least a third of the dwelling's price. The rest of the required sum will be given by the bank. The term of the loans is 10 years. (Eastern Economist)

Products for children seen as unprofitable

KYIV - Children's food and other articles are unprofitable for domestic manufacturers, said Valentyna Shevchenko, president of Ukraina Ditiam, a charity fund, on August 12. She said the domestic market was 85 percent filled with cheap and low-quality foreign products. Before 1990, 40 percent of light industry output was for children, and manufacturers received state subsidies. (Eastern Economist)

Finance Ministry pays ING Barings

KYIV - The Ministry of Finance has paid a 20 percent share of the $155 million (U.S.) ING Barings loan, thereby complying with the agreement reached with the Dutch bank on July 15. The remainder of the loan will be financed by placing DM-denominated Eurobonds at 16 percent per year interest due February 2001, to be lead-managed by ING Barings itself. According to Finance Minister Ihor Mitiukov, the 50 million euro loan received from the European Union was partly used to make the cash payment. Meanwhile, Mr. Mitiukov announced on August 3 that the Bank of China has agreed to deposit $30 million (U.S.) with the National Bank of Ukraine to pay off ING securities. He added that these funds will be used as resources for restructuring the $163 million (U.S.) debt to ING Bank. (Eastern Economist)

New plans for making nuclear fuel

DNIPRODZERZHYNSK - The Energy Ministry has announced plans to have the Zirconium factory operate in conjunction with Russia to produce fuel for atomic energy stations. Ukraine had plans to invest $990 million (U.S.) in a production cycle for nuclear fuel, including $680 million for uranium extraction and $111 million for zirconium smelting and rolling. Ukraine plans to create a unified production cycle with Russia and Kazakstan to create a new type of fuel with a three- to four-year life span. The new fuel is expected to reduce power costs by $0.003-0.0045 (U.S.) per kilowatt-hour. To assist in nuclear fuel production, the Energy Ministry plans to activate the Eastern Mineral Enrichment Combine, the Prydniprovskyi Chemical Combine, the Dniprodzerzhynsk Smoly factory and non-ferrous metals factories. (Eastern Economist)

Award for quality goes to Brovary

KYIV - The Ukrainian Quality Association announced on July 28 that the Brovary road-building department No. 50 was declared a finalist in the European quality awards in the non-business medium-sized enterprise category. Brovary recently won the third National Quality Competition. This marks the first time a domestic company of any type has made it to the European finals. The winners will be announced at the Forum of the European Fund quality department in Brussels on October 5-9. The European quality awards have been presented annually since 1991. (Eastern Economist)

Ukraine and Tajikistan sign deal on alumina

KYIV - The prime ministers of Ukraine and Tajikistan signed an agreement on the supply of alumina by the Mykolaiv Alumina Plant to the Tajik Aluminum Plant until the year 2013. Under the deal Ukraine will supply 500,000 tons in 1999 and, starting from 2000, 700,000 tons annually. Ukraine has agreed to receive partial payments for the alumina with cotton supplies. The Tajiks have promised to repay their standing debt to the MAP by issuing TAP bills of exchange backed by the Tajik government. According to Ukraine's Ministry for Industrial Policy, the Tajik Alumina Plant presently owes $61 million (U.S.) to the MAP. (Eastern Economist)

New fungus disease plant remedy is a hit

IVANO-FRANKIVSK - The first Ukrainian remedy for fungus diseases in plants, Cuprosil, is being commercialized at Kalush, Ivano-Frankivsk Oblast. Cuprosil was synthesized by experts at the Kalush experimental research plant of the National Academy of Science Chemistry Institute jointly with the scientific and production firm Stim. The agent has undergone tests for toxicological and environmental safety at research centers under the Ministry of Health and the Ministry of the Environment and Nuclear Safety. The first farms to buy Cuprosil are in Crimea and Odesa Oblast. Experts say Cuprosil is as effective as its well-known Austrian analog, Cuproxite. Foreign companies are negotiating for the agent to be registered and used in their countries. (Eastern Economist)

Cabinet passes resolution on tourism

KYIV - The Cabinet of Ministers passed a resolution on July 21 setting up a state-run joint stock company named Ukraina Turystychna - Tourist Ukraine. One hundred percent of the new company's statutory fund will be made up of shares of JSCs founded on state-run enterprises. Twenty such enterprises were identified, including general agencies for tourism, the Kyiv-based Dnipro hotel complex, Odesa-based Delfin camping, Oranta in Yalta, the Poliana Kazok motel camping, plus the state-held stocks of eight open JSCs, including hotel Kyiv Rus' and the hotel complex Bratislava-Desna. The State Property Fund has been allowed three months to draft the company's charter and proposals on its supervisory council staffing. The resolution determines that 100 percent of its shares will be state-owned until a decision is duly made on their sale. (Eastern Economist)

Over 20,000 Internet subscribers in Kyiv

KYIV - IP Telecom Director Yurii Kuzmenko said on July 14 that "The Internet communication market in Kyiv currently has a capacity of up to 5 million [subscribers]." Presently, Kyiv boasts around 20,000 constant Internet subscribers, said Mr. Kuzmenko. The market is developing quickly, and 20 new providers appeared in Kyiv in 1998. This is partially due to the fact that Internet providers were not previously required to license their activities. Ukrainian Internet companies look forward to the privatization of UkrTeleKom, which they expect will increase the quality of telephone communication system throughout the nation. Mr. Kuzmenko said the privatization of the state communications monopoly, which was recently nixed by the Verkhovna Rada will allow faster and cheaper quality access to the Internet. (Eastern Economist)

Minister says 1999 harvest is on schedule

KYIV - Agro-Industrial Complex Minister Borys Supikhanov in his report to the Verkhovna Rada on July 14, said Ukraine has harvested 2.4 million hectares of grain crops, an increase of 836,000 hectares from last year. The daily average rate of grain harvesting and threshing is 400 hectares, but the ministry is implementing measures to increase this level to 500 hectares. As of July, 14.4 million tons of grain have been threshed. Although grain quality is better this year, grain yield is 0.18 tons per hectare less than last year. This year's weather allowed the harvesting campaign to start simultaneously across Ukraine. Spring frosts and summer heat have destroyed or damaged some 1.7 million hectares, yet the remaining 12.1 million hectares of grain (0.852 million hectares more than last year) have been rescued for harvesting. By July 14, Crimea had gathered crops on over 50 percent of sown areas, and Kherson, Dnipropetrovsk and Donetsk oblasts on 30-40 percent of sown areas, where the yield is roughly the same as last year. On July 12, Western experts had predicted that the halving of plant protection supplies may lead to a 3.5 million ton loss in the output of wheat, sunflower seeds and sugar beets. (Eastern Economist)

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