BUSINESS IN BRIEF (09/19/99)

BUSINESS IN BRIEF

Professional image-maker coming to Ukraine

KYIV - The situation in Russia, where over 95 percent of presidential, gubernatorial or parliamentary candidates are using the services of professional image-makers will repeat itself in Ukraine in the next three to four years, stated Director General Igor Mintusov of Nikollo M, a Russian image-maker firm. The company, which developed an image for Russian President Boris Yeltsin, prices its services for a Russian presidential candidate from $200 million to $500 million (U.S.). Since the company is unfamiliar with specifics in Ukraine, according to Mr. Mintusov, the firm is not going to participate in the coming presidential elections in Ukraine. (Eastern Economist)

Germans to buy 52 percent of cargo transporter

KYIV - The State Anti-Monopoly Committee has permitted the German company Cargotransport Weiden to buy 52 percent of the shares offered by the open joint stock company KyivZovnishTrans. According to the committee, this deal will not result in competition restriction and in monopolization of commodity markets. KyivZovnishTrans specializes mainly in handling cargoes, including dispatching, transportation, and storage. (Eastern Economist)

EU imposes anti-dumping duty on pipes

BRUSSELS - The European Union Commission has imposed a 56.5 percent preliminary anti-dumping duty on Ukrainian pipes, said the director of the Mahistr & Partners law firm, Oleh Riabokon. According to Mr. Riabokon, the duty became effective August 19 and any duty over 10 percent actually closes the market to the manufacturer. The anti-dumping inquiry was initiated in November 1998 by the European Association of pipe manufacturers when Ukrainian manufacturers exported nearly 120,000 tons of pipes to the EU. It concerns the products supplied to the European market by Nyzhniodniprovskyi pipe-rolling works as well as Nikopol-based Pivdennotrubnyi and Dnipropetrovsk-based pipe works. (Eastern Economist)

Mexico reacts to Ukrainian steel dumping

MEXICO CITY - The Mexican Trade Ministry (Secofi) announced that it is slapping compensatory duties on imports of hot-rolled steel sheet from Russia and Ukraine, claiming that these countries had dumped steel on the Mexican market at unfairly low prices. Thus, provisional duties of 20.07 percent were slapped on hot-rolled steel sheet from Russia and a staggering 46.66 percent on Ukrainian steel sheet. The ministry said its probe, based on complaints from the Mexican producers Hylsa SA and Altos Hornos de Mexico, during the first half of 1998 proved that an increase of imported hot-rolled steel sheet from Russia and Ukraine at discriminatory prices had damaged the national steel industry. The ministry said its investigation into the dumping complaint would continue. (Eastern Economist)

U.S. cancels anti-dumping on magnesium

WASHINGTON - The U.S. Court of Appeals on September 1 canceled the anti-dumping duty that had been imposed on magnesium imported from Ukraine. The duty was imposed in 1995 and ranged from 79.87 percent to 104.27 percent of the value of goods. The court's decision is retroactive and exempts from the duty all suppliers of magnesium shipped to the U.S. after October 30, 1998. Low-priced imports of Ukrainian magnesium did not cause any substantial damage to American producers, stated the court's verdict. Ukrainian companies ship their magnesium mostly to American chemical and aluminum plants. (Eastern Economist)

Foreigners buying stakes in oil companies

KYIV - The Anti-Monopoly Committee reported that a group of foreign companies, Emberton Assets Corp., Copland Industries S.A., Bishop Invest & Finance Inc., Jarwin Trade & Finance Corp., Padmore Trading Ltd., Posner Trading Limited, and Malton Industries Corp., have bought, directly and indirectly, large stakes in the Ukrainian KirovohradNaftoProduct, ZhytomyrNaftoProduct, SumyNaftoProduct, and UmanAhroPostach companies, which are large suppliers of petroleum products to Ukraine. As this transaction was made without the Anti-Monopoly Committee's approval, Padmore Trading Ltd was fined 10,200 hrv. However, since no laws exist to prohibit the concentration of capital, all the above-mentioned foreign companies were allowed to purchase significant stakes in these Ukrainian companies. In a similar manner, the Anti-Monopoly Committee issued the go-ahead to the creation of Kirovohrad-Petrol and Sumy-Petrol, companies with foreign investments that intend to sell petroleum products in Kirovohrad and Sumy oblasts. (Eastern Economist)

McDonald's celebrates with 10th opening

KYIV - McDonald's opened its 10th restaurant in Kyiv on Ukrainian Independence Day, August 24. The new 80-seat restaurant is located near the Miensk metro station of the Obolon District. Building costs for this restaurant were nearly $1 million (U.S.). (Eastern Economist)

Alumina producers talk about merger

KYIV - The idea of integrating Ukrainian and Russian alumina producers, alumina processing and manufacturing plants received a conceptual approval by a majority of managers of leading alumina enterprises, heads of the military-industrial complex, scientists and experts from research institutes during the Industrial Policy Ministry meeting. However, a proposal by the Russian Sybirskyi Aluminii group of companies on setting up a Russian-Ukrainian alumina company was received with disapproval by the new management of the Mykolayiv alumina plant. The group proposed to divide the authorized capital of the Mykolayiv plant in a 50/50 deal, with the inclusion of all enterprises participating in the manufacturing process as shareholders. According to Russian Economy Ministry Volodymyr Yevsiukov, "the creation of a joint venture will serve the interests of both sides." Once the project is implemented, Russian alumina plants will receive stable long-term supplies of alumina, while the Ukrainian side will be offered "all necessary help including the attraction of foreign investment for developing its own high-tech production." This is especially important considering the merger of the leading international alumina companies, Canadian Alkan, French Pechiney and Swiss Alusuisse. (Eastern Economist)

Blair gives reason for rejecting tender

KYIV - British Prime Minister Tony Blair informed Ukraine's Premier Valerii Pustovoitenko about the reasons for rejecting the AN-124-210 Ruslan project. In his letter, the British PM explained that since neither of the proposals received by Great Britain's Defense Ministry offered a solution at an acceptable price, the government decided to revoke the tender. At the same time Mr. Blair pointed out that "British experts see many advantages in the proposal to modernize the AN-124." Participants in the tender were the Antonov plant with the AN-124 equipped with Rolls Royce engines and the American C-17 manufactured by Lockheed. (Eastern Economist)

First AN-140 plane nearly completed

KYIV - Construction of the first series of AN-140 planes will be completed by late September at the Kharkiv Aviation Plant, stated Antonov designer Petro Balubuev. Immediately following certification, several planes will be ready for sale. Production of this series of planes will take place in Ukraine, Russia and Iran. Based on early estimates, Ukraine alone has a potential market for the AN-140 of about 80 planes, while Russia's Aeroflot is ready to purchase 50 planes. These planes come with a price tag of $7.5 million (U.S.). (Eastern Economist)

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