BUSINESS IN BRIEF (06/04/00)

BUSINESS IN BRIEF

Slavutych begins beer exports to U.S.

ZAPORIZHIA - The Slavutych Brewery began exports of it products to the United States in small quantities, stated Ihor Tovkach, assistant chair of the brewery's board. He added that Slavutych beer is sold in 12 states of the United States and by the end of the year the brand will be available in all 50 states. Slavutych's current market share in Ukraine is about 15 percent. (Eastern Economist)

Foreign capital in Ukrainian banks

KYIV - Total foreign investment in the Ukrainian banking sector as of May 15 was $175.9 million (U.S.) stated Valerii Shapovalov, first vice-chairman of the National Bank of Ukraine. Twenty-eight banks operating with foreign capital have been registered and capital was directly invested into 24 of them. Mr. Shapovalov divided the banks into three categories: nine have 100 percent of the foreign capital totaling $120.9 million, with Citibank Ukraine leading the group with $24.5 million; six have foreign capital making up 65 to 97 percent of its holdings; and in nine others foreign capital accounts for 17.5 to 50 percent. (Eastern Economist)

German military rejects AN-70

KYIV - Germany will not purchase the Ukrainian-Russian AN-70, which was being considered as a possible new military-transport aircraft for the German Air Force, said Defense Minister Rudolph Scharping. He added that preference will be given to the European model A400M. The decision was affected by Britain's choice of the A400M, which is produced by European consortium Airbus Industry. However, Minister Scharping said that cooperation with Ukraine and Russia is possible during the construction of the new military aircraft. The approximate cost of a A400M is $80 million (U.S.). Ukrainian, European and U.S. aircraft were also considered in the tender. (Eastern Economist)

Rus' grain harvester assembly begins

ODESA - The automotive assembly works have begun assembling Rus' grain harvesters manufactured by the Tahanrih harvester plant. According to Odesa Mayor Ruslan Bodelan, "KZS-3 harvesters are compact and have excellent performance with minimal grain losses." He said that joint production of the harvesters was conditional on the conversion of several local plants, although he did not say why the Odesa works and other machine-building enterprises would not cooperate with domestic harvester manufacturers. He added that the "municipality is going to bring in 50,000 tons of grain, thereby influencing price setting policy for bread in the city." (Eastern Economist)

West interested in NATO standard arms

KYIV - The United States is interested in Ukraine's capabilities to produce weapons complying with NATO standards, in particular the 120-millimeter tank gun, said the general manager of Ukraine's Armored Machinery concern, Yurii Myrhorodskyi. Efforts are under way to acquaint U.S. military experts with armament production at the Kharkiv-based Malyshev plant and plans for modernization of T-84 and T-72 tanks. Domestic tank manufacturers have recently expanded contacts with their Western counterparts. Talks are going on with France on the joint design of a new tank and armored personnel carrier. A contract was signed last year between the Kharkiv-based Morozov design office and a leading Swiss company on the joint production of a tank gun prototype that meets NATO standards. (Eastern Economist)

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