News (#09 September 2017)



Start of 4G licenses sale procedure

On 9 August 2017 the Cabinet of Ministers of Ukraine decided to start the procedure on the sale of 4G communication licenses.

The working group on introduction of a fourth generation mobile communication system was established in late 2015. In July 2017 the Cabinet of Ministers approved requirements for operators activities, conditions for holding tenders for sale of licenses and the cost of the latter. The expected initial cost of 4G licenses is about UAH 6.3 billion: UAH 2.3 billion for the 2,600 MHz range and UAH 4 billion for the 1,800 MHz range.

The National Commission carrying out state regulation in the sphere of communications and information plans to begin 900 MHz range reframing after the end of tenders for issue of 4G licenses. The reframing of this range will make it possible to significantly expand 3G coverage in small settlements and along roads where usual mobile communication currently operates.

International Policy

Britain to prepare draft law to impose sanctions after Brexit

On 2 July the British Government published a plan of the Draft Law which will give it the powers to impose sanctions once Britain leaves the EU.

Currently, Britain imposes sanctions against particular countries within the framework of EU laws. Without new legislation, the Government will have no legal authority to implement these sanctions.

As of today, there are sanctions in place against 30 political regimes, in particular, against Russia, North Korea and Iran.

Under the new legislation, sanctions will be reviewed annually. This will also allow individuals and organizations to appeal any sanctions imposed against them.

The Government also stated that its proposal would facilitate freezing of bank accounts of terror suspects and would prevent the receipt of profit from their assets.

Ukraine to sell stake in joint KazakhstanRussiaUkraine nuclear facility

The State Property Fund has announced an auction for the sale of the state-owned stake in the UkraineKazakhstanRussia Private Joint Stock Company on nuclear fuel production.

The reserve price of the stake is UAH 921,000. The auction will be held on 30 August, applications for participation are accepted until 22 August.

UKRTVS was established in late 2001 with the aim of developing cooperation ties between enterprises of nuclear power complexes in Ukraine, Kazakhstan and the Russian Federation. Its shareholders are the State Property Fund of Ukraine, Kazatomprom and TVEL, all of which have equal shares.

Oil & Gas

Petroforce obtained gas trading license in Ukraine

Petroforce Ukraine, a subsidiary of the international energy trader Petroforce Trading and Shipping (Switzerland), has obtained a license for the right to carry out economic activities on natural gas supply. This decision was adopted by the National Commission for State Regulation of Energy and Public Utilities at its meeting held on 3 August 2017.

Petroforce Ukraine was founded on 19 July and specializes in the sales of crude oil and petroleum products. It is wholly owned (100%) by Petroforce Trading and Shipping S.A., a Swiss company.

Trade remedies

Duties on corn, rye and sorghum import to EU introduced

For the first time in almost three years the European Union has introduced duties on the import of corn, rye and sorghum. From 9 August the EU introduced a customs duty of EUR 5.16 per ton of corn, rye and sorghum. The EU had earlier applied a zero duty for corn from November 2014.

The decision to re-introduce the duty was due to a fall in import prices below the level established by the EU, as its rules require introduction of a duty if import prices stay at a level of EUR 157 per ton for at least 10 days. This should protect European producers from a disadvantageous situation in market conditions.

Ukraine was the main supplier of corn to the EU in recent years.


Apple registered trademark in Ukraine

According to the data of the Ukrpatent certification system, Apple Inc. registered the Premium Reseller trademark in Ukraine. In August, Apple also registered Siri TM the name of its famous voice assistant.

Thus, the certificate for this TM allows Apple to provide services of stores, engaged in presentation and retail sale of computers, software and consumer electronics. The Premium Reseller brand also covers the services of online stores. In total, Apple registered the Premium Reseller brand for four classes of goods and services: 35, 37, 41, 42.

Apple Premium Reseller is a set of strict standards that must be met by companies seeking to become Apple premium resellers.


Avellana Gold to invest in gold mining in Ukraine

Avellana Gold, the American company, has developed a project to extract gold and gold-polymetallic ore in Zakarpattya Region, where it plans to invest about USD 100 million.

The company plans to develop a new infrastructure and growth strategy for the Muzhiievo field using modern equipment.

The old infrastructure of Muzhiievo field limited the mine capacity; its extraction volume reached 120,000 tons per annum.

Investors currently plan to organize highly efficient production with annual output of 500,000 tons in the long-term perspective.

To that effect, Avellana Gold plans to include both gold and gold-polymetallic ores in the extraction.

The Muzhiievo field is the only gold mining facility in operation in Ukraine.

International Monitoring

USA suspends issue of non-immigrant visas in Russia

The procedure for issuing non-immigrant visas across Russia was suspended from 23 August following measures taken by the Russian Federation to limit the number of employees of the US diplomatic mission in Russia. It is planned to resume this procedure in Moscow on 1 September.

Moreover, the United States will no longer issue visas to citizens of Belarus in Russia. To get a visa, Belarusians are recommended to go to Kyiv, Warsaw or Vilnius.


Electricity from ocean currents

For the first time ever, Japanese experts have successfully tested a new plant for generating electricity from ocean currents. The experiment was conducted for five days in the area of the south-western Japanese island of Kuchinoshima, where the strong Kuroshio current passes. The new system is called Kairu. It was developed by IHI Corporation and the New Energy and Industrial Technology Development Organization. The plant consists of three metal cylinders, each about 20 m long. During the test, the equipment was immersed to a depth of 20 to 50 m, and the maximum output was 30 kilowatts. Japanese specialists expect to start commercial supplies from new plants by 2020.

25% stake in Kyivenergo sold at reserve price

The State Property Fund has sold a 25% stake in PJSC Kyivenergo for the reserve price of UAH 759.63 million, as there was only one bidder. So, 27.91 million shares were sold at a price of UAH 28.04 per piece. The buyer is not yet known.

Prior to the auction, Kyivenergo shares were divided into four stakes: 29% owned by DTEK Energy B.V. (Netherlands), 25% owned by DTEK Holdings Limited (Cyprus), 18.3% owned by DTEK Energo (Ukraine), and 25% owned by the State Property Fund. Thus, at that time Rinat Akhmetovs companies controlled 72.3% of the companys shares.


Air Berlin declared bankruptcy

Air Berlin, the German airline, has begun bankruptcy proceedings. The decision was taken after the main shareholder of the company, the national airline of the United Arab Emirates, Etihad Airways, announced termination of further financing of Air Berlin.

The airline management insists that the bankruptcy proceedings will not affect its activities in the short term. Flights will continue due to a loan of EUR 150 million granted by the Government of the Federal Republic of Germany.

The airline has been trying to solve its financial problems for several years by reducing its staff and aircraft fleet. According to the results of 2016, losses sustained by Air Berlin came to EUR 780 million. The airlines total debt is EUR 1.2 billion.

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