**CommercialNews for Ukraine,**

**January 1 - 13****, 1999.**

 

Author:Andriy Ignatov, BISNIS Representative in Ukraine 

 

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1.NATO Considering Bidding on AN-7X Aircraft For Troop Transport.

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January 5. The NATO tender committee isconsidering a bid for the AN-7X Ukrainian-Russian aircraft as the proposedofficial transportation aircraft for the NATO military forces.  The tender committee is consideringthree aircraft, including the U.S. C-130J and the European A-400M.

 

The AN-7X is based on the AN-70aircraft,  to be manufactured atthe Kyiv-based Aviant Company and the Russian JSC Aviakor.

 

The Ukrainian Defense Ministry plans toorder five planes for the year 2000. 

 

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2. Cabinet of Ministers Issues NewResolution on Export and Import Quotas and Licensing

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January6. The Cabinet ofMinisters issued a resolution updating the list of export and import goodssubject to quotas and licensing for the year 2000.  The resolution limits both the import and export of goodscontaining ozone-depleting substances. Such products will be subject tolicensing.  Theresolutionestablished licensing procedures for the importation of chemicals for plantprotection, drugs, cosmetics, and veterinary products.

 

Import and export licenses not used in1999 are to be considered valid until March 2000.

 

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3. Naftohas Ukraine Announces US$ 500million Program to Replace Gas Pumping and Distribution Stations

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January10. The Naftohas Ukraine State Company announced plans to replaceequipment at gas compressor and distribution stations.  According to the plan, new equipmentwill replace old gas turbine engines. The new gas turbines are to be produced by the Zoria plant of Mykolajivand the Motor Sich Company of Zaporizhia. The replacement will costapproximately US$ 500 million and will be completed by the year 2004. AnotherUS$ 150 million is to be spent for the second stage of the plan by 2010.

 

Interestedparties are encouraged to contact the Tender Committee of the Naftohas UkraineState Company: Oleksandr Arijevych Andruschenko, Secretary, Tel/Fax: +380 (44)295-3677, E-mail: [email protected]

 

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4. Coal-Methane Project in Volyn Region

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January10. The American Company Eurogas Inc. announced it has finished drillingits first coal-methane well in the Volyn coalfield.  In the next few weeks, the company plans on testing thepressure and flow of the 800-meter deep well.

 

Eurogas owns 70 percent of the Tiahlivfield and operates it with the State Company Zahid Ukr Heolohija. The companymanages projects in Poland, Canada, Slovakia, and Russia.

 

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5. State Property Fund Announces Tender for Privatization Advisers

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TheState Property Fund of Ukraine announced a tender to select three groupsof advisers to prepare and hold tenders for the sale of three groups ofstate-owned Ukrainian companies.

 

Participating companies are to beinvestment banks or companies experienced in the sale of shares exceeding US$50 million.  Applying firms shouldposes capital in excess of US$ 1 million. Participating companies, less then two years old, are to have at least35 percent of their capital owned by the founders.

 

Applications must be submitted fromJanuary 25 to March 9, 2000.  Theremuneration/fee will include a fixed sum for incurred expenses and apercentage of the shares sold.

 

(Sources: The Cabinet of Ministers ofUkraine, the State Property Fund, *Intelnews*Information Agency, Inter TV Channel, One Plus One TV Channel, and BISNISrepresentative in Ukraine.)