OREANDA-NEWS. August 9, 2012. Within the first official visit to Mykolayiv city Qimiao Fan, the World Bank Country Director for Ukraine, Belarus and Moldova,  visited the transshipment terminal of “NIBULON”. He was accompanied by Tamara Sulukhia, the Coordinator of sustainable development in Ukraine, Belarus, and Moldova, Victoriya Siryachenko, the Senior project portfolio manager of the World Bank in Ukraine, and Dmytro Derkach, the Head of the department of external affairs of the World Bank Representative Office in Ukraine.

The delegation discussed difficulties and prospects for the Ukrainian business development with “NIBULON’s” management.

Mr Fan arrived to Mykolayiv city and visited “NIBULON’s” transshipment terminal for the first time. An honorable guest was met by Oleksiy Vadaturskyy, the General Director of “NIBULON”, the Hero of Ukraine, A.O. Vadaturskyy, the Deputy General Director for commerce, and A.V. Myhaylyuk, the head of the financial department.

Mr Fan expressed his admiration for the level and paces of “NIBULON’s” development, “I am impressed by the history of establishment of your company, and particularly when I realize where you started your business and how your company grew. It impresses me being both an economist and a representative of the World Bank. As the World Bank’s activity is directed to help different countries and people living in these countries. An activity that we can see here today is an excellent example testifying that our Bank can be of use”.

The World Bank Country Director mentioned that he worked as a director of the company in the private sector of China for 4,5 years. Therefore he realizes the way the government norms and requirements influence on doing business. “I have seen that the government regulation can complicate the work of the company considerably. Now I want to help other countries to solve this problem”.

Oleksiy Vadaturskyy thanked for support in protection of property rights which was provided by the World Bank, in particular by Mr Martin Raiser, the predecessor of Mr Fan, “Today’s visit of your delegation to our terminal testifies about continuation of friendly policy and the World Bank’s intentions to develop the company and Ukraine on the whole that will help to solve urgent issues and drawbacks of the economy of Ukraine”.

“We are in constant dialogue with the World Bank which management and experts are interested in the activity of our company, they are not indifferent to our view on the situation in the agrarian sector of Ukraine, changes in the legislation. Thus we give our own view of existing problems. “NIBULON” has been cooperating with the World Bank since 1998 when our company, the first company in the agrarian sector of Ukraine, received a loan in the amount of USD 5 mln. Today we demonstrate our effective allocation of these funds for investments in the agrarian sector of Ukraine. The history of “NIBULON’s” development is quite difficult and in 2003 exactly the World Bank defended our company from the raider attack. The level that we have reached at present is a price of our independence, as we develop despite those obstacles which appeared and appear in our way”, Oleksiy Vadaturskyy commented on a situation. “We appreciate those who always supported our company, namely the international financial institutions and governments of the leading countries. So, on July 24 the Board of Directors of the European Bank for Construction and Development decided to give a loan in the amount of USD 130 mln to “NIBULON”. We also cooperate with the International Finance Corporation which plans to give USD 50 mln to our company to implement the investment program and refinance lines of credit”.

During the conversation the General Director briefly informed about those problems with which not only “NIBULON” but also other representatives of the agrarian business in Ukraine are faced at present. Oleksiy Vadaturskyy defined the following problems.

- The problem of VAT compensation. At present the state owes “NIBULON” UAH 336 mln. Though “NIBULON” was the first to sign a unique by its value for the Ukrainian business Memorandum on participation in experiment on the horizontal monitoring implementation, and in spite the company is absolutely transparent for the state tax authorities, VAT is compensated very slowly.

- The Draft Law of Ukraine “On the Land Market” which foresees an establishment of the State land bank and divests all agricultural companies of the right to buy lands. This Law is non-market and discriminatory. It will lead to destruction of the agrarian sector of Ukraine and shadowing of the land market.

- The Draft Law of Ukraine “On the Agriculture of Ukraine” is directed to rigid non-market regulation of the agricultural commodity production (including receipt of instructions concerning  detail information about planting and breeding of animals, etc.).

- Bylaws of the Cabinet of Ministers of Ukraine of the Law of Ukraine “On Licensing System in the Sector of Economic Activity” and the Law of Ukraine “On Grain and Grain Market in Ukraine”.

- The Law of Ukraine “On Sea Ports of Ukraine”. After “NIBULON’s” addresses the President of Ukraine ordered to improve the draft law taking into consideration an activity of sea private terminals. As the given Law will lead to a shadow privatization of the Ukrainian ports by definite industrial organizations, and will also lead to raider attempts to redivide the market and capture private companies that are successful at present.

On his side, Mr Fan noted that problems specified by the management of “NIBULON” are really the most urgent ones in the economy of Ukraine, “We always suggest the government to accept more transparent and honest conditions for doing business including agricultural one. The more information we get at first hand, and moreover from such large exporters of grain like your company, the better we prepare for carrying out the dialogue with authorities of your country”.

“If at least several companies in Ukraine could achieve such success like your company, Ukraine would become different country. I would like to thank you for cooperation with the World Bank and acquaintance with your company. Those things that I have seen here today give optimism to me and confidence in Ukraine. In future it will help us to define prior projects directed to the situation improvement in your country”, emphasized Qimiao Fan.