The Way East Goes Through Emirates

Transenergo Company is well known not only in Ukraine but also in Gulf countries where it operates, too. The company worked in Syria, Iraq and Jordan. Last year it opened its representative office in United Arab Emirates and received licenses for certain types of activities in this country. Vladimir GULENKO, General Director of  Transenergo Company tells us about company news and daily life.

– Mr. Gullenko, in the past, Transenergo Company participated in the program named Oil Traded for Food. What was the role of Ukraine in the implementation of this international program?

– Oil Traded for Food represented an effort of the international community in the person of the UN focused on alleviation of the burden of Iraqi people who found themselves in a difficult situation due to the geopolitical situation in the region. Ukraine also was to take part in this program. Transenergo Company acted as the authorized agent. It is worth noticing, that this program that existed between 1996 and 2003, was the largest financial project in the UN history and that was why it was hard for us to win the right of participation in it. The program allowed Iraq to sell oil to satisfy humanitarian needs of the population and provided food for approximately 60% of Iraqi people. Over the time of the program’s operation, the proceeds from oil sale equaled $65 million, out of which $46 million were spent on humanitarian needs. Unfortunately, the well-known developments that occurred in 2003, prevented Transenergo Company from implementation of its plans, although we were fully prepared to begin the realization of the concluded agreements.

– It is quite difficult to catch up with you in Kyiv, since you spend a lot of time abroad, in particular, in United Arab Emirates and Syria. What are the interests of Transenergo Company in these countries?

– It is known that over the past 10-15 years, the countries of the Gulf region and of the Middle East in general made serious economic achievements, therefore the wellbeing of the population also increased. It turns out that given the rapid growth of market capacity, the countries are unable to provide themselves with all the needed range of goods because some branches of economy are still underdeveloped or don’t even exist at all. On the other hand, the region has great potential for export and re-export of goods. We couldn’tbut grasp such business development opportunities. The key to our success is the fact that Transenergo Company was one of the first companies that began working on the market of the said countries. This was largely due to support of Ukrainian Trade Center in Dubai, the activities of which cover the entire Gulf region.

The whole thing began with our trips to international conferences, roundtable discussions and business forums performed by the Trade Center in foreign countries and in Ukraine, with participation of business “sharks”, in particular, Arab businessmen. Now we can surely state that efforts of Ukrainian Trade Center were not vain, the work of UTC produced a quite tangible result. The result did not limit itself to the success of Transenergo Company on the market of the Middle East. For instance, commodity turnover between Ukraine and Syria increased from $380 million to $1 billion. Ukrainian – Syrian Business Council and Transenergo Company made significant contributions to such achievement.

 

Background information

Transenergo Company is one of the largest Ukrainian companies engaged in foreign economic activities. It has operated for more than ten years. The main directions of its activities are: development and implementation of intergovernmental scientific research programs focused on fuel and energy complex, electrical power industry and agriculture development, as well as scientific support and implementation of energy-saving technologies and provision of services in the sphere of management, information technologies, strategic consulting, trade export-import transactions, etc.

Transenergo Company was registered pursuant to the legislation of Ukraine.

A year ago, Transenergo Company opened its representative office in UAE and Gulf countries.

 The main types of activities of the company are: export-import operations with oil, oil products, oil refining industry equipment, metallurgy industry equipment, agricultural products and also provision of management consulting services.

Transenergo Company has highly qualified personnel. Company employees are often invited as experts and development, evaluation and support consultants to work on different government programs, investment projects and export-import operations.

Within the frame of Sugar Program in 1998–1999, Transenergo Company supplied more than 300 thousand metric tons of oil products (А-76 gasoline, А-80 gasoline, diesel fuel and black oil (mazut)) to the agricultural manufacturers with payments deferred by 180 days, which helped increase sugar production in Ukraine and stabilize the price for this important product.

In the course of implementation of the Resolution of the Cabinet of Ministers of Ukraine “On Further Development of Grain Market in Ukraine” of 1998, Transenergo Company took part in the tender (organized by the Government of Ukraine within the frame of Grain Program) on supply of oil products to agricultural manufacturers and won the tender successfully. Due to the existence of the contract between Total International Ltd and Transenergo Company, specialists of the company were able to offer the most profitable conditions of supply of 2 million metric tons of oil products А-80 gasoline, diesel fuel and black oil) with payments deferred by 245 days. As a pledge for Grain Program implementation, the government provided Transenergo Company with 400 thousand metric tons of grain and with guarantees of the State Export-Import Bank of Ukraine.

Company specialists participate in development and implementation of many other projects as well.

During the Paris (France) Business, Investment and Privatization Forum in October 2000, where there were roundtable discussions and presentations of privatization projects of regional power generating companies of Ukraine, Transenergo Company organized the meeting of Ukraine’s Prime Minister and Fuel and energy Minister with management of TotalFinaElf. Management of Transenergo Company also took part in this meeting. The issues discussed at the meeting included participation of TotalFinaElf in development of Ukraine’s oil industry and the increase of supply of light oil products into Ukraine. Transenergo Company was approved as the operator for this program on the Ukrainian side.

Transenergo Company also enjoys honest partner reputation with various financial institutions. Major Ukrainian and foreign banks, such as State Export-Import Bank of Ukraine, The First Ukrainian International Bank , ING Barings Vienna, Creditenstaldt Bank and other banks continue their cooperation with Transenergo Company.

Using the principle “Any change brings new opportunity”, in 2001, the company management made decisions on setting up partner relationships with enterprises from Middle East countries. In particular, management of Transenergo Company formed part of Ukrainian official delegation headed by the Minister of Foreign Affairs of Ukraine that visited Oman, Qatar, Kuwait and United Arab Emirates. The delegation met with representatives of political and business circles and with representatives of major companies from these countries.

Official visit of the President of Ukraine to the Gulf countries resulting in rapid development of mutual relationships between Ukraine and Gulf countries confirmed the correctness of the Arab countries-focused strategy chosen by Transenergo Company in oil and gas, engineering, metallurgical, construction and other sectors of the economy.  

Today, Transenergo Company receives orders from Arab countries’ enterprises for different equipment for oil refineries, chemical industry and agriculture, as well as offers for participation in various tenders held in these countries.

With support from the company partners, Transenergo Company created a large network for storage and sale of oil products around Ukraine.  

Another potential direction of Transenergo Company’s work could be export of cars from UAE to Ukraine. Why does it look promising? Demand on high-quality automobiles is growing in Ukraine. Due to wise economic policy of the government and to liberal taxation in UAE, it is possible to purchase excellent quality cars there at reasonable prices. The government of Dubai and management of Jebel Ali, in particular, create favorable conditions for international business in all spheres and offer new initiatives all the time.

According to official statistics, in Kyiv alone, in March, people purchased 40,000 cars.

Having settled on the Gulf countries market and having set up close ties with local business elite and with government organizations responsible for foreign economic activities, Transenergo Company invites Ukrainian companies making competitive products to cooperate with it. The company is willing to share its experience of successful cooperation with Arab countries and to take care of the things needed for bringing its Ukrainian partners out to the rich market of the Gulf region.

For Emirates companies, Transenergo Company will be a reliable conductor of their interests in Ukraine, the country with 48 million people and ever-growing investment attractiveness.

 

 

 Transenergo Company in Ukraine:

01004, Kyiv

21, Pushkinska street, office 43

Tel.: +380 (44) 2351349

fax: +380 (44) 2535421

e-mail: transenergo@ukrtrade.info

 

Transenergo Company in UAE:

Dubai, UAE

P.O. Box 261033

Тel: +971 (4) 3485047

e-mail: transenergo@eim.ae