Business news from Ukraine

THE PARENT GROUP OF AUSTRIA RECEIVES CONSENT FOR THE CONSTRUCTION OF A PLANT IN VINNITSA

The Austrian-based Head Group has received permission from the State Inspectorate for Architecture and Urban Planning of Ukraine to start the construction of the Head Vinnytsia plant on the territory of the Winter Sport industrial park, Andriy Ocheretny, the deputy mayor of Vinnytsia, said on Facebook.
“The completion of construction of the plant and commissioning of production facilities is scheduled for December 2022. The company plans to invest about EUR80 million in the creation of production, administrative and storage facilities,” he said.
The deputy mayor clarified that since May 12, 2021, preparatory work on the land plot continued at the site: more than 100,000 cubic meters of fertile soil layer were removed, reinforced concrete supports were installed for laying a cable power line, temporary connection networks from the substation were installed.
According to the project, the building of the plant will consist of production and storage facilities, an administrative building, a sewing workshop. The production building will house workshops for the manufacture of skis, boots and bindings, as well as warehouses for raw materials and finished products.
The total area of production premises after the commissioning of the enterprise in 2023 will be 43,000 square meters.
Ocheretny noted that, as expected, this plant will be one of the largest Head Group plants in the world and will provide jobs for more than 1,200 residents of Vinnytsia.
As reported, the total area of the Winter Sport industrial park is 25 hectares. The start of construction of the plant took place in May 2021.
Head International Holding GmbH manufactures sports equipment for winter sports, tennis and scuba diving. The company’s production facilities are located in Austria, the Czech Republic, Bulgaria, China. The company is present in 85 countries around the world.

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INSURANCE MANAGEMENT DOES NOT NEED REGULATOR APPROVAL BEFORE TERM EXPIRES – NBU

Since January 2022, the National Bank of Ukraine (NBU) has been coordinating the positions of the chairman of the board (sole executive body), members of the board, chief accountant, chairman and members of the supervisory board of insurance companies from January 2022 in accordance with license terms, the regulator has told Interfax-Ukraine.
“Persons in these positions do not require the appropriate approval before the expiration of their tenure,” the NBU said in a statement.
In addition, the law on insurance from January 1, 2024 introduces separate requirements for the management of the insurer, namely the chairman of the supervisory board, his deputies and members of the supervisory board, the chairman of the board (director general), his deputies and members of the board (directorate), chief accountant. In relation to these persons, as well as the chief risk manager, chief compliance manager, chief internal auditor and responsible actuary of the insurer, qualification requirements for business reputation and professional suitability are established. In respect of the independent director of the insurer, independence requirements are also introduced. Qualification requirements will be determined at the level of the normative legal act of the NBU.
The chief risk manager, chief compliance manager, chief internal auditor, responsible actuary, as well as individual heads of the insurer – the chairman of the board (director general), chief accountant, chairman and members of the supervisory board – will take office after receiving the approval of the National Bank. With regard to other managers, insurers will be able to either obtain approval before they are appointed/elected to a position, or submit documents for approval to the NBU within one month after appointment/election to the position.
In addition, the law on insurance introduces requirements for the collective suitability of the supervisory board and collegiate executive body of the insurer, which will also be effective from January 1, 2024. Collective suitability means that the members of the supervisory board or executive body have the general/cumulative knowledge, skills, professional and managerial experience to the extent necessary to understand all aspects of the insurer’s activities, adequately assess risks, make informed decisions, etc.
The National Bank will establish the requirements and procedure for assessing the collective suitability of the supervisory board and the executive body. The NBU will carry out an appropriate assessment taking into account the size of the insurer, the volumes and types of operations carried out by it, the organizational structure, the risk profile, etc. The regulator also determines the existence of collective suitability when considering the package of documents for obtaining a license. Based on the results of such an assessment, the National Bank will have the right to demand changes in the personal composition of the supervisory board or the executive body.

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UKRAINE PREPARES TO EXPORT HYDROGEN TO GERMANY BY 2024

Ukraine has sufficient resources and capabilities to launch the first hydrogen projects and start exporting hydrogen to Germany by 2024.
President of the Ukrainian Hydrogen Council Oleksandr Repkin said this in a comment to the Green Deal portal, sharing the details of a meeting with German Foreign Minister Annalena Baerbock.
“Annalena Baerbock is responsible for the entire German climate dialogue in the foreign arena, so the topic of hydrogen is very important for her. At the meeting, we told her that at this stage Ukraine has enough resources and opportunities to launch the first and start exporting hydrogen to Germany projects by 2024,” he said.
Repkin specified that hydrogen will be transported in a mixture with natural gas through the existing gas transmission system.
“We are already ready to transport 10% concentration of hydrogen mixed with natural gas via the GTS. By 2024, subject to modernization, the percentage may be higher. The main thing is to choose an entry point, a place where you can connect to the GTS, and then it will be possible to transport the mixture,” he said.
Earlier, Foreign Minister of Ukraine Dmytro Kuleba also spoke about the plans to start exporting “green” hydrogen to Germany from 2024, but with a caveat “according to the optimistic scenario.”
At the meeting with the head of German diplomacy on January 17, Kuleba once again spoke about Ukraine’s plans to become a key supplier of “green” hydrogen to the EU.
“Ukraine is actively developing renewable energy, in particular, it plans to become a key supplier of “green” hydrogen to the EU. We are strengthening energy partnership with Germany and developing a number of major projects in the production and transportation of “green” hydrogen,” the foreign minister said.

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UKRAINIAN BANKS’ CASH EXCHANGE RATES ON 18/01/22

Ukrainian banks’ cash exchange rates on 18/01/22

Source: Interfax-Ukraine

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USA CONFIRMS BLINKEN’S VISIT TO UKRAINE

The visit of U.S. Secretary of State Antony Blinken to Ukraine and Germany will take place on January 18 to 20, according to a statement released by the U.S. Department of State on Tuesday.
“In Kyiv, Blinken will meet with Ukrainian President Volodymyr Zelensky and Foreign Minister Dmytro Kuleba to reinforce the United States’ commitment to Ukraine’s sovereignty and territorial integrity,” Department of State Spokesperson Ned Price said in a statement.
According to the document, on January 20, Blinken will travel to Berlin, where he is scheduled to meet with German Foreign Minister Annalena Baerbock.
In turn, the press service of the Ministry of Foreign Affairs of Ukraine said that on January 19, Blinken will pay a visit to Ukraine at the invitation of Foreign Minister Kuleba.
“The visit will be a continuation of close coordination between Ukraine and the United States in order to deter Russia from further aggression,” the ministry said.
It is noted that Kuleba and Blinken will hold talks on the further implementation of a comprehensive containment package for Russia, practical support for Ukraine by the United States, and active diplomatic efforts to resolve the Russian-Ukrainian armed conflict.”
The parties will also discuss issues of strategic partnership between Ukraine and the United States in the areas of security, trade, investment and others.

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UKRAINE RAISES UP PETROLEUM PRODUCTS IMPORTS BY 9.6% IN 2021

Ukraine in 2021 imported 8.791 million tonnes of oil products (according to foreign economic activity code 2710: gasoline, diesel fuel, fuel oil, jet fuel, etc.), which is 9.6% more than in 2020 (8.023 million tonnes).
According to the State Customs Service, oil products were imported in the amount of $5.615 billion, which is 65.3% more than in 2020 ($3.397 billion).
Belarus supplied fuel for $2.351 billion (share – 41.87%), Russia – for $1.241 billion (22.09%), Lithuania – for $654.584 million (11.66%), other countries – for $1.369 billion (24.37%).
In addition, Ukraine exported 308,716 tonnes (more 3.3% compared to 2020) of oil products for a total of $192.65 million (up 50.3%). The cost of fuel delivered to counterparties from Latvia amounted to $36.779 million, Estonia – $32.636 million, Malta – $18.81 million, other countries – $104.425 million.

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