Business news from Ukraine

UKRAINE INCREASES FREQUENCY OF FLIGHTS TO GERMANY AND HUNGARY

The State Aviation Service of Ukraine has agreed to increase the frequency of flights on the main routes to Germany. The press service of the agency said now the maximum total number of flights on the air lines Kyiv-Berlin, Kyiv-Frankfurt, Kyiv-Munich reaches 52 flights a week. The appropriate agreement was achieved by correspondence between the aviation authorities of the countries.
The frequency on regional routes remains unchanged – seven flights a week for each side. The number of destinations is limited. In addition, Ukraine has achieved agreement with Hungary to increase the frequency of passenger and freight traffic on the Kyiv-Budapest route from nine to 14 flights a week.

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SHARE OF BAD LOANS AT BANKS 0.4 P.P. DOWN IN FEBRUARY

The share of bad loans in the banking system of Ukraine as of March 1, 2018 was 56.2%, which is 0.4 percentage points less than a month earlier, according to data posted on the website of the National Bank of Ukraine (NBU). The total volume of the loan portfolio for February decreased by 1.4%, to UAH 1.113 trillion. According to the National Bank, part of non-performing loans in state-owned banks decreased by 0.08 p.p. for the month, to 72.14%.
At the same time, the NBU specifies that, excluding PrivatBank, at which the share of problem loans decreased by 0.35 percentage points, to 86.67%, the share of non-performing loans at state-owned banks declined by 0.14%, to 58.84%.
The ratio of non-performing loans to the credit portfolio of foreign banking groups in February decreased by 0.77 percentage points, to 43.92%, banks with private capital by 1.04 percentage points, to 24.83%, insolvent banks increased by 1.61 percentage points, to 44.38%.
The share of distressed assets of the banking system, taking into account off-balance sheet liabilities, as of March 1, 2018 was 29.44%, which is 0.51 percentage points less than a month earlier.
At the same time, the total volume of such assets in February was down by 0.7%, to UAH 2.215 trillion.

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UKRAINE’S PHARMACEUTICAL MANUFACTURERS DEMAND TO RESOLVE NUMBER OF ISSUES ON NATIONAL LIST OF MEDICINES

Ukrainian pharmaceutical manufacturers have noted the need to resolve a number of issues related to the filling and application of the national list of essential medicines. Marketing and Sales Director of PJSC Farmak Susana Khalilova noted at present market participants do not have clear understanding of whether there will be the expansion of nosologies, according to which international nonproprietary names (INN) are included in the list, as well as the expansion of the number of molecules on the nosologies already included in the list.
“Currently we have the opportunity to apply for molecules, but we do not understand how we can justify the introduction [of drugs] for new nosologies, for example such as infertility, diabetes insipidus,” she said at a press conference at Interfax-Ukraine. Khalilova also emphasized the need to return the Fast Track procedure and simplify the introduction of changes regarding INN included in the list.
Commenting on the problem of applying the updated list at the local level, in particular the norm on 100% compulsory provision with drugs from it, she noted the difficulty of “how the coverage of this 100% need can be showed.”
Head of InterChem-Pharma Trading House Oleksandr Chumak, in turn, expressed the opinion about the need to approve such an edition of the list that would allow the Ukrainian market to plan its production.

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PRIME MINISTER GROYSMAN GETS UAH 17 MLN INCOME IN 2017

Ukrainian Prime Minister Volodymyr Groysman has submitted the income tax declaration for electronic filing for 2017, which in total came to over UAH 17.1 million. The department of the information and public relations of the Secretariat of the Cabinet of Ministers, total income of Groysman for 2017 was UAH 17.102 million (UAH 15.802 million in 2016).
The following income was declared: salary on the post of the prime minister – over UAH 435,647, income from leasing property (bought before 2006) – UAH 5.15 million, income from selling immovable property (a land parcel) – UAH 8.798 million and income from placing funds on bank accounts – UAH 2.719 million.

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PRESIDENT POROSHENKO RECEIVES UAH 16,303,874 INCOME IN 2017 ACCORDING TO DECLARATION

Ukrainian President Petro Poroshenko’s income in 2017 has totaled UAH 16,303,874, of which 18% were returned to the state in the form of personal income tax levied on the wages and the deposits, and 1.5% in military tax. “The total amount of income received by Petro Poroshenko in 2017 is UAH 16,303,874, of them UAH 336,000 is salary, which the head of state annually remits to charity, and a total of UAH 15,795,874 in interest on deposits. These and other data can be found in the electronic declaration of Petro Poroshenko for 2017, which will appear in the public domain today,” according to the press release posted on the president’s website on Friday. The amount of funds on Poroshenko’s bank accounts have decreased over a year by $430,000.
According to the law, the president declared the expenses for the previous year – including the funds that were spent on vacation. This money was officially transferred in non-cash form from previously declared own accounts in compliance with the banking and tax legislation of Ukraine.
The report says that the amount of declared vacation expenses is half the figure that appeared in the media. “Not a penny was spent from the state budget,” the press service assured.
Last year, Poroshenko did not receive dividends from enterprises, whose ultimate beneficiary he is.

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