Business news from Ukraine

UKRAINE’S INSURERS RAISE COLLECTION OF NET PREMIUMS BY 26%

The insurance companies of Ukraine in January-March 2018 collected net premiums in the amount of UAH 8.119 billion, which is 26.7% more than for the same period a year earlier, according to the website of the National Commission for State Regulation of Financial Services Markets. According to the regulator, the volume of gross insurance premiums collected by insurers for the period amounted to UAH 11.619 billion (6.6% more).
The commission notes that an increase in gross insurance premiums occurred for almost all types of insurance: auto insurance (KASKO, OSAGO, Green Card) by UAH 461.2 million, or 20.7%, insurance against fire risks and risks of natural phenomena by UAH 1.046 billion, or 41%, insurance of liability to third parties by UAH 365 million, or 72.2%, credit insurance by UAH 224.8 million, or 3 times, life insurance by UAH 193.8 million, or 30.6%, insurance against accidents by UAH 163.6 million, or 65.9%, medical insurance by UAH 143.8 million, or 18.9%, and medical insurance by UAH 69.9 million, or 40.3%.
The share of net insurance premiums in gross insurance premiums for the first quarter of 2018 rose by 11.1 percentage points from the first quarter of 2017 and amounted to 69.9%.
In January-March of the current year, insurers paid UAH 3.099 billion of net insurance claim fees, which is 37.2% more than in the same period a year earlier. The level of net payments grew from 35.3% to 38.2%.

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UKRAINIAN CROP PROTECTION MARKET ESTIMATES AT $2 BILLION, COUNTERFEIT SHARE IS 20-30%

The share of counterfeit crop protection agents on the Ukrainian market is from 20% to 30%, Deputy Head of the biosecurity department and Head of the crop protection department of the State Service for Food Safety and Consumers’ Protection of Ukraine Viktor Stefkivsky has said. The expert said that the figure reaches 50% in retail. Director of the biosecurity and seed supervision department of the authority Andriy Chelombitko also pointed out growth in the volumes of low-quality and counterfeit crop protection agents, which is provoked by the current moratorium on inspections of legal entities.
“During the period when the moratorium is in effect, a lot of unfair “traders” took advantage of the situation and began mass distribution of counterfeit pesticides and agrochemicals for agricultural use, including through the retail network. This not only affects Ukraine’s reputation as a reliable partner in the turnover of high-quality vegetable products, but also causes irreparable harm to the environment and human health,” Chelombitko said.
As the experts said, the demand of Ukrainian agricultural producers in agrochemicals is about 100,000 tonnes per year and it is equivalent to the amount of about $2 billion, which is “extremely attractive for counterfeits.”

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EUROPEAN PARLIAMENT PLANS TO VOTE ON EUR 1 BLN FINANCIAL AID TO UKRAINE ON JUNE 13

The European Parliament will vote on the third macro-financial assistance program for Ukraine in the framework of the plenary session on June 13. The program envisages the allocation of EUR 1 billion. According to the information posted on the website of the European Parliament, a voting on a package of further macro-financial assistance for Ukraine is scheduled for Tuesday, June 12, and Wednesday, June 13. MEP Jaroslaw Walesa is to report on it.
As reported, the EU Council approved the allocation of financial assistance to Ukraine in the amount of EUR1 billion, which is expected to be used by the Ukrainian authorities within the next two years. The purpose of allocating funds is “economic stabilization and a program for structural reforms.”
This is the third package of financial assistance to the Ukrainian authorities from the EU since 2014. In 2014, the EU sent aid to Ukraine in the amount of EUR 1.6 billion, and in 2015 – EUR 1.8 billion.

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BOSCH EXPECTS 15% GROWTH IN UKRAINE

Bosch in Ukraine expects at least 15% growth in sales in 2018 compared with 2017, when the figure stood at EUR 74 million, growing by 5% on 2016, Director General of Robert Bosch Ltd. Vitaliy Bulda has said. “2017 year was the most successful in our history, and taking into account GDP growth in the first quarter by 3.1% and good prospects, we expect the large development of business in 2018,” he said at a press conference.
Bulda said that the company expects that growth would be seen almost in all business directions of the company. Commenting on the further prospects of the company in Ukraine in next five or ten years, Bulda expressed confidence that the company could grow by 15-20% every year.
In 2017, almost all business directions showed growth in Ukraine, and Mobility Solutions had the largest pace of growth, in particular, car parts and equipment sales grew by 18% in euros.
Bosch Car Service network remains the largest independent chain of vehicle servicing stations in Ukraine, and today it has 104 stations: 88 Bosch Car Service stations and 16 Bosch Diesel Service stations.

SIKORSKY KYIV INTERNATIONAL AIRPORT SERVICES 223,200 PASSENGERS IN MAY WHICH IS 2.5-FOLD RISE IN PASSENGER FLOW

The Sikorsky Kyiv international airport (Zhuliany) serviced 223,200 passengers in May 2018, which is 2.46 times more than in May 2017, the airport has reported. The number of passengers serviced on international flights totaled 223,200 and on domestic flights – 7,600.
The number of flights in May 2018 totaled 2,920 (arrivals and departures), which is 138% more than a year ago, including 2,494 international flights and 426 domestic flights. The most popular international destinations in May 2018 were Antalya (Turkey), Minsk (Belarus), Ankara (Turkey), Warsaw (Poland), Dubai (the UAE), Rome (Italy) and Budapest (Hungary), and internal – Odesa, Zaporizhia and Lviv.
In January-May 2018, the airport serviced 856,800 passengers, which is 68.9% more than in January-May 2017. The number of passengers serviced on international flights totaled 824,000 and on domestic flights – 32,800.
The number of flights in January-May 2018 totaled 10,522 (arrivals and departures), which is 41.2% more than a year ago, including 8,759 international flights and 1,763 domestic flights.
During the UEFA Champions League finals which Kyiv hosted from May 25 through May 27, the airport serviced 421 flights of business aviation, 148 regular flights and 56 charter flights. A total of 29,000 passengers were serviced in three days.
On May 26, 2018, the airport serviced almost 11,000 passengers first in the whole history of the airport.
The Sikorsky Kyiv international airport (Zhuliany) is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft.

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SPANISH ACCIONA ENERGIA GLOBAL TO INVEST EUR 54.7 MLN IN JOINT PROJECT WITH UDP TO BUILD SOLAR POWER PLANT IN KYIV REGION

UDP (Kyiv) has arranged a joint project to expand Dymerka solar power plant (Kyiv region) from 6 MW to 57.6 MW with Spain’s Acciona Energia Global, the press service of UDP has reported. “The first project of the Spanish energy giant on the Ukrainian market will be the development of the second, third and fourth stages of the Dymerka solar power plant in Kyiv region with a total peak capacity of 57.6 MW. The first phase of this plant was commissioned by UDP Renewables in the summer of 2017. The total volume of foreign direct investment only in this project is EUR 54.7 million,” UDP said.
The launch of the Dymerka solar power plant at a full capacity is scheduled for the first quarter of 2019.
The UDP said that they arranged with Acciona Energia Global to work together on a broad portfolio of investment projects in both solar and wind energy in the Ukrainian market.
As reported, the first stage of the solar power plant in the village of Velyka Dymerka (Kyiv region) with a capacity of 6 MW was registered for Dymerka solar power plant-1 LLC. The company belongs to the majority shareholder of the UDP development company Vasyl Khmelnytsky.

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