Business news from Ukraine

75% OF UKRAINIANS BELIEVE SITUATION IS NOT DEVELOPING IN RIGHT DIRECTION IN UKRAINE

Most Ukrainians are convinced that the country is not moving in the right direction, according to a poll done by the sociological group Rating. The problems that concern the respondents the most are the war in Donbas and corruption.
According to a poll published in Kyiv on Thursday, 75% of the respondents believe the situation in Ukraine is not developing in the right direction, 13% have the opposite opinion, and 12% are in doubt. In the perception of the problems existing in the country, respondents retain the opinion that the war in the east of Ukraine and corruption are the most important national problems, social problems also prevail: low salaries and pensions, as well as high tariffs for housing and communal services.
The poll was conducted by the sociological group Rating in the period between June 22, 2018 and July 5, 2018. It surveys 3,200 respondents aged 18 or older.

EBRD TO PROVIDE EUR 10 MLN LOAN TO KYIVSKY CARDBOARD MILL

The European Bank for Reconstruction and Development (EBRD) will provide a loan of EUR10 million to Kyivsky cardboard and paper mill (KCPM), a leading company in the sector and based outside Ukraine’s capital. This will be a seven-year loan to boost energy efficiency and reduce CO2 emissions, the EBRD said in a statement on July 13. The purchase of a shoe press for cardboard drying will help KCPM reduce the use of steam, increase production volumes and improve the quality of coated cardboard. The replacement of pumps will halve the electricity needs of this equipment. Combined annual savings are expected to reach up to EUR2 million.
New converting and packing lines for the production of tissues will be procured as part of the project and will allow the company to widen its range of products for use in office buildings, hotels, schools and airports. It will also help KCPM increase its domestic and export sales, including those to the EU.
KCPM will upgrade its waste-paper processing equipment, which will allow the firm to improve the quality – and reduce the cost of cardboard production. These improvements will make it possible to reprocess waste paper up to four times. This will be the first production cycle in the country to implement the EU principles of using fewer resources and increasing energy efficiency.
The investments are expected to reduce the company’s annual CO2e emissions by up to 11,000 tonnes. Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It employs almost 2,200 people. It sells produce to almost 700 companies in Ukraine, some CIS member states and the rest of the world. In 2017, the mill saw a 14.8% rise in production from 2016, to UAH 4.85 billion. The mill is owned by Pulp Mill Holding GmbH (Austria), its ultimate beneficiary is businessman Volodymyr Krupchak.
The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of almost EUR 12.1 billion across some 400 projects in Ukraine.

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NBU APPROVES VS BANK AND TASCOMBANK MERGER

The National Bank of Ukraine (NBU) has approved VS Bank (Lviv) merger with TAScombank (Kyiv) under a simplified procedure, VS Bank reported on its website.
“On July 11, 2018, VS Bank received the NBU’s permission for reorganization via the merger of VS Bank with TAScombank under the simplified procedure,” reads the report.
The merger will be conducted in line with the reorganization plan approved at the general meeting of shareholders of each bank and a merger agreement. TAScombank will become the legal successor of VS Bank’s rights and obligations.
TAS Group was founded in 1998. It has assets in the financial and industrial sectors, agriculture, real estate, pharmaceuticals, and venture projects. The financial sector of the group includes TAScombank, Universal Bank, VS Bank, two insurance companies and several other organizations. The founder and the main shareholder of the group is Sergiy Tigipko.
According to the NBU, as of January 1, 2018 the major owner of TAScombank was Sergiy Tigipko, who owned 99.86851% of securities.
Sberbank sold VS Bank as part of the implementation of its strategy to leave the Ukrainian banking market.

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