Business news from Ukraine

Business news from Ukraine

INDEPENDENT MEMBERS OF STATE-RUN NAFTOGAZ SUPERVISORY BOARD RESIGN

Independent members of the supervisory board of NJSC Naftogaz Ukrainy resigned on Tuesday, a government source has told Interfax-Ukraine.
As reported, Naftogaz CEO Yuriy Vitrenko and independent members of the board were not able to to develop a constructive dialog. Prime Minister of Ukraine Denys Shmyhal on Monday evening met with independent members of the Naftogaz supervisory board, and on Tuesday morning, the members of the supervisory board talked with the company’s management board.
On September 7, the prime minister announced in his Telegram channel that the competition for the selection of four members of the supervisory board of Naftogaz Ukrainy will be announced within a week.
According to him, the competition should end in November this year so that the new supervisory board has enough time to determine the requirements for a candidate for the post of chairman of the Naftogaz board and hold a competition to select him no later than May 1 of next year.
The Cabinet of Ministers of Ukraine, by order No. 494-r dated May 19, 2021, elected three independent members of the Supervisory Board for a new term of up to one year: Clare Spottiswoode (Great Britain), Bruno Lescoeur (France) and Ludo Van der Heyden (Belgium), as well as two representatives of the state: Nataliya Boyko and Yulia Kovaliv.
In addition, the powers of a member of the Supervisory Board representing the state, Robert Bensch, were prematurely terminated, and Yulia Svyrydenko, Deputy Head of the Office of the President of Ukraine, replaced him.

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7 INSURANCE COMPANIES LEAVE UKRAINIAN MARKET IN AUG

Some 13 participants of the nonbank market were removed in August of this year from the registers: two financial companies, seven insurers (one insurance company left the market voluntarily, six – forcibly), one pawnshop, two credit unions and one leasing company, according to the website of the regulator.
Some 153 non-life insurers (there were 160) and 17 life insurers, 286 pawnshops (there were 287), 301 credit unions (there were 303), 138 leasing companies (there were 137), 977 financial companies (was 973) and 61 insurance brokers are operating on the nonbank market now.
The NBU said that in general, in August, the number of participants in the nonbank financial market decreased from 1,938 (as of July 31) to 1,933 (as of August 31). The number of banks decreased from 73 to 72, since in August OJSC Settlement Center ceased its banking activities.
The regulator also said that in August, the NBU registered eight new players in the nonbank financial market: six financial companies and two leasing companies.
Some 37 payment systems created by residents and 14 international payment systems created by nonresidents operate on the payment market. In August, the registration of the Khazri international payment system, created by nonresidents, was canceled.
The National Bank received 604 requests from market participants for registration and licensing actions in August. The largest number of inquiries related to financial companies, pawnshops and lessors – 490. The number of inquiries from credit institutions (banks and credit unions) was 32, insurers – 82.
During the reporting period, the National Bank continued to apply enforcement measures to participants in the nonbank financial market. In particular, the regulator, on its own initiative, canceled all licenses for 45 institutions: 28 financial companies, one insurance company, 13 pawnshops and three leasing companies. Also in August, the NBU temporarily suspended the licenses of six insurance companies for violations committed by them.

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NO GROUNDS FOR INTRODUCING ‘RED’ LEVEL OF EPIDEMIC DANGER IN UKRAINE

There are no grounds for the introduction of a “red” level of epidemiological danger in any region of Ukraine, said Minister of Health of Ukraine Viktor Liashko.
“Now there are no grounds for the introduction of a ‘red’ level of epidemiological danger in any region of Ukraine. There are only indicators to transfer the territory of all Ukraine to the ‘yellow’ level,” he said on the air of the Ukraina 24 TV channel on Tuesday.
He stressed that there are no restrictions on the use of public transport in the “yellow” level of epidemic danger.
Regarding educational institutions, Liashko noted that “offline schools will work if 80% of teachers are vaccinated against COVID-19.”
“In case such a norm is not observed, schools will go online,” he said.
Liashko clarified that for the “yellow” level, those vaccinated with the first dose will be taken into account, for the “red” level, teachers will need to be vaccinated with two doses.

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METINVEST INCREASES EBITDA IN JUNE TO $931 MLN

Revenue of Metinvest B.V. (Netherlands), the parent company of the Metinvest mining and metallurgical group, in June this year grew by 9.8%, or $153 million, compared to the previous month, to $1.722 billion from $1.569 billion.
According to the published preliminary unaudited consolidated monthly results of the company’s financial statements last week, total EBITDA in June was $931 million, which is $179 million, or 23.8%, higher than in May ($752 million). At the same time, EBITDA from participation in the joint venture amounted to $126 million (in May it was $147 million).
According to the report, the adjusted EBITDA of the metallurgical division of the group in June 2021 amounted to $401 million (in May it was $367 million), including $28 million from participation in the joint venture ($46 million); EBITDA of the mining division reached $650 million ($460 million), including $97 million ($101 million) from the joint venture. The management company spent $30 million ($5 million).
Total revenue in June consisted of $1.303 billion of the Metallurgical Division ($1.244 billion in May) and $713 million in the Mining Division ($583 million). Intragroup sales totaled $294 million ($258 million).
The total debt of Metinvest in June decreased by $466 million compared to May, to $2.459 billion from $2.925 billion. At the same time, the volume of funds increased by $204 million, to $1.443 billion from $1.239 billion.
Funds used in investment activities amounted to $37 million, in financial activities – $464 million.
Metinvest received $73 million from the resale of square billets (produced by DMK) in June in the amount of 102,000 tonnes. In addition, $225 million was received from the resale of 215,000 tonnes of flat products, $59 million from the resale of 68,000 tonnes of long products, and $53 million from the resale of 80,000 tonnes of pig iron.
In general, the company in June sold 440,000 tonnes of semi-finished products for $316 million, 814,000 tonnes of finished metal products for $849 million, and 162,000 tonnes of coke for $59 million.
In June, the Group sold 1.731 million tonnes of iron ore for $395 million, and 206,000 tonnes of coal concentrate for $29 million.

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58% OF UKRAINIANS SAY COUNTRY HEADED IN WRONG DIRECTION

Most Ukrainians believe that the country is headed in the wrong direction, the Rating sociological group said in a statement on Tuesday.
“A third of the respondents, or 34%, said that the country is headed in the right direction, while 58% said it’s the wrong direction, and 8% are undecided,” the group said in its report.
The majority of respondents who believe that Ukraine is on the right track are young and live in western and central parts of the country.
The group polled 2,500 respondents aged 18 and up using computer assisted telephone interviews (CATI) on September 2-4, 2021.

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TURKISH AIRLINES TO START FLYING TO MYKOLAIV

Turkish Airlines will start flying from Mykolaiv to Istanbul from September 23, 2021, Director of the Mykolaiv international airport Fedir Barna said on his Facebook page.
“After lengthy negotiations with one of the world’s largest airlines, Turkish Airlines, I am pleased to announce the opening of a long-awaited regular flight to Istanbul from Mykolaiv airport,” he wrote.
Barna said that flights to Istanbul will be operated five times a week, and tickets are already available on the airline’s official website.
At the same time, there is no destination the Mykolaiv airport on the Turkish Airlines website.

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