Business news from Ukraine

Business news from Ukraine

TODAY U.S. PRESIDENT TO HOLD PHONE CONVERSATION WITH UKRAINIAN PRESIDENT

U.S. President Joseph Biden will hold his first telephone conversation with Ukrainian President Volodymyr Zelensky on Friday evening, April 2, an informed source from the President’s Office of Ukraine told Interfax-Ukraine.
“We confirm the fact of the call, yes,” the source said.
Earlier, the upcoming conversation between the presidents was reported by the Politico ezine, citing two people who were aware of the planned call.
“Ukrainian officials had been pushing for a call between Zelensky and Biden for weeks, including in a recent call between national security adviser Jake Sullivan and top Zelensky aid Andriy Yermak, according to one person familiar with their conversation,” according to the Politico’s statement on Friday.
It is noted that the conversation follows at least three high-level calls between the United States and Ukraine this week between Secretary of State Antony Blinken, Joint Chiefs Chairman General Mark Milley, Defense Secretary Lloyd Austin and their Ukrainian counterparts.

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STATE AIR TRAFFIC SERVICE ENTERPRISE ENDS 2020 WITH NET LOSS OF UAH 1.5 BLN

The State Air Traffic Service Enterprise (UkSATSE) ended 2020 with net loss of UAH 1.489 billion, which is 32.5% more than in 2019 (UAH 1.123 billion).
According to the company’s financial statements published on its website, in 2020 the gross loss amounted to UAH 664.4 million versus UAH 156.4 million in gross profit in 2019.
Net income from the sale of services over the past year decreased 56.5%, to UAH 1.5 billion.
UkSATSE was founded in 1992. It provides a full range of air navigation services: air traffic services, air traffic flow management, airspace organization and management, radio communications, navigation and surveillance, provision of meteorological and aeronautical information for all types of flights.

MTIBU MEMBER INSURERS RAISE PREMIUMS – BY 7.4% IN 2021

Insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-February 2021 signed 1.159 million contracts of compulsory insurance of land vehicle owners’ civil liability (OSAGO), which is 2% more than for the same period a year earlier.
According to the data published on the MTIBU’s website, out of the total volume of contracts, 528,400 were concluded in an electronic format, which is 56.8% more than in the two months of 2020.
The members of the bureau increased the collection of insurance premiums under OSAGO policies by 7.4% compared to the same period last year, to UAH 899.7 million, including under electronic contracts – in the amount of UAH 450.9 million, which is 60.4% more than a year earlier.
The total amount of accrued insurance claims under internal insurance contracts in January-February 2021 increased by 18.8%, to UAH 538.4 million, including UAH 99.9 million paid using European road accident record forms, which is 18% more than a year earlier.
The bureau also recorded an increase in the number of settled claims for insurance compensation by 4.8%, to 26,400, including with the use of European road accident record forms – 9,529 (more by 6.2%).
The MTIBU is the only association of insurers that provides compulsory insurance of land vehicle owners’ civil liability for damage caused to third parties. The bureau members are 48 insurance companies.

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INSURANCE COMPANY PERSHA REDUCES GROSS PREMIUM COLLECTION IN 2020

PrJSC Insurance Company Persha (Kyiv) in 2020 collected UAH 451.6 million of gross premiums, which is 12.11% less than a year earlier.
According to Expert-Rating, confirming the financial stability rating of the company at the level of “uaAA” on the national scale, when updating the rating, the agency took into account the analysis of the insurer’s activities for 2020.
At the same time, it is noted that part of insurance premiums belonging to reinsurers decreased by 9.27%, UAH 112.410 million, and their share in the structure of the company’s gross premiums increased by 0.78 percentage points, to 24.89%.
Last year, Persha carried out UAH 215.430 million of insurance payments and compensations, which is 1.98% less than in 2019. At the same time, the level of payments increased by 4.93 percentage points, to 47.7%.
The company’s net worth in 2020 increased by 9.16%, to UAH 136.580 million, and its gross liabilities increased by 7.29%, to UAH 623.970 million.
Cash and cash equivalents on the accounts of Persha as of December 31, 2020 increased by 7.58%, to UAH 318.950 million.
Based on the results of activities in 2020, the company received a net profit of UAH 7.32 million, which is 48.73% less than in 2019. At the same time, the company received loss from operating activities in the amount of UAH 7.17 million.

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CURRENT PRESIDENT ZELENSKY HAS HIGHEST TRUST RATING AMONG UKRAINIAN POLITICIANS – POLL

Ukrainian President Volodymyr Zelensky has the highest rating of trust by Ukrainians among all politicians, as 46% of respondents have said they trust him, the Sociological Group Rating found based on a public opinion poll of 2,500 respondents it conducted using the Computer Assisted Telephone Interviewing (CATI) method on March 26-28, 2021. Another 51% of the respondents said they mistrust Zelensky, the poll found.
Kyiv Mayor Vitali Klitschko is trusted by 33% and mistrusted by 54% of the respondents, former Prime Minister Volodymyr Groysman trusted by 32% and mistrusted by 58%, and Verkhovna Rada Chairman Dmytro Razumkov trusted by 31% and mistrusted by 36%, with 29% of the respondents not knowing him.
Batkivschyna party leader Yulia Tymoshenko is trusted by 29% and mistrusted by 69% of the respondents, former President and leader of the European Solidarity party Petro Poroshenko trusted by 23% and mistrusted by 75%, and Opposition Platform – For Life leader Yuriy Boiko trusted by 23% and mistrusted by 58%, with 15% of the respondents not knowing him.
The poll also found that 22% of the respondents trust and 74% mistrust former Prime Minister Arseniy Yatsenyuk, 22% trust and 68% mistrust Interior Minister Arsen Avakov, 16% trust and 51% mistrust Prime Minister Denys Shmyhal (27% do not know him), and 15% trust and 74% mistrust Opposition Platform – For Life leader Viktor Medvedchuk (with 9% not knowing him).

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BANKERS EXPECT SEASONAL STRENGTHENING OF UKRAINIAN CURRENCY IN 2021

The hryvnia exchange rate, after weakening at the end of March, will strengthen in the second quarter due to increased sales of foreign currency by farmers before the start of field work, the majority of bankers polled by Interfax-Ukraine are inclined to this opinion.
“In the near future, the hryvnia will receive support from the sale of foreign currency by farmers for the spring field work, which is likely to lead to a slight strengthening of the national currency,” head of the analytical department of Alfa-Bank Oleksiy Blinov said.
In his opinion, the most probable range of exchange rate fluctuations in the second quarter is the range of UAH 27-28/$1, with a moderate vector of movement towards temporary strengthening.
Blinov added that, despite the uncertainty about the prospects for quarantine, the factor of their strengthening is unlikely to become the determining driver of the Ukrainian foreign exchange market in the second quarter.
His opinion is shared by the chief manager for macroeconomic analysis of Raiffeisen Bank Aval, Serhiy Kolodiy, who expects the seasonal strengthening of the hryvnia in the second quarter to UAH 27.0-27.5/$1 and predicts that, if possible, the NBU will try to replenish its reserves by buying out excess foreign currency supply.
“An additional positive background for the hryvnia can be created by active negotiations with the IMF regarding the first review of the current SBA program and the acceleration of the still rather slow rate of vaccination of the population,” the analyst noted.
A similar opinion was expressed by the director of the risk management department of Accordbank, Mykola Voitkiv, who predicts the revaluation of the hryvnia exchange rate with the prospect of strengthening to UAH 27.00/$1.
“Taking into account the continued high prices for the main commodity items of Ukrainian exports, the beginning of the sowing campaign (a seasonal factor in the increase in foreign currency sales on the part of agribusiness), the presence of interest in investing in government bonds from non-residents, I do not expect the rate to rise above UAH 28/$1,” he said.
In addition, the tightening of quarantine measures and low rates of vaccination in Ukraine limit the recovery of demand for currency both from the population (tourist trips) and business, especially in the field of trade, the banker noted.

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