Business news from Ukraine

Business news from Ukraine

UKRAINIAN CITIZENS PREFERRED RECEIVING TREATMENT FOR ONCOLOGY AND CARDIAC DISEASES ABROAD IN 2019

Ukrainian citizens preferred receiving treatment for oncology and cardiac diseases abroad in 2019, just as a year earlier. Foreign specialists point at poor quality of medical documents which patients bring from the post-Soviet countries.
International medical tourism operators voiced such conclusions to Interfax-Ukraine after having analyzed the medical tourist flow to foreign clinics.
According to the Ukrainian Association of Medical Tourism (UAMT), around 160,000 patients left Ukraine for treatment in 2018. Germany, Israel and Turkey were the most popular destinations for medical tourism from Ukraine. During the same time, around 65,000 foreign patients came for treatment to Ukrainian clinics.
Director of the medical tourism agency DeutschMedic GmbH Anna Weegen (Essen, Germany) said that in 2019 almost a half of foreign patients of German clinics were diagnosed with cancer: breast cancer took the lead, esophagus, stomach and colorectal cancer ranked second, lung cancer ranked third. Around one third of foreign patients addressed German clinics for treatment of cardiac diseases and for replacement of arthroplasty.
“High-technology operations are in demand, including robot-assisted surgery and combined therapy for life-threatening diseases,” she said.
Weegen praised the visa-free regime which allows patients to receive medical aid in Germany promptly.
“That is what helped us in 2019 rapidly provide some patients with serious diseases with aid and organize transportation of their relatives,” she said.
Weegen also said that in general the cost of healthcare services in Germany for foreign patients did not change in 2019 for both check-ups and in-patient treatment as it is regulated in Germany in line with the DRG (Diagnosis Related Group) system.
At the same time, an increase in the cost of some kinds of treatment in Germany was caused by the active introduction of new expensive medicines, in particular drugs for targeted therapy for oncology diseases or materials for minimally invasive heart valve surgeries.
Weegen added that in 2019 German clinics and medical tourism operators still received poor quality medical documents from patients.
“We often receive odd handwritten medical reports and poor quality medical images,” she said.
In turn, expert for organization of treatment in Germany Dmitry Ladizhenski (Berlin) also said that the cost of treatment for foreign patients “have been remaining mainly at the same level for many years despite the fact that the price list based on the DRG is regularly updated.” The DRG pricing system significantly facilitates the healthcare budgeting and mutual payments between the government, insurance companies and hospitals.
Ladizhenski also said that the number of patients from Ukraine has increased, which is related, first of all, to the cancelation of visas between the EU and Ukraine.
“Up to 80% are oncology patients,” he said.
In turn, Director General of the foundation Proturmed Mariusz Arent (Gdansk, Poland) said that the number of Ukrainian patients in Polish clinics tripled, to around 10,000 people, in 2019. However, this became possible mainly due to an increase in the number of Ukrainian migrants in Poland.
Arent noted that, according to the Institute of Research and Development of Medical Tourism (Poland), the total number of medical tourists in Poland was around 182,000 people in 2018. He added that Ukrainian patients travel to Poland for treatment of oncology, orthopedic surgery, cardiac diseases and rehabilitation after injuries.
According to Arent, the cost of treatment in Poland for foreign patients did not change in 2019, although in general prices in Polish private clinics usually exceed Ukrainians’ budgets.
Board Member of the Lublin Medicine Cluster Management Marzena Strok-Sadło (Poland) reported that, in 2018 only, 15 providers of medical services (12 private clinics and three state hospitals in Lublin) received 5,787 foreign patients, the majority of whom arrived from the UK and Ukraine.
She added that foreign patients traveled to Lublin mainly for treatment of gynecology, oncology, orthopedic, ophthalmology diseases and for obstetric care. In addition, Polish stomatology, rehabilitation, aesthetic medicine and plastic surgery services are popular among foreign patients. Ukrainians also often visit SPA resorts in Poland. As to the price policy, the expert said that the cost of medical services in Poland rose by 5-6% in 2019.
In turn, Board Chairman of the Turkish Association of Medical Tourism Emin Çakmak (Turkey) said that in general Turkey receives around $10 billion from medical tourists from 165 countries. Around 1 million foreign medical tourists annually visit Turkey, around 45,000 of them were Ukrainians in 2019. The number of Ukrainian patients in Turkey annually grows by 10-15%. The majority of Ukrainian patients travel to Turkey for treatment of oncology diseases and for pediatric rehabilitation.
“Turkey is becoming the most preferred destination for Ukrainian medical tourists. Turkish clinics actively organize their work for this growing flow, for example many hospitals hire Ukrainian citizens who help Ukrainian patients to communicate with Turkish doctors,” he said.

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STATE-RUN TURBOATOM TO INCREASE NET PROFIT BY 8.3% IN 2019

The Cabinet of Ministers of Ukraine on December 27 plans to approve the updated financial plan of JSC Turboatom (Kharkiv) for 2019 with a net profit of UAH 827.68 million, which is 8.3% more than in 2018, according to the documents available to the Interfax-Ukraine agency. According to them, one of the goals of making corrections to the financial plan is to pay UAH 993.63 million to the state this year, including UAH 517.43 million as dividends for 2018.
Other indicators of the updated draft financial plan are not yet available to the agency.
Last year, the Cabinet of Ministers approved Turboatom’s financial plan for 2019 with a net profit of UAH 798.33 million and a revenue of UAH 2.737 billion.
In 2018, the company increased its net profit by 7.6%, to UAH 764.24 million, and its net income grew by 10%, to UAH 2.615 billion.
The shareholders of Turboatom at a meeting on April 17 decided to send 50% of net profit for payment of dividends for 2018, in particular UAH 382.1 million, including UAH 287.5 million to the state (as the owner of more than 75%). The Cabinet of Ministers then increased the norm of dividend payment to 90%. The director of the enterprise, Viktor Subotin, and Kharkiv Regional Council opposed the decision, however, the Ministry of Finance repeatedly insisted on the payment of increased dividends.

STATE AVIATION SERVICE OF UKRAINE PERMITS BRAVO AIRLINE TO FLY TO EGYPT, URGA TO AFRICA, JONIKA TO GREECE, ITALY, IRAQ, CYPRUS

The State Aviation Service of Ukraine has permitted Bravo airlines to service charter flights from five Ukrainian cities to Egypt. According to an order posted on the authority’s website, Bravo Airlines LLC can fly from Kyiv to Hurghada, from Vinnytsia, Kyiv, Kryvy Rih, Rivne and Kherson to Sharm el-Sheikh.
In addition, the regulator granted PJSC International Joint-Stock Aviation Company Urga the right to operate flights to Africa – Burkina Faso (Ouagadougou), Chad (N’Djamena), Cameroon (Douala, Yaounde), Gabon (Libreville, Port-Gentil), Mali (Bamako, Gao, Snvaré, Tesalit, Tombouctou), Mauritania (Nouakchott), Niger (Niamey), Cote d’Ivoire (Abidjan, Yamoussoukro) and Senegal (Jof and Diass).
In addition, the State Aviation Service granted Jonica Airlines LLC the right to operate flights to Greece (Athens), Italy (Verona, Milan, Venice, Rome, Turin, Bologna, Parma), Moldova (Chisinau), Austria (Vienna), Iraq (Erbil), Republic of the Congo (Weso) and Cyprus (Larnaca).

PRESIDENT OF UKRAINE SIGNS ELECTION CODE

President of Ukraine Volodymyr Zelensky has signed an Election Code. “On December 27, 2019, [the document] returned with the president’s s signature,” reads a report on the parliament’s website.
Prior to this, Verkhovna Rada Chairman Dmytro Razumkov signed the document and submitted it to the president.
On December 19, Rada accepted all 17 proposals of Zelensky to the Election Code. A total of 330 MPs voted for respective decree No. 0978 in the second reading at its meeting on Thursday.

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GAS TRANSMISSION SYSTEM OF UKRAINE STARTS TRANSPORTING RUSSIAN GAS UNDER NEW CONTRACT WITH GAZPROM

Gas Transmission System Operator of Ukraine (GTSOU), which replaced Ukrtransgaz as the operator of the Ukrainian gas transmission system on January 1, 2020, has reported continuation of Russian gas transit under the new agreement reached between Russia’s Gazprom and NJSC Naftogaz Ukrainy in furtherance of the previous ten-year contract.
“We have transported the first cubic meters of gas to the EU under the new gas contract consistent with European regulations. The gas transmission system is operating normally,” the operator said in a statement on Facebook on Wednesday.

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UKRAINIAN BANKS START PUBLISHING RESULTS OF STRESS TESTS

Ukrainian banks have started posting the results of their stress tests conducted by the National Bank of Ukraine (NBU) on their websites. So, the state-owned PrivatBank and Ukrgasbank, as well as UkrSibbank, OTP Bank, Credit Agricole Bank, ProCredit Bank and Kredobank did not need additional capital according to the results of stress tests.
The estimated capital shortage of state-owned Oschadbank under the baseline scenario was UAH 13.49 billion, under the adverse macroeconomic scenario – UAH 28.25 billion, and by September 1, thanks to the measures taken, the bank had reduced it to UAH 6.19 billion and to UAH 21.14 billion, respectively.
The need in capital of state-owned Ukreximbank under the baseline amounted to UAH 9.776 billion, under the adverse macroeconomic scenario – UAH 17.53 billion; by September 1, the bank had decreased the figures to UAH 3.671 billion and to UAH 12.188 billion, respectively.
The estimated capital shortage of the subsidiary of the Russian Sberbank under the baseline scenario was UAH 1.44 billion, under the adverse scenario – UAH 4.759 billion. By September 1, as a result of the measures taken, the financial institution had no need for additional capital.