Business news from Ukraine

KYIV. June 9 (Interfax-Ukraine) – Ukraine increased exports of fuel wood under 4401 foreign trade code (fuel wood, wood in chips or sawdust) in kind by 23.4% in January-May 2016 year-over-year, to 945,173 tonnes (766,206 tonnes in January-May 2015).

According to customs statistics made public by the State Fiscal Service of Ukraine, in monetary terms exports of these products grew by 28%, to $42.528 million ($33.221 million).

Exports were mainly made to Romania (33.79% of total supplies in money terms), Turkey (25.66%) and Poland (8.98%).

Ukraine also imported 127,000 tonnes of these products worth $23,000 in January-May 2016, while a year ago the country imported 108,500 tonnes worth $41,300.

Fuel wood was mainly imported from Germany (66.67% of total supplies), Lithuania (12.5%) and Poland (12.5%).

Ukraine decreased exports of wood in the rough under 4403 foreign trade code in kind by 22.7% in January-May 2016 year-over-year, to 895,909 tonnes (1.159 million tonnes in January-May 2015).

In monetary terms exports of these products fell by 34.6%, to $53.808 million ($82.317 million). Exports were mainly made to Romania (41.14% of total supplies in money terms), China (34.4%) and Turkey (15.17%).

Ukraine also imported 3,767 tonnes of these products worth $272,000 in January-May 2016, while a year ago the country imported 3,975 tonnes worth $296,900. Wood in the rough was mainly imported from Russia (99.63% of total supplies).

Ukraine increased exports of wood sawn or chipped lengthwise of a thickness exceeding 6 mm under 4407 foreign trade code in kind by 16.9% in January-May 2016 year-over-year, to 819,203 tonnes (700,722 tonnes in January-May 2015).

In monetary terms exports of these products grew by 16%, to $166.527 million ($143.588 million). Exports were mainly made to Turkey (19.59% of total supplies in money terms), Poland (11.24%) and Hungary (10.75%).

Ukraine also imported 1,438 tonnes of these products worth $771,000 in January-May 2016, while a year ago the country imported 588,800 tonnes worth $411,400. Wood sawn or chipped lengthwise was mainly imported from Romania (51.17% of total supplies), Poland (14.9%) and Russia (6.87%).

KYIV. June 9 (Interfax-Ukraine) – Oschadbank (Kyiv) as of June 1, 2016 sold 135,000 insurance policies and this was 30 times more than a year ago – 4,500 policies, the bank has said in a press release.

“This year it was decided to increase operations on the bank insurance market. After studying the needs of people we offered two new products in April – Protect Your House and Obereh,” Director of the retail business department Valeria Malakhova said.

The leader in the insurance segment of the bank is compulsory insurance of civil liability of motor vehicle owners (OSAGO) – over 27,000 policies were sold in January through May 2016. Over 85,000 policies were sold for the new product Protect Your House (insurance of leased houses). These policies are signed for the period from one month to one year. The bank also sells the Doctor on the Way insurance product.

The bank said that OSAGO agreements are signed on behalf of PRO100-Strakhuvannia, AXA Insurance, Krayina and Brokbusiness. The policies for voluntary insurance of civil liability of motor vehicle owners and medical insurance (Doctor on the Way) policies are signed on behalf of AXA Insurance. The bank cooperates with MetLife under the Obereh accident insurance program and with Strahovoy Dom under the Protect Your House program.

The franchise for the policies is nil, and the fee for buying the policy is not collected. The bank’s network includes 4,500 departments.

Oschadbank was founded in 1991. Its sole owner is the state.

The bank ranked second among 109 operating banks in the country on April 1, 2015 by total assets (UAH 180.982 billion), according to the National Bank of Ukraine.

KHARKIV. June 8 (Interfax-Ukraine) – A new complex to handle solid domestic waste was launched in Kharkiv region’s Bohodukhivsky district, Kharkiv Regional State Administration’s press service reported.

“The solid waste handling complex in the town of Bohodukhiv has become Ukraine’s first facility that utilizes this technology,” the press service said.

Waste sorting and recycling equipment is used by the complex. All organic waste is composted with the use of special bacteria. After some time, the waste could be used as soil fertilizers. The complex uses an independent heating system, which works using waste.

The complex will be able to process 65,000 – 70,000 cubic meters of solid waste per year.

“It will be the prototype of 11 complexes that will be built in Kharkiv region in keeping with our environmental strategy. They, according to specialists’ estimates, will fully provide the region with modern methods of collecting, disposing and recycling solid waste,” the press service quoted Kharkiv Governor Ihor Rainin as saying.

These modern complexes that will be built will be transferred on concession terms to companies that will be ready to develop separate waste collection and buy needed equipment.

KYIV. June 8 (Interfax-Ukraine) – The Energy Efficiency Fund aimed to reduce natural gas consumption and lower households spending on housing and utilities will start work in Ukraine in January 2017, Vice Prime Minister and Minister for Regional Development, Construction, Housing and Utilities Hennadiy Zubko has said.

“The launch of the Fund is a national strategy to protect, support our citizens as part of energy efficiency policy, [it’s] a step towards the country’s energy independence. Our plans are to launch the Fund as early as in January 2017. These are ambitious plans, as legislation should be taken by that time with subsequent budget allocations. A government resolution on the creation of the Fund, a draft law on the Energy Efficiency Fund, and other legal acts are expected to be adopted,” he said at a National Reforms meeting in Kyiv on Tuesday.

The launch of the Fund requires that the draft law on the Energy Efficiency Fund should be drawn up and sent to the Verkhovna Rada by the end of this summer. Lawmakers are expected to vote on the bill by the end of October, and in the coming month an international agreement is due to be signed.

What is more, parliament is expected to pass a bill on housing and utilities services by the end of August, and bills on energy efficient buildings and on commercial accounting should be passed by the end of October.

By the end of the summer, the Cabinet should elaborate procedures to fully or partly monetize housing and utilities services.

Zubko says that the recent meeting of the National Reforms Council considered a model of the future Fund, which is being created on the basis of partnership of the state, international financial organizations and donors. “We’ve developed an efficient model of the Fund jointly with partners from the European Union and the German government. Its innovation has been proven in neighboring countries – Poland, Lithuania, and the Czech Republic,” he said.

He said he was sure that the Fund would be efficient, transparent and free from corruption.

“Its mission is to safeguard citizens, improve their housing conditions, reduce gas consumption and reduce households’ utilities bills, make a step towards Ukraine’s energy efficiency. The Fund will draw investment in financing energy efficient projects. These will be low-priced long-term loans, donor and state financing, citizens’ savings on housing subsidies. What is more, the Fund will propose available standard energy efficiency projects for multi-storey residential buildings, recommendations for individual houses,” he said.

An ad hoc group, which has analyzed the Fund’s possible activity, concluded that by 2021, its activity will bring UAH 10 billion in tax revenue to the budget, will annually save about UAH 5 billion in budget funds spent on subsidies, UAH 1.5 billion (about $30 million) on the purchase of import gas.

KYIV. June 8 (Interfax-Ukraine) – Ukraine’s State Property Fund has reviewed privatization plans for 2016, having slated the sale of almost 100% of PJSC Sumykhimprom chemical plant’s shares from October to November 2016.

PJSC Centrenergo remained on privatization plans in November, according to the privatization scheduled published by the Vidomosti Pryvatyzatsii privatization bulleting.

Tenders to sell power distribution companies, as was originally planned, are scheduled for September-October 2016.