The retail pharmaceutical market of Ukraine in March-June 2022 fell by 30-40% in monetary terms and by 20-30% in kind compared to the same period in 2021, hospital purchases dropped by 70-80%.
Such assessments of the development of the Ukrainian pharmaceutical market in the first half of 2022 were announced to Interfax-Ukraine by the Indian Pharmaceutical Manufacturers Association (IPMA).
“The pharmaceutical market of Ukraine in the first half of 2022, except for January and February, plummeted by 30-40%. The volume of sales of over-the-counter and prescription drugs fell by 30-40% in monetary terms and in packages by 20-30%, the volume of hospital supplies of medicines dropped by 70-80%,” IPMA said.
At the same time, the association said that “the distribution channel was disrupted, and distributors and pharmacy chains had to compensate for losses due to the bombardment of their warehouses and their pharmacies.”
According to IPMA participants, sales in the first two months since the start of the war in money and packages fell by 70%. In the following months, the fall was slightly less, but the average level of decline for six months is about 40%.
“This is due to several factors, firstly, a sharp drop in demand, the outflow of the population, hostilities in a large part of Ukraine and, secondly, problems in the supply of products. In the first months, it was problematic to ship products even from a local warehouse, since the territory of Kyiv was under shelling, almost all workers were not at work, mobilized or involved in local public works or territorially displaced,” the association said.
According to IPMA experts, in the future, problems with logistics to Ukraine came to the fore, since the main logistics channels through seaports and air were blocked.
“Logistics had to be built from scratch through European ports with the next truck delivery to Ukraine. The total cost of logistics has increased several times,” IPMA said.
In particular, the IPMA member company Konark Intelmed(Kharkiv)/Euro Lifecare PVT ltd. (India, a representative office in Kyiv) said that the company had to move its warehouse, which was located in Kharkiv, to the west of Ukraine.
“It cost us too much, plus we have to move our staff to the west of Ukraine, and also, in addition to the salary, provide them with a place to live. In general, it caused us a lot of damage,” said company director Sanjeev Bhagat.
At the same time, according to IPMA participants, the decline was very different in different categories of medicines. In particular, medicines for chronic diseases (diabetes, cardiovascular, etc.) showed a smaller drop, while medicines for acute respiratory infections, vitamins, antibiotics and in general non-essential drugs fell much more than the average.
IPMA said that due to the complexity of logistics, Indian pharmaceutical companies were unable to quickly establish supplies after the sudden cessation of direct air and sea communications with Ukraine.
The association said that “all Indian companies participating in IPMA remained to work in the Ukrainian market, although some had to significantly reduce their activities.”
“Our pharmaceutical companies are still rebuilding to work in the new conditions, but we continue to work on the Ukrainian market,” IPMA said.
The association reported that Indian pharmaceutical companies have provided assistance to Ukraine in the form of medicines and financial assistance, supported and continue to support Ukrainian citizens who were forced to leave their homes.
In particular, in the first months of the war, when the shortage of medicines was particularly acute, the IPMA participant, the Indian pharmaceutical company Macleods, provided medical aid to Ukraine in the amount of about UAH 27 million. It included hemostatic drugs, antibiotics, cardio- and other drugs. The company continues to provide assistance.
The representatives of the pharmaceutical company Hetero Labs and the Amarox company have been supporting Ukraine and its army since the first days of the Russian military invasion. These companies have repeatedly organized the collection of funds for the urgent needs of various medical institutions in Kyiv, including helping in the organization of food for hospital employees, in providing for the needs of operating blocks, resuscitation and surgical departments, and have handed over drugs for a total amount of UAH 4.5 million for the needs of the Armed Forces of Ukraine through representatives of the Ministry of Health, purchased and handed over the things necessary for the Armed Forces to representatives of the Ministry of Defense.
Employees of Ranbaxy Pharmaceuticals Ukraine in the western regions of Ukraine help refugees from areas affected by military actions, as well as help units of the territorial defense and the Armed Forces of Ukraine. Since the beginning of the military aggression, the company has donated UAH 3.8 million worth of medicines to 28 Ukrainian hospitals as humanitarian aid. Terapia company (Sun Pharma group of companies) transferred $500,000 to public organizations in Romania to help people who come from Ukraine.
The pharmaceutical marketing company Euro Lifecare together with the Ukrainian pharmaceutical distributor Konark Intelmed, in addition to helping Kharkiv, has already shipped humanitarian aid worth more than UAH 22.3 million and continues to help Ukrainians.
The Abril company has already resumed importing its products so that Ukrainian patients and the Ministry of Health of Ukraine can count on their help and support. Earlier, the company sent charity aid with antibiotics in the amount of about UAH 10 million.
In addition, IPMA joined the initiative of the President of Ukraine Volodymyr Zelensky UNITED24 and transferred UAH 500,000 in support of the Armed Forces of Ukraine on Independence Day of Ukraine.
“All our assistance is for the sake of the life and health of Ukrainians and for the approach of victory and peace in Ukraine. Despite all the challenges, Indian pharmaceutical companies in Ukraine continue to support Ukrainian patients by providing access to high-quality and affordable medicines and providing humanitarian assistance, as well as supporting their Ukrainian employees, providing access to labor and paying taxes,” IPMA said.
Predicting the further development of the market, the association said that “the state of Ukraine is increasing the share of sales through government procurement, and in some places they also buy Indian drugs.”
“All our companies plan to stay on the market and continue to work in Ukraine. The forecast directly depends on the military-political situation. If the situation remains the same as at the end of August until the end of the year, then we optimistically plan to end the year with a drop to the previous level of 30%. Unfortunately, a 30-40% decrease in US dollars is possible,” the association said.
The IPMA also noted the impact of the devaluation of the hryvnia, which, according to forecasts, will affect the pricing of vital and other medicines in the very near future.
The association said that “all IPMA members are separate representative offices of Indian companies or separate legal entities that are residents of Ukraine and have been present on the Ukrainian market for almost all the years of its independence.”
“Indian pharmaceutical companies – members of IPMA are making significant efforts to effectively provide the healthcare system of Ukraine with the necessary medicines, maintain supply chains and partnerships,” the association said.
FATF (Financial Action Task Force) plans to issue detailed instructions in October this or February next year on the implementation of its new recommendations on transparency of beneficial ownership, said the head of the Secretariat’s Risk and Policies Department organization Tom Neylan.
The next FATF plenary meetings are scheduled for October and February.
Speaking at a FATF-sponsored seminar on Thursday, Neylan noted that the organization has begun the practical implementation of its new legal entity transparency standard. In this regard, the discussion participants discussed the best world practices in the field of creating registers of beneficial owners of companies, the need for constant monitoring of the relevance of the information contained in the registers, the importance of interaction in this matter between the private and public sectors.
Emil van der Doos de Villebois, Head of Global Financial Markets at the World Bank, recalled that almost all criminal schemes that the international community is fighting against use legal entities in one way or another.
Michael Levy, a professor at Cardiff University, believes that the FATF, by implementing the new recommendations at the international level, should thereby “ensure a level playing field.” In his opinion, if there is no transparency of companies, then there is a real threat that international business will simply ignore minimally risky partners, because otherwise, in the conditions of a lack of information, they will have to do so many additional checks that the client will simply “become unprofitable” for them.
“Countries are often surprised when they find that the FATF Evaluation Panel starts looking in the public domain for information about permanent or nominee directors during the evaluation. It happens unexpectedly. But we check it,” Neylan said.
Neilan and European Commission Policy Officer Chiara Bakchi agreed on the importance of using public registers. In their opinion, not only the accuracy of the information collected is important, but also the interaction between different national registries. “I’m not talking about real harmonization (of registers – IF), but at least about the relationship, when we can find common information,” Bakci said.
In March, the organization adopted amendments to recommendation 24 (transparency and beneficial owners of legal entities). The amendments oblige countries to prevent the misuse of legal entities for money laundering or terrorist financing by ensuring that adequate, accurate and up-to-date information is available on the beneficial owners of legal entities.
The authors of the amendments insist on the introduction of a multi-vector approach, that is, the use of a combination of various mechanisms for collecting information on beneficial ownership in order to ensure its timely availability to government bodies.
Jurisdictions should apply any additional measures necessary to identify the beneficiaries of companies. These measures should include the storage of information obtained by regulated financial institutions and professionals, regulators or stock exchanges.
The FATF is an intergovernmental body established in 1989 that develops standards and promotes the effective application of measures to combat money laundering, the financing of terrorism and the proliferation of weapons of mass destruction.
The FATF standards include recommendations, as well as explanatory notes to them and definitions. The measures provided for by these standards are mandatory for all members of the organization. The extent to which the relevant measures are implemented in practice is checked through a system of mutual evaluations.
Yesterday a new academic year began in Ukrainian schools. At the same time, due to the realities of martial law, the organization of the educational process in different regions differs significantly. Territorial became the determining criterion for choosing the form of education this year. According to Minister of Education Sergei Shkarlet, students are divided into categories depending on their place of residence at the start of the school year. Depending on this, the forms of education can be selected: full-time, distance, mixed, family, or external studies.
In Kyiv, most schools will continue to use the traditional full-time form of education. According to the KMDA, about 68% of schools in the capital are equipped with shelters, the capacity of which will directly affect the number of students in the classes. This should be determined by a special commission. At the same time, according to the survey, about 70% of parents of Kyiv students choose the full-time form of education for their children.
Oksana Poenko, the founder and director of the Mainstream school in the capital, believes that the choice of the form of education in the current conditions should be individual.
“Now the safety of the child is of decisive importance, depending on this, the format of education can be different. If the school is equipped with a reliable shelter, then it can be even a safer place than a residential building where such shelter may not be,” she said.
According to Oksana Poenko, one should not forget about the traditional advantages and disadvantages of distance or face-to-face education.
“The best option for learning, in my opinion, is now a mixed form, when individual subjects can be taught remotely. The specifics of the course itself are of great importance. Some disciplines are much better perceived by students through the full-time form. We have implemented several concepts at our school as full-time, For example, there are specialized classes for older students, as well as an online school for distance education,” Poenko stressed.
In her opinion, the initiative of the Ministry of Education to reduce the number of students in classes and introduce two-shift education is correct not only for security reasons but also from a purely pedagogical point of view.
“Since 2016, the Mainstream School has been using a methodology to create a special social environment for students, when their individuality is maximally supported. It is optimal for a teacher to maintain communication with no more than 10 students during a lesson. Yes, there are state standards that say about 25-30 students, but, in my opinion, this is an outdated practice that should be abandoned long ago. In such a class, the teacher simply does not have time to pay enough attention to everyone, and this is very important for the development of the child’s individuality,” Poenko said.
The Mainstream School was founded in October 2016. The purpose of creating an educational institution was the need for quality education for children. The school appeared as an alternative to the state one, and over the years of working with children, it can be said with confidence that studying in a private school of a new format has its advantages. And the increase in the number of students by 10 times suggests that the positive aspects of such education are obvious!
Education in the school is focused primarily on the quality of education and the preparation of the student. The educational process at the school is focused primarily on the quality of education and the preparation of the student. The level of education of the child meets not only the requirements of state standards but also the obligatory needs of a modern person – the ability for independent and harmonious development, self-learning, and self-organization.
DISTANCE_EDUCATION, EDUCATION, MAINSTREAM_SCHOOL, OKSANA_PAENKO, SCHOOL
On August 27-28, the charity squash tournament “Zenit Ukraine Open 2022” was held on the courts of the capital’s fitness center “SPORT LIFE”. The competition was attended by players from Romania, USA, Moldova, Lithuania, as well as athletes from Kyiv, Lvov, Kharkov, Dnipro, Khmelnitsky, Poltava, Kherson and Odessa.
Among the participants were awarded awards in 5 categories. The winners of the competition were:
Category Lady:
1. Anna Tarasova;
2. Alina Nizdrakova;
3. Oksana Gerasimenko.
Category M3
1. Arayik Sargsyan;
2. Stepan Kobzev;
3. Alexander Stepanyuk.
Category M2:
1. Maria Lovko;
2. Yulia Sikalenko;
3. Dmitry Tokar.
Category M1:
1. Alexey Alekseenko;
2. Evgeny Popko;
3. Nikita Petrov.
Category PRO Men:
1. Ruslan Sorochinsky;
2. Denis Yard;
3. Nikita Panov.
This year the tournament was held in Kyiv for security reasons, while Odessa has been the traditional venue for the competition for many years. According to tournament organizers Dmitry Shcherbakov and Maxim Urakin, the return of Zenit Open to the Black Sea coast is planned for next year.
“For the last 10 years, the tournament has been held in Odessa, and we know it under the name Zenit Black Sea Open. Now, due to the war, we were forced to change traditions and move the venue to Kyiv. At the same time, we plan to return to Odessa courts next year,” Shcherbakov emphasized.
The executive director of the “All-Ukrainian Association of Squash Players” Oleksiy Usenko said that the association will contribute to the organization and holding of tournaments on a regular basis.
“The holding of such competitions improves the skills of our players and our cohesion, it is important not only to support Ukrainian sports, but also the country as a whole,” Usenko stressed.
According to the organizers, the money raised at the tournament will be directed to charity and assistance to Ukraine.
“Zenit Open” is the most famous and largest international squash tournament in the history of independent Ukraine. The scale of the championship is evidenced by the number of countries and participants, as well as a large number of organizations involved in the preparation and holding of the competition.
The main fitness partner of the event is the national network of fitness clubs No. 1 “SPORT LIFE”;
The main organizer of the tournament is “All-Ukrainian Association of Squash Players”;
The main information partner of the tournament is the news agency “Interfax Ukraine”;
The official sponsors were the company “MAXEVENTS” and the analytical center “Club of Experts”;
Prize fund partners – Eye and VICTOR;Partner – Public Association “UKRSADVINPROM”;
Prizes and gifts from the leading companies Tecnifibre and Reima;
The official water of the tournament is “KRAYNA”;
Official beer of the tournament from TERMOPUB;
Tea Partner – At Market;
Official hotel of the tournament – “FAVOR”;
Party partner restaurant – “OZERO”.
DMITRY_SHCHERBAKOV, EXPERT_CLUB, EXTREME, FAVOR, MAXEVENTS, OZERO, REIMA, SPORT, SPORT_LIFE, SQUASH, TECNIFIBRE, TERMOPUB, TOURNAMENT, URAKIN, ZENIT_OPEN
An inter-factional deputy association (IFO) “In support of friendship, trade, economic, cultural and humanitarian cooperation with Taiwan” will start working in the Verkhovna Rada, said Alexander Merezhko, Chairman of the Parliamentary Committee on Foreign Policy and Inter-Parliamentary Cooperation (Servant of the People faction) .
“Together with our colleagues, we decided to create an IFI “In support of friendship and cooperation with Taiwan” (…) In fact, the IFI has already been created. All that remains is to announce its creation at the plenary meeting,” Merezhko told Interfax-Ukraine on Friday.
According to the head of the committee, he was one of the initiators of the creation of the IFO, which included 15 people’s deputies from the Servant of the People, Holos, and European Solidarity factions.
Merezhko noted that he personally was prompted to create an IFO by Taiwan’s actions – “serious sanctions against Russia” imposed after the start of a full-scale Russian invasion of Ukraine, and the assistance provided to our country.
“That is, Taiwan behaved like a true friend in a difficult time for us. Society in Taiwan also very actively supported Ukraine,” Merezhko stressed.
Speaking about the plans of IFIs, Merezhko emphasized that he considers the model of European countries, which have their own economic representations in Taipei, to be attractive.
“We need to develop economic, cultural, humanitarian and other ties with Taiwan. By the way, the European Parliament recommends that EU states develop ties with Taiwan. And this is right, because we have common values. For example, such as democracy and the rule of law,” explained people’s deputy.
In the statement on the creation of the IFO, handed over by Merezhko to the Interfax-Ukraine agency, the people’s deputies note the need to “develop relations with Taiwan to protect peace, within the framework of international law, the UN Charter, Ukraine’s international obligations and the one China policy.”
According to the document, the MPs included in it elected Merezhko as the head of the MFI.
Ukrainian industry is one of the sectors of the economy most affected by the war. Since February 24, many large enterprises, primarily in the east and south of the country, have lost their production capacities, and the staff was forced to evacuate. At the same time, individual production facilities were transferred to the western regions, where they are being restored on the basis of more modern industrial facilities, such as industrial parks that appeared shortly before the war.
The Open4business portal spoke about the future of Ukrainian industry and the prospects for the restoration of production with Igor Stakovychenko, an expert in the field of economics.
According to the expert, the production of goods with high added value should become a priority for the development of the economy for decades to come.
“Before the aggression, our industry worked mainly according to standards that were not particularly modernized in 30 years of independence. This is the so-called canonical model, when you have raw materials, workshops, shipping, logistics, and so on. And there must also be stable consumers who will always buy products. Many plants with such a system failed the market test and closed down. Mostly giants remained, who more or less adapted. After the war, it will definitely not be possible to rebuild production in the same form, a fundamentally new model is needed, ”Igor Stakovichenko is sure.
The expert noted that in the modern world, the modernization of production involves the introduction of new management methods, as well as the creation of more adaptive sites, such as industrial zones or parks.
“If you have a workshop for the production of one specific part, which is itself part of a complex and long chain for creating the final product, then the situation above is rather precarious in modern conditions since you depend on many factors: suppliers, market situation, current conjuncture. If you have, for example, a 3D printer that can produce any shape to order for a specific client, then the situation is more stable for you, since you can quickly reorient yourself when the market changes. In the modern world, the industry is striving for greater universalization,” explained Igor Stakovichenko.
According to him, the restoration of the industry should begin now and be based, firstly, on the creation of industrial parks in safe regions, and secondly, on the modernization of existing industries for new models. As an example, Stakovichenko cites the development of this concept in Poland or the Czech Republic, where industrial zones already provide up to 50% of GDP.
“The government is now acting in the right direction, providing tax incentives to such industrial zones, this will lay the foundation for the rapid restoration of the country’s industrial potential in the post-war period,” Stakovichenko summed up.
ECONOMY, IGOR STAKOVICHENKO, INDUSTRY, MARKETS, PRODUCTION, STAKOVICHENKO
