The prices of sale and purchase of agricultural land in May 2024 significantly increased compared to the previous months and are now the highest for the entire existence of the land market: the weighted average price per hectare in May was 45.0 thousand UAH, which is 8.2% higher than in April 2024, and 5.6% higher than in March this year, according to a study by the Kyiv School of Economics (KSE), which is conducted on behalf of the USAID program.
According to analysts, the price of land with the intended purpose “for commercial agricultural production” was even higher and reached UAH 46.2 thousand.
“The above prices are based on the official prices registered in the Register of Property Rights during sale and purchase transactions. Market prices for land can be much higher, because most of all transactions are concluded at a price that does not differ from the normative-monetary valuation (the minimum price established by law for former sub-moratorial lands) by more than 2%,” the KSE clarified.
At the same time, experts believe that a slight decrease in prices in April 2024 and an increase in the cost of agricultural land in May this year is unlikely to be a long-term trend.
Since the beginning of 2024, average land prices remain significantly higher than in previous periods. Consequently, it can be stated that the opening of the land market for legal entities in January 2024 has led to structural changes in the market conditions, and as a consequence has led to an increase in the value of agricultural land, according to the KSE study “Land of Indestructibility”.
The Association “Insurance Business” (ASB) appealed to the deputies of the Verkhovna Rada with a request to postpone the deadline for bringing the activities of insurance companies in line with the requirements of the law “On Insurance”, according to the information of the association. According to the new version of the law “On Insurance” adopted on November 18, 2021, insurers must bring their activities in line with its norms until July 1 this year
“We have prepared to the members of Parliament a very reasonable proposal to postpone this deadline to January 1, 2026,” – said the general director of the ASB Vyacheslav Chernyakhovsky.
He pointed out that during the preparation and adoption of the law it was planned that all the changes stipulated by it would be introduced under normal conditions of a relatively stable political and economic situation. But three months after its adoption, Russia’s full-scale military aggression began.
“It is clear that such cardinal changes are impossible in the new conditions of war and the struggle of the whole country with the biggest crisis in its existence,” he emphasized.
In support of this, Chernyakhovsky cites the following facts, in particular, the fact that the vast majority of NBU regulations were adopted in the last decade of December 2023, of which 10 NPAs have an ultra-high level of influence on all business processes of insurers. The consequence of these changes in legislation and regulatory framework is the need to update all internal documents of insurance companies (more than 100 documents with a total volume of more than 1 thousand pages), development of new insurance terms and conditions instead of insurance rules, forms for all insurance contracts, new software, etc.
“Based on this, insurers actually do not have the technical and physical ability to implement all these cardinal changes for the first half of 2024, which also accounts for the compilation and submission of all annual reports to all government agencies, the audit of financial statements, owners’ meetings, etc.” – is noted in the report
As confirmation of the data of the survey conducted by three insurance associations (ASB, LSOU, NASU) in April 2024 on readiness for the new norms of the law, which showed that out of 59 insurance companies that participated in the survey (61% of the total number of companies in the market, which own 86% of the total amount of premiums), only 20% believed that they will be fully ready to complete the necessary modernization of their activities before the date of entry into force of the requirements of the new law.
The Law “On Insurance” also introduces new capital requirements: the minimum amount of which is raised to UAH 32 mln. or UAH 48 mln. depending on the classes of insurance activities and regardless of the size of business and liabilities of the insurer, which negatively affects primarily insurers with Ukrainian capital, the report says.
“Such requirements put in unequal conditions small (mainly with Ukrainian owners) and large insurance companies. It is especially difficult to fulfill them to regional insurers, in particular, working in the regions most affected by Russian aggression: Zaporizhzhya, Kharkiv, Chernihiv and Odessa regions”, is noted in the message.
The volume of completed construction works in Ukraine in January-March 2024 increased by 56.7% compared to the same period of 2023 – up to 35.5 billion UAH, according to the data of the State Statistics Service (Gosstat).
In March-2024, the index of construction products exceeded the index of March-2023 by 69.3%, and the previous month – by 92.3%, notes the State Statistics Service.
As reported by the State Statistics Service, in January-March 2024 to the same period of 2023, the growth in the volume of
construction was observed in all segments. Thus, in residential construction growth amounted to 39.2%, in non-residential – 49%, in engineering – 66%.
According to seasonally adjusted data of the department, the indexes of construction output in March-2024 in residential construction amounted to 55.9%, in non-residential construction – 105.5%, in engineering – 193.4%, and taking into account the effect of calendar days, the indicators are 52.1%, 82.6% and 148.6% respectively.
The proportion of new construction to the total volume of completed construction works in the first quarter amounted to 46.7%, repair – 25%, reconstruction and technical re-equipment – 28.3%.
The State Statistics Committee notes that the publication of data was postponed due to martial law. Statdata indicators are given without taking into account the temporarily occupied territory and the part of the territory where hostilities are (were) conducted.
Injured in road accidents caused by Ukrainian drivers abroad in 5 months of 2024 were paid EUR20.8 mln, which is 13% more than in 5 months of 2024. 2024 EUR20.8 mln was paid out, which is 13% more than in the same period a year earlier, according to the MTSBU Facebook page.
According to the report, the number of such cases increased by 8.5% – up to 6.401 thousand. The average amount of payment varies, as accrual is made in accordance with local legislation, and insurance indemnity limits in European countries reach one million euros and in some cases may be unlimited.
For example, if a road accident occurred in Poland, the limits of compensation are: for life and health – EUR 5.21 mln, for property – EUR 1.05 mln.
MTSBU is the only association of insurers that provide compulsory civil liability insurance of owners of land vehicles for damage caused to third parties.
“Green Card” is a system of insurance coverage for victims of road traffic accidents regardless of their country of residence and country of vehicle registration. “Green Card” covers the territory of 45 countries in Europe, Asia and Africa.
According to the decision adopted by the General Assembly of the Council of the Bureau of the International Motor Insurance System “Green Card” in Luxembourg in May 2004, Ukraine is a full member of this system since January 1, 2005.
Globally, insurers have 9-12% participation in the commercial real estate (CRE) market through direct and indirect investments in mortgages, bonds and directly owned real estate, according to a Gallagher report on its website.
Insurance companies are major investors in commercial real estate, with U.S. and European insurers investing approximately 12% and 7% of their investment portfolios in the sector, respectively. A potential recession, especially one caused by commercial real estate, has caused some concern in both the life and life insurance industries.
Also among the key findings of the report is that COVID-19 and the rise of the work-at-home workforce has led to a dramatic increase in downtown commercial real estate availability, among other things. This trend shows no signs of reversing.
Recessionary headwinds remain low with healthy US and EU economies stagnating but not contracting. China remains strong in absolute terms despite lower growth than in the recent past.
Banks have steadily increased their investments and expanded credit lines for commercial real estate. This has helped explain how the sector has remained resilient in difficult times.
The State Nuclear Regulatory Inspectorate of Ukraine (SNRIU) and the Norwegian Radiation and Nuclear Safety Agency (DSA) are working on the implementation of 18 common projects to counter the challenges caused by Russia’s military aggression, particularly in the area of developing policies and procedures to restore regulatory control over nuclear facilities affected by occupation and hostilities.
Gosatomregulirovanie said on Wednesday that the joint projects of the Ukrainian nuclear regulator and DSA, launched after February 24, 2022, also cover such areas as surveying territories affected by enemy military occupation; managing critical knowledge needed to protect personnel, the public and the environment during nuclear or radiation incidents caused by hostilities; and providing radiation reconnaissance equipment in previously occupied territories.
“I am grateful for DSA’s active participation in projects to address the pressing challenges faced by Gosatomregulirovanie after the rf’s full-scale invasion of Ukraine on February 24, 2022. Over the past two years, 25 projects have been initiated to counter the challenges caused by Russia’s military aggression. As of today, 18 projects out of them are being implemented,” said Oleg Korikov, head of the DSA.
Korikov and DSA Director General Per Strand discussed the status of implementation of joint projects and further cooperation, plans for which are envisioned in the Roadmap for Cooperation between DSA and Gosatomregulirovanie for 2024-2028, at a meeting during the Seventh Conference of the European Nuclear Safety Regulators Group (ENSREG) held in Brussels on June 24-25.
“In our decade of cooperation since 2014, we have established a sustainable mechanism for planning, coordination and timely implementation of joint projects. This strategy includes regular assessment of regulatory threats and challenges faced by Gosatomregulirovanie, which are reflected in the Threat Assessment Reports,” Korikov added.
