Business news from Ukraine

Business news from Ukraine

Kyiv City Council will conduct audit of Kyivmiskbud for period from 2019 to 2022

Temporary control commission of Kyiv City Council requested from JSC “Holding company “Kyivmiskbud” data on the financial results of the construction company for the period from 2019 to 2022 for audit.
“Today at the first meeting of the commission together with colleagues set the task for representatives of the joint-stock company to provide financial statements on activities for 2019-2022 and the first quarter of 2023, as well as complete information about the started, ongoing, suspended and completed construction projects from 2019 inclusive,” the press service of the Kyiv City Council quotes the head of the temporary control commission, deputy of the City Council Miroslava Smirnova.
The commission also requested data from Kievgorstroy on the accrued and paid in 2019-2022 in the budget of Kiev dividends and related calculations, orders and protocol decisions.
Smirnova pointed out that the commission to verify the information was created after journalists published in May an investigation about the activities of the construction company. The deputy reminded that the territorial community of Kyiv owns a controlling interest in the Holding Company Kyivmiskbud in the amount of 80%, thus the inspection is necessary to protect the legal interests of the community.
After the audit will be made proposals regarding the activities of Kyivmiskbud.
Earlier, Kyivmiskbud reported a significant amount of debt under the installment payment agreements – more than 320 million UAH, which prevents the resumption of active construction work at the sites.
According to Openadtabot, Kyivmiskbud in 2022 received 35.8 million UAH net loss against 4.3 million UAH net profit in the previous year. At the same time, the company’s revenue increased by 23% to UAH 1.8 billion.
HC Kyivmiskbud was created on the basis of assets of state municipal construction corporation Kyivmiskbud in 1994 by combining the controlling interests in its share capital of 28 companies and other assets. The CC includes 40 JSCs in which the company holds the shares, six subsidiaries and 51 companies with the rights of the associated member.
The main shareholder of PJSC HC Kyivmiskbud, according to the NCCSD, is the Kyiv City Council (80%).

On Friday, traffic will be restricted in the center of Kyiv

Traffic in the center of Kyiv will be restricted due to events on Friday, and will be restored later, the press service of the Kyiv City Military Administration reports.

“Tomorrow, June 16, in connection with the events during the day, traffic on the central streets of Kyiv will be restricted,” the statement said.

It is reported that the resumption of traffic will be announced later.

The KCSA urged drivers to plan their routes in advance.

“Ukrposhta” announced tender for MTPL insurance

The Ukrainian state postal enterprise Ukrposhta (Kyiv) announced a tender for compulsory civil liability insurance (CMTPL) on June 13.
As reported in the electronic public procurement system “Prozorro”, the expected cost -672.354 thousand UAH.
Documents will be accepted until June 19.
As reported, the winner of a similar tender was IC “Guardian”.

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Energoatom’s corporatization may take place in six months – opinion

NNEGC Energoatom expects to complete corporatization of the enterprise, according to optimistic estimates, in half a year, according to pessimistic estimates, in a year, said the president of the company Petr Kotin.
“Energoatom’s corporatization is moving at quite a fast pace. According to pessimistic estimates, it will take us a year to be fully corporatized. On the optimistic side, half a year. There are many processes going on now; one of them is the stocktaking of all assets and collection of creditor claims. This is not an easy procedure,” said Mr. Kotin in his interview to journalists during visit of one of the NPPs.
At the same time, he specified that with regard to the Zaporizhzhya NPP occupied by the Russian invaders “we will use preliminary, pre-war inventory data for the time being, and then (after the return of the plant under Ukrainian control – ER) we will adjust.
As reported, at the beginning of May the Cabinet of Ministers reorganized the state enterprise by transforming it into the National Nuclear Energy Generating Company Energoatom, 100% of the shares in the authorized capital of which belong to the state and are not subject to privatization or alienation in any other way.
As noted by the Prime Minister of Ukraine Denis Shmygal, it will improve the efficiency of management, attract additional funds for new projects and strengthen energy independence.
The Cabinet of Ministers also created a commission for Energoatom’s transformation and approved its composition, set a two-month deadline for lenders to file their claims against the company, and formed an inventory commission.
Before that, on February 6, 2023, the Verkhovna Rada of Ukraine passed the draft law 8067 on corporatization of the state-owned enterprise Energoatom during the second reading.
The corporatization of Energoatom is stipulated by the loan agreement between the company and the European Bank for Reconstruction and Development (EBRD) and the guarantee agreement “The Integrated Generalized Program of Nuclear Power Plants Units Safety Enhancement,” ratified by Verkhovna Rada.
“Energoatom is the operator of all four operating nuclear power plants in Ukraine. It operates Zaporizhzhya, Pivdenno-Ukrainian, Rivne and Khmelnitsky power plants with 15 power units, equipped with water-water power reactors, with total installed electric capacity of 13,8 GW. The 6GW ZNPP has been under Russian occupation since May 4, 2022.

European Central Bank raises inflation forecasts and worsens GDP growth estimate

The European Central Bank (ECB) upgraded its inflation forecasts for the euro zone from 2023 to 2025, worsening its estimate of GDP growth in the next two years.
According to new forecasts released by the ECB at its meeting on Thursday, consumer price growth in the euro zone will be 5.4% this year, 3% next year and 2.2% in 2025. In March, inflation was expected to be 5.3%, 2.9% and 2.1%, respectively.
Core inflation, which excludes food and energy costs, is expected to be 5.1% this year before slowing to 3% in 2024 and 2.3% in 2025.
The forecast for euro area GDP growth for 2023 has been lowered to 0.9% from the previously assumed 1%, and for next year to 1.5% from 1.6%. The estimate of the economic growth rate in 2025 remained unchanged at 1.6%.

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“Nibulon” delivered 80 thousand tons of grain to port of Constanta with its own fleet

Nibulon” JV LLC (Mykolaiv), one of the largest operators at the grain market of Ukraine, in January-June 2023 transported by its own fleet from the branch “Bessarabskaya” (Izmail) to Constanta, Romania about 80 thousand tons, or 15% of the total shipments of the company during this period.
According to the grain trader’s website, this was made possible by the redeployment of the fleet from Nikolaev, which involved disassembly of the vessels, their transportation by land to the Danube and their subsequent reassembly at the Bessarabian branch. In total two port tugs “Nibulon-12” and “Nibulon-14”, tugs “Nibulon-3” and “Nibulon-11” and two handling machines Terex Fuch mhl 385 were transported this way.
The announcement indicates that the Nibulon also began providing tug, mooring and unmooring services for vessels on the Danube. In January-June 2023, the number of hours worked in this way increased 18-fold.
“In the spring, Nibulon was able to resume shipping on the Middle Dnieper. Now tugs “Nibulon-10”, “Hermes-2” and non-self-propelled barges UAK-1, UAK-2, UAK-3, UAK-4 work here, and the branch “Kremenchugskaya” acts as a central transshipment hub that receives grain from water transport and reloads it into the cars”, – stressed the press service of grain trader and added that during April and May 2023 more than 15 thousand tons of grain were transported this way.
It is noted that the shipping company of the grain trader plans to increase the volume of services to third parties in Ismail, as well as to increase the volume of traffic to Constanta by optimizing the routes.
“The experience of sea routes in winter and spring allows the company to choose exactly sea routes instead of the Danube, which affects the speed of the fleet,” summarized the “Nibulon”.
JV Nibulon LLC was founded in 1991. Before the Russian military invasion, grain trader had 27 transshipment terminals and complexes to receive the crops, the capacity for one-time storage of 2.25 million tons of agro products, a fleet of 83 ships (including 23 tugs) and owned the Nikolayev shipyard.
“Nibulon” before the war worked 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
The grain trader exported a maximum of 5.64 million tons of agricultural products in 2021, reaching a record volume of deliveries to foreign markets in August – 0.7 million tons, the fourth quarter – 1.88 million tons and in the second half of the year – 3.71 million tons.

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