The Antimonopoly Committee of Ukraine (AMCU) on March 2 granted permission to Georgian citizen Rati Tchelidze, a beneficiary of CC Capital Group, whose two companies – Mister Cash LLC (TM Mister Cash) and CC Loan LLC (TM CC Loan) – had their licenses to provide financial loans revoked by the National Bank on February 24.
“To grant a permit to an individual – a citizen of Georgia Rati Tchelidze to acquire shares of joint stock company BTA Bank, which provides more than 50% of the votes in the supreme governing body of the company,” the decision of the AMCU, published on its website, reads.
Currently, 100% of shares of the Ukrainian BTA Bank belongs to the Kazakh BTA Bank, once one of the largest banks in Kazakhstan, which surrendered its banking license there several years ago. It is now effectively an asset management company owned by Kazakh businessman Kenes Rakishev and the Fincraft Group (formerly Novacom Corporation), a holding company whose sole owner is Rakishev.
“BTA Bank Ukraine was founded in 1992. According to the NBU, as of February 1, 2023, the bank ranked 65th by assets (UAH 293.9 mln) out of 67 operating banks in Ukraine. The loss of the financial institution in 2022 was 33.6 million UAH.
“According to management, despite uncertainty with negative consequences of Russian military aggression against Ukraine … the use of assumptions about the bank’s ability to continue its activities on a continuous basis is adequate, given: the appropriate level of capital adequacy, according to NBU requirements – 112.19% (in 2021 – 121.08%); intention of shareholders to continue supporting the activities of the bank; significant level of liquidity (including that formed at the expense of own funds of the bank)”, – noted in BTA Bank report dated January 25, 2023
With regard to Mister Cash and SS Lawn LLC microloan services, these companies ranked 12th and 19th respectively in terms of revenues among all financiers for 9 months of 2022, while in terms of total revenues they ranked 6th.
The NBU revoked their licenses for lending activities, including on the terms of a financial loan, following unscheduled inspections, which revealed “facts of numerous violations of the requirements of the legislation on protection of consumers of financial services.
SS Lawn” revenue for 9 months of this year amounted to 434.0 million UAH, “Mr. Cash” – 286.8 million UAH, losses – respectively 60.0 million UAH and 47.6 million UAH, assets – 257.2 million UAH and 106.1 million UAH, equity – 220.2 million UAH 4.4 million UAH.
CC Capital group at the end of 2021 included the microcredit services CC Loan, Mister Cash and the insurance company Point (TM SK Opika), which in February this year was fined by the National Bank on the inspection nearly 2.3 million UAH for not entering into insurance contracts in writing. Before the war it was planned that the group will launch a marketplace of its financial products in 2022.
CC Loan also planned a second bond issue in 2022, which would have been larger than the debut one-year Series A issue in 2021, worth 100 million hryvnias, which matures May 13-18, 2022.
CC Loan has been in the online microlending market since 2015 with the CC Loan brand, designed primarily for consumers ages 26-30. In 2019, it launched the Mister Cash brand, aimed at a younger audience. Since 2019, the group has included an insurance company. The majority shareholder of all companies is CC Continental City Capital Ltd of Georgia citizen Rati Tchelidze.
Ukraine managed to export 265 thousand tons of sugar in 7 months of the current marketing year (MY, September 2022 – August 2023), which is 4.8 times more than in the entire 2021-2022 marketing year, said Nazar Mykhailovyn, acting Chairman of the Board of the National Association of Sugar Producers of Ukraine Ukrtsukor.
“For the entire period of 2021/2022 MY, 55 thousand tons of sugar were exported. From September 1, 2022, to March 28, 2023, Ukraine increased exports by 4.8 times to 265 thousand tons,” he said in an interview with Interfax-Ukraine.
According to Mikhailovin, in 2022, 23 Ukrainian sugar factories produced 1.33 million tons of sugar, while a year earlier 33 enterprises produced 1.45 million tons. “The reduction in sugar production by 120 thousand tons with 30% of production capacities not used was not critical for Ukraine. In addition, we had a surplus and significant carry-over balances from 2021/2022 MY in the amount of 491 thousand tons,” the head of the association said.
He reminded that as of the beginning of the war, sugar exports from Ukraine were suspended due to the hostilities. On June 5, 2022, the Cabinet of Ministers adopted a resolution to allow sugar exports under licenses issued by the Ministry of Economy. Due to the hostilities and the lack of seaports, Ukraine was forced to change the geography of exports. According to the European Union’s decision, Ukraine can ship sugar to Europe without tariff quotas and duties.
According to Mykhailovyn, due to drought and poor sugar beet harvest, as well as higher natural gas prices than in Ukraine, Europe produced less sugar, and it was more expensive than Ukrainian sugar. “Ukraine was able to sell sugar in Europe at a decent price,” he stated.
Stock indices of Asia-Pacific region (APR) countries do not show unified dynamics during Monday morning trading.
Investors are estimating the statistical data from Japan and news on additional reduction of oil production by some OPEC+ countries.
As it was reported the night before 8 out of 20 OPEC+ countries announced about a voluntary reduction of oil production from May till the end of the year. According to Interfax calculations, the total reduction of oil production will amount to about 1.657 mln bpd, of which the Russian Federation and Saudi Arabia will account for 500 thousand bpd each.
Oil prices jumped up about 5% on this news. Traders are concerned that this decision may increase inflationary pressures in the world, complicating the task of central banks to return inflation to target levels, writes Trading Economics.
The U.S. authorities have already called the decision inappropriate.
Hong Kong’s Hang Seng indicator lost 0.6%. Prior to that, the index was rising four sessions in a row and ended trading on Friday at a three-week high.
Sino Biopharmaceutical (-8.2%), Wuxi Biologics (-3.9%) and Baidu Inc. (-3.4%) showed the most noticeable drops.
China’s Shanghai Composite stock index gained 0.55%.
Energy stocks were rising after a rebound in oil prices. Cnooc Ltd. gained 4.8%, Petrochina gained 1.7% and Guanghui Energy gained 2.3%. Tech stocks, including East Money Information (9.8%), 360 Security Technology (4.8%) and iFLYTEK (4%) also rose.
Japan’s Nikkei 225 index was up 0.5 percent.
As it became known on Monday, the Tankan index, which assesses the level of confidence in Japan’s economy among large companies in the processing industry, fell to 1 point in January-March from 7 points a quarter earlier.
The value of the indicator was the lowest since the fourth quarter of 2020 and failed to meet the forecasts of experts who expected a drop to 3 points.
The leaders of the decline in the Nikkei Index are shares of energy and financial companies. The price of Inpex Corp shares rose by 5.2%, Eneos Holdings – by 2.4%, Mitsubishi UFJ – by 1.2%, Sumitomo Mitsui – by 1.4%.
South Korea’s Kospi index declined 0.3%.
The market value of one of the world’s largest chip maker Samsung Electronics Co. fell by 1.6% and automaker Hyundai Motor – by 0.5%.
Australia’s S&P/ASX 200 index added 0.5%.
Retail sales in Australia rose 0.2% in February versus January, when the figure jumped 1.8%, final data showed Monday.
The rise in oil prices pushed up shares of Australian oil and gas companies Woodside Energy (5.3%), Santos (4.8%), Beach Energy (7.1%), Karoon Energy (7.9%) and Ampol (2%).
The market value of mining concern BHP Group rose 0.3%, Commonwealth Bank rose 0.6%, and coal producer Whitehaven Coal rose 3.7%.
Oil prices show a strong rebound Monday morning after a number of OPEC+ alliance countries, including Russia and Saudi Arabia, announced additional production cuts.
June Brent futures on London’s ICE Futures exchange stood at $83.82 a barrel by 8:10 a.m. Q, up $3.93 (4.92%) from the previous session’s closing price. At the close of trading last Friday those contracts grew by $0.50 (0.6%) to $79.77 per barrel.
The price of WTI crude oil futures for May at the electronic trading on the New York Mercantile Exchange (NYMEX) is $79.51 per barrel by that time, which is $3.84 (5.07%) above the final value of the previous session. The contract rose by $1.3 (1.8%) to $75.67 a barrel on Friday.
Brent dropped 4.9% in March and 7% in the first quarter, writes MarketWatch. Futures on WTI have lost 1.8% and 5.7%, respectively, and the monthly decline was the fifth consecutive for the North American brand.
On Sunday evening, 8 of the 20 OPEC+ countries announced a voluntary reduction in oil production from May until the end of the year. The announcement was made ahead of Monday’s meeting of the OPEC+ monitoring committee (JMMC).
Interfax estimated the total reduction in oil production to be about 1.657 million bpd, of which 500,000 bpd would come from the deal’s leaders, Russia and Saudi Arabia. Non-OPEC countries, such as Kazakhstan, are going to reduce production by 78 thousand bpd, and Oman – by 40 thousand bpd. Among the OPEC members, the production is going to be reduced by 144,000 bpd in the UAE, 128,000 bpd in Kuwait, 211,000 bpd in Iraq, 48,000 bpd in Algeria and 8,000 bpd in Gabon.
“Producers are clearly unhappy with the recent drop (in oil prices – IF), which was more speculative than caused by fundamental factors. They are likely to be able to get quotes back above $80 a barrel, plus they are trying to respond preemptively to a smaller-than-expected increase in global oil demand in the coming months,” Saxo Bank analysts Ole Hansen said in an interview with MarketWatch.
“The Saudi oil minister likes to take the market by surprise, especially when it could hurt downside speculators,” he added.
Velta Group of Companies with titanium ore mining assets in Novomirgorod (Kirovograd Region) decided to build a plant to produce titanium products using its own innovative technology in the United States instead of Ukraine and the UAE because of the war.
The company’s president, Andrei Brodsky, said on Facebook on Sunday that it has been more than two weeks since he returned from a business trip to Washington, D.C.
“Before the full-scale war began, we, VELTA, were starting to build a pilot plant to make titanium products using our own technology. We obtained a lease on an industrial facility in Novomoskovsk, began repair and construction work and the purchase of equipment. We also received a long-term lease on the territory of a former mine next to our mining and processing facility in Novomirgorod in Kirovograd region and began designing a large enterprise. It has to be a new Ukrainian industrial giant. Everything was stopped by the war”, stated the CEO.
According to him, near the future enterprise “two Russian missiles flew in, right above our mine our air defense shot down another one, there was a threat of a quick breakthrough front”.
In order “not to give high-tech developments to the enemy,” they decided to create the first enterprise for the processing of titanium raw materials outside of Ukraine. “It was a forced and very difficult decision,” said the co-founder of VELTA.
At the same time, he noted that the company had very strong ideas to build an enterprise in the UAE.
But the UAE has taken an unclear position with regard to Ukraine, “Kadyrovites and simply fugitive Russians have created their own almost hub there, and I stopped to consider Dubai or Abu Dhabi as an attractive haven,” Brodsky said. He also noted that he had to reformat his plans concerning titanium products: “Even now I really want to produce purely civilian products. And we are going to do that. Perhaps later… Now the market says completely different things. The world has completely changed with the start of a full-scale war in Ukraine.
According to Brodsky, it was decided to build the company in the United States, which is Ukraine’s main and reliable ally in the fight against Russian invaders and also the leading leader in technology and weapons production.
PKF VELTA LLC was registered in April 2000. The main activity is the extraction and production of ilmenite concentrate.
VELTA Holding LLC owns 100% of PKF VELTA LLC. The ultimate beneficiaries are three individuals: Andrey Brodsky (60%), Vadim Moskalenko (20%) and Vitaly Malakhov (20%).
The number of refugees from Ukraine registered for temporary protection or similar national protection schemes in Europe reached 5 million 8.28 thousand as of March 28, 2023, the UN High Commissioner for Refugees (UNHCR) said on its website.
In the nearly two months since Jan. 31, the increase was 185,15,000, up from 72,300 in the previous slightly longer period, and a total of about 2 million since the end of May 2022.
The number of refugees with Temporary Protection status in Europe, towards the end of January, was very close to the mark of 5 million, reaching 4.95 million. But then the data of Germany was updated for two months, which recorded a decrease of Ukrainians in the country with such status immediately by more than 140 thousand – down to 881,4 thousand.
The next update of this data for Germany at the end of March showed growth again – up to 922.66 thousand.
According to UNHCR data, collected from the national governments, most refugees with temporary protection statuses are still in Poland – 1 million 577,29 thousand for almost two months their number increased by 14 thousand. Total number of refugees from Ukraine, according to the Polish border service since the war began, was 10.819 million people, and in the opposite direction to Ukraine 8.966 million left.
The third place in the receipt of Ukrainians is occupied by the Czech Republic, where the number of people registered for temporary protection increased from the end of January by 16.9 thousand – to 502.0 thousand.
The fourth place is occupied by the United Kingdom – 191,9 thousand (with increase of 33,1 thousand).
Italy now occupies the fifth place – 173.21 thousand (an increase of 2.9 thousand), and Spain is on the third place with a small gap – 171.87 thousand (an increase of 10.9 thousand).
Bulgaria goes next with an indicator of 155.46 thousand (3.8 thousand increase), and Romania – 123.76 thousand (an increase of 12.9 thousand).
There are more than 100 thousand Ukrainians registered for temporary protection in two countries – France and Slovakia: 118.99 thousand (data as of October 21) and 112.72 thousand (increase by 5.7 thousand).
Austria also has from 50 thousand to 100 thousand refugees from Ukraine with temporary protection status – 94.98 thousand (2.5 thousand more), the Netherlands – 89.73 thousand (4.5 thousand more), Switzerland – 83.43 thousand (4.5 thousand more), Lithuania – 76.16 thousand (2.6 thousand more).
These figures also include Ireland – 78.03 thousand (growth by 5.4 thousand), Belgium – 69.25 thousand (growth by 4.9 thousand), Portugal – 58.24 thousand (growth by 1.1 thousand), Sweden – 53.51 thousand (growth by 2.3 thousand) and Finland – 52.47 thousand (growth by 3.2 thousand).
Latvia goes next with indicators from 25 thousand to 50 thousand – 46.86 thousand (an increase of 1.6 thousand), Estonia – 44.40 thousand (an increase of 1.6 thousand), Norway – 44.01 thousand (an increase of 5.4 thousand), Denmark – 39.22 thousand (an increase of 1.5 thousand) and Hungary – 34.25 thousand (an increase of 0.7 thousand).
From 10 to 25 thousand refugees from Ukraine with temporary protection status in Cyprus – 21.84 thousand (an increase of 1.2 thousand), in Croatia – 21.35 thousand (an increase of 0.9 thousand), and in Greece – 20.96 thousand (data of December 6).
In addition, the UN statistics on refugees of Ukraine received temporary protection status in Slovenia – 8.92 thousand, Montenegro – 8.30 thousand, Luxemburg – 6.76 thousand (data of October 25), Iceland – 2.35 thousand (data of December 31), Malta – 1.74 thousand, Serbia and Kosovo – 1.28 thousand, Liechtenstein – 0.54 thousand and Albania – 0.03 thousand.
The UN also indicates countries with registered refugees from Ukraine, but no data on their status: Moldova – 107.01 thousand, Turkey – 95.87 thousand, Georgia – 25.70 thousand, North Macedonia – 6.57 thousand, Azerbaijan – 5.03 thousand, Armenia – 0.55 thousand and Bosnia and Herzegovina – 0.17 thousand.
The UN separately indicates Russia and Belarus, where the Ukrainian border was crossed by 2 million 852.4 thousand and 16.71 thousand people, respectively, but since October 3, the data for Russia are no longer updated, while that for Belarus is even older. According to the UN, the Russian Federation recorded all who crossed the border, while in Belarus – 21.83 thousand. There are no data on their status, as well as data on crossing the border of Ukraine in the opposite direction.
According to the UNHCR data as of March 28, a total of 19.741 million people left Ukraine since the beginning of the war (not counting the flow of people into the country), including 10.452 million people to Poland, 2.852 million people to Russia (data of October 3), 2.415 million people to Hungary, 2.154 million people to Romania, 1.267 million people to Slovakia, 795.6 million people to Moldova and 16.7 thousand people to Belarus.
At the same time, according to the UN, 11.200 million people arrived in Ukraine from February 28, 2022 to March 28, 2023 (excluding the data of Hungary, Russia and Belarus).
The organization recalls that in mid-2021, there were only 53.47 thousand Ukrainian refugees in the world, who sought the appropriate status, including 36.49 thousand in Europe.
The Ukrainian diaspora in the world by mid-2020, UNHCR estimated at 6.1 million, including in Europe – 5 million.
