Business news from Ukraine

Business news from Ukraine

30% of officials “made mistakes” in their declarations, on average, by UAH 15 million

Every tenth declaration was subsequently corrected

1,246,435 declarations were filed by September 11, 2024, according to the National Agency for the Prevention of Corruption. The number of corrected documents has almost doubled compared to last year.

As of mid-September, the number of all declarations (1.2 million) is already 2.8 times higher than in the same period in 2023, when there were 445 thousand. More than 134 thousand, or 11% of the submitted declarations were subsequently corrected.

This year, the NACP has started verifying 734 declarations of officials. In half of them – 392 cases – the checks have already been completed.

Among the fully examined declarations, 46% contain violations totaling UAH 1,856.1 million. In general, all errors are related to incorrectly stated amounts in the declarations. The difference is in the amount of inaccuracies: the amounts were less or more than 500 subsistence minimums.

In 30% of all audited declarations, the data totaling UAH 1,808.7 million were incorrect (Article 366-2 of the Criminal Code). On average, officials “made a mistake” in each such declaration by UAH 15.2 million.

In another 16% of the audited declarations, officials made mistakes, on average, by UAH 790 thousand per declaration (part 4 of Article 172-5 of the Code of Administrative Offenses). In total, such errors amounted to UAH 47.3 million.

The amount of errors was less than UAH 268 thousand or up to 100 subsistence minimums in every second audited declaration.

Only 1 declaration out of all those checked had no violations.

In some cases, the declarations violated 2 articles at once. 7 declarations also have signs of illicit enrichment totaling UAH 146.3 million (Article 368-5 of the Criminal Code). In another 8 documents, officials could not explain the origin of money in the amount of UAH 30.1 million (Article 290 of the Civil Procedure Code).

https://opendatabot.ua/analytics/fault-declaration-2024

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IC “Express Insurance” increased payments by 61.6%

In January-September 2024, Express Insurance (Kyiv) made payments in the amount of UAH 379.2 million, which is 61.6% or UAH 143.8 million more than in the same period of 2023, according to the insurer’s website.
In particular, payments for hull insurance amounted to UAH 319 million (+55.5%), for MTPL – UAH 49.8 million (2.3 times more), for voluntary health insurance – UAH 4.5 million (-11.1%), payments under other insurance contracts – UAH 5.9 million (+65.2%).
At the same time, the company reports that in September 2024, payments to customers amounted to UAH 39 million (+35.9%) more than in September 2023. In particular, the company paid UAH 31.6 million (+28.9%) under hull insurance contracts and UAH 5.5 million (+58.4%) under MTPL contracts.
Express Insurance ALC was founded in 2008 and is part of the UkrAVTO group of companies. The company specializes in motor insurance. The consistently high speed of claims settlement in the IC is ensured by optimal interaction with partner service stations.
Since April 2012, Express Insurance has been an associate member of the Motor Transport Insurance Bureau of Ukraine.

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DTEK to build 20 MW energy storage facility in Bohuslav

At the end of September, Bohuslav City Council authorized DTEK Kyiv Regional Grids to lease a 0.5 hectare plot of land for the construction of a 20 MW energy storage facility.

According to a post on the website of the Bohuslav city community, the purpose of the construction is to enable automatic frequency regulation in the integrated power system of Ukraine to avoid the introduction of emergency outage schedules for consumers.

The construction of the storage system will help reduce fluctuations and emergency outages and the likelihood of system accidents.

“We ask citizens who were engaged in gardening in this area to vacate the land plots after harvesting,” the statement said.

As reported, DTEK will build energy storage facilities in Ukraine with a total capacity of 200 MW, and investments in the project will amount to EUR140 million. The batteries will be commissioned in a number of regions of the country no later than September 2025.

“DTEK is also a participant in the construction of the first large-scale electricity storage project in Poland. The goal is to create a pan-European energy system designed to unite Ukraine and the EU.

“DTEK was established in 2005 to manage the energy assets of Rinat Akhmetov’s System Capital Management (SCM, Donetsk). The corporation has been delegated the functions of strategic management of the group’s enterprises, which make up a vertically integrated chain of coal mining and enrichment, electricity generation and sales.

The energy holding strives to transform into a more efficient, environmentally friendly and technologically advanced business, guided by ESG principles. The group plans to achieve carbon neutrality by 2040.

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PrivatBank has put up for sale shopping center “Priozerny” for UAH 353 mln

For the third time, PrivatBank has put up for auction on the Openmarket electronic platform (SE SETAM of the Ministry of Justice of Ukraine) the Priozerny shopping center in Dnipro for UAH 352.7 million (including VAT).
According to the press service of SETAM, the lot includes a six-story shopping center with an area of 32.4 thousand square meters and 12 land plots.
The winning bidder is also obliged to purchase fixed assets worth UAH 2.2 million.
Built in 2009, Priozerny shopping center is located in the city center near the Central Market and the railway station. The facility includes shopping galleries, office and warehouse space, entertainment and sports areas. The shopping center’s infrastructure includes an underground parking lot for 100 cars and a surface parking lot for 40 cars.
The auction is scheduled for October 16. The guarantee fee is UAH 17.6 million.
As reported, in April 2024, the Supreme Court finally confirmed PrivatBank’s ownership of the Priozerny shopping center, upholding the decisions of the courts of first and appellate instances on the legality of the acquisition of ownership of the facility and dismissing the cassation appeal of Mission-1, which the bank associates with its former owners.
Earlier in 2016, PrivatBank acquired ownership of the shopping center as a loan repayment, at which time its value was over UAH 778 million.
In 2021, the former owner of Priozerny, Mission-1 LLC, filed a lawsuit to challenge the state bank’s ownership of the shopping center and return it to its ownership.
The Commercial Court of Dnipropetrovska oblast dismissed the company’s claim, and later, PrivatBank defended the legitimacy of its ownership of the shopping center in the Central Commercial Court of Appeal (Dnipro).

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Demand for buses in Ukraine increased by 14% – Ukravtoprom

Initial registrations of new and used buses (including minibuses) in Ukraine in September 2024 increased by 14% compared to September 2023, to 247 units, Ukravtoprom reported in its telegram channel.
At the same time, the share of new buses, as in the previous year, amounted to 63% (155 units), which is 10 percentage points more than in August this year.
“Ukravtoprom notes that compared to August of this year, when 161 buses were registered, the demand for them increased by 53%.
The leader in the top three most frequently registered new buses in September was Etalon produced by Chernihiv Automobile Plant with 60 vehicles registered, up 76% or 24 buses from last September, when it was ranked second.
Ataman buses, which were in the lead in September 2023 and August 2024, took second place with 37 units registered against 56 units a year earlier.
ZAZ buses took the third position – 24 units, which in September 2023 were also third with 17 vehicles, and in August this year they took the sixth place in the ranking with three buses.
The top three leaders in September among used buses are: Mercedes-Benz – 31 units, Volkswagen – 16 units and MAN – 9 units.
According to the association, in January-September, a total of 1415 buses were added to the Ukrainian bus fleet (-29% compared to the same period in 2023). Of these, 803 units were new (-35%); 612 units were used (-19%).
In Ukraine, buses are produced by Cherkasy Bus, Chernihiv Automobile Plant of Etalon Corporation, Zaporizhzhia Automobile Plant of UkrAuto Group, and Bas Motor LLC (Bogdan buses), but their main range is school buses purchased by regions under the School Bus state program.

Pivdennyi GOK allocated UAH 17 mln to upgrade pellet production units

Northern Mining and Processing Plant (Pivdennyi GOK, Kryvyi Rih, Dnipro Oblast), part of Metinvest Group, has repaired the LURGI 552A roasting machine and upgraded the pellet mill at pellet production shop No. 2 (PPO 2).
According to the plant’s information on Tuesday, Metinvest allocated UAH 17 million to repair the roasting machine and modernize the roar.
It was specified that the roasting machine was put back into operation at the beginning of the month after a quarterly repair.
“The main achievement of the modernization is an increase in the roasting machine’s productivity. The machine now produces 463 tons of pellets per hour compared to 460 tons previously. The second significant result of the modernization is a reduction in specific gas and electricity consumption. And the third is the improvement of the quality characteristics of finished products. All in all, we expect this to bring us up to UAH 10 million in annual benefits,” said Andriy Stebliy, deputy head of the production and planning department at Pivdenny GOK.
According to him, during the repairs, the specialists also carried out standard work, such as replacing the refractory lining of the roasting machine’s furnace and repairing metal structures. Conveyor belts were replaced in the fencing, firing and rumble sections. Process fans were repaired, conveyors, main and auxiliary units and mechanisms involved in the LURGI 552A production line were maintained.
Last summer, crude pelletizers were installed at BOF Shop No. 2 on LPGI 552B and LPGI 552A, which allowed us to reorient to the requirements of the European market and further save resources. At the same time, specialists modernized the automatic process control system.
“Metinvest is a vertically integrated group of steel and mining companies. The Group’s businesses are located primarily in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions.
Metinvest’s major shareholders are SCM Group (71.25%) and Smart Holding (23.75%), which jointly manage the company. Metinvest Holding LLC is the management company of Metinvest Group.

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