Business news from Ukraine

Business news from Ukraine

WINE PRODUCER SHABO REMAINS ONLY LARGE ENTERPRISE IN UKRAINE BURNING GRAPEVINE AS ALTERNATIVE FUEL

Wine producer Shabo (Odesa region) remains the only large enterprise in the country that uses grapevine as an alternative fuel to ensure production processes, the company’s press service has said. The press service said that since 2014, Shabo has been using a 1.1 MW boiler house for heating premises and wine-making processes, burning grapevines collected at the enterprise.
“We have huge vineyard areas (1,200 hectares) and tens of thousands of square meters of production facilities. This entire area needs to be heated and heat supplied for production processes. How to do this if it is impossible to deliver gas to the enterprise due to the peculiarities of the location? So we drew attention to our own resource – grapevine,” the company said, quoting Chief Engineer Valentyn Klius.
According to the report, annually the enterprise collects about 1,200 tonnes of grapevine scion, which is pruned to regulate the growth and fruiting of vineyards. The obtained scion volumes are sufficient to heat tens of thousands of square meters of the production complex, the Shabo Wine Culture Center, as well as supply heat for wine-making processes.
In addition, the ash left after burning the vine is used by the company as fertilizer for the soil.
According to the company, the boiler house with a capacity of 1.1 MW was designed and built in 2011-2014 by Kriger (PJSC Zhytomyrremkharchomash, Zhytomyr). The heating season starts in August, with the start of grape processing, and ends in March-April, when the heating season ends.
Shabo is a large Ukrainian wine producer, founded in 2003. It is engaged in the cultivation and processing of grapes, the production and sale of alcoholic beverages.
Since 2005, the company has been producing cognac and brandy, and since 2013 Shabo grape vodka. The production capacity of the complex, which occupies more than 10,000 square meters, provide a full cycle of production of strong alcoholic beverages of grape origin.
The Shabo product range is presented in all regions of Ukraine, as well as in Georgia, Israel, China, Poland, Latvia, Estonia, Belgium, France, Denmark, the Czech Republic, the United States, Brazil, Canada, Azerbaijan, Japan, Norway and the U.K.
The processing capacity of the company per season is more than 20,000 tonnes of red and white grapes. Wine storage Shabo has a total area of about 10,000 square meters. Annually, Shabo produces 50 million bottles a year, a total of about 80 product names. Nine production lines are involved in bottling.
According to the public register of legal entities and sole proprietors, the ultimate beneficiary of Shabo Industrial and Trade Company LLC is Vazha Iukuridze, the ultimate beneficiaries of Agrofirma Shabo LLC (both are located in Odesa region, village of Shabo) are Iukuridze and Bela Cholikidze.

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STELLANTIS PLANS TO OCCUPY MORE THAN 10% OF UKRAINIAN CAR MARKET

The representative office of Stellantis in Ukraine (the auto brands Peugeot, Citroёn, Opel, DS Automobiles) in 2022 plans to occupy more than 10% of the market of new passenger cars and light commercial vehicles (in 2021 the share was about 10%), including taking into account the brand Jeep, which Stellantis will officially represent in Ukraine from June 1, the press service of the company said.
“The strategic goal for 2022 is to strengthen our position, to “restart” the legendary Jeep brand, to occupy more than 10% of the Ukrainian automotive market,” the company said in a press release.
At the same time, it is clarified that several main areas of work with the Jeep brand and its further development in the Ukrainian market have been outlined: first of all, the development of the dealer network and related services, as well as the restart of four new models.
Also new models of other Stellantis brands will be presented in Ukraine: OPEL Astra, DS 4 and DS 9, Peugeot 308.
“Particular emphasis will be placed on promoting electrified vehicles: electric vehicles and rechargeable hybrids,” the press release says.
According to the press service, in 2021 the total sales of four Stellantis brands in Ukraine exceeded 11,000 units with a market growth of 22% compared to 2020 – up to 116,300 units (including 103,650 passenger cars and 12,700 commercial (LCV) cars.
As reported, in 2020 the share of Stellantis brands was 8.5% of the car market, and this year it was planned to take up to 10.5%.
The leader of Stellantis in Ukraine – the Peugeot brand – in 2021 increased sales by 14% compared to 2020, to 4,930 cars (market share 4.23%).
Citroёn last year increased sales in Ukraine by 56% – to 4,600 units, while more than half of sales fell on commercial vehicles, and the brand became the leader in the light commercial vehicles (LCV) market.

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UKRAINE RAISES UP COAL PRODUCTION BY 2% IN 2021

Coal mining enterprises of Ukraine in 2021 increased production of coal by 2% (by 569,500 tonnes) compared to 2020 – to 29.388 million tonnes, according to the data of the Ministry of Energy.
In particular, production of steam coal amounted to 22.153 million tonnes, coking coal – 7.234 million tonnes.
According to the calculations of the Interfax-Ukraine agency, coal mining enterprises, which are part of the ministry’s sphere of management, last year increased production by 1.9 times – up to 5.446 million tonnes, which is largely due to the return from the lease by DTEK of the assets of state enterprise Dobropilliavuhillia.
The mines of Donetsk region in 2021 ensured the production of 11.892 million tonnes of coal (up 5.7% from 2020), Luhansk region – 257,600 tonnes (up 14.2%), Dnipropetrovsk – 16.032 million tonnes (up 0.2%), Lviv – 1.182 million tonnes (down 9.7%), Volyn – 24,400 tonnes (down 28.5%).
In December 2021, production of coal in the country increased by 5.8% compared to the same month in 2020 – to 2.772 million tonnes.

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REGISTRATIONS OF NEW AND USED ELECTRIC VEHICLES IN UKRAINE INCREASE BY 19%

Registrations in Ukraine of new and used electric vehicles in 2021 increased by 18.9% compared to 2020 – up to 8,541 units, while registrations of new cars accounted for 14.2% versus 8.9% a year earlier, the Federation of the Automotive Industry of Ukraine (FAU) reported. “The year ended positively. In December, the number of registrations per month exceeded 900 for the first time, amounting to 928 electric vehicles – twice as many as a year ago, and 8% more than in November,” the report says.
At the same time, the three market leaders remained unchanged – Nissan, Tesla, Chevrolet, which together hold 55% of the market.
According to the above statistics, the leader of registrations Nissan (market share 26.1%) last year showed a slight increase (by 1%, or 26 cars) – up to 2,227 units (for 11 months showed a fall of 1%).
At the same time, Tesla registrations (19.6% of the market) decreased by 16% – to 1,670 units, and Chevrolet (with a 9.4% market share) increased sales by 54% – to 802 units.
“It is interesting that almost all brands have increased sales – except Tesla and Kia. In particular, Audi doubled sales, which allowed it to break into the top ten to the 7th place,” the report says.
In the ranking of brands, after the top three, there are Renault (an increase of 76%, to 551 units), Volkswagen (by 80%, to 550 units), Hyundai (by 43%, to 363 units), Audi (up to 334 units), Mercedes-Benz (up 28%, to 236 units) and Kia (down 13%, to 154 units).
Fiat failed to stay in the top ten, which in 2020 took fourth place, and in 2021 – 12th.

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UKRAINIANS PAY UAH 16.2 BLN FOR HOUSING SERVICES IN NOV 2021

In November 2021, the population of Ukraine paid UAH 16.2 billion for housing and utilities services, which amounted to 69.6% of the amount charged for this period, the State Statistics Service reported.
According to it, the population’s debt for the supply and distribution of natural gas amounted to UAH 29.2 billion at the end of November 2021, for the supply of heat and hot water – UAH 23.3 billion, for the supply and distribution of electricity – UAH 6.9 billion, for centralized water supply and drainage – UAH 6.4 billion, for the management of apartment buildings – UAH 5.6 billion, and for the household waste collection – UAH 1.3 billion.
According to the resolutions of the Cabinet of Ministers of Ukraine dated November 21, 1995 (No. 848) and dated June 27, 2003 (No. 976), in November 2021, some 5,000 agreements were concluded with the population on the repayment of restructured debts for a total of UAH 55.2 million. According to the State Statistics Service, the amount of payments made, taking into account long-term contracts, amounted to UAH 44.4 million.

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BTA BANK WITHDRAWS ITS SHARE OF ORANTA INSURER

BTA Bank (Kazakhstan), which owns 20.284% of shares in the National Joint-Stock Insurance Company Oranta (Kyiv), has reduced its block of shares to 0%, according to the information disclosure system of the National Securities and Stock Market Commission.
It is specified that the amount of voting shares of NS-Finance LLC (Kyiv) in Oranta increased to 72.389660% from 50.106890%, and their number – up to 95,718,477 from 66,254,700.
As reported, NS-Finance LLC notified of the conclusion of a sale and purchase agreement on December 13, 2021, as a result of which it became the owner of a controlling stake in Oranta in the amount of 50.0035%. After that, NS-Finance sent a public offer to purchase shares from all holders of the insurer’s shares at UAH 1.05 per share. The purchase of shares on its behalf is carried out by DM BROK LLC (Kharkiv).
According to the National Securities and Stock Market Commission, as of the first quarter of 2021, BTA Bank owned 35.17% of shares in Oranta, the Cypriot companies Visiline Limited – 9.424%, Cezavelios Holdings Ltd. – 5.623%, Chilwell Limited – 9.991%, and another 7.1826% – are held by Maria Loseva.
Oranta is the legal successor of Ukrgosstrakh, founded on November 25, 1921. In 1993, Ukrgosstrakh was reorganized, its founder on the part of the state was the State Property Fund of Ukraine (SPF). In 2007, the SPF sold the last state-owned block of shares to the investor.
The insurer operates on the basis of 33 licenses: 15 compulsory and 18 voluntary types of insurance.

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