Modus Energy International, a member of the Lithuanian diversified company Modus Grupe, has initiated an arbitration against Ukraine over the retrospective reduction of feed-in tariffs in seeking to compensate damages of EUR 11.5 million, according to a draft government resolution on the procurement of legal advisors services to defend the interests of the state in arbitration. The draft resolution, authorizing the Ministry of Justice to apply the simplified negotiating procedure, was included in the agenda of the government meeting on Wednesday.
According to an explanatory note to the draft resolution, the Ministry of Justice received a notice of arbitration against Ukraine on March 23 from the owner of Bolokhivsky Solar Park 1 LLC, Bolokhivsky Solar Park 2, as well as Solar Zalukva LLC – the Lithuanian company Modus Energy International. The company, in particular, claimed that Ukraine violated the Energy Charter Treaty by lowering feed-in tariffs from August 1, 2020 by 15%., the amount of which was guaranteed until the end of 2029, through the adoption of Law No. 810-IX.
According to preliminary estimates, the damages claimed are EUR 11.5 million.
According to the note, Modus Energy International did not agree to the terms of the Memorandum of Understanding between the government and investors signed in June 2020, which provides for a reduction in feed-in tariffs in exchange for repayment of debts to electricity producers from renewable energy sources.
The company asks the arbitration tribunal to recover from Ukraine, including the losses incurred, as well as interest on them and all costs of the arbitration proceedings.
For its part, the Ministry of Justice points out in a note that a meeting of the Interdepartmental Working Group was held on April 2, at which it was deemed expedient to involve a legal advisor to properly protect the interests of the state in arbitration in the course of applying the negotiation procedure for the purchase of its services.As reported, the National Energy and Utilities Regulatory Commission of Ukraine (NEURC) in 2019 approved a feed-in tariff of 15.03 euro cents per 1 kWh for solar power plants Bolokhivsky Solar Park 1 and Bolokhivsky Solar Park 2 until January 1, 2030. Investments in the project amounted to EUR 30 million. In addition, in the first half of 2019, Modus Grupe began construction of two solar power plants in Ukraine with a total capacity of 46 MW.
Ukraine is ready to develop inter-parliamentary cooperation with Italy, Chairman of the Verkhovna Rada of Ukraine Dmytro Razumkov said during a meeting with Ambassador Extraordinary and Plenipotentiary of the Italian Republic to Ukraine Pier Francesco Zazo. “We are ready to deepen relations between the Ukrainian parliament and our partners from Italy. Both with the Senate and with the Chamber of Deputies,” the parliament’s office press service said, citing Razumkov.
The chairman of the Verkhovna Rada also said it is important to intensify interaction between Ukraine and Italy at the level of friendship groups.
During the meeting, the sides discussed the reform process in Ukraine.
“Reforms in Ukraine continue. This is not happening quickly, however, the main thing is quality. Something we have already managed to do, something is still in the implementation mode,” the chairman of the parliament said.
He said a bill is currently being considered in the session hall that will help implement land reform. At the same time, judicial and anti-corruption reforms continue.
The sides also discussed the situation in the east of Ukraine. Razumkov thanked Italy for the unchanged position on the territorial integrity and sovereignty of Ukraine.
“The principled position on sanctions pressure is very important for us. As practice has shown, this particular mechanism is one of the most effective. It is not fast, but we see its effectiveness,” Razumkov said, adding that the situation in the temporarily occupied Crimea, in particular, with regard to human rights violations, continues to deteriorate.
In addition, during the discussion, the issue of Ukraine’s European integration and Euro-Atlantic aspirations was raised.
“The integration of Ukraine into the EU, NATO is not just words, these are principles that are enshrined in the Constitution of our state. Therefore, we count on the support of Italy,” the Verkhovna Rada chairman said.
At the same time, Ambassador Extraordinary and Plenipotentiary of Italy to Ukraine Pier Francesco Zazo said that in order to establish effective inter-parliamentary relations, it would be advisable to establish direct communication between the parliaments of our countries.
In addition, Ukraine and Italy, according to him, have significant economic potential. At the same time, it is important for Italy to continue the reform process in our country, in particular, the reform of the judicial procedure, because this will allow attracting Italian investments.
The Ukrainian Energy Exchange in the first quarter of 2021 sold untreated timber at auctions for a total of UAH 375.5 million, which is 5.83 times more than in the same period last year, the exchange reported in a press release.
According to its data, the bulk of the timber sold is the products of the Kyiv regional (including Kyiv) department of forestry and hunting. Common oak, common pine, alder, birch are in the greatest demand.
“Auctions for the sale of untreated timber is an absolutely transparent and open way to sell timber of Ukrainian origin. Competition at the exchange auctions sometimes reaches 10-15 participants per lot, contributing to the formation of fair market prices,” head of the exchange committee Oleksiy Dubovsky said.
As reported, the Ministry of Environmental Protection and Natural Resources in September 2020 offered to sell 100% of unprocessed wood at electronic auctions, and not 25%, as provided for by the government’s pilot project approved in December 2019. At the same time, ProZorro.Sale together with partners-electronic platforms has already introduced new convenient interfaces to accelerate and simplify the participation of buyers.
TOP 20 countries of Ukraine’s foreign trade partners IN Jan 2021 (thousand USd)
The pharmaceutical company Farmak increased capital investments by 78% in 2020 compared to 2019, to UAH 1.3 billion.
According to the company’s press release, the main investment projects last year are the launch of a new workshop for the production of sterile drugs and the start of construction of an R&D center, which will develop modern complex component drugs.
Farmak’s research and development expenditures in 2020 amounted to UAH 448 million.
In addition, the company’s funds were used to modernize and equip existing sites, bring production facilities in line with FDA (U.S. Food and Drug Administration) requirements, energy saving projects, develop a laboratory complex, and implement IT projects to automate business processes.
The company also said that in 2020 Farmak paid UAH 712.1 million in taxes, and the number of employees for the specified reporting period increased to 2,761 people.
Farmak is the leader of the Ukrainian pharmaceutical market, produces medicines in all 14 therapeutic groups. Annually, the company introduces to the market about 20 new complex component modern drugs. Currently, there are about 100 drugs in development. The company exports products to more than 25 countries around the world.
Over the past five years, Farmak’s investments in the scientific and technical complex, production equipment, and research activities amounted to UAH 3.4 billion.
JSC Farmak is a member of the Association of Manufacturers of Medications of Ukraine (AMMU).
PrJSC Centravis Production Ukraine, part of Centravis Ltd., has launched several large-scale programs for the environmental modernization of the enterprise with a total investment of more than UAH 140 million.
According to the company’s press release on Wednesday, the projects include a comprehensive reconstruction of the chemical pipe treatment section, the construction of a reagent treatment system for acid wastewater, as well as the transition to autonomous modular boiler houses.
At the same time, it is noted that care for the environment is part of the Centravis evolutionary path. In this regard, the company has developed and is actively implementing a number of environmental programs that will help reduce the impact on the environment.
One of Centravis’s goals is to eliminate the use of energy-consuming alkaline melt by radically changing the technology of chemical processing of seamless pipes. To this end, the company has entered into a contract for the supply of a new dipping tank, which will allow the introduction of an innovative technology for the chemical treatment of pipes in the near future. The installation of the new tank is scheduled for the first half of 2021.
Also, within the framework of this program, a comprehensive reconstruction of the entire chemical processing section of pipes will be carried out, including a complete repair of the ventilation system. The cost of the entire complex of measures within the framework of this project will amount to more than UAH 70 million.
Another equally important environmental program is the construction of a reagent acid wastewater treatment system. It is planned that the system will be built by 2022, and the project cost will be more than UAH 45 million.
In addition, in 2021, Centravis will switch to autonomous modular boiler houses and abandon the centralized supply of steam and heating, which will make production more energy efficient. At the same time, the company will reduce carbon dioxide emissions by 140 tonnes per month. The expected cost of the project for the construction of modular boiler houses is about UAH 25 million.
“We will be able to complete the bulk of the work under the eco-program by the end of 2021. Centravis will continue to actively invest in environmental programs, since caring for the environment and the health of our employees will remain our focus in a long-term strategy based on an evolutionary path,” the press service said, citing Head of Purchasing at Centravis Tetiana Omelchenko.
Centravis is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnipropetrovsk region). It is included in the top ten world players. The company employs over 1,400 people.
