Business news from Ukraine

Business news from Ukraine

DTEK TO INCREASE COAL IMPORTS TO 450,000 TONNES IN FEB THANKS TO IMPORTS FROM POLAND AND KAZAKHSTAN

DTEK will increase coal imports to 450,000 tonnes in February, which will secure the operation of as much equipment of the company’s power plants as possible in February-March, as well as allow meeting obligations to Centerenergo, DTEK CEO Maksym Timchenko has said.

“We are overcoming the lack of coal through contracts with Poland and Kazakhstan. In February, we will have 450,000 tonnes of imported coal. We are meeting our obligations to Centrenergo to supply 250,000 tonnes of coal. We extract coal in our mines as much as it is technically possible. And we bring the coal imbalance that is needed to get through February-March,” he said.

According to Timchenko, the company imports about 120,000-150,000 tonnes of coal per month from Russia.

“In Ukraine, there is no way to have our own anthracite, so we bring it from Russia. We bring our anthracite, which we extract at our Obukhovskaya mine. We bring 120,000-150,000 tonnes per month. But in order to attract additional resources quotas are to be obtained in the Russian Federation. These quotas are reduced for political or non-political reasons. That is, we have no rhythm in deliveries,” the head of the company said.

Timchenko noted DTEK’s readiness to use natural gas as a fuel in case of need for its own TPPs. “In February-March, we will declare the maximum load-bearing equipment, and this equipment composition will be provided with fuel, coal or gas, on certain days when the system requires it. We have gas burning limits, and we always understand that we can have a plan B if there are problems with the supply of coal,” the CEO of DTEK said.

UKRAINE INCREASES FX EARNINGS FROM EXPORTS OF FERROUS METALS IN JAN

Metallurgical enterprises of Ukraine in January this year increased receipts from exports of ferrous metals by 4.5% compared to the same period last year, to $745.530 million.

According to updated statistics released by the State Customs Service on Tuesday, ferrous metals for this period accounted for 18.98% of total revenues from exports of goods versus 17.16% in the first month of last year.

In December, revenues from exports of ferrous metals amounted to $714.503 million.

At the same time, in January this year, Ukraine reduced imports of similar products by 10.6%, to $57.732 million. In December, this figure was $87.321 million.

In addition, in January 2021, Ukraine cut exports of metal products by 0.5%, to $63.522 million. In December, metal products for $84.921 million were delivered.

During this period, imports of metal products decreased 6.6%, to $52.909 million. In December, metal products for $82.833 million were imported.

During New Year holidays over 300,000 Ukrainians, who are subscribers of Kyivstar, traveled across Ukraine and abroad

During the New Year holidays, over 300,000 Ukrainians, who are subscribers of the mobile network operator Kyivstar traveled across Ukraine and abroad.

Thus, the top ten cities of Ukraine, where Kyivstar subscribers most actively traveled during the New Year holidays, included: Kyiv, Lviv, Odesa, Vinnytsia, Dnipro, Ivano-Frankivsk, Kharkiv, Ternopil, Khmelnytsky, and Rivne. Tourist mobility peaked on December 28, 2020 and January 3, 2021.

The three most popular ski resorts in Ukraine among the operator’s subscribers were Bukovel, Slavske, and Dragobrat. The tourist peak of mobility of Ukrainians who went to ski resorts fell on December 31, 2020, January 1, January 2, January 8 and January 9, 2021.

According to the company, the majority of Ukrainians went abroad to Egypt, Turkey, Poland, Moldova and Romania. At the same time, in 2019, Kyivstar subscribers preferred Poland, Egypt, Moldova, the Czech Republic and Germany.

In addition, according to the data provided, in 2020, new directions appeared among the countries that were visited by Kyivstar subscribers on New Year’s holidays, such as the Maldives, Dominican Republic, Bulgaria, and Tanzania.

The company said that the number of tourists who traveled abroad in 2020 fell by 81% compared to 2019.

“Big Data remains a strategic business direction in Kyivstar. Its potential is huge, because analytics helps in the development of various smart ecosystems, including urban ones in terms of tourism potential or infrastructure improvement. And Kyivstar has everything necessary resources for developing the sector: data, technical equipment, a team of analysts and data scientists, innovative technologies and opportunities,” the press service of Kyivstar said, quoting New Business Director at Kyivstar Ilya Polshakov.

The operator said that the mobility data for subscriber groups was analyzed from December 24, 2020 to January 10, 2021.

When determining a trip within Ukraine, only one settlement was taken into account, in which the subscriber spent more time, but no less than two days. When determining a foreign trip, only one country was taken into account in which the subscriber spent the most time.

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Ukraine expects rise in production of pork in 2021

Pork production in Ukraine in 2021 will grow by 3.1%, poultry – by 0.1%, while beef production will decrease by 6%, milk and dairy products – by 4.2%, eggs – by 4.3%, fish catch – by 2.3%, such balances of supply and demand were announced by the Ministry of Economy.

Production of poultry in Ukraine in 2021 will amount to 1.43 million tonnes, exports will decrease by 0.9%, to 430,000 tonnes, and imports by 7.1%, to 104,000 tonnes.

Annual supply of poultry on the domestic market will exceed demand by 1.3 times, by 326,000 tonnes in absolute terms.

Pork production in Ukraine in 2021 will grow by 3.1% compared to 2020, to 740,000 tonnes, and demand will exceed supply by 10.9%, or 90,000 tonnes. Imports of this product over the same period will decrease by 2.9%, to 100,000 tonnes, while exports will grow by 20%, to 10,000 tonnes.

Beef production in Ukraine in 2021 will decrease compared to 2020 by 6%, to 294,000 tonnes, and the domestic supply will exceed the demand by only 3.6%, or 11,000 tonnes. According to the department, in such conditions, exports will fall by 26.3%, to 28,000 tonnes, while imports will grow by 5.8%, to 17,000 tonnes.

Production of milk and dairy products in Ukraine in 2021 will decrease by 4.2% compared to 2020, to 9.10 million tonnes, of which 2.79 million tonnes will be produced by enterprises, and the rest – by households. At the same time, the import of this product over the same period will increase by 0.08%, to 750,000 tonnes, and exports will decrease by 10.4%, to 360,000 tonnes, which is a consequence of the excess of domestic demand over domestic supply at the level of 420,000 tonnes.

Egg production in Ukraine in 2021 will decrease by 4.3% compared to 2020, to 896,000 tonnes. The catch and production of fish and fish products in Ukraine in 2021 will grow by 2.3% compared to 2020, to 126,000 tonnes.

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KAZAKHSTAN INCREASES NUMBER OF FLIGHTS TO RUSSIA, UKRAINE AND OTHER COUNTRIES

Kazakhstan is increasing the number of regular flights with Russia, Kyrgyzstan, Uzbekistan, Ukraine, and the Maldives.
The relevant decision was made by the interdepartmental commission to prevent the spread of Covid-19, the civil aviation committee of the Kazakh Industry and Infrastructure Development Ministry said on Wednesday.
Thus, in accordance with the interdepartmental commission’s decision, the number of flights to Russia will increase by seven in general, from three to 10 flights per week on each side. This includes the number of Nur-Sultan-Moscow flights increasing from two to four per week on each side and Almaty-Moscow flights increasing from one to four per week on each side. Shymkent-Moscow flights, one per week on each side, and Aktau-Moscow, one per week on each side, are resumed.
The number of flights to the Maldives is up from four to seven per week for Kazakh companies on the Almaty-Male route.
The number of Almaty-Bishkek (Kyrgyzstan) flights is increasing from two to three per week.
Along with this, the number of flights to Uzbekistan is increasing from three to four (on each side) due to one more Nur-Sultan-Tashkent flight per week. Since September 11, one flight has been performed on the Nur-Sultan-Tashkent route and two on the Almaty-Tashkent route.
The number of flights to Ukraine is increasing to two, due to the resumption of one flight per week on the Nur-Sultan-Kyiv route. In August 2020, flights on the Almaty-Kyiv route were resumed.

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INSURANCE COMPANIES OF UKRAINE INCREASE TAX PAYMENT BY 24.5% IN 2020

Insurance companies of Ukraine in 2020 paid profit tax to the state and local budgets in the amount of UAH 1.674 billion, which is UAH 334 million (24.5%) more than in the same period in 2019, and 51, 5% more than in 2018, Oleksandr Zaletov, the vice president of the League of Insurance Organizations of Ukraine (LIOU), has said.

According to him, as a result of the impact of the COVID-19 pandemic, a significant trend in 2020 was the revision of business strategies for almost all insurance companies without exception. The drop in sales for a number of types of insurance (Green Card, tourism, KASKO) encouraged insurers and insurance intermediaries to digitalize. To one degree or another, distance sales and settlement using Internet technologies have become the main strategic objectives of the digitalization of the Ukrainian insurance market. In fact, an indicator of the competitiveness and investment attractiveness of the insurer was the ability to remotely conclude or renegotiate an insurance contract, amend it, and provide documents to the insurer confirming the insured event.

According to Zaletov, unfortunately, the legal framework and technologies for remote servicing of insurance companies’ clients lag significantly behind the needs and need further reform. In addition, on the way of increasing the customer focus of insurers, the tasks of improving the legislative regulation of issues aimed at protecting the rights of consumers of insurance services and countering their discrimination in the field of insurance are of particular importance. In this regard, it should be noted that basing an insurance rate on a characteristic that cannot be changed is contrary to the ideals of the EU and fairness.

“The terms of insurance contracts must not be excessive, inadequate or unfairly discriminatory, for example, direct or indirect restriction of citizens’ rights on the basis of race, color, political, religious and other beliefs, gender, age, health status, disability, ethnic and social origin, property status, residence, linguistic or other characteristics,” he said.

According to Zaletov, other representatives of non-banking financial markets, primarily financial companies, lessors and pawnshops, are also steadily increasing tax payments. So in 2020 they paid profit tax in the amount of UAH 604 million to the state and local budgets, which is UAH 196 million (47.1%) more than in the same period of 2019, and 149.6% more than for 2018.

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