Business news from Ukraine

Business news from Ukraine

FIRST GENERAL ELECTRIC LOCOMOTIVE ARRIVES TO UKRAINE

The first General Electric Trident (Tryzub) locomotive has arrived in Chornomorsk (Odesa region), the press service of PJSC Ukrzaliznytsia has said. “We welcome the Trident locomotive in Ukraine! The first locomotive of General Electric arrived in the port of Chornomorsk. Now we will load the locomotive on rails,” Ukrzaliznytsia said on Facebook. As reported, in the beginning of August General Electric Transportation sent the first of 30 GE TE33AC locomotives to Ukraine.
The framework agreement between Ukrzaliznytsia and GE envisages a 15-year partnership in updating and modernizing traction rolling stock, the first stage of which is the delivery to Ukrzaliznytsia under the terms of leasing of 30 new GE TE33AC diesel locomotives with a localization level of 10%.
GE Transportation and Kriukov Car Building Works in early June signed an agreement on the localization of production of 30 TE33A Evolution series locomotives. It was assumed that Ukrzaliznytsia will receive the first locomotives in late 2018.

NATIONAL BANK OF UKRAINE TIGHTENS RESPONSIBILITY OF BANKS FOR INEFFICIENT RISK MANAGEMENT

The National Bank of Ukraine (NBU) intends to impose restrictions on certain types of bank operations in case if the bank’s risk management system is recognized as ineffective. The document comes into force on September 11, 2018. The regulator may also require the bank to suspend or terminate certain types of transactions.
The final decision will be made based on the evaluation of the viability of the bank’s business model, analysis of the provided actual and forecast balance sheet data, profit and loss statements, transactions with related parties, and regulatory capital components.

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CONSUMER PRICES IN UKRAINE REMAIN UNCHANGED IN AUGUST

Consumer prices in Ukraine, after the decrease by 0.7% in July, in August remained unchanged, while since the beginning of the year their growth was 3.6%, the State Statistics Service of Ukraine has reported. According to the agency, in annual terms (August 2018 from August 2017) inflation slightly grew, to 9% compared to 8.9% in July, which, however, is below 9.9% in June and 11.7% in May.
Underlying inflation in August 2018 amounted to 0.1% after minus 0.1% in July, while in the eight months it reached 3.5%.
In annual terms, the rise in the basic index slowed to 8.7% from 8.8% in July and 9% in June.
As reported, inflation in Ukraine in 2017 accelerated to 13.7% compared with 12.4% in 2016, which, however, is significantly lower than in the past years, in particular 43.3% in 2015 and 24.9% in 2014.
The National Bank at the end of October 2017 downgraded the forecast for inflation in 2018 from 6% to 7.3%, in January 2018 to 8.9%, while the Cabinet of Ministers from 7% to 9%.

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NUMBER OF GREEN CARD INSURANCE CONTRACTS 6% UP

The number of Green Card international insurance contracts signed by the members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-July 2018 increased by 6.16% compared to the same period in 2017, to 425,111.
According to the MTIBU, the amount of accrued insurance premiums increased by 24.9%, to UAH 764.4 million.
The amount of insurance claim fee payments for the seven months rose by 0.6%, almost to EUR6.895 million.
The number of paid claims grew by 1.65%, to 2,957.
The MTIBU is the only association of insurers that carry out compulsory insurance of vehicle owners’ civil liability for harm caused to third parties. Its members are 56 insurance companies, including nine full members of the bureau that have the right to sign Green Card contracts.

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