Business news from Ukraine

“Ukrzaliznytsia” plans to purchase up to 80 modern powerful electric locomotives

Ukrzaliznytsia JSC (UZ) plans to purchase up to 80 modern powerful electric locomotives with funds from the European Bank for Reconstruction and Development (EBRD) and the World Bank’s RELINC project.

According to the company’s press service on Friday, the relevant tender was published on the EBRD portal. Applications will be accepted until July 22, 2024.

“According to the terms of the tender, the participants must submit two versions of the tender proposal – for the supply of 30 or 80 locomotives, depending on the availability of funding,” Ukrzaliznytsia said in a statement.

The expected total cost of the project is EUR400 million. Part of this amount – EUR 300 million – will be allocated by the EBRD under a guaranteed sovereign loan. In parallel, the project will be supported by an investment grant of $190 million from the US government, managed by the World Bank (WB) through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) under the WB-managed Restoration of Critical Logistics Infrastructure and Network Connectivity (RELINC) project.

“The tender requirements stipulate that the winner, in addition to supplying locomotives, must create conditions for the maintenance and warranty repair of new traction rolling stock in Ukraine,” Ukrzaliznytsia said.

The company called this an evolutionary step, noting that it is not only purchasing equipment but also changing its approach to its maintenance.

“It will also allow us to localize the capacities for maintenance and repair of locomotives in Ukraine as much as possible,” Ukrzaliznytsia emphasized.

Earlier it was reported that the Export-Import Bank of the United States approved a decision on loan financing for the renewal of the traction rolling stock fleet with 40 diesel locomotives manufactured by Wabtec. The bank is expected to provide financing in the amount of $156 million for a period of 15 years.

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Agrarians sowed 96.4% of spring crops for harvest of 2024

As of May 23, Ukraine sowed 5.4 million hectares with grains and legumes, which is 96.4% of the forecasted spring crops for 2024, the press service of the Ministry of Agrarian Policy and Food reported on Friday.

According to the report, 252.5 thou hectares were planted with wheat (249 thou hectares a week earlier), which is 102.6% of the plan, 782.2 thou hectares with barley (781.6 thou hectares) or 95.6%, 162.5 thou hectares with peas (162.1 thou hectares) or 101.6%, 163.7 thou hectares with oats (162.7 thou hectares) or 100.7%. hectares) or 100.7%, millet – 60 thou hectares (43.1 thou hectares) or 70%, buckwheat – 85.5 thou hectares (48.1 thou hectares) or 68%, corn – 3.809 mln ha (3.57 mln ha) or 97% of the plan, other grains and legumes – 84.4 thou hectares or 91% of the plan.

Last week, the farmers sowed 311.7 thou hectares of spring crops. A week earlier, this figure was 784.7 thou hectares, and 912.9 thou hectares the week before.

In addition, sunflower was sown on 4.958 mln ha, or 94% of the plan (a week earlier the figure was 4.605 mln ha), soybeans – on 1.83 mln ha, or 92% (1640.9 mln ha), sugar beet – on 250.1 thou ha.

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MTIBU has created free online course on basics of new law on CMTPL

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) will conduct an introductory course on the main provisions of the draft law “On Compulsory Insurance of Civil Liability of Owners of Land Vehicles” in connection with the adoption of the draft law by the Verkhovna Rada on May 21, 2024, the Bureau’s website reports.

The introductory course will consist of four sessions (by sections of the draft law), which will be held on the official YouTube channel of the MTIBU on Fridays at 10:00 a.m., lasting 1 hour and 30 minutes, of which 30 minutes will be allocated for answering questions.

Approximate plan of lectures: 1 session: Basic principles of the New Law on MTPL and the procedure for concluding insurance contracts (I-II sections of the draft law), 2-3 sessions: Settlement of insurance claims and the procedure for making payments (Section III of the draft law), Session 4: Updating the functional work of the MTIBU and the basic principles of insurance companies’ membership in the Bureau (Section IV of the draft law).

To participate in the online course, you do not need to register, just follow the link on the specified day at 10:00.

Session links:

31.05.2024 https://www.youtube.com/live/hIQEzWFqQqc

07.06.2024 https://www.youtube.com/live/sy_nYwJzV7c

14.06.2024 https://www.youtube.com/live/EjkFx85kJ6I

21.06.2024 https://www.youtube.com/live/quhN5IfmApc

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Lviv approves cost of transportation work for municipal electric transport

The Lviv City Executive Committee approved a decision on the cost of transportation for municipal electric transport at a meeting on Friday, the press service of the Lviv City Council reports.

According to the decision, the tariff is set at UAH 101 per trolleybus kilometer and UAH 119 per car kilometer. Lvivelectrotrans will be paid for the transportation work performed from June 1 this year.

“The company will calculate the total cost of the transportation work performed: the number of kilometers traveled by electric vehicles will be multiplied by the corresponding cost per 1 km of work. From this amount will be deducted Lvivelectrotrans’ revenue from the services provided and compensation for preferential transportation,” said Oleh Zabarylo, director of the City Council’s Department of Urban Mobility and Street Infrastructure.

According to him, starting from June 2024, the city authorities will pay the difference between the cost of the transportation work performed and the company’s total revenues from the provision of services, including to privileged categories of passengers, so that the company can operate and develop.

Mr. Zabarylo also noted that there is no legal framework for paying road carriers for transportation work in Ukraine, and the relevant bills are only being developed.

Earlier, the Lviv City Council allocated UAH 136 million from the budget to pay for the transportation work of Lvivelectrotrans.

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Former head of State Fiscal Service of Ukraine Nasirov released on bail of UAH 55 mln

Bail of UAH 55 million 592 million was set for former head of the State Fiscal Service of Ukraine (SFS) Roman Nasirov on Friday in a criminal case under Article 368, paragraph 4 of the Criminal Code of Ukraine (acceptance of an offer, promise or receipt of an unlawful benefit by an official).

This is reported on the website of the High Anti-Corruption Court (HACC) without specifying the name of the former official.

“Now the accused is subject to procedural obligations: to appear in court when summoned, and if it is impossible to appear in court within a certain period of time, to notify the court in advance; not to leave Kyiv without the permission of the court; to notify the court of a change of residence; to refrain from communicating with persons specified in the court order; to deposit all their passports of a citizen of Ukraine for traveling abroad, service passports, other documents entitling them to leave Ukraine and enter Ukraine, documents entitling them to enter Ukraine, as well as other documents entitling them to leave Ukraine and enter Ukraine, etc. with the relevant state authorities,” the statement said.

The term of office is until July 7, 2024.

The HACC reminded that the former head of the SFS had been held in custody since October 31, 2022.

As reported, in May 2023, the anti-corruption authorities transferred the case on bribery charges against Nasirvoa to the HACC.

During 2015-2016, the Head of the State Fiscal Service of Ukraine received over UAH 722 million in unlawful benefits in his favor and in favor of third parties for actions related to securing VAT refunds to legal entities controlled by the owner of the agricultural holding in the amount of over UAH 3.2 billion.

According to the investigation, the provision of the illegal benefit in foreign currency (USD 5.5 million and EUR 21 million) was carried out using a number of companies registered abroad that belonged to the owner of one of the agricultural holdings, and its receipt by the official was carried out using non-resident companies controlled directly by the Head of the SFS, his advisor and other persons related to him by family relations.

According to the Specialized Anti-Corruption Prosecutor’s Office, the suspects also engaged other intermediary companies registered outside Ukraine to transfer funds between the above legal entities under the guise of lending and receiving loans or supplying products. At the same time, part of the funds of such unlawful benefit was formed directly from the funds of the budgetary VAT refund converted into foreign currency.

The actions of the former Head of the SFS of Ukraine are qualified under Part 4 of Art. 368 of the Criminal Code of Ukraine, and his advisor – under Part 5 of Art. 27, Part 4 of Art. 368 of the Criminal Code of Ukraine.

In June 2023, HACC judges canceled the decision to reduce Nasirov’s bail from UAH 523 million to UAH 107 million.

In September of the same year, the HACC released Nasirov from criminal liability for forgery due to the expiration of the statute of limitations, but the charge of abuse of office remains.

Ukraine exported 4 mln tons of grain in May

As of May 24, Ukraine exported 45.402 mln tonnes of grains and pulses since the beginning of 2023/24 marketing year (MY, September 2023 – August 2024), of which 3.997 mln tonnes were shipped in May, the press service of the Ministry of Agrarian Policy of Ukraine reported, citing the State Customs Service.

According to the report, as of the same date last year, the total shipments amounted to 44.593 mln tons, including 2.707 mln tons in May.

In terms of crops, since the beginning of the current season, 16.949 million tons of wheat have been exported (in May, the figure was 1.163 million tons), 2.363 million tons of barley (161 thousand tons), 1.4 thousand tons of rye (0.2 thousand tons), 25.563 million tons of corn (2.662 million tons).

Total exports of Ukrainian flour as of May 24 are significantly lower than last year’s figure (138.9 thousand tons) and are estimated at 90.9 thousand tons (4.3 thousand tons in May), including 85.9 thousand tons of wheat (3.9 thousand tons).

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