Business news from Ukraine

Business news from Ukraine

Ukrposhta chose insurer for MTPL insurance

March 22 Ukrainian state postal enterprise Ukrposhta announced its intention to conclude a contract with IC European insurance alliance (Kyiv) for compulsory civil liability insurance of vehicle owners (MTPL).
As reported in the system of electronic public procurement Prozorro, the price offer of the company amounted to 249.472 thousand UAH with an expected cost of purchasing services at the tender 1.007 million UAH.
Five insurance companies took part in the tender. The finalists besides IC “ESA” were IC “Krajina” with the price offer of UAH 444,648 thousand and IC “Guardian” with UAH 294,473 thousand.
PrJSC European Insurance Alliance was founded on September 22, 1994.
Authorized capital makes UAH 55 mln.
The company is member of the Motor (transport) Insurance Bureau of Ukraine, member of the Agreement on direct settlement of losses and member of the Nuclear Insurance Pool of Ukraine.

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ArcelorMittal Krivoy Rog ended 2022 with big loss

ArcelorMittal Kryvyi Rih PJSC (AMKR, Dnipropetrovsk Region) finished the year 2022 with a considerable net loss due to the war and the company operating at 25% of its capacity, but received a $600mn financial aid from ArcelorMittal Corporation.
According to Mauro Longobardo, the company’s general manager, during a communication with the workforce and heads of departments, an account of which was published by the corporate newspaper Metallurg, last year was difficult for the company in all respects.
“The financial situation was very difficult, we have a significant net loss, but we received a significant financial assistance from ArcelorMittal. This money was necessary to continue paying salaries to employees and keep working in spite of difficulties with raw materials procurement, its high cost and other problems,” explained the top manager.
According to him, the company experienced additional losses due to logistics.
“In this matter, we now need to be as flexible as possible. Every week we decide what kind of products we should sell to minimize costs. We hope that this year the situation will improve,” said the mill manager, expressing the hope that the losses will be reduced to zero.
Longobardo also said that the company now plans to increase production in order to achieve at least the prewar level.
On the topic of environmental protection, the general director stressed that the company has until the end of 2023 to further reduce obsolete assets.
“Ukraine is working to meet the conditions of the EU on many issues. And it is already clear that this way it will go much faster than expected. Our company is also accelerating on many fronts. After the war and reaching pre-war production capacity, the company plans to invest in the modernization of the enterprise, implement and introduce the latest production technologies,” Longobardo said.
According to him, the company has planned to allocate $130 million for capital investments for 2023. The main renovation project will be the construction of the Third Map tailings pond. Works on other equally important projects will be continued: the completion of the Fourth Card and Mirolyubovskoye tailing dumps. Special attention will be paid to the pelletizing plant construction project, work on which was suspended because of the war.
In metallurgical production, it is planned to reline Blast Furnace No. 9, and work will continue on its modernization – in fact, it will be the construction of a new tenth blast furnace. There are also plans to increase production in the converter shop, to improve the work of the continuous caster, in the coke plant, in the sintering shop No. 2, etc.
“Now we have time to prepare well for this, so that we can then work hard to increase and stabilize production and implement all capex plans using the most modern technologies,” summarized the CEO.
“ArcelorMittal Krivoy Rog is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, in particular rebar and wire rod.
ArcelorMittal owns the largest mining and metallurgical plant “ArcelorMittal Krivoy Rog” in Ukraine and a number of small companies, in particular PJSC “ArcelorMittal Beryslav”.

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Ukraine has successfully transplanted lungs for third time

Transplantologists of the Feofania Clinical Hospital in Kiev performed lung transplantation, which became the third transplantation of this organ in Ukraine.
According to the website of the Ministry of Health, the transplant was performed directly by a team from the hospital, whose specialists underwent three months of training in heart and lung transplantation at Massachusetts General Hospital (USA).
The new donor organ came from a 51-year-old man who had a complex lung disease and had had a coronavirus disease two weeks before the transplant, which made his condition very difficult.
“The patient was on continuous oxygen support. The operation lasted 12 hours, while the man is in intensive care, his condition is satisfactory,” the Ministry of Health reported.
The donor was a 60-year-old woman who was pronounced brain dead due to a hemorrhagic stroke. The decision made by her relatives saved the lives of three more people: transplantologists of “Feofania” transplanted her liver to a 62-year old man and specialists of the Institute of Nephrology of NAMS of Ukraine and A.A. Shalimov Institute of Surgery and Transplantology transplanted kidneys to two women.
“All the patients who have had their organs transplanted feel satisfactory. The transplanted organs are working. For the patients the whole process of transplantation and lifelong receipt of immunosuppressant drugs is free of charge, the state pays for it,” the Ministry of Health stressed.

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EU will continue to support Ukraine for as long as necessary – summit conclusions

European Union leaders say they will continue to fully support Ukraine by providing political, economic, military, financial and humanitarian aid for as long as needed.
This is the case in the conclusions on Ukraine adopted at a European Council meeting Thursday in Brussels.
“The European Union firmly and fully supports Ukraine and will continue to provide strong political, economic, military, financial and humanitarian support to Ukraine and its people for as long as necessary. The European Union and member states will intensify their efforts to help meet Ukraine’s urgent military and defense needs,” the document said.
In addition, the findings state that the European Union remains committed to supporting Ukraine’s recovery and reconstruction in coordination with international partners. “In this context, the European Council reiterates the EU’s full support for the establishment of an international mechanism to record the damage caused by Russia. Together with partners, the European Union will continue to step up efforts to use frozen and immobilized Russian assets to rebuild Ukraine and to make reparations in accordance with EU law and international law,” the text said.
EU leaders also welcomed Ukraine’s commitment and efforts to implement reforms and underlined the importance of Ukraine’s accession process in line with its earlier conclusions, in particular those of June 23-24, 2022.

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Sukhaya Balka mine commissioned new iron ore mining block

Sukhaya Balka” mine (Krivoy Rog, Dnipropetrovsk region), which belongs to Alexander Yaroslavskyy`s DCH group, put into operation a new block 128-134 for iron ore extraction in March this year.
According to a corporate newspaper DCH Steel, the block was put into operation on March 6, the first explosion took place there on March 11, and on March 15 the first ore was “worked up”.
As it is specified, the working unit from “Golovny” deposits is located at a depth of minus 1420 meters. Lava thickness is about 130 thousand ores. Iron content is 61%.
The preparatory work to put the new longwall face into operation lasted 4.5 months. It is planned to mine the new block within four months.
The Sukhaya Balka mine is one of the leading enterprises of mining industry in Ukraine. It extracts iron ore by underground mining. The mine includes the Yubileynaya and Frunze mines. Frunze. DCH Group acquired the mine from Evraz Group in May 2017.

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“Agrotrade” fulfilled its grain storage plan by 87%

Plan of stocking of Agrotrade group’s elevators as of mid-March is fulfilled by 87%: the holding’s granaries received 425 thousand tons of grain.
“This year we have the best indicator for the harvesting of early grains, which includes wheat, rape, rye, barley and mustard. It reached 115 percent execution,” the company said on Facebook Wednesday.
She pointed out that the second place is taken by oilseeds: the company’s elevators received 82.5% of the planned harvest of sunflower and soybeans, and the plan to harvest corn was fulfilled by 73%.
It is specified that traditionally the elevators of Agrotrade Group accepted grain both grown on their own farms and from third-party depositors.
It is noted that thanks to the purchase of powerful generators for elevators the Group was able to solve the problem of power supply, which was acute this season.
“In the end, considering all the difficulties, we are satisfied with the results of the season,” Konstantin Vorona, director of the production and technical department of Agrotrade Group, was quoted in the report.
Agrotrade Group is a vertically integrated holding of a complete agricultural cycle (production, processing, storage and trade of agricultural products). It cultivates over 70 thousand hectares of land in Chernigov, Sumy, Poltava and Kharkov regions. Profile crops – sunflower, corn, winter wheat, soybeans and rapeseed. It has its own network of elevators with a single storage capacity of 570,000 tonnes.
The Group also produces hybrids of corn and sunflower seeds, barley and winter wheat. A seed plant with an annual capacity of 20,000 tons of seeds was built on the basis of the Kolos seed farm (Kharkiv region) in 2014. In 2018, Agrotrade launched its own brand Agroseeds on the market.
The founder and CEO of Agrotrade is Vsevolod Kozhemyako.

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