Business news from Ukraine

Business news from Ukraine

PASSENGER FLOW THROUGH WESTERN BORDER OF UKRAINE IN MAY 2022, IN THOUSANDS (GRAPHICALLY)

Passenger flow through western border of Ukraine in May 2022, in thousands (graphically)

Data: State Border Service

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EUROPEAN COUNCIL PUBLISHES DECISION ON GRANTING UKRAINE STATUS OF CANDIDATE MEMBER OF EU

The European Council has published the conclusions of the meeting regarding granting Ukraine the status of a candidate member of the European Union.

“The European Council recognizes the European perspective of Ukraine, the Republic of Moldova and Georgia. The future of these countries and their citizens lies in the European Union. The European Council has decided to grant the status of a candidate country to Ukraine and the Republic of Moldova,” says the third section of the conclusions entitled “Application for membership of Ukraine, the Republic of Moldova and Georgia”.

The conclusions note that the European Commission is requested to report to the Council on “the fulfillment of the conditions specified in the Commission’s opinions on relevant applications for membership under its regular enlargement package”. “The Council will decide on further steps once all these conditions are fully met,” the document says.

With regard to Georgia, it is stated that the European Council is “ready to grant the status of a candidate country to Georgia after the priorities indicated in the Commission’s opinion on Georgia’s application for membership are resolved.”

“Each country’s progress towards the European Union will depend on its own merit in meeting the Copenhagen criteria, including the EU’s ability to admit new members,” the conclusions said.

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EUROPEAN PARLIAMENT CALLED ON EU LEADERS TO GRANT UKRAINE CANDIDATE STATUS FOR EU MEMBERSHIP

The European Parliament called on the leaders of the European Union, who will gather in Brussels on Thursday for a meeting of the European Council, to grant Ukraine the status of a candidate member of the European Union.
The corresponding resolution was voted on Thursday in Brussels in the framework of the plenary session of the European Parliament. “For” – 529, “against” – 45, with 14 abstentions.
“The European Parliament calls on the Heads of State and Government, who will meet within the Council of Europe on June 23 and 24, to immediately grant the status of EU candidate members to Ukraine and the Republic of Moldova, as well as to grant the same status to Georgia after its government fulfills the priorities indicated by the European Commission” , the resolution says.
At the same time, the European Parliament stressed that the heads of state and government “should fulfill their historical responsibility and give clear political signals” confirming their European perspective.
The resolution notes that in the context of “Russia’s brutal aggressive war against Ukraine, this step will be equated with a demonstration of leadership, determination and foresight.” MEPs point out that there is “no fast track for EU membership and that accession remains a merit-based and structured process that requires the fulfillment of EU membership criteria and depends on the effective implementation of reforms.”

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PRODUCTION OF PAPER AND CARDBOARD IN JAN-MAY IN UKRAINE DECREASED BY 45%, CORRUGATED PACKAGING – BY 57%

Production of paper and cardboard in Ukraine in January-May of this year decreased by 44.7% compared to the same period in 2021 – to 198.2 thousand tons, corrugated packaging – by 57%, to 126.9 million sq. m, according to the statistics of the association “UkrPapir”.
According to the statistics provided by the association to the Interfax-Ukraine agency, if in January of this year the production of paper and cardboard lagged behind last year by 4.6%, and corrugated boxes exceeded by 3.5%, then already in January-March, taking into account suspension of many enterprises with the beginning of a full-scale war of the Russian Federation against Ukraine, the production of these products decreased by 44% and 54%, respectively.
At the same time, some of the enterprises that stopped work at the beginning of the war never resumed it – in particular, due to the damage received in Rubizhne, the largest Ukrainian manufacturer of corrugated packaging, the Rubezhnoye Cardboard and Container Plant, stopped working (but its “daughter” in the Kyiv region – Trypilsky packing plant).
According to information in the disclosure system of the National Commission for Securities and the Stock Market (NKTSBFR), a remote extraordinary meeting of the plant’s shareholders is scheduled for July 4 with the issue of transferring the location of the Rubezhsky CPC legal entity to Kyiv.
According to UkrPapir, the damaged Rogan cardboard factory in the Kharkiv region has not resumed work (and does not plan to).
From the producers of corrugated packaging, Dunapak Tavria LLC, located in the Kherson region, also does not work (it produced boxes for Novaya Poshta – IF), and the Mena Pak company in the Chernihiv region, according to information available to the association, was able to resume work in May.
Zmievskaya paper mill (Kharkiv region) after three months of forced downtime in May reported the production of 1863 tons of recycled paper against 783 tons in May 2021.
At the same time, after the February suspension of production, the industry leader Kyiv Cardboard and Paper Mill has been operating since March (in terms of the production of corrugated packaging last year – the second after Rubezhansky CPC), Zhydachevsky Pulp and Paper (Lvov region) and Izmail Cardboard (Odessa region), Malinsky paper factory and “Papir-Mal” (Zhytomyr region)
In addition, according to statistics, the Lviv Cardboard and Paper Company did not stop working, maintaining the output of paper and cardboard in January-May at the level of last year, Poninkovskaya (Khmelnytsky region) and Lutsk (Volyn region) cardboard and paper factories, Kokhavinskaya paper mill (Lviv region).
As reported, in 2021, the production of paper and cardboard in Ukraine increased by 9.8% by 2020, to 898.2 thousand tons, corrugated boxes – by 5.9% to 752.9 million square meters.
Association “UkrPapir” unites 35 enterprises and companies, in particular 20 manufacturers of cardboard and paper products and printing enterprises, 11 distributors, two suppliers and suppliers of waste paper.

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INSURANCE COMPANIES OF UKRAINE IN 2021 INCREASED COLLECTION OF NET PREMIUMS AND PAYMENTS

Insurance companies of Ukraine in 2021 collected net premiums in the amount of UAH 45.987 billion, which is 14% more than in 2020 (UAH 40.350 billion), the National Bank of Ukraine reported on its website.
According to the regulator, the volume of gross insurance premiums collected by insurers last year amounted to UAH 49.708 billion, which is 10% more than a year earlier (UAH 45.185 billion). Of these, receipts from individuals amounted to UAH 27.912 billion, from reinsurers – UAH 1.890 billion (in 2020 – UAH 4.201 billion).
In addition, according to the regulator, in 2021, Ukrainian insurers paid UAH 17.671 billion of net insurance payments (+22.3% by 2020). The level of net payments increased to 38.4% from 35.8%.
According to the NBU, gross insurance payments increased by 20.9% to UAH 17.958 billion. The level of gross payments increased to 36.1% from 31.9%
According to the regulator, the volume of insurance payments owned by reinsurers in 2021 amounted to UAH 8.623 billion (+1.6%), of which non-resident reinsurers – UAH 4.9023.652 billion (+34.3%).
The regulator also reports that last year the volume of formed insurance reserves increased by 7.2% – up to UAH 36.566 billion. At the same time, with a decrease in the total assets of insurers by 1.1%, to UAH 64.209 billion, the volume of assets determined by law to represent insurance reserves increased by 2.3% compared to 2020, to UAH 47.159 billion. The volume of paid authorized capital decreased by 18.7% – to UAH 7.924 billion.
The regulator also reports that in 2021, 131.562 million contracts were concluded, while a year earlier, 120.586 million insurance contracts were concluded.
According to the NBU, the total number of insurance companies in Ukraine as of December 31, 2021 was 155, while on the same date a year earlier it was 208.

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