Business news from Ukraine

Business news from Ukraine

ODESAVYNPROM SOLD FOR UAH 235 MLN

 Kaplor 7 LLC (Odesa), which on September 14 offered the highest price for the integral property complex of the Odesavynprom winery put up for sale by the State Property Fund (SPF), paid the necessary amount to the budget – UAH 234.9 million.“Recently, the buyer of Odesavynprom paid UAH 235 million, although the public had doubts that it would transfer the money,” SPF Head Dmytro Sennychenko said in an interview with Interfax-Ukraine.According to the ProZorro.Sales platform, 12 companies participated in the auction, at which the starting price was UAH 65.32 million. The main competitors of Kaplor 7 were City Board Service LLC (Odesa, offered UAH 234.2 million), Hola Invest LLC (Odesa, UAH 234.1 million) and Sinai 10 LLC (Kyiv, UAH 234.1 million).He said that the practice of using a special-purpose vehicle (SPV) is quite widespread abroad. According to him, even in case of refusal to purchase, the budget receives a deposit of 10% of the starting price, and such receipts, for example, only with the sale of distilleries amounted to UAH 30 million.Sennychenko added that the winner of the recent auction for the sale of Electronmash – also a little-known company Lorten Group, which offered UAH 970 million with the starting price of UAH 66.7 million – nevertheless signed the auction protocol, which gives reason to expect payment within up to 60 days.According to the terms of the auction for the sale of Odesavinprom, the buyer is obliged to keep the production of wines, to provide social guarantees to employees for at least three years. It is obligatory to conclude a protection agreement for the building of Sovkhozvintrest – an architectural monument built in 1895.According to the unified public register of legal entities and sole proprietors, Kaplor 7 LLC was registered in January 2017. Its charter capital is UAH 500,000. It is engaged in the production of wines and trade in household goods. The ultimate beneficiary is Natalia Holub (earlier Raisa Kurpedinova).Odesavynprom includes 97 real estate facilities (28 units of buildings and structures, 69 amphorae for wine storage), as well as technological equipment, vehicles, etc.The enterprise is located on land plots with a total area of 2.67 hectares.In March 2021, the SPF extended the lease agreement for the Odesavinprom property for six months with PJSC Odesavynprom before its privatization. The lease agreement with the tenant was concluded in 1992, after which it was repeatedly renewed.PJSC Odesavynprom is engaged in the production of cognacs, still and sparkling wines under the French Boulevard and Guliev Wines brands, and also provides its facilities for bottling Crimean brands.

STATE PROPERTY FUND HEAD ANNOUNCES RESIGNATION

Head of the State Property Fund (SPF) of Ukraine Dmytro Sennychenko announced his resignation of his own free will.“Resignation is my personal desire and my plans,” he said at a press conference in Kyiv on Thursday.Sennychenko said that he originally planned to work in this position for about two years. According to him, he managed to achieve the main tasks set, namely to ensure the stability of the processes in the fund, to create a team, to digitalize the processes and to consolidate the improvements in laws and regulations.The SPF head said the decision to resign was not connected with the auction for the sale of Bilshovyk.Sennychenko said that after submitting the application, he had already had a meeting with the president and prime minister. According to him, his application has already been registered in the Verkhovna Rada.The SPF head said that after his resignation he intends to rest for at least two months.

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UKRAINIAN STATE-OWNED BANK OFFERS CLIENTS TO INVEST IN CORPORATE EUROBONDS

State-owned Ukreximbank (Kyiv) has expanded the list of securities for investment, and offers its clients corporate eurobonds placed on international stock markets and admitted to circulation on Ukrainian stock exchanges.According to the financial institution, in addition to sovereign eurobonds at the request of clients, Ukreximbank carries out operations with eurobonds of Ukrainian companies Naftogaz Ukrainy, Metinvest, Kernel Holding, MHP SE, and DTEK Renewables.In addition, clients can purchase eurobonds of Ukrainian Railway (Ukrzaliznytsia), Vodafone Ukraine, Ukravtodor, Oschadbank, Ukreximbank. In the future, the bank plans to expand the list of investment services and provide access to trading in shares of foreign companies, the press release says.“Among the first transactions, a significant one is the acquisition by our client […] of corporate eurobonds of Ukreximbank. We value the trust of our clients and are glad that now, among the instruments for placing funds, we can offer, among other things, investments in debt instruments of international capital markets,” member of the bank’s board Mykhailo Medko said.Ukreximbank was founded in 1992, its sole owner is the state. According to the National Bank of Ukraine, as of September 1, 2021, Ukreximbank ranked third in terms of total assets (UAH 241.973 billion) among 72 banks operating in the country.

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AVERAGE MONTHLY WAGE BY REGION IN SEPT 2021, UAH

Average monthly wage by region in Sept 2021, UAH

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MORTGAGE LENDING IN UKRAINE GROWS BY 2.7 TIMES

 In January-September 2021, Ukrainian banks issued 7,500 mortgage loans worth UAH 6.07 billion, which is twice as much as in the nine months ending September 30, 2020 in terms of the number of such loans and more than 2.7 times in terms of their volume, the National Bank of Ukraine (NBU) said on Tuesday in a monthly survey of banks.According to the survey, lending in September remained almost at the level of the previous month: in September, 943 mortgage loans were issued for UAH 812 million, compared with 944 loans for UAH 844.3 million a month earlier.The press service of the NBU said that the mortgage lending market remains concentrated: the five most active banks have concluded 90% of new transactions.Loans for the purchase of housing in the secondary real estate market are still ahead of the primary market: in September, their share exceeded 88% of all mortgage loans provided both in terms of the number of contracts and in terms of money volume, the NBU said in the press release.According to the survey, the average size of a loan for the purchase of housing in September was lower than in August – UAH 861,100 versus UAH 889,700 due to an increase in the share of mortgage lending in the regions and a decrease in the average contract amount in Kyiv. According to the NBU, in September the average effective rate of a mortgage loan in the secondary market fell by 0.3 percentage points, to 13.62% in September, and in the primary market – by 1.5 percentage points, to 15.38%.

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MOLDOVA AND UKRAINE DISCUSS TRADE

Deputy Minister of Economy, Trade Representative of Ukraine Taras Kachka and State Secretary of the Ministry of Economy of Moldova Vadim Gumene have discussed trade protection issues between the countries during a meeting of the Ukrainian-Moldovan working group, the Ministry of Economy of Ukraine has reported.“Some of the issues of bilateral trade, which we today [on November 16] are raising at the meeting, have been discussed for several years. Resolving trade disputes, in particular on ensuring an equal and transparent approach to Ukrainian exporters in accordance with the principles of the World Trade Organization, will be favorable strengthening Ukrainian-Moldovan trade relations and increasing the dynamics and bilateral trade,” the press service of the ministry said on the website, citing Kachka.As the ministry said, the Moldovan side raised the issue of the use by Ukraine of anti-dumping duties on the import of cement, rods from carbon and other alloy steels originating from Moldova to Ukraine. At the same time, the Ministry of Economy said that Ukraine has already begun an interim revision of anti-dumping measures for the import of cement into Ukraine from the Rybnitsa Cement Plant (Moldova).The Ukrainian side, in turn, raised the issue of amendments to the legislation of Moldova on displaying at least 50% of food products produced and/or processed on the territory of Moldova on trade shelves in retail chains. “Such a decision may negatively affect the volume of supplies from Ukraine of products falling under the specified restrictions. We are talking about the amount of almost $170 million,” the ministry said.In addition, the issue of environmental fee in Moldova, including from importers, for goods in plastic or tetrapack packaging, remains open. The low internal control in Moldova over the payment of environmental fees by local producers is worrying, while Ukrainian companies bear double costs, the ministry said.The Ukrainian side also raised the issue of customs clearance of goods exported to Moldova. In particular, problems are caused by the frequency of checks of Ukrainian goods and the additional costs incurred by Ukrainian companies.“The results of today’s discussions will be considered during a meeting of the joint intergovernmental Ukrainian-Moldovan commission on trade and economic cooperation, which will take place in the near future,” the ministry said.

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