Reinstating the obligation for officials to file asset and income declarations in the coming months is one of the conditions of the $15.6 billion expanded EFF financing program approved by the International Monetary Fund (IMF) for Ukraine on Friday, Fund mission chief Gavin Gray said.
“Under the program, the authorities are committed to a targeted recovery of asset declarations even in the current circumstances. We see this as an important measure…,” he said at a briefing Friday.
Gray specified that the IMF will work with the authorities on this issue in order to resolve it by the first review of the program in June-July this year.
As reported, in February this year, the ambassadors of G7 countries in Ukraine expressed hope that the Verkhovna Rada will soon resume the system of electronic declaration of assets and income of officials, which was suspended during martial law, which “will prevent corruption and strengthen citizens’ trust in government.
Chairman of the National Agency for Combating Corruption (NACC) Oleksandr Novikov said in mid-March that he expects the resumption of declarations in the next two months, but believes that the public part of the register of declarations should remain hidden until the end of the war.
According to him, all public authorities have access to the data of the register of declarations and the data they need to perform their official duties.
Declarations for the year 2022 filed about 6% of declarants. For 2021 – up to 50%, including two deputy heads of the presidential office, the Minister of Education and Science, the Minister of Defense, 28 people’s deputies, five heads of regional military administrations and 163 judges.
26 risk insurers and one life insurer will leave the insurance market of Ukraine in 2022, according to a review of the non-banking financial sector, published on the website of the National Bank of Ukraine (NBU).
According to the NBU, in the fourth quarter of 2022 the volume of gross premiums of life insurance companies increased by 9%, while the risk insurance, on the contrary, decreased by 8%.
In general in 2022 the volume of premiums on life insurance decreased by 17%, and risk insurance – by 21%. At the same time, insurers’ payouts were almost unchanged, for the quarter. At the same time for the year for life insurance premiums increased by 7%, risk insurance – decreased by almost a third.
The share of premiums on motor insurance (Casco, CMTPL and Green Card) in 2022 increased by 10 p.p. – to 49%. In particular, the volume of premiums “Green Card” more than doubled compared to the previous year, and payments almost by a third. At the same time, premiums for property insurance and insurance of financial risks more than halved, and their payments decreased by 62%.
The volume of gross premiums ceded in reinsurance, for the year decreased by more than two times, and reimbursements – almost 60%. For the fourth quarter, premiums to reinsurers decreased by 36%, and reimbursements – by 40%.
The NBU notes that the total amount of reserves for losses of insurers remained almost unchanged for the quarter, but had different dynamics in relation to separate types of insurance: for voluntary types the reserves for losses slightly decreased by 7% in comparison with the third quarter; for compulsory types – increased by 10% in comparison with the previous quarter. In annual terms, reserves for losses on both voluntary and compulsory types of insurance increased by 36%.
Investment income of risk insurers in 2022 increased almost one and a half times compared with the previous year. Most of this income was interest on bank deposits. However, the growth of investment income could not cover the increase in operating expenses. The operating efficiency ratio increased to 88%.
In the fourth quarter of last year, one of the life insurance market leaders reclassified investment income, resulting in a significant decrease. Excluding this company’s data, life insurers’ investment income increased 30% year-over-year and 12% quarter-over-quarter. Deposit income was up 36% to the previous quarter, while income from investments in GSEs remained flat.
Risk and life insurers ended the fourth quarter with a small loss, but both groups were fairly profitable for the year.
Return on equity for risk insurers was 15%, and for life insurers – 13%.
For the fourth quarter of 2022, life insurers’ assets increased 3%, and for all of 2022, they increased 18%. Assets of risk insurers declined slightly over the quarter, but rose 6% for the full year.
As of January 1, 2023, seven insurers had violated at least one of the solvency and capital adequacy and transaction risk ratios.
PrJSC Centravis Production Ukraine, part of the holding Centravis Ltd, in 2022 exported 11.6 thousand tons of seamless stainless steel tubes to 46 countries, reducing shipments in kind by 33% compared with the previous year.
According to the company’s press release on Friday, its revenue last year was EUR125.8 million, down 9% from 2021.
At the same time, it is explained that the decrease in supplies is due to the beginning of a large-scale war and all the consequences caused by the conduct of military operations in Ukraine. In particular, the need to restructure logistics, power shortages, shelling, etc.
At the same time Centravis has kept high volume of production at its main plants and enters top-10 of the largest world manufacturers of seamless stainless tubes, the press release says.
It is also noted that according to Forbes magazine rating, Centravis company (Nikopol, Dnepropetrovsk region) was included in the 50 largest exporters of 2022 – the companies, which, according to the magazine editorial board, “gave the opportunity to the Ukrainian economy to survive”.
“Last year we supplied pipes to 46 countries of the world. Each delivery is a separate story, because after the beginning of the brutal Russian aggression we had to convince our partners that our team is able to fulfill all our obligations. We have adapted, become more stable and continue to develop the company, increase export and support the Ukrainian economy”, – General Director of “Centravis” Yuriy Atanasov said, who is quoted by the press service.
It is specified that “Centravis” delivered more seamless stainless tubes to Germany, Italy and the United States. The greatest demand was for general tubes and pipes for general purposes – 37% of total exports, pipes for machining – 25%, as well as tubes for tool and automotive segments – 24%.
As we reported earlier, in February this year the company opened new production in Uzhgorod, which specializes in tool tubes for the world’s leading automotive brands (Volkswagen, Audi, BMW, and Chevrolet). The total investment amounted to more than 2.7 million euros. The new plant has about 100 employees, but this year it is planned to expand and build the second stage.
“Centravis was founded in 2000 and is among the ten largest manufacturers of seamless stainless steel tubes in the world. Its main production capacities are located in Nikopol (Dnepropetrovsk region). In 2022 the company has realized a number of large-scale orders for such world companies as Benteler Automotive, LINSTER Edelstahlhandel, Rohr Mertel, Buhlmann Group, Webco, MRC. The company employs more than 1400 people.
Holding Centravis Ltd. was created on the base of Nikopol Stainless Tube Works CJSC, service and trade companies Industrial and Commercial Enterprise Yuvis Ltd. Its shareholders are members of the Atanasov family.
Centravis Ltd. owns 100% of shares of Centravis Production Ukraine PJSC.
Stabilization of the Ukrainian energy system and a certain reserve of capacity allow discussing the opening of electricity exports to Europe, Energy Minister Herman Galushchenko said.
“The issue of opening exports is already on the table today. It is being considered,” the minister said on the air of the national telethon “Unified News” on Friday.
Depending on the volume of imports, he said, it could bring Ukraine up to $70 million a month and help restore energy facilities after Russian attacks.
At the same time, the head of the Energy Ministry stressed that Ukraine would refuse to export electricity in case of shortages.
As earlier reported, export of electric power was stopped by order of the Minister of Energy since October 11, 2022, after the beginning of massive Russian attacks on Ukraine’s energy system. The capacity allowed by European network of transmission system operators ENTSO-E for export is 400 MW, for import – 850 MW.
The head of Ukrhydroenergo, Igor Sirota, in an interview with Interfax-Ukraine noted that Ukraine has been experiencing a 24-hour power surplus for several weeks in a row, which would be advisable to sell. Nevertheless, he stressed that “there is a lot of politics in this issue,” as there are a number of consumers who do not receive electricity. At the same time, the head of the general company explained that such consumers are deprived of power supply not because of the resource shortage, but precisely because of low network capacity.
The Board of Directors of the International Monetary Fund (IMF) at a meeting on Friday approved Ukraine’s request to open a new four-year extended financing program EFF for a total of SDR11.6 billion ($15.6 billion), an informed source told Interfax-Ukraine news agency.
According to him, the official announcement of the Fund is expected in the very near future on Friday.
According to the agenda published earlier on the Fund’s website, the board also summarized the results of the Monitoring Program for Ukraine with the involvement of the Board of Directors (PMB) opened in December.
As earlier reported, on March 21, the IMF reported reaching a staff-level agreement (SLA) on a new four-year EFF program for Ukraine worth SDR11.6 billion (about $15.6 billion). The fund specified that the final decision of the board of directors is expected in the coming weeks.
On March 24, the Cabinet of Ministers approved the draft Letter of Intent of the IMF and the National Bank of Ukraine and the draft Memorandum on Economic and Financial Policies. At this stage, the documents themselves are traditionally not published.
The program was supposed to be divided into two stages. The first one aims at maintaining stability, lasts 12-18 months and is based on the PMB, while the second phase, with more structural reforms, aims at growth and European integration.
Negotiations on the new EFF program were preceded by the PMB Monitoring Program. With the IMF unprepared to disburse significant funding immediately, Ukraine requested it from the Fund last fall for a period of four months and received approval from the Board of Directors on December 20.
On February 17, an IMF mission concluded in Warsaw, resulting in a statement on the SLA for early termination of the PMB program and the transition to the preparation of a new, expanded program involving financing.
Nordic Environment Finance Corporation (NEFCO) implements three new programs with the EU funds in nearly 30 communities in Ukraine, NEFCO Chief Investment Advisor Yulia Shevchuk said in an interview to Interfax-Ukraine.
“We have three new programs with EU funds covering about 30 communities in Ukraine. They are aimed at restoring critical infrastructure, repairing housing and building new housing for internally displaced persons (IDPs). NEFCO administers and implements these programs,” she said.
One of the programs is the repair and reconstruction of damaged critical infrastructure in the Kiev region. For its implementation EUR50 million of grant funds allocated by the European Union through NEFCO has been directed. The package of measures provides for the restoration of infrastructure related to water supply, drainage and heating. The program will be implemented in 12 cities and towns of Kyiv region: Borodyanska, Borschagivska, Irpenska, Dymerska, Ivankivska, Kalynivska, Nemishayivska, Peskivska, Slavitutska, and Velikodimerska terns.
A second new program with funding from the European Union provides for the construction of housing for IDPs and the reconstruction of liberated towns in Ukraine.
According to Shevchuk, the program currently covers six cities – Chernivtsi, Dubno, Kovel, Lviv, Zhytomyr and Makarov.
Another EU-funded program concerns housing repairs for IDPs, with NEFCO working in 10 cities in western Ukraine under this program.
“The two aforementioned programs are in the procurement phase (https://www.nefco.int/procurements/), and the IDP housing repair program is in the construction phase,” Shevchuk reported.
The projects that received support were selected based on proposals from the Ministry of Community and Territory Development of Ukraine, with the final decision resting with the European Union.
“Together with the European Union, NEFCO began preliminary preparations for these programs in the spring of 2022. There were many more applications than could be included in the new programs. The cities are very active, we are now receiving three to five new applications every week,” Shevchuk said.
NEFCO’s requirements for residential projects include energy efficiency measures and the need to use more environmentally friendly materials in accordance with European building standards.
It is noted that the cities must follow the procedure stipulated by the Ukrainian government for the distribution of social housing for groups of people. Priority will be given to the most war-affected groups. The program also contains a requirement that the housing built for its financing is not subject to privatization, i.e. will be in municipal ownership.
The expert noted possible difficulties in the implementation of projects.
“There may be a shortage of local materials, because as a result of the aggression of Russia destroyed many of the production of building materials. In addition, the male part of the population can be mobilized – this applies to both the staff of contractors and municipalities. That is a weak point concerning the availability of human resources for our new programs. Also we state a difficult financial condition of the municipalities, because of the decrease in activity the tax revenues have decreased, and the cities have to contribute to the approved projects”, – said Shevchuk.
In particular, in the projects of housing for IDPs there is a condition that the community will ensure the connection of the new house to all necessary communications (water, heat, electricity), in addition, the community is responsible for the equipment of the shelter, without which the new house cannot be put into operation.
NEFCO’s procedures minimize the consequences of the complexities of the Ukrainian market. “We plan to have open tenders, in which any companies that are not under sanctions can participate. From previous experience, if we talk about construction, among the contractors – winners of tenders, as a rule, were Ukrainian companies, because local permits and licenses are needed, while materials were from different countries. Now, most likely, we should expect more foreign materials, while Ukraine has destroyed its own production of, say, windows and other materials. But we will see the reality after the tenders,” she said.
Some of the tenders have already begun, some will be announced in the near future.
“We expect the first tenders to be completed by summer. We very much hope that most of the work on all three programs will start this year,” Shevchuk said.
NEFCO is an international financial institution that finances the expansion of Nordic green solutions into global markets. It was founded in 1990 by Denmark, Finland, Iceland, Norway and Sweden. In Ukraine, projects have been implemented in more than municipalities.
