JSC Ukrzaliznytsia in January-March 2020 saw a loss of UAH 7 billion, according to materials of the Cabinet of Ministers posted on its website on Wednesday.
According to the document, since March 11, 2020, Ukrzaliznytsia has suspended economic activity, which negatively affects its financial and economic performance.
“According to the results of the first quarter of this year, the company saw losses of UAH 7 billion… At the same time, according to the company’s forecasts, due to the need to repay loans and interest on them (UAH 11 billion and UAH 3 billion, respectively), a shortage of funds by the end of the year may amount to UAH 16 billion,” the company said in an explanatory note.
According to the document, the reduction in production in Ukraine, the shutdown of enterprises-shippers and the negative situation on international markets led to a 4.8% decrease in total cargo turnover in the first quarter of 2020 compared to the same period last year.
In order to minimize the negative consequences, Ukrzaliznytsia is implementing a number of compensation measures: an idle time for staff, suspension of planned salary increases, restriction of procurement of material and technical resources and services (except for critical positions), and optimization of payments.
On this basis, the Infrastructure Ministry proposed that the basic standard for sending part of the profits allocated for the payment of dividends based on the results of economic activities in 2019 is set in the amount of 30% (currently – 90%) for Ukrzaliznytsia.
In June 2020, NJSC Naftogaz Ukrainy will reduce the price of natural gas sold to industrial consumers on an advance payment basis by 20.7% (UAH 849.60) compared to the current month’s price, to UAH 3,256 per 1,000 cubic meters (including VAT).
According to a report on the company’s website, the indicated price is relevant for consumers purchasing gas on an advance payment in the amount of more than 50,000 cubic meters per month, provided that there are no debts to the company and for 100% subsidiaries of Naftogaz Ukrainy.
For other buyers, the price next month will decrease by 19% (by UAH 896.40), to UAH 3,818 per 1,000 cubic meters (including VAT).
Hungary’s low-cost airline Wizz Air has prolonged the suspension of its operations to and from Ukraine until June 15 inclusively, as a result of the extension of travel restrictions imposed by the Ukrainian government. The airline said last week that for passengers with bookings affected by flight suspensions 120% of the original fare will automatically be uploaded to the customer’s WIZZ account, with the amount to be used in the next 24 months for the purchase of Wizz Air products and services.
In addition, passengers can also opt for a cash refund – which will take longer to complete – and will be informed about the necessary steps for a bank transfer or transfer to a bank card in a separate e-mail. In this case, customers will be eligible for only 100% of the original fare.
Passengers who made their bookings via travel agencies – including online travel agencies – should get in touch with the company from which they purchased their tickets.
The metro reopened in Kyiv and Kharkiv on May 25 after the two-month pause caused by coronavirus. In Kyiv, the metro service is back to the regular schedule. Passengers are required to wear masks, and there are signs indicating the obligatory 1.5-meter distance between passengers.
Metro workers are provided with personal protective equipment.
The Kharkiv metro reopened at 5:30 a.m. on Monday.
“Please be advised that it is prohibited to travel by the metro without a respirator or a mask,” the Kharkiv metro press service said on Facebook.
The metro service in Kyiv, Kharkiv, and Dnipro (former Dnipropetrovsk) had been unavailable since March 17 in order to contain the coronavirus outbreak.
The relaxation of the rules of connecting to power grids would allow Ukraine to climb in the Doing Business rating from 64th position to the top 30, Ukrainian Prime Minister Denys Shmyhal has said.
“In 2012, we started from one hundred and fiftieths positions, then we gradually moved to 71st, and today we are in the 64th position in the world among almost 190 countries. Our goal is the top 30,” he said in an exclusive interview with Interfax-Ukraine.
As the prime minister said, this is not about status, but about specific indicators that are important for investors.
“Today, they say that Ukraine is very good for investment, but just a few parameters bother them. The key parameter is the connection to the power grid. We are between 120 and 130 places in terms of connection to the power grid. If we improve this indicator, then automatically, without other efforts, we enter the top 30 of the overall rating,” Shmyhal said.
He said that this would mean that regional competition with neighboring countries of Poland, Hungary, and Romania is won.
