Business news from Ukraine

Business news from Ukraine

RATIO OF FERTILITY AND MORTALITY BY REGION AS OF OF JAN 31, 2020

Ratio of fertility and mortality by region as of of Jan 31, 2020

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UKRPOSHTA AND CHINESE LOGISTICS OPERATOR LAUNCH CARGO FLIGHTS TO UKRAINE

Ukrposhta JSC and the Chinese international logistics operator Cainiao Network, part of the Alibaba Group, launch cargo flights to Ukraine.
Such cooperation will reduce the delivery time of orders from AliExpress under quarantine. Air routes started from the cities with the largest Cainiao distribution centers in Europe, the Ukrposhta press service said on Thursday.
According to the company, the partners in organizing flights are Eleron Airlines, AirBaltic and the national postal operator of Latvia. Regular flights (with a carrying capacity of five tonnes) are carried out by AN-26 aircraft to Lviv, where the parcels undergo customs clearance, sorting and will be delivered to recipients in Ukraine. At the first stages, the aircraft will arrive in Lviv twice a week, but the schedule will be revised later depending on the load.
Ukrposhta also reports that the delivery of parcels will be transferred to non-contact mode – all AliExpress orders worth up to $2 will be delivered to the mailbox (in good order). Home delivery options for more expensive items will be carried out either by a courier or a postman.
The Ukrainian postal operator added that in the first quarter of 2020, Ukrposhta delivered over 4 million items from AliExpress, an increase of 26% compared to the same quarter of the previous year. Among the most popular categories of goods that Ukrainians ordered in March were: electronics, accessories, clothing and household goods.

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UKRAINIAN INSURANCE COMPANIES IN 2019 RECEIVE UAH 21.632 BILLION

Ukrainian insurance companies in 2019 received UAH 21.632 billion in insurance premiums from individuals, which is 17.4%, or UAH 3.201 billion, more than in 2018, Oleksandr Zaletov, a member of the National Commission for the State Regulating the Financial Services Market, has told Interfax-Ukraine.
According to him, in 2019 the top ten most popular insurance services among the Ukrainian population included life insurance with UAH 4.491 billion (20.8% more), OSAGO insurance with UAH 4.297 billion (11.9% more), KASKO insurance with UAH 4.280 billion (18.9% more), medical insurance with UAH 1.624 billion (24.3% more), accident insurance with UAH 1.392 billion (9.3% more), insurance in the Green Card system with UAH 1.316 billion (36.5% more), property insurance with UAH 1.214 million (8.5% more), insurance of tourists with UAH 1.187 billion (52.1% more), health insurance with UAH 595 million (37.7% more) and financial risk insurance with UAH 436 million (20.4% more).
In his opinion, the growth of insurance services provision to the population, unlike the previous years, is not due to exchange rate differences, but, first of all, to the growing demand for insurance among citizens who travel actively, take care of their health and their loved ones, and also think about providing “financial airbag” in the old age. Thus, for example, in 2019 the number of insured under life insurance programs increased by 52.4%, under travel insurance by 49.3%, under the Green Card system by 50.3%, under KASKO by 67.2%, voluntary insurance of vehicle owners’ civil liability by 39.9%.
He also said that in 2019 insurance companies made insurance payments to the population in the amount of UAH 6.618 billion, which is 11.9%, or UAH 705 million more than in 2018.

CHERKASY AZOT RAISES PRODUCTION OF NITROGEN FERTILIZERS

PJSC Azot (Cherkasy), part of Dmytro Firtash’s Group DF, in January-March 2020 increased production of nitrogen fertilizers by 22% compared to the same period in 2019, to 444,100 tonnes, according to a company press release.
Thus, the production volume of commercial ammonium nitrate amounted to 147,100 tonnes (21%), commercial urea some 168,600 tonnes (23%), urea-ammonia mixture some 126,100 tonnes (22%), and ammonia water to 2,300 tonnes. In addition, 216,300 tonnes of ammonia and 168,900 tonnes of non-concentrated nitric acid were produced.
Since the beginning of this year, all production facilities of Cherkasy Azot have been operating at 100% load. One of the factors contributing to the growth of production was weather conditions that allowed farmers to start field work much earlier, the report said.
“The company continues to work, despite the special conditions during the quarantine period, and fully fulfills all contracts, ensuring uninterrupted supplies of nitrogen fertilizers to agricultural producers,” Group DF’s press service said citing Vitaliy Skliarov, the chairman of the company’s board.
PJSC Cherkasy Azot is one of the largest Ukrainian chemical enterprises. It is engaged in production of mineral nitrogen fertilizers. Since 2011, it has been part of Ostchem Group (the Group DF nitrogen business).

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BRITISH-BASED FERREXPO, WHICH CONTROLS MINING ENTERPRISES IN UKRAINE, RAISES PELLET OUTPUT BY 7.4%

British-based Ferrexpo Plc, which controls Poltava and Yeristovo mining enterprises in Ukraine, increased the total production of pellets by 7.4% in January-March 2020 compared to the same period in 2019, to 2.725 million tonnes. According to the company’s press release on Tuesday, April 7, the total production of pellets with 65% iron content (Ferrexpo Premium Pellets and Ferrexpo Premium Pellets plus) amounted to 2.652 million tonnes (an increase of 9,1%), with 62% iron content (Ferrexpo Basic Pellets) some 73,330 tonnes (a decrease of 31.8%).
There was no pellet production from third party concentrate in Q1 2020.
Sales are expected to reach about 2.8 million tonnes in the first quarter 2020, compared to 2.6 million tonnes in the first quarter 2019 (an increase of 7.7%).
“Production in Q1 2020 was not impacted by the COVID-19 virus [disease]. Ferrexpo continues to take active measures to help protect our workforce and local communities against the spread of the virus,” the enterprise said in a press release.
In 2019, there was also no pellet production from third party concentrate, while in 2018 some 101,000 tonnes of pellets were produced.
Ferrexpo is a Swiss iron ore company with assets in Ukraine. Its core business is production and export of high quality iron ore pellets used in steel production.

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YUZHNY PORT FULFILLS MARCH FINANCIAL PLAN BY 224%

Yuzhny port’s fleet received more than UAH 24 million in income in March 2020, the enterprise’s press service has said.
According to Yuzhny, the figure obtained is 224% of the monthly financial plan. This result of the work was ensured by a large number of ship calls and fire-fighting services for cargo operations at berth No. 3H of Yuzhny port.
Earlier, the port reported that in March 2020 the company handled 1.777 million tonnes of cargo, which exceeds the previous absolute record for a monthly transshipment of 1.650 million tonnes in March 2014 by 127,200 tonnes.
Over the past month, the company accepted 25 vessels, 14 of which are vessels of the Capesize type. The number of large-capacity bulk carriers with a deadweight of more than 150,000 tonnes doubled compared to March 2019.
Darnitsa pharma company purchases hydroxychloroquine, awaits delivery to Ukraine
KYIV. April 8 (Interfax-Ukraine) – Darnitsa pharmaceutical company (Kyiv) purchased hydroxychloroquine for production of medicines and awaits its delivery to Ukraine, Board Chairman of Darnitsa Group Dmytro Shymkiv has said.
“We are already transporting the active substance, namely hydroxychloroquine, to Ukraine. We managed to reserve it for ourselves at a time when most countries closed the export of this substance,” he told Interfax-Ukraine.
Shymkiv said that Darnitsa pharmaceutical company is ready to produce hydroxychloroquine medicines, however, “the main precondition for this is active steps in regulatory matters from the Health Ministry,” he said.
Shymkiv said that Darnitsa specialists studied the experience of treating the coronavirus disease (COVID-19) in China, European countries and the United States, where patients infected with COVID-19 using medicines with hydroxychloroquine are treated as part of clinical trials. Moreover, a precondition for such therapy is the patient’s consent to treatment with the experimental medicine.
“Today, we expect the Health Ministry to follow the measures prescribed in the new laws on health protection and on medicines, which came into force on April 1, 2020. Then we can move on,” he said.
Darnitsa pharmaceutical company is one of the ten largest pharmaceutical manufacturers in Ukraine and the top ten largest hospital suppliers.

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