Business news from Ukraine

Business news from Ukraine

UKRAINIAN CERAMIC GROUP GETS LOSSES IN 2020

PrJSC Ukrainian Ceramic Group (Sloviansk, Donetsk region) in 2020 reduced its net loss by 32.5% compared to 2019, to UAH 3.9 million.
According to the company’s annual report in the information disclosure system of the National Securities and Stock Market Commission, revenue increased by 19%, to UAH 5 million.
Retained earnings for the year decreased by 6.8% and amounted to UAH 53.7 million.
Long-term liabilities decreased by 5.1%, to UAH 11.2 million, current – increased by 47.8%, to UAH 18.7 million.
The company’s assets in 2020 increased by 1.5% and amounted to UAH 101.3 million.
PrJSC Ukrainian Ceramic Group was founded in 1993. It does not produce clay due to the completion of the development of a deposit in Donetsk region in 2009. Currently, it is engaged in leasing and purchase and sale of real estate.
The company also owns 48.9% of the shares of PrJSC Zeus Ceramica (Sloviansk, Donetsk region).
The charter capital of PrJSC Ukrainian Ceramic Group for April 2021 is UAH 1.16 million.

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STATE-RUN UKRENERGO POSTS NET LOSS OF UAH 27.5 BLN IN 2020

PrJSC Ukrenergo in 2020 received UAH 27.498 billion of net loss against UAH 1.857 billion of net profit for 2019.
According to the report published in the information disclosure system of the National Securities and Stock Market Commission, the company’s net income last year increased 2.2 times (by UAH 31.921 billion), to UAH 58.249 billion. The gross loss amounted to UAH 24.950 billion against UAH 6.052 billion in gross profit in 2019.
Earlier, Ukrenergo repeatedly noted that the operator’s main activity in transmission and dispatching in 2020 is profitable, while losses are associated with special obligations imposed on the company for the population and coverage of the feed-in tariff to the state enterprise Guaranteed Buyer, the costs of which are not fully covered by the established tariff.
Ukrenergo operates the trunk and interstate power grids, as well as the centralized dispatching of the country’s integrated power system. It belongs to the state represented by the Ministry of Finance.

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AUSTRALIAN VOLT PLANS TO ACQUIRE 70% OF UKRAINIAN ZAVALIVSKY GRAPHITE

Volt Resources Limited (Volt, Australia) announced the signing of binding share purchase agreements to acquire a 70% stake in Zavalivsky Graphite LLC (Zavallia, Kirovohrad region).
“Volt has entered into binding Share Purchase Agreements to acquire a 70% interest in the Zavalivsky Graphite business located in Ukraine. The completion of the acquisition will position Volt significantly ahead of most of its peer graphite companies to become a graphite producer without the usual Greenfield financing and development risk,” according to the company’s press release.
According to the company, the total purchase price is $7.6 million, and it will be paid in two equal amounts.
Among the main advantages of the acquisition is, in particular, the opportunity to become a producer of spherical purified graphite for li-ion battery anode market in the near future, excellent transport infrastructure, low labor costs, grid power, ample potable water and good communications, experienced technical, operational and marketing personnel.
According to Nadra info, Volt’s press release states that the company has signed SPAs with the existing shareholders of ZG Group and will acquire a 70% stake in each of the ZG Group companies: Zavalivsky Graphite LLC (processing plant buildings, processing plant, mining equipment, substation and power distribution station); Stone Found LLC (operations for the production of crushed granite and a plant), as well as Graphite Invest LLC, which owns 70% of the shares of PrJSC Zavalivsky Graphite Plant (mine, land, main administrative building).
Nadra info also informs that currently the shareholders of ZG Group are Vitaliy Liaschenko (Kirovohrad region), Oleh Kheison (Cherkasy region), Tetiana and Volodymyr Kolesnichenko, Marta Yanko (all – Kyiv), and Mogra s.r.o. (Slovakia).
For many decades, Zavalivsky Graphite LLC has been a producer of natural graphite from the ores of the Zavalivsky deposit (Kirovohrad region), one of the largest graphite deposits in Europe. The enterprise has been operating since 1934. Production capacity is 30,000 tonnes of graphite per year.
According to Industrial Minerals (Great Britain), Zavalivsky Graphite LLC is one of the world’s top ten producers of natural graphite.

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TOP 20 COUNTRIES UKRAINE HAS POSTED THE HIGHEST SURPLUS OF TRADE IN GOODS IN JAN 2021 (THSD USD)

TOP 20 COUNTRIES UKRAINE HAS POSTED THE HIGHEST SURPLUS OF TRADE IN GOODS IN Jan 2021 (thSd USD)

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92% OF UKRAINIANS TO CELEBRATE EASTER ON MAY 2

A total of 92% of Ukrainians intend to celebrate Easter on May 2, almost 20% of the adult population will go to church, according to the results of an all-Ukrainian public opinion poll conducted by the Kyiv International Institute of Sociology on April 13-15, 2021. According to the study, 92% of the population plan to celebrate Easter in one way or another, only 6% will not celebrate (and 2% were undecided).
Among the adult population of Ukraine, every fifth (19%) plans to go to church on Easter, and 9% plan to take part in the service.
The majority of Ukrainian population does not plan to go to church at Easter. Some 69% of Ukrainians plan to cook Easter dishes at home, 25% plan to pray in the family circle, and 19% plan to receive guests from relatives at home.
Also, according to the survey, among the entire population of Ukraine, 11% will go to the cemetery; some 8% will go on a visit within their city; some 5% will go on a visit outside their city.
The largest number of those who plan to go to church to bless Easter cakes is observed in the western region (29%), in all other regions this number is slightly less: 19% in the South, 15% in the Center, 12% in the East. Some 18% of Ukrainians aged 18-29, some 19% of those aged 40-49, some 22% of Ukrainians 50-59 years old and 60+ will go to bless Easter food in church; the lowest percentage, 15%, is among the category 30-39 years old.
The largest number of those who plan to cook Easter meals with their families is also in the western region (73%); in the center and south it is 69%, in the east – 63%.
A total of 8% of residents of the East do not plan to celebrate Easter, there are 7% of those in the center, 6% in the South, and 5% in the West. The number of those who do not plan to celebrate Easter decreases with age: in the age group of 18-29 years they make 13%, in the group of 30-39 and 40-49 years – 7% and 6% respectively, in the group of 50-59 and 60+ years – 4% and 3%, respectively.
The survey was conducted by the method of computer-assisted telephone interviews (CATI) on the basis of a random sample of mobile phone numbers, 2,001 respondents living in all regions of Ukraine (except for the Autonomous Republic of Crimea) were interviewed. The sample is representative of the adult population (aged 18 and over) in Ukraine. The sample does not include territories that are temporarily not controlled by Ukrainian authorities – the Autonomous Republic of Crimea, certain areas of Donetsk and Luhansk regions.
The statistical error of the sample (with a probability of 0.95 and taking into account the design effect of 1.1) does not exceed 2.4%.

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JTI TO INVEST $45 MLN IN MODERNIZATION OF UKRAINIAN FACTORY

JTI Ukraine tobacco company plans to invest $45 million in the expansion and renovation of the production facilities of its factory in Kremenchuk in 2021-2022, General Manager of Japan Tobacco International (JTI) Ukraine Paul Holloway has said in an exclusive interview with Interfax-Ukraine.
“This is the modernization of the entire production complex, and not an investment in a separate production line, as it was the case two years ago. The plans for this year are the expansion of the factory, the construction of a new warehouse, the modernization of the tobacco shop, new production lines, the modernization of buildings, structures, infrastructure and much more,” he said.
According to Holloway, the company intends to increase the export of tobacco products, and make it more efficient. An important factor that influenced the company’s plans was its obtaining the status of an Authorized Economic Operator (AEO), which will reduce customs formalities for the import of raw materials and the export of finished products.
The general manager of the company said that JTI, which received this status for the first time in Ukraine, will have a number of advantages when going through customs clearance in Ukraine, including the opportunity to use a special traffic lane for commercial vehicles.
Holloway said that in 2020, the company paid six times more dividends than in the entire history of JTI’s work in Ukraine, and the investments provided for the development of the factory will not affect the further payment of dividends to shareholders. According to him, the factory in Kremenchuk is an independent center of profit, and it will provide money that it earned earlier for investments.
JTI paid out more than UAH 300 million in dividends to shareholders for 2018-2019 and plans to pay about the same amount for 2020.

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