National bank of Ukraine’s official rates as of 28/04/21
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of April 28
The Verkhovna Rada adopted at the final reading bill on amendments to Section II Final and Transitional Provisions of the Law of Ukraine on amendments to certain laws of Ukraine concerning reducing the shortage of ferrous scrap on the domestic market, which is proposed to prolong the export duty in the amount of EUR 58 per tonne for another five years.
Some 291 MPs backed the bill at a parliamentary session on Tuesday.
One of the authors of bill No. 5175, Deputy Head of the Verkhovna Rada Committee for Economic Development Dmytro Kysylevsky, in his Facebook post, expressed his satisfaction with the adoption of the bill.
At the same time, he recalled that the duty was first introduced in 2016 to moderate the export of scarce raw materials from Ukraine. The metallurgical industry, which provides 10% of the national GDP, 35% of merchandise exports and 200,000 jobs, cannot work without it. After all, there is no technology that allows getting steel without using scrap metal.
“As the deputy head of the parliamentary committee for economic development, I understand that only the export of products with high added value will allow us to become a strong and rich country. In this case, 1 tonne of exported scrap gives Ukraine a little less than UAH 2,000 (this is the payment of the EUR 58 duty), while 1 tonne of the same scrap processed into finished steel products at Ukrainian steel plants brings about UAH 8,000 in taxes. That is, it is four times more profitable for the state to process scrap into metal and then into finished products than to export raw materials,” the parliamentarian said.
According to him, in this case there is no question of choice: to export raw materials or processed products with added value. At the same time, he said that if the initiative to extend the duty did not receive the necessary support from MPs, then 21,000 jobs and about UAH 1 billion of taxes per year would be lost for the Ukrainian state.
“And, of course, we need to think about the future. The EU Green Deal further increases the value of scrap as a raw material for metallurgy: its use in electric arc furnaces reduces CO2 emissions by up to 90% compared to conventional technologies of steel production in converters and open-hearth furnaces. And since Ukraine undertakes to reduce CO2 emissions, it is necessary to take care of the resources for this, as other countries are already doing,” Kysylevsky said, adding that the European metallurgical association Eurofer generally demands to ban the export of scrap metal from the EU, taking into account the EU Green Deal.
“At the same time, I want to reassure the skeptics: the bill does not contradict our international obligations. This is a temporary measure that is not discriminatory. It complies with the WTO law on security exceptions: we have a war, a chronic trade deficit, Crimea is annexed. International partners understand this. Therefore, no claims were made against Ukraine during the period of the duty since 2016. And now official Kyiv has a confident negotiating position in the WTO,” the MP said.
Naftogaz Group reduced capital expenditures (capex) by 44.5% (or by UAH 12.193 billion) in 2020 compared to 2019, to UAH 15.044 billion.
As indicated in the consolidated statements of the group published on Tuesday, capex of the exploration and production segment was UAH 11.023 billion (a fall of 26.2% to 2019), oil midstream and downstream – UAH 1.185 billion (a fall of 35.4%), Ukrnafta – UAH 1.113 billion (a fall of 23%), gas storage – UAH 0.143 billion (a rise of 3.3 times), commerce – UAH 0.133 billion (a rise of 11.1 times), other – UAH 1.448 billion (a fall of 83.8%).
As reported, the consolidated net loss of NJSC Naftogaz Ukrainy in 2020 amounted to UAH 19.002 billion compared to a net profit of UAH 63.294 billion in 2019. Excluding the results of the discontinued operations, including the Gas Transit Arbitration award of UAH 55.7 billion, the net profit was UAH 2.6 billion.
Naftogaz’s revenues in 2020 grew by 27.1% (by UAH 41.184 billion) compared to 2019, to UAH 193.017 billion, including income from sales being UAH 159.234 billion (a rise of 6.3%), compensation for performing public service obligations totaling UAH 32.205 billion (a rise of 100%), and interest and other income reaching UAH 1.578 billion (a fall of 23.1%).
The net loss of NJSC Naftogaz Ukrainy, as a separate legal entity, in 2020 amounted to UAH 18.002 billion versus UAH 50.658 billion of net profit for 2019. Net income last year decreased 32.1% compared to 2019, to UAH 121.059 billion.
The State Aviation Service of Ukraine has granted the new Ukrainian airline Bees Airline the rights to operate the Kyiv – Lviv – Kyiv, Kyiv – Odesa – Kyiv and Kyiv – Kherson – Kyiv airlines. Order of the State Aviation Service No. 655 dated April 26, 2021 was published on its website.
According to the document, the frequency of these flights and the duration of the rights are not limited.
As reported, the State Aviation Service of Ukraine issued an operator certificate to Bees Airline on March 12, 2021. Later, the regulator allowed the company to operate flights on 31 routes – 15 regular and 16 charter flights.
Bees Airline made its first charter flight from Kyiv to Sharm el-Sheikh (Egypt) by order of the tour operator Tez Tour Ukraine on March 18, 2021.
According to the public register of civil aircraft of Ukraine, Bees Airline registered two aircraft in Ukraine – Boeing 737-800 with registration numbers UR-UBA and UR-UBB. Both aircraft are produced in 2010 and belong to San Clemente Leasing LLC (the United States).
According to Bees Airline CEO Yevhen Khainatsky, by the end of 2021 the fleet will be replenished with two more aircraft. Another two are planned to arrive in 2022.
The base airport of Bees Airline is Kyiv International Airport named after Ihor Sikorsky.
According to the data in the register, the beneficial owners of Bees Airline are Serhiy Smirny (90%) and Khainatsky (10%).
Previously, Khainatsky was CEO of another Ukrainian airline – SkyUp Airlines.
From Saturday, May 1, Kyiv plans to weaken quarantine restrictions, said mayor of the capital Vitali Klitschko during a briefing.
“This morning, the State Commission on Environmental Safety, Manmade Disaster and Emergency Response of the city decided to weaken anti-epidemic measures in the capital. We hope that the State Commission will also decide to review the level of epidemic danger and withdraw the capital from the ‘red’ zone,” the mayor’s press service quoted him as saying.
Klitschko noted that from May 1, all ground public transport and the metro will restore passenger transportation in the usual mode.
“In compliance with previously defined anti-epidemic norms and rules. But I urge residents of the capital to use public transport only in case of emergency,” the mayor of Kyiv said.
He noted that from May 1, the operation of trade establishments, shopping and entertainment centers, markets, fairs, catering establishments, gyms and fitness centers will be restored.
“However, the owners of these establishments must understand that they work only in compliance with all safety standards! It is in your interests, because if the situation worsens again, new restrictions cannot be avoided!” stressed Klitschko.
The mayor of the capital also said that Administrative Service Centers will resume their work, however, they will host visitors by appointment through electronic services.
“From next Wednesday, May 5, the city will restore the educational process in general education institutions, preschool and higher educational institutions. Also, the capital will restore the acceptance of documents for enrolling children in the first grade for the next academic year,” the mayor of Kyiv said.
