Business news from Ukraine

UAH 1 BLN PROPERTY SOLD WITHIN SMALL PRIVATIZATION IN UKRAINE

State property worth UAH 1 billion was sold through the ProZorro electronic trading system in the framework of small-scale privatization in Ukraine, according to the ProZorro page on Facebook. According to the report, since the launch of small privatization, 813 successful auctions have been held through the electronic system, which brought the State Property Fund of Ukraine more than UAH 476 million, and municipalities some UAH 562 million.
“The objects of small privatization are in a high demand – an average of 2.7 participants compete for each lot. And the average increase in the starting sale price is 61.24%,” the report says.
“We beat a good figure in small privatization – UAH 1 billion for taxpayers in Ukraine. The practical result of the work of ProZorro.Sale. If after Maidan we did just that, I would have already considered that it was not for nothing that I came to work in government agencies,” First Deputy Economic Development and Trade Minister of Ukraine Maksym Nefyodov said on Facebook.

ZAPORIZHIA INTERNATIONAL AIRPORT RAISES PASSENGER TRAFFIC BY 14%

Zaporizhia International Airport in January-April 2019 carried over 135,000 passengers, which is 14% more than in the same period of 2018, according to the website of the airport. “In the first four months, international flights turned out to be the most popular with 97,341 passengers transported to them. Tickets for domestic flights also continue to be in demand, the number of passengers on these routes increased by 7%,” the report says.
In April the total number of passengers served by the airport rose by 8%, to almost 38,500 people.
Last month, an increase in the number of passengers by more than 11% was recorded on international destinations, while a slight drop in passenger traffic within 0.5% was recorded on domestic lines.

ARSENAL INSURANCE RAISES PREMIUM COLLECTION BY 19%

Arsenal Insurance (Kyiv) in 2018 collected insurance premiums in the amount of UAH 1.886 billion, which is 19% more than a year earlier, according to a press release from the insurer.
Voluntary types of insurance, including KASKO, property insurance, collective medical insurance and other types account for 76% of the total premiums, mandatory types for 24% of the company’s total sales. This portfolio structure allows the insurer not only to occupy a significant market share, but also to generate profit: last year it amounted to UAH 22.6 million and grew by 2.8 times compared with 2017, the report says.
The company also reports that it achieved the most significant results in the auto segment: about 13,000 car owners and 6,500 corporate clients used KASKO services from Arsenal Insurance in 2018.
“Over 36% of our gross premiums last year accounted for KASKO. Our company was growing very actively in this sector, increasing sales for the year by 32%. This is the best dynamics among the top market players, and we are sincerely glad that more and more car owners trust their protection to our brand,” Serhiy Avdeyev, the board chairman of the company, said.
Arsenal Insurance is the successor of Arsenal-Dnipro insurer, operating in Ukraine since 2005. It is represented in all regional centers and some large cities of the country.

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CONCEPT OF BORYSPIL AIRPORT’S DEVELOPMENT FORESEES EUR3.4 BLN INVESTMENT IN PASSENGER FLOW

The government committee has approved the concept for the development of Boryspil International Airport until 2045, providing for investments in the amount of EUR3.4 billion and the increase in passenger traffic to 54 million passengers per year (today 12 million passengers/year). According to the concept of the airport’s development, the text of which is available to Interfax-Ukraine, it is planned that the airport will be able to service 14.4 million passengers in 2019, some 27.7 million passengers in 2030, some 44.3 million passengers in 2040, and about 53.9 million passengers in 2045.
To achieve the objectives of the concept until 2021, it is planned, in particular, to reconstruct the second runway, extend the finder and the apron of Terminal D to the south, reconstruct the cargo terminal, and build a new office center.

PAPER AND BOARD COMPANY SEES 13% RISE IN PRODUCTION IN Q1 2019

Paper and Board Company (Lviv), the producer of packaging cardboard tubes and hygienic paper products, in January-March 2019 saw a 12.9% rise in production year-over-year, to UAH 151.7 million.
According to the Ukrpapir association, the company increased production of base paper for hygienic paper products by 6% over the period, to 1,530 tonnes, production of box cardboard fell by 9.25, to 5,910 tonnes.
Toilet paper output grew by 23%, to 899,000 rolls. In January-March 2019, production of toilet paper reached 173 million rolls.
Paper and Board Company was established in 1946 on the basis of the production facilities of a small mechanical plant. Currently it produces goods and semi-finished products from waste paper (cardboard sheets, corners, tubes) and pulp paper (toilet paper, towels, napkins).
The company exports its products, in particular to Poland, Germany, France, Austria, Italy, Portugal and Romania.

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MTIBU’S VICTIM PROTECTION FUND DOUBLES IN 2018

The victim protection fund of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) almost doubled in 2018 compared with 2017, to UAH 1.204 billion, according to a report of the audit commission of the bureau. According to the report, the monthly contributions of MTIBU member insurance companies to the victim protection fund in 2018 increased 48.1%, to UAH 32.914 million, but the total basic guarantee fee decreased by 3.1%, to UAH 448.262 million.
According to the report of the audit commission, last year the additional guarantee fee DV1/DV2 increased 3.8 times, to UAH 308 million, the additional guarantee fee for the victim protection fund (10%) amounted to UAH 375.5 million.
The top 10 members of MTIBU account for 49% of contributions to the victim protection fund.
According to the report, in 2018, procedural insurance payments in claims in the amount of UAH 141.4 million were made from the victim protection fund, which is 25.2% more than a year earlier. At the same time, payments for bankrupt insurers fell by 45.7%, to UAH 3.765 million.
In addition, UAH 173.6 million was returned to the insurers which lost their membership in MTIBU, which is almost twice more than a year earlier. Costs for settling cases slightly increased and amounted to UAH 3.542 million, court costs came to UAH 7.13 million (a rise of 18.5%).

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