Business news from Ukraine

Business news from Ukraine

STATE AVIATION SERVICE OF UKRAINE PERMITS BRAVO AIRLINE TO FLY TO EGYPT, URGA TO AFRICA, JONIKA TO GREECE, ITALY, IRAQ, CYPRUS

The State Aviation Service of Ukraine has permitted Bravo airlines to service charter flights from five Ukrainian cities to Egypt. According to an order posted on the authority’s website, Bravo Airlines LLC can fly from Kyiv to Hurghada, from Vinnytsia, Kyiv, Kryvy Rih, Rivne and Kherson to Sharm el-Sheikh.
In addition, the regulator granted PJSC International Joint-Stock Aviation Company Urga the right to operate flights to Africa – Burkina Faso (Ouagadougou), Chad (N’Djamena), Cameroon (Douala, Yaounde), Gabon (Libreville, Port-Gentil), Mali (Bamako, Gao, Snvaré, Tesalit, Tombouctou), Mauritania (Nouakchott), Niger (Niamey), Cote d’Ivoire (Abidjan, Yamoussoukro) and Senegal (Jof and Diass).
In addition, the State Aviation Service granted Jonica Airlines LLC the right to operate flights to Greece (Athens), Italy (Verona, Milan, Venice, Rome, Turin, Bologna, Parma), Moldova (Chisinau), Austria (Vienna), Iraq (Erbil), Republic of the Congo (Weso) and Cyprus (Larnaca).

PRESIDENT OF UKRAINE SIGNS ELECTION CODE

President of Ukraine Volodymyr Zelensky has signed an Election Code. “On December 27, 2019, [the document] returned with the president’s s signature,” reads a report on the parliament’s website.
Prior to this, Verkhovna Rada Chairman Dmytro Razumkov signed the document and submitted it to the president.
On December 19, Rada accepted all 17 proposals of Zelensky to the Election Code. A total of 330 MPs voted for respective decree No. 0978 in the second reading at its meeting on Thursday.

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GAS TRANSMISSION SYSTEM OF UKRAINE STARTS TRANSPORTING RUSSIAN GAS UNDER NEW CONTRACT WITH GAZPROM

Gas Transmission System Operator of Ukraine (GTSOU), which replaced Ukrtransgaz as the operator of the Ukrainian gas transmission system on January 1, 2020, has reported continuation of Russian gas transit under the new agreement reached between Russia’s Gazprom and NJSC Naftogaz Ukrainy in furtherance of the previous ten-year contract.
“We have transported the first cubic meters of gas to the EU under the new gas contract consistent with European regulations. The gas transmission system is operating normally,” the operator said in a statement on Facebook on Wednesday.

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UKRAINIAN BANKS START PUBLISHING RESULTS OF STRESS TESTS

Ukrainian banks have started posting the results of their stress tests conducted by the National Bank of Ukraine (NBU) on their websites. So, the state-owned PrivatBank and Ukrgasbank, as well as UkrSibbank, OTP Bank, Credit Agricole Bank, ProCredit Bank and Kredobank did not need additional capital according to the results of stress tests.
The estimated capital shortage of state-owned Oschadbank under the baseline scenario was UAH 13.49 billion, under the adverse macroeconomic scenario – UAH 28.25 billion, and by September 1, thanks to the measures taken, the bank had reduced it to UAH 6.19 billion and to UAH 21.14 billion, respectively.
The need in capital of state-owned Ukreximbank under the baseline amounted to UAH 9.776 billion, under the adverse macroeconomic scenario – UAH 17.53 billion; by September 1, the bank had decreased the figures to UAH 3.671 billion and to UAH 12.188 billion, respectively.
The estimated capital shortage of the subsidiary of the Russian Sberbank under the baseline scenario was UAH 1.44 billion, under the adverse scenario – UAH 4.759 billion. By September 1, as a result of the measures taken, the financial institution had no need for additional capital.

PARLIAMENTARY IMMUNITY NOT IN EFFECT ANYMORE IN UKRAINE

Parliamentary immunity has stopped being in effect from January 1, 2020.
As reported, On September 3, the Verkhovna Rada voted to adopt on its merits bill No. 7203 amending Article 80 of the Constitution of Ukraine which fully abolishes parliamentary immunity from 2020.
The law removes from Article 80 of the Constitution the provision stating that parliamentarians cannot be prosecuted, detained or arrested without the consent of the Verkhovna Rada and that they are guaranteed parliamentary immunity.
Only one provision remained in the article. This states that Ukrainian parliamentarians do not bear legal liability for the voting outcomes or statements made in the parliament or its bodies, with the exception of liability for slander or defamation.
At the end of 2019, Ukrainian President Volodymyr Zelensky signed bill No. 2237 into law, bringing the Ukrainian legislation regarding the immunity of deputies into line with the Constitution of Ukraine.
According to the adopted amendments, the application for permission to detain, select the measure of restraint (detention in custody, house arrest), and other investigative search actions must be agreed with the prosecutor general.
Investigators of the National Anti-Corruption Bureau of Ukraine (NABU) and the central office of the State Bureau of Investigations (SBI) are entitled to conduct pretrial investigation of criminal proceedings opened against MPs. It is forbidden to entrust the execution of a pretrial investigation of a criminal offense committed by an MP of Ukraine to other bodies of pretrial investigation, except for the NABU and the central office of the SBI in accordance with their investigative jurisdiction.

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KRIUKOV CAR BUILDING WORKS INCREASES PRODUCTION BY 44%

Kriukov Car Building Works (KCBW, Kremenchuk, Poltava region) tentatively produced marketable products worth over UAH 8 billion in 2019, which is 43.7% more than a year ago, Chairman of the enterprise’s supervisory board Volodymyr Prykhodko has said.
“According to current data, we have manufactured marketable products worth more than UAH 8 billion. The growth rate compared with 2018 is 143.7%, the sales rate is more than 157%,” he said in an interview with the corporate newspaper posted on the company’s website.
According to Prykhodko, 5,280 freight cars were assembled over the past year and this is 43.2% more than a year earlier (3,686 units).
“The plant worked all year with full load, twice we raised wages… The average salary reached UAH 16,500. Not all industrial enterprises of Kremenchuk managed to stay at that level,” the head of the supervisory board said.
Some UAH 715.7 million of taxes were paid to the budget and funds, including UAH 162.4 million to the local budget.
Prykhodko said that the goal of the enterprise for 2020 is to maintain the position of 2019 and increase the share of exports (he did not give a share for 2018).
He also said that in 2020 the KCBW intends to double (up to 6) the number of developments in the field of new technology, and plans to create an independent testing center on the basis of the existing one.
He also announced plans to double investment in enterprise development, without specifying the figure.