Business news from Ukraine

Business news from Ukraine

LARGEST EGG PRODUCER IN UKRAINE AVANGARD CUTS PRODUCTION BY 50%

Avangard agricultural holding, the largest egg producer in Ukraine, cut monthly production by 50% over the past year due to pressure from law enforcement officers, largely due to the impossibility of organizing the export of its products in such conditions, owner of the agricultural holding Oleh Bakhmatiuk has said.
“We now produce 170 million eggs a month, and we produced about 300 million, and in May – 350 million! Of which 170 million were exported in May, and this month we will send for export, maybe 20 million,” he said is in an interview with the Interfax-Ukraine agency.
Bakhmatiuk explained that the company used credit lines for $ 60-70 million for export, since delivery, for example, to Singapore takes 45 days and the supplier needs to be granted a delay.
“But thanks to the valiant actions of the NABU (the National Anti-corruption Bureau of Ukraine), all credit lines were closed to us, we were forced to almost completely close the export direction,” the Avangard owner said, adding that the coronavirus pandemic complicated logistics by making it longer and 30% more expensive.
According to him, out of seven trading houses – in Hong Kong, Singapore, Malaysia, Iraq, Liberia, Saudi Arabia and Dubai, the opening of which took six years and about $ 25-30 million, Avangard retained only one – in Dubai.
Talking about other reasons for the reduction in production, Bakhmatiuk named a painful rise in the price of raw materials, in particular, fat and oil, bagasse and cereals, common for the entire sector.
“This reputational war has been added to the general problems of the sector. In fact, 12 poultry farms have been closed, now the 13th will be closed,” he said, adding that there are 13 operating factories left.
As the businessman noted, such a reduction in production, taking into account fixed costs, led to an increase in the cost of an egg by about 20 kopecks.
Commenting on the rise in egg prices in Ukraine, he called it forced.
“We go to zero profitability and even with a small minus. Because feed prices are growing faster than the demand and the price of eggs are growing,” the businessman explained.

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ANTIMONOPOLY COMMITTEE OF UKRAINE FINES GOOGLE

The Antimonopoly Committee of Ukraine (AMCU) has imposed a fine on Google LLC (99% owned by Google International LLC, the United States) in the amount of UAH 1 million for failure to provide information on time at the request of the state authorized representative of the AMCU.
As noted in the report on the website of the committee, such a decision was made by the provisional administrative board of the AMCU at a meeting on April 2.
“The size of the fine is determined by aggravating circumstances, namely by the fact that Google LLC has not provided the committee with the requested information for more than a year,” the report says.
This information was necessary for the AMCU to investigate the application of an individual entrepreneur regarding the blocking of his account in the Google My Business application.
The AMCU stressed that the failure of the respondent to provide information within a certain time frame makes it impossible for the committee to fulfill the tasks assigned to it, in particular, the timely, complete and comprehensive consideration of an application for violation of the legislation on protection of economic competition.
At the same time, it is noted that already within the framework of the consideration of the case initiated against the company for failure to provide information at the request of the committee, this information was provided by the defendant, which in turn was also taken into account by the AMCU when determining the amount of the fine.
“At the moment we are clarifying the details of this situation,” the press service of Google Ukraine commented to Interfax-Ukraine.

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 05/04/21

National bank of Ukraine’s official rates as of 05/04/21

Source: National Bank of Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF APRIL 05

Official rates of banking metals from national bank as of April 05

One troy ounce=31.10 grams

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REGISTRATIONS OF NEW COMMERCIAL VEHICLES INCLUDING HEAVY TRUCKS IN UKRAINE IN MARCH DOUBLES

Initial registrations of new commercial vehicles (including heavy trucks) in Ukraine in March doubled compared to the same month of 2020, to 1,155 vehicles, and in general, 2,820 vehicles were registered in January-March, or almost a third more than in the first quarter of last year, according to the Ukrautoprom association.
According to the association’s website, the March result was the best since the beginning of this year – 901 vehicles were registered in January, and 765 new commercial vehicles in February.
At the same time, as reported, in March 2020, the demand for commercial vehicles decreased by 41% compared to March 2019, to 568 vehicles, since after the introduction of quarantine in the country (from March 12) to March 27, service centers of Internal Ministry did not register new commercial vehicles.
According to the report, in March of this year (as well as a year earlier) the best result of the month was demonstrated by French Renault, which increased sales by 17%, to 143 vehicles.
Fiat retained its second place, adding 27% in sales to 136 vehicles. The third place is taken by Peugeot, 119 vehicles and an increase of 2.2 times.
The fourth place, as in March 2020, is taken by Ford, the registrations of vehicles of this brand increased by almost 1.6 times, to 92 vehicles.
Belarusian MAZ closes the top-five in March (in March 2020 it rolled back to the eighth place), and has quadrupled sales to 87 trucks.
Citroen has significantly increased registrations compared to March 2020 (some 2.3 times, to 78 vehicles), MAN (3 times, to 53 vehicles), and Scania (2.5 times, to 42 vehicles).
Chinese brands continue to increase registrations: HOWO – to 31 vehicles versus one in March 2020, JAC – 16 versus four, and Dong Feng – 16 units versus none.
The association also cites statistics on sales of buses (including micro ones) in March, which demonstrates the opposite trend: the sales decreased by 63.3% versus March 2020 and by 11.7% versus February 2021, to 106 buses, primarily due to the reduction of registrations of the leading brand Citroen by 64.4%, to 53 buses.
The second place is taken by Ford (15 buses versus 12 in March 2020), the third by Hyundai (eight buses against four), and the fourth by Ukrainian Etalon (five buses). There are no Ukrainian Bogdan and ZAZ in the rating, and only three of Ataman buses are registered.
Russian brands continue to be registered – PAZ (five units), and UAZ (five units).

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PRESIDENT OF UKRAINE SIGNS DECREE ON VACCINATION OF POPULATION AGAINST CORONAVIRUS

President of Ukraine Volodymyr Zelensky has signed a decree on vaccination of the population against coronavirus, providing for the creation of a National Vaccination Plan against COVID-19, according to which the majority of the adult population of Ukraine should receive their vaccinations by the end of this year.

Corresponding document No. 139/2021 “On the decision of the National Security and Defense Council of Ukraine dated April 2, 2021” On the National Plan for Vaccine Preventive Treatment of Acute Respiratory Disease COVID-19 Caused by the SARS-CoV-2 Coronavirus, Until the End of 2021 “was announced on the President’s website on Sunday.

According to the decision of the NSDC, the Cabinet of Ministers of Ukraine within seven days must ensure the development and approval of the National Vaccination Plan against COVID-19, taking into account the best international experience, the press service of the head of state reported.

“In particular, the minimum required monthly number of vaccinations should be established, the sources and timing of the supply of vaccines for the prevention of coronavirus disease, the persons responsible for the implementation of the plan, the ultimate goal of which is to cover the majority of the adult population of Ukraine with vaccinations no later than December 2021 for the formation of herd immunity to the coronavirus,” the President’s Office reported.

They note that the government should intensify negotiations with manufacturers of vaccines against COVID-19, as well as attract international technical assistance for the implementation of the vaccination campaign in Ukraine.

“The Ministry of Health should take urgent and effective measures to supply to Ukraine as soon as possible the required amount of vaccines for the specific prevention of coronavirus disease and ensure public access to vaccination; ensure effective awareness-raising on vaccination,” the message says.

The President’s Office also emphasizes that the decision provides that the Ministry of Foreign Affairs should take urgent measures aimed at increasing the efficiency of cooperation with foreign states and international organizations on the supply of vaccines against COVID-19 to Ukraine.

The decree on the entry into force of the NSDC decision comes into force from the day of its publication.

As reported, Secretary of the National Security and Defense Council Oleksiy Danilov said that in the near future, President of Ukraine Volodymyr Zelensky will sign a decree on the vaccination of the population of Ukraine.