Business news from Ukraine

Business news from Ukraine

NEW UKRAINIAN GOVERNMENT TO BE FORMED IN SEPT

A new composition of the Ukrainian government will be endorsed shortly after the Verkhovna Rada, Ukraine’s parliament, starts work, the Ukrainian president’s representative to the government Andriy Gerus, said on Thursday. “Everything will be very quick. I think a new government will be formed on the first or second day of the parliament’s work. I am convinced of that,” Gerus said on the TV channel 1+1.
He said he expected the parliament to gather for its first meeting within the first days of September.
Asked whether the Holos party could join a coalition with the parliamentary majority, Gerus replied, “If Holos wishes to join, it could enter the coalition on the first day of the new parliament.”
Parties that might wish to join a future coalition could reach a number of agreements in August so as not to lose time later, he said.
“We don’t have too much time. The country needs quick change so that the public feels a positive effect from reforms that need to be carried out quickly,” Gerus said.
Quick decisions and steps will be made every day so as to move ahead, he said.

NUMBER OF GREEN CARD INTERNATIONAL INSURANCE CONTRACTS IN UKRAINE UP BY 48% IN H1, 2019

The number of Green Card international insurance contracts signed by the member companies of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) increased by 48.2% in January-June 2019 compared with January-June 2018, to 501,449.
According to the MTIBU’s website, the amount of accrued insurance premiums for this period rose by 37.53% compared to the same period last year, to UAH 883.538 million.
At the same time, the amount of compensation paid on claims grew by 14.88%, to EUR 6.869 million, while the number of claims paid decreased by 2.26%, to 2,550.
The MTIBU is the only association of insurers that carry out compulsory insurance of vehicle owners’ civil liability for damage caused to third parties. Its members are 51 insurance companies, including ten full bureau members having the right to sign Green Card agreements.

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STATE-RUN ENERGOATOM SEES 2.9-FOLD DROP IN NET PROFIT IN JAN-JUNEE

The National Nuclear Generating Company Energoatom in January-June 2019 saw 2.9 times less in net profit compared to the same period in 2018 (by UAH 2.72 billion). It now totals UAH 1.114 billion.
According to a company report in the information disclosure system of the National Commission for Securities and the Stock Market, in January-June 2019, its net revenue totaled UAH 23.060 billion, which is 12.3% more than a year ago (UAH 28.559 billion). Gross profit of Energoatom grew by 8.4% or UAH 435.6 million, to UAH 5.601 billion.
As reported, the company in January-June 2019 increased electricity generation by 6.5% compared to the same period of 2018, to 42.776 billion kWh.
Energoatom is the operator of all four Ukrainian-based operating nuclear power plants, which have 15 VVER reactors with an overall generating capacity of 13.835 gigawatts.

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ARCELORMITTAL OPENS NEW DEPOT FOR STEEL PRODUCTS IN UKRAINE

The Mining and Metallurgical Combine PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) has opened a new metalware storage facility in Dnipro city with a loading capacity of 5,000 tonnes per month.
The new facility has a total area of 8,000 square meters and both indoor and outdoor storage yards, three cranes with carrying capacity up to 15,000-20,000 tonnes and its own railway spur. It can store up to 10,000 tonnes of steel products, the enterprise reported in its press release. The depot can provide services for motor vehicles as well.
As regional sales manager at ArcelorMittal Yevhen Chumachenko said, now the distribution network of the enterprise comprises nine storage facilities, two of which are in Kyiv and Lviv (two in each city), Kryvyi Rih, Odesa, Kharkiv, Ternopil and Dnipro.
Besides, according to him, the depot in Dnipro will serve as a logistic center for the certain districts of central, south and eastern Ukraine.
ArcelorMittal Kryvyi Rih is the largest rolled steel producer of in Ukraine.

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF AUGUST 01

Official rates of banking metals from national bank as of august 01

One troy ounce=31.10 grams

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SURPLUS OF UKRAINE’S CONSOLIDATED BALANCE OF PAYMENTS IN JUNE TOTALS $1.2 BLN

Ukraine saw a $1.2 billion surplus of a consolidated balance of payments in June 2019 compared with a $750 million deficit in May, a $45 million deficit in April, a $652 million surplus in March 2019 and a $23 million surplus in June 2018.
“The surplus of the consolidated balance of payments amounted to $1.2 billion (it was $23 million in June 2018). This allowed us to simultaneously increase international reserves (by $1.1 billion) and pay off debt to the International Monetary Fund ($158 million),” the central bank said in a statement on its website.

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