Business news from Ukraine

Business news from Ukraine

SECURITY SERVICE OF UKRAINE CONDUCTING INVESTIGATIVE ACTIONS INTO SHOOTING ATTACK ON 112.UKRAINE TV CHANNEL

The Security Service of Ukraine (SBU), together with police and other law enforcement agencies, is carrying out urgent investigative actions and search activities in connection with the shelling of the building of the 112. Ukraine TV channel in Kyiv. “The prosecutor’s office has determined that the investigators of the SBU will conduct a pretrial investigation,” according to the SBU page on Facebook.
In the early hours on July 13, an unknown persons opened fire from a grenade launcher at the face of the TV channel’s building. No one was hurt in the shelling. A criminal case was opened on the grounds of a terror attack.

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF JULY 15

Official rates of banking metals from national bank as of july 15

One troy ounce=31.10 grams

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COST OF UKRAINIAN HRYVNIA IS UNDERESTIMATED BY 61% – BIG MAC INDEX

The Economist has published updated data on the rating of world currencies, the so-called Big Mac Index, according to which the cost of the hryvnia is underestimated by 61.3%, and the real rate according to purchasing power parity should be UAH 9.93 per U.S. dollar, the Ukrainian Dzerkalo Tyzhnia (Mirror Weekly) ezine said. Early this year, the Ukrainian currency was underestimated by 65.2% according to the Big Mac Index.
The Big Mac Index is an index created by The Economist based on the theory of purchasing power parity (PPP). Over the long-term, PPP theory states that currency exchange rates should equal the price of a basket of goods and services in different countries.
The official forex rate set for Ukraine’s hryvnia on July 12 is UAH 25.8 per U.S. dollar.

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 15/07/19

National bank of ukraine’s official rates as of 15/07/19

Source: National Bank of Ukraine

STATE-RUN PRIVATBANK SEES 2.7-FOLD RISE IN NET PROFIT IN H1 2019

Net profit of PrivatBank (Kyiv) in January-June 2019 totaled UAH 18.3 billion, which is 2.7 times more than a year ago (UAH 6.9 billion), PrivatBank Board Chairman Petr Krumphanzl has told Interfax-Ukraine.
According to him, net interest income of the bank over the period amounted to UAH 9.8 billion, net commission income reached UAH 8.5 billion.
“One of the significant factors that contributed to the achievement of good financial result is the high efficiency of the bank. This is ensured by significant automation of processes, high efficiency of the regional network, which includes almost 2,000 branches,” the banker said.
As reported, the government of Ukraine on December 18, 2016, referring to the offer of the National Bank of Ukraine (NBU) and former shareholders of PrivatBank, the largest of who at that time were Ihor Kolomoisky and Hennadiy Boholiubov, decided to nationalize this largest Ukrainian financial institution and infused over UAH 155 billion in its capital.
According to the NBU, PrivatBank as of April 1, 2019 was first among 77 banks operating on the market in terms of total assets (UAH 525.698 billion).

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UKRAINIAN METALLURGICAL ENTERPRISES PLAN TO KEEP SMELTING OF STEEL AT THE LEVEL OF 1.8 MLN TONNES

Ukrainian metallurgical enterprises plan to retain smelting of steel at the level of the forecast for July in August 2019, to 1.8 million tonnes.
According to the Ukrmetalurgprom association, the plan for August also provides for the preservation of total pig iron production at the level of 1.8 million tonnes and reduction of total rolled steel smelting by 5.9%, to 1.6 million tonnes from 1.7 million tonnes.
According to the updated data from Ukrmetallurgprom, in January-June 2019, 31.62 million tonnes of iron ore concentrate (105% compared to the same period of 2018), 15.8 million tonnes of sinter (102%), 10.93 million tons of pellets (103%), 5.19 million tonnes of gross coke with 6% moisture (97%), 10.24 million tonnes of pig iron (101%), 10.93 million tonnes of steel (105%), 9.42 million tonnes of rolled metal (102%) and 560,000 tonnes of pipe products (104%).
In June, 1.524 million tonnes of pig iron was produced (less by 9% compared to May 2019), 1.659 million tonnes of steel (91%), 1.5 million tonnes of rolled products (86%).
As of July 9, 2019, 17 out of 21 blast furnaces, seven out of nine open-hearth furnaces, 13 out of 16 converters, six out of 15 electric furnaces and 15 out of 15 continuous casting machines were in operation.

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