Business news from Ukraine

Business news from Ukraine

FROM OCT 2020 TO JAN 2021 USE OF 5G SMARTPHONES IN UKRAINE INCREASED FROM 31,000 TO 194,000

From October 2020 to January 2021, the use of 5G smartphones in Ukraine increased from 31,000 to 194,000.
The data was received by the Ministry of Digital Transformation of Ukraine together with mobile network operators, according to the ministry’s website.
The ministry said that the number of smartphones with 4G support also continues to grow, since several thousand settlements are connected monthly to this technology by mobile network operators. Therefore, owners of almost 31 million smartphones can use 4G high-speed Internet.
“We see a situation when Ukrainians, having 4G smartphones and the necessary coverage, continue using the old SIM cards with 3G. We urge subscribers to replace their cards with those that support 4G, because this data transfer technology is 10-15 times faster than the Internet of the older generation. Replacement is free with each operator and takes several minutes. After that, the quality of the video call and the speed of downloading files will be much higher,” the press service said, citing Head of the mobile Internet development group of the Ministry of Digital Transformation Stanislav Prybytko.

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UKRAINE TO CONDUCT AUDIT OF PRIVATIZATION OF STRATEGIC ENTERPRISES

President of Ukraine Volodymyr Zelensky has announced an investigation into the lawfulness of privatization of strategic enterprises and subsoil deposits in the country by individuals.
“Those, who believed that a controlling stake in strategic defense enterprises, in particular Motor Sich, may end up with not the state, but in private hands, and land and subsoil deposits that belong to the people of Ukraine may also be seized, should also receive a fair and legitimate reaction from Ukraine. How did this happen? Again it is a rhetorical question. But the answers will be found by law enforcement agencies, together with the State Service of Geology and Mineral Resources,” Zelensky said in a video message posted on his Facebook page on Friday evening.
“Citizens should know: how and on what conditions a number of people in Ukraine received certain resources. Those who did it legally have nothing to fear. And to establish this, a most detailed audit will be carried out, the results of which will be presented to society. I am sure that these answers should not be rhetorical, but concrete, exhaustive and well-reasoned – both for citizens and for possible future court cases,” the head of the Ukrainian state said.

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 15/03/21

National bank of Ukraine’s official rates as of 15/03/21

Source: National Bank of Ukraine

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

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

One troy ounce=31.10 grams

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RETAIL SALES OF DRUGS IN UKRAINE FALL BY 16.5% IN HRYVNIA EQUIVALENT – STATISTICS

Retail sales of medicines in January 2021 in monetary terms decreased 16.5% compared to January 2020, to UAH 3.117 billion, in packages they decreased by 34.2%, to 36 million units.
At the same time, according to the data provided in the SMD report, domestic manufacturers accounted for 69% of the market in volume terms, while in monetary terms, their share accounted for 35% of the market.
In packages, the top three market leaders included Darnitsa, Farmak and Kyiv Vitamin Plant.
In monetary terms, the top three dealers included Farmak, Sanofi and Darnitsa.

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CHINA DEMANDS UKRAINE RESPECT RIGHTS OF ITS INVESTORS

Beijing demands from Kyiv to protect the legitimate interests of Chinese investors in connection with the decision to nationalize Motor Sich enterprise (Zaporizhia), more than 50% of which is owned by Chinese companies, Chinese Foreign Ministry Spokesman Zhao Lijian has said.
“China demands that Ukraine, in accordance with the law, protect the legitimate interests of Chinese enterprises and investors,” Lijian said.
Earlier Secretary of the National Security and Defense Council (NSDC) of Ukraine Oleksiy Danilov said that PJSC Motor Sich would soon be legally returned to the ownership of Ukraine.
The Chinese shareholders of Motor Sich initiated an arbitration against the state of Ukraine in December 2020 seeking to recover $3.6 billion. They claim that the Ukrainian authorities expropriated their investments, as well as violated their other rights stipulated by the intergovernmental agreement on the encouragement and mutual protection of investments between Ukraine and China from October 1992. The international law firms WilmerHale, DLA Piper, and Bird&Bird are representing Chinese investors’ interests in the claim.
According to a source in the Ukrainian government, currently about 75% of Motor Sich’s shares are already owned by a group of Chinese owners, and some part of the disputed block of shares acts as collateral for financing provided, among other things, by China Development Bank.
PJSC Motor Sich is one of the world’s largest manufacturers of engines for aviation equipment, as well as industrial gas turbine units. It supplies products to more than 100 countries around the world.

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