Business news from Ukraine

Business news from Ukraine

UKRAINE PLANS TO RESTART PRODUCTION OF AN-74 AIRCRAFT

Ukroboronprom State Concern is studying the possibility of resuming the production of An-74 aircraft at the state enterprise Kharkiv State Aircraft Manufacturing Company (KSAMC) and including them in the state defense order, Deputy Prime Minister – Minister for Strategic Industries of Ukraine Oleh Urusky said on Facebook on Friday night.

According to him, at a recent meeting on the settlement of problematic issues of enterprises that are members of Ukroboronprom, the possibility of resuming the production of An-74 aircraft at the KSAMC, as well as amendments to regulatory legal acts to improve the conditions for defense production was discussed.

“As a result of the meeting, a number of decisions were made regarding the importance of including the supply of An-74 aircraft in the interests of the Armed Forces of Ukraine in the state defense order, carrying out legislative initiatives to improve the financial situation at the KSAMC, amending the legislation of Ukraine on pricing of military products and advance payments on state contracts for state defense orders,” Urusky said.

According to him, the meeting was attended by representatives of the central executive authorities, the management of Ukroboronprom and its enterprises.

The An-74 aircraft is a modification of the An-72 aircraft. It is designed to carry out ice reconnaissance and transportation while providing research work in the Central Arctic Basin and Antarctica. The aircraft can be converted under operating conditions into cargo and ambulance versions.

NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 16/01/21

National bank of Ukraine’s official rates as of 16/01/21

Source: National Bank of Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF JANUARY 16

Official rates of banking metals from national bank as of January 16

One troy ounce=31.10 grams

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MTIBU RAISES COST OF GREEN CARD POLICIES

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) has introduced new tariffs for Green Card policies for those traveling abroad by road from January 4, 2021.
According to a report on the bureau’s website, the MTIBU has recalculated the cost of Green Card insurance certificates upwards by an average of 3.8%.
The last change in tariffs was on October 19, 2020 upwards by 3.3%, on August 3, 2020 upwards by 3.1%, on July 24 by 3.8%, on June 16 by 3.5%.
Green Card policies have been implemented since 2009 of two types: all of Europe; Belarus, Moldova and Russia. Also, from January 1, 2016, the Ukrainian Green Card policies began to operate on the territory of Azerbaijan.
According to the MTIBU, the cost of Green Card in Ukraine for 15 days for travel in Europe for passenger cars increases to UAH 846 (previously UAH 815), for buses to UAH 3,180 (UAH 3,062), for trucks to UAH 1,996 (UAH 1,922).
The cost of Green Card for one month for cars is now UAH 1,347 (previously UAH 1,297), for buses UAH 4,417 (UAH 4,253), for trucks – UAH 2,650 (UAH 1,922).
The cost of semi-annual and annual Green Card policies for cars is UAH 5,083 and UAH 7,406 respectively, for buses – UAH 15,461 and UAH 28,514, for trucks – UAH 12,546 and UAH 23,678 respectively.

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CENTRAVIS UKRAINE DOUBLES EBITDA IN 2020

PrJSC Centravis Production Ukraine, part of Centravis Ltd, doubled EBITDA in 2020 compared to the previous year, to EUR 14 million.
Chief Financial Officer Alexandre Joseph said at an online press conference of Centravis on Friday that the production of stainless pipes last year decreased by 9.3% compared to the previous year, to about 19,050 tonnes.
In 2021, it is planned to produce 17,500 tonnes of products.
CEO of the company Yuriy Atanasov said that a decrease in pipe production is planned as a result of a change in strategy, as well as a reduction in production capacity and personnel by 20-25% due to the fall of markets in 2020 due to the coronavirus (COVID-19) pandemic.
At the same time, he said that 2020 was a difficult year for the company due to lockdowns and falling demand. For Centravis, the fall in oil prices in early 2020 was significant, as this also affected suppliers of stainless pipes for the oil and gas industry. At the same time, during the spring lockdown in many countries, the company even increased its supply, but in the summer there was a decrease, in connection with which it had to cut production and staff. “We took an unprecedented step, we offered severance pay in the amount of from three to six salaries, depending on the length of service of employees, spending more than UAH 15 million on this, which is very significant for our company,” Atanasov said.
In a press release published by the company on Friday, it is stated that in 2020 Centravis has continued to develop sales in all regions of the world. The company supplies seamless pipes to the European Union, the Middle East, Latin America, Eastern Europe, the United States, India, Australia, Japan, Canada, and other regions and countries.
Among the key clients of Centravis in 2020 are Buhlmann Group, Damstahl GmbH, ThyssenKrupp, Salzgitter AG, and Karl Mertl Handelsges. The company has completed a number of large-scale orders for such global companies as Bousted International Heaters, Stainalloy Nederland, and Buhlmann Group.
“Last year has tested the strength of everyone without exception. I think we have coped with all the challenges. Our team has managed to adapt. We have improved our products and helped our customers to solve their problems. But most importantly, we have strengthened our stability and are ready to develop in 2021,”Atanasov said.
According to him, focus on product quality and high customer service has helped Centravis maintain a stable position among the world’s best manufacturers of seamless pipes.
Centravis Production Ukraine is the only specialized enterprise for the production of seamless stainless steel pipes in the CIS and the leading exporter in its segment.

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OVER 14,000 COMPANIES FROM UKRAINE EXPORT THEIR PRODUCTS TO EUROPEAN UNION

Over 14,000 Ukrainian companies annually export their products to the European Union, said Minister of Economy Ihor Petrashko.
“Over 14,000 companies annually export their products to the EU. And as of mid-January, 362 companies producing animal products have the right to export their products to the EU, which is subject to the most stringent requirements from the EU,” the press service of the ministry quoted Petrashko as saying in the release on Friday.
Reforms in technical regulation, public procurement, sanitary and phytosanitary standards, as well as improving the product safety control system, customs, intellectual property protection system will allow to remove barriers to trade and provide more free access to the EU internal market for Ukrainian companies, the minister said.
“Today we see that we are ready to go further in our European aspirations,” Petrashko added.

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