Business news from Ukraine

Business news from Ukraine

JULY TAX COLLECTION PLAN OVERFULFILLED BY UAH 5 BLN

The State Tax Service (STS) of Ukraine in July 2019 managed to ensure UAH 5 billion more in tax payments to the national budget, however, total tax payments collected by the State Fiscal Service [which consists of the tax and customs services] is UAH 14 billion lower than the target figure, STS Serhiy Verlanov said.
“According to a recent update, the tax service collected UAH 5 billion more in July [than it was planned],” Verlanov said at a press briefing in Kyiv on Thursday.
Yet, he said, funds collected by the customs unit is lower than the target.
“Yes, we’ve got questions to ask the customs,” he said.

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PORTNOV SAYS SBI PROBING THEFT AT UKROBORONPROM, SIPHONING OF ASSETS AT POROSHENKO’S INSTRUCTIONS

The former deputy head of the Presidential Administration under ex-President Viktor Yanukovych, Andriy Portnov, has said Ukraine’s State Bureau of Investigations (SBI) has opened a criminal case to probe facts of embezzling funds from state-run Concern Ukroboronprom and siphoning them off into offshore accounts, and suspects in the case “could include dozens of ex-President Poroshenko’s allies.”
“Let me inform you about a new criminal case, which can incriminate dozens of people among Poroshenko’s associates. The SBI yesterday officially registered the case and began its investigation,” Portnov said on Facebook on Thursday.
Portnov said Poroshenko gave direct instructions to ex-National Bank of Ukraine Chairwoman Valeriya Gontareva, and the NBU board on January 19, 2016, revoked NBU decisions on hard currency control involving foreign economic activities, establishing that payments of Ukroboronprom to offshore accounts could be used for making prepayments without NBU hard currency controls and limits.
“This enabled the theft of several billion hryvnias from Ukraine’s army, hiding behind official decisions made by the NBU,” Portnov said.
Interfax-Ukraine has not received confirmation from the SBI regarding Portnov’s statements.

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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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