Business news from Ukraine

Business news from Ukraine

SHEBELYNKA GAS REFINERY RAISES PROCESSING BY 6%

Shebelynka gas processing plant (Kharkiv region) in January-March 2019 increased processing of crude oil by 6% (by 7,000 tonnes) compared to the same period in 2018, to 122,800 tonnes.
The Ministry of Energy and Coal Industry told Interfax-Ukraine, in March 2019 processing at the plant amounted to 44,700 tonnes, which is 25.9% (9,200 tonnes) more than in the same month last year.
For the three months, the plant increased production of petrol by 53% (by 14,000 tonnes), to 40,400 tonnes, fuel oil by 31.5% (by 2,300 tonnes), to 9,600 tonnes, but reduced diesel fuel by 20.3% (by 4,700 tonnes), to 18,400 tonnes.
The loading of the plant’s capacity for the first quarter of this year was 49.1% against 46.3% in January-March 2018.

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PRICE OF VEGETABLES IN UKRAINE TO FALL BY 90% IF NO WEATHER IRREGULARITIES RECORDED – EXPERTS

In Ukraine the prices of vegetables for borsch (onions, potato, carrots, beets and other vegetables) would fall by around 90% in a year, if in the period of growing the new harvest no weather irregularities are recorded, experts from the EastFruit news and analytical platform have said. According to a report on the website of EastFruit, the reason for the rapid growth of prices for vegetables this season was the small harvest due to weather conditions.
In addition, the rise in prices was due to the fact that many Ukrainian vegetable growers went out of business in 2018 or sharply reduced the areas with vegetables after several years of low prices for the entire range of borsch vegetables, EastFruit Project Manager Kateryna Zvereva said.
“The reason was simple: Ukraine’s vegetable production lost access to the two main markets for traditional vegetables with shortest supply: Crimea and Donbas. It was there that products were not grown enough, prices were high, and there were many consumers,” EastFruit said.
At the same time, according to EastFruit, this season, the area with vegetables, in particular with the onion, will increase significantly, and if there is no abnormal heat and drought in the summer, then next year we can expect overproduction and lower prices.
According to EastFruit, Ukraine usually covers a shortage of vegetables by exports from Poland and other EU countries, but this year there is also a shortage of vegetables in the EU.
As a result, Ukrainian vegetable importers first began to buy vegetables (primarily onions) in Central Asian countries, but logistics from these countries is expensive, which affected the price for consumers this season, EastFruit said.

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KRIUKOV CAR BUILDING WORKS SENDS UAH 200 MLN OF NET PROFIT TO PAY DIVIDENDS AFTER SIX-YEAR BREAK

PJSC Kriukov Car Building Works (KCBW, Kremenchuk, Poltava region) sent 41.2% or UAH 200.689 million of net profit (UAH 487.25 million) to pay dividends for 2018, which equals to UAH 1.75 per share with a face value of UAH 0.75. The decision was made at a general meeting of the company’s shareholders held on April 23, 2019.
As reported, with reference to Head of the supervisory board of KCBW Volodymyr Prykhodko, in the past six years, KCBW has not paid dividends. In 2017, after several years of unprofitable business (including due to Russia’s cancellation of KCBW wagon certification), the plant received a net profit of UAH 332 million, but did not pay dividends.
The charter capital of KCBW is UAH 86.01 million, divided into 114,679,552 ordinary registered shares.
According to the company, as of March 31, 2019, the shareholders of PJSC are Estonian AS Skinest Finants (25% of the share capital) and Osauhing Delantina (25%), OW Capital Management GmbH (Austria, 25%) and U.K. registered Transbuilding Service Limited (19.17%).
At the same time, according to the report, the beneficial owners (controllers), who own more than 90% of the company’s shares, are Head of the supervisory board Prykhodko, N. Prikhodko (coincides with the initials of his wife), as well as Estonian businessman Oleg Osinovsky and Chairman of the Board of Directors of the Russian manufacturer of wagons Metalwork Plant (Saratov region) Stanislav Gamzalov.

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UAH 1 BLN PROPERTY SOLD WITHIN SMALL PRIVATIZATION IN UKRAINE

State property worth UAH 1 billion was sold through the ProZorro electronic trading system in the framework of small-scale privatization in Ukraine, according to the ProZorro page on Facebook. According to the report, since the launch of small privatization, 813 successful auctions have been held through the electronic system, which brought the State Property Fund of Ukraine more than UAH 476 million, and municipalities some UAH 562 million.
“The objects of small privatization are in a high demand – an average of 2.7 participants compete for each lot. And the average increase in the starting sale price is 61.24%,” the report says.
“We beat a good figure in small privatization – UAH 1 billion for taxpayers in Ukraine. The practical result of the work of ProZorro.Sale. If after Maidan we did just that, I would have already considered that it was not for nothing that I came to work in government agencies,” First Deputy Economic Development and Trade Minister of Ukraine Maksym Nefyodov said on Facebook.

ZAPORIZHIA INTERNATIONAL AIRPORT RAISES PASSENGER TRAFFIC BY 14%

Zaporizhia International Airport in January-April 2019 carried over 135,000 passengers, which is 14% more than in the same period of 2018, according to the website of the airport. “In the first four months, international flights turned out to be the most popular with 97,341 passengers transported to them. Tickets for domestic flights also continue to be in demand, the number of passengers on these routes increased by 7%,” the report says.
In April the total number of passengers served by the airport rose by 8%, to almost 38,500 people.
Last month, an increase in the number of passengers by more than 11% was recorded on international destinations, while a slight drop in passenger traffic within 0.5% was recorded on domestic lines.

ARSENAL INSURANCE RAISES PREMIUM COLLECTION BY 19%

Arsenal Insurance (Kyiv) in 2018 collected insurance premiums in the amount of UAH 1.886 billion, which is 19% more than a year earlier, according to a press release from the insurer.
Voluntary types of insurance, including KASKO, property insurance, collective medical insurance and other types account for 76% of the total premiums, mandatory types for 24% of the company’s total sales. This portfolio structure allows the insurer not only to occupy a significant market share, but also to generate profit: last year it amounted to UAH 22.6 million and grew by 2.8 times compared with 2017, the report says.
The company also reports that it achieved the most significant results in the auto segment: about 13,000 car owners and 6,500 corporate clients used KASKO services from Arsenal Insurance in 2018.
“Over 36% of our gross premiums last year accounted for KASKO. Our company was growing very actively in this sector, increasing sales for the year by 32%. This is the best dynamics among the top market players, and we are sincerely glad that more and more car owners trust their protection to our brand,” Serhiy Avdeyev, the board chairman of the company, said.
Arsenal Insurance is the successor of Arsenal-Dnipro insurer, operating in Ukraine since 2005. It is represented in all regional centers and some large cities of the country.

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