Net sales of dollars by the National Bank of Ukraine (NBU) last week fell to $789.3 million from $891.8 million in the last week of last year, data on the regulator’s website showed on Friday. In the first half of the week, for which the central bank has already published the data, the purchase of currency by bank clients was growing: from a minimum of $56.52 million on Monday to $202.69 million on Wednesday.
As a result, the NBU on Wednesday weakened the official hryvnia exchange rate by 0.08%, or 3 kopecks, to a new low of UAH 38.1159/$1.
Nevertheless, on Thursday the demand weakened slightly, as a result the exchange rate strengthened by 0.20%, or by 7 kopecks, to 38.0412 UAH/$1, and on Friday, the last day of trading, the hryvnia weakened again slightly – by 0.10%, or by 3 kopecks, to 38.0775 UAH/$.
Overall, since Monday, the dollar has appreciated by 0.20%, and since the National Bank’s transition to the regime of managed flexibility on October 3, 2023, the dollar has become more expensive by 4.13%, or 1 UAH 51 kopecks. A pronounced trend towards weakening of the national currency began on November 26 last year, and since then the hryvnia has devalued by 5.73%.
In the cash market on Friday, the dollar rose by 1% to UAH 39.49/$1, returning to the pre-New Year dynamics after a rebound in the first days of the year.
Overall, the NBU’s net sales in December rose to about $3.57 billion from $2.46 billion in November, $3.34 billion in October and $2.69 billion in September. Last month, the Finance Ministry raised $5 billion in external financing, which boosted international reserves by 4.4% in December to $40 billion 507.9 million, the second highest in history after July 2023.
The Cabinet of Ministers of Ukraine has included 66.65% of the authorized capital of Lybid Investment Union LLC, which owns the Ocean Plaza shopping mall in Kyiv, in the list of large-scale privatization targets.
According to Taras Melnychuk, a representative of the Cabinet of Ministers in the Verkhovna Rada, the decision was made at a government meeting on Friday.
In October 2023, the State Property Fund of Ukraine appealed to the government with an initiative to include the state-owned stake (66.65%) in the Ocean Plaza shopping mall in the list of large-scale privatization objects. The Fund recommended setting the starting price for the sale of the state-owned stake in the mall at the level of its book value for the last reporting (annual) period.
At the end of 2022, the value of the state share amounted to UAH 1.32 billion (the carrying value of the entire asset was UAH 1.98 billion). At the same time, the Fund expects the sale of the lot to be more expensive than the book value.
As reported, on June 9, 2023, the Cabinet of Ministers approved an order to transfer to the SPF a 66.65% share of the authorized capital of Lybid Investment Union LLC, which owns the mall, in the amount of 66.65%.
Previously, these corporate rights belonged to Russian businessmen Arkady and Igor Rotenberg, who are subject to sanctions, but in March 2023, the High Anti-Corruption Court ruled to recover them in favor of the state.
Ocean Plaza was opened in Kyiv in December 2012 at 176 Antonovycha Street. Its total area is 165 thousand square meters. Investments in the facility amounted to approximately $300 million. UDP and K.A.N. Development LLC were partners in the development of the project.
The mall was sold to Arkady Rotenberg’s TPS Real Estate in 2012. Later, in 2019, Ukrainian businessman Vasyl Khmelnytsky indirectly acquired a 33.5% stake in Ocean Plaza through UPD Holdings Limited. In 2021, he sold his stake to entrepreneur Andriy Ivanov. The deal was finalized in the summer of 2023.
Zaporizhzhia Ferroalloy Plant (ZZF) ended January-September 2023 with a net loss of UAH 677.9 million, while in the same period of 2022 it made a net profit of UAH 1 billion 1.283 million.
According to the interim financial results report for January-September 2023, which is available to Interfax-Ukraine, the company reduced its net income by 68.7% to UAH 1 billion 347.930 million over the period.
Retained earnings as of the end of September 2023 amounted to UAH 3 billion 879.020 million.
As reported, in 2022, ZZF made a profit of UAH 523 million 27.621 thousand, in 2021 – a net profit of UAH 2 billion 402 million 251.119 thousand, in 2020 – a net profit of UAH 682.297 million, while it ended 2019 with a net loss of UAH 600.607 million.
As reported, Pokrovsky Mining and Processing Plant (PGOK, formerly Ordzhonikidze Mining and Processing Plant) and Marganetsky Mining and Processing Plant (MGOK, both in Dnipropetrovska oblast), both part of the group, stopped mining and processing crude manganese ore in late October and early November 2023, while NFP and ZFP stopped smelting ferroalloys.
Prior to nationalization, the business of ZZF, NFP, Stakhanovsky ZF (which is on the tubing line), Pokrovske (formerly Ordzhonikidze) and Marganetsky mining and processing plants was organized by Privatbank.
Zaporizhzhia Ferroalloy Plant is one of the two main Ukrainian producers of these products.
According to the third quarter of 2023, Matrimax Limited and Soltex Limited own 22.4486% of the company’s shares, Tapesta Limited – 18.8903%, Walltron Limited (all Cyprus) – 18.642%, and Halefield Holdings Limited (Belize) – 7.7508%.
The authorized capital of ZZF is UAH 227.955 million, with a par value of UAH 0.1 per share.
The National Bank of Ukraine (NBU) in December fined five banks – Oxy Bank, Accordbank, Universal Bank (mono), MTB Bank and Cominbank – for a total amount of over UAH 66.74 million, the regulator said on its website on Friday.
The largest fine of UAH 20.05 million was imposed on Oxy Bank for improper verification of clients and their financial transactions, violations of financial monitoring, currency control and the bank’s obligation to use a risk-oriented approach in its activities.
According to the release, Accordbank has to pay UAH 18.84 mln for improper risk management system and check of the payer for transfer of funds, submission of unreliable information by the bank to the regulator, as well as for violations in the sphere of currency legislation.
Universal Bank was fined UAH 10.45 mln for improper customer verification, online monitoring and application of risk-oriented approach.
Similar reasons caused almost the same fine – UAH 10.40 mln – to MTB Bank.
The National Bank also fined Cominbank UAH 10m due to its late and incomplete submission of documents to the regulator regarding the bank’s compliance with the legislation on preventing money laundering.
Accordbank, COMINBANK, NATIONAL BANK OF UKRAINE, Oxy Bank, МТБ Банк, Універсал Банк (mono)
In January-September 2023, Kryvyi Rih Iron Ore Plant (KZHRK) cut its net profit by 45.7% compared to the same period in 2022 to UAH 699.465 million.
According to the interim report of the company, available to Interfax-Ukraine, net income for the period decreased by 18% to UAH 4 billion 430.021 million.
Retained earnings as of the end of September 2023 amounted to UAH 6 billion 210.007 million.
In 2022, KZHRK reduced its net profit by 72.2% to UAH 1 billion 117.502 million and net income by 43.6% to UAH 6 billion 290.171 million. Production in 2022 amounted to 2.888 million tons, while sales volume was 2.383 million tons. The total volume of products exported in 2022 amounted to 84.7% of total sales.
Proven (balance sheet as of January 1, 2023) reserves of rich ores amount to 262.4 million tons with an average iron content of 58.66%.
As reported earlier, in 2021, KZHRK increased its net profit by 2.37 times compared to 2020 to UAH 4 billion 23.95 million, while net income increased by 68.9% to UAH 11 billion 158.331 million.
KZHRK specializes in underground iron ore mining. The company has four mines: “Pokrovska (formerly Zhovtneva), Kryvorizka (Batkivshchyna), Kozatska (formerly Gvardiyska) and Ternivska (formerly Ordzhonikidze and then Lenin).
According to the third quarter of 2023, the main shareholder of KZHRK is Starmill Limited (Cyprus), which owns 99.8812% of its shares.
Earlier it was reported that SCM Group owns a certain share in KZHRK, while Metinvest Group has no relation to KZHRK. At the same time, SCM Group is only an investor, while Privat Group exercises operational control over the plant.
The authorized capital of the company is UAH 1 billion 991.233 million.
In 2023, Zaporizhzhia-based Zaporizhstal Iron and Steel Works increased its rolled steel output by 57.2% compared to 2022, to 2 million 54.7 thousand tons.
According to the company’s information on Friday, steel production for the year increased by 65.4% to 2 million 466.9 thousand tons, and pig iron production by 35.3% to 2 million 718.9 thousand tons.
In 2023, the plant operated at an average of 70% of its capacity.
In December, Zaporizhstal produced 265.5 thousand tons of iron, 228.6 thousand tons of steel, and shipped 206.5 thousand tons of rolled products, compared to 262.7 thousand tons of iron, 240.8 thousand tons of steel, and 195.6 thousand tons of rolled products in the previous month, and 141.9 thousand tons of iron, 70.7 thousand tons of steel, and 57.7 thousand tons of rolled products in December 2022.
“The increase in production in December 2023 compared to December 2022 is due to the removal of blast furnace No. 2 from hot mothballing and the establishment of three blast furnaces,” the press release explains.
As noted, enemy shelling and destruction, interruptions in the supply of raw materials and energy, and disruption of logistics routes for the export of finished products due to the blockade of seaports in 2023 led to a reduction in steel and rolled products production at Zaporizhstal compared to pre-war levels. However, compared to 2022, the steelmaker increased production of steel products by increasing capacity utilization, finding new logistics routes for raw materials and sales, and expanding its product portfolio.
“The implemented anti-crisis solutions allowed us to stabilize the production process and refocus on more efficient work in the ever-changing wartime environment, maintain production and retain our team. In 2024, we plan to maintain production volumes, and, given the favorable conditions on foreign markets and demand for rolled steel in the domestic market, to increase production capacity utilization,” said Roman Slobodianiuk, CEO of Zaporizhstal, as quoted by the press service.
As reported, in 2022, Zaporizhstal reduced its rolled steel output by 60.4% compared to 2021, to 1 million 304.3 thousand tons, steel by 61.7%, to 1 million 491.3 thousand tons, and pig iron by 54.3%, to 2 million 9.9 thousand tons.
“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries of the world.
“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).
Metinvest Holding LLC is the management company of Metinvest Group.
