Business news from Ukraine

Business news from Ukraine

Dario Srna takes over at FC Shakhtar

FC Shakhtar Donetsk and Patrick van Leeuwen have terminated their cooperation, with the club’s sporting director Dario Srna taking over as acting head coach, the club has announced.
“FC Shakhtar officially announces the termination of the contract with head coach Patrick van Leeuwen. Together with the coach, the coaching staff leaves the club,” reads a statement on the club’s official website on Monday.
As noted, van Leeuwen has been in charge of the Pitmen since July 2023. During this time, the team has played 12 official matches. “FC Shakhtar expresses its gratitude to Patrick van Leeuwen and his assistants for their professionalism and wishes them success and victories in the future,” the statement reads.
The team is led by the club’s sporting director Srna, who will reportedly “prepare Shakhtar for the next matches as acting head coach.”

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Court may return Steblevskaya and Korsun-Shevchenkovskaya HPPs to Cherkasyoblenergo

On October 17, the Supreme Court of Ukraine will consider the cassation appeal of PJSC Cherkasyoblenergo in the case of illegal alienation of Steblivska and Korsun-Shevchenkivska HPPs from the company’s ownership.

“In February 2023 the Economic court of Cherkassy region the purchase and sale agreements of these HPPs were recognized invalid, however, already in April the Northern economic court of appeal by its ruling canceled the decision to return these HPPs to the state”, – stated in the press release of “Cherkasyoblenergo” on Monday.

As reported, the Economic court of Cherkassy region by the decision of February 20, 2023 satisfied the claim of “Cherkasyoblenergo” on the invalidation of the purchase and sale agreements of Steblevskaya and Korsun-Shevchenkovskaya HPPs between the company and foreign economic association (FEA) “Novosvit” in 2015.

“Property complexes of Steblivska HPP and Korsun-Shevchenkivska HPP were alienated under the disputed contracts without holding an auction, without notifying the State Property Fund of Ukraine in order to conceal illegal transactions, as a result of which Cherkasyoblenergo and the state suffered significant damage”, – said in the court decision.

As follows from the document, the assessment of the property alienated under the disputed contracts to determine its market value in violation of the requirements of the law “On Joint Stock Companies” and the charter of “Cherkassyoblenergo” was carried out without the decision of the Supervisory Board of the company to engage a subject of appraisal activity, as well as the approval of the market value of the property.

“As a result of illegal assessment of the property of Steblevskaya HPP and Korsun-Shevchenkovskaya HPP as integral property complexes, acting chairman of the company’s management board Kuzminskaya S.A., who concluded the disputed contracts on behalf of Cherkassyoblenergo, artificially underestimated the market value of these two HPPs in order to avoid the prohibition provided for by the charter of PJSC on her independent decision to make transactions on property, the market value of which exceeds 5% of the value of the company’s assets,” the court stated.

According to the lawyer of Tsypin & Partners Marina Sutkovych, who represented Cherkasyoblenergo in court, the total amount of losses of the company as a result of the sale and purchase of two HPPs amounted to UAH 139.5 million.

“However, already on April 11, the Northern Economic Court of Appeal overturned the decision of the court of first instance. The court of appeal refused to satisfy the claim of Cherkasyoblenergo because, in its opinion, Kuzminskaya S.A. did not exceed the powers granted to her by the charter, the transactions were not significant, and other arguments of the court of first instance are unfounded”, – stated in the press release.

However, as noted by Sutkovich quoted in the document, the case file lacks an independent, free from the influence of the parties, judicial appraisal and construction expertise, and the court refused to appoint it for unclear reasons.
“The Northern Economic Court of Appeal was one-sided and took into account mainly the evidence of VEA Novosvit, which violated the principle of equality and due to which the circumstances of the case were not established fully and comprehensively”, – argues the lawyer.

At the beginning of 2022, 46% of shares of PJSC Cherkasyoblenergo were transferred from the State Property Fund to the Ministry of Energy. Another 25% of shares are under the management of PJSC Ukrainian Energy Saving Service Company (UkrESCO).

Kyiv Pulp and Paper Mill increases production by 6%

In January-September 2023, the volume of commercial output of Kyiv Cardboard and Paper Mill (Kyiv Pulp and Paper Mill, Obukhiv, Kyiv region), Ukraine’s industry leader in this indicator, amounted to UAH 5 billion 566.3 million, up 6.1% compared to the same period in 2022.

According to statistics provided by UkrPapir Association to Interfax-Ukraine, the plant’s production of corrugated boxes increased by 23.7% in volume terms, to 168.3 million square meters. Cardboard output increased by 9.2% to 124.8 thousand tons, driven by a 15.5% increase in containerboard output to 102.7 thousand tons, while boxboard output decreased by almost 13% to 22.1 thousand tons.

At the same time, the output of base paper for sanitary and hygiene products maintained a negative trend: in January-September, it decreased by 24% to 33.3 thousand tons, and the production of toilet paper in rolls also decreased by 24% to 188.17 million units.

Despite the decline in toilet paper production, the plant maintains a strong leadership in toilet paper production in Ukraine. In total, in the first nine months of 2023, the country’s major enterprises produced 444.63 million rolls (down 1.4%).

According to statistics, in September of this year, Kyiv Pulp and Paper Mill increased production of corrugated boxes by 13.2% to 19.6 million square meters by September 2022, and paper and cardboard by 1.3% to 18.1 thousand tons.

According to the association’s data from major industry players, in January-September this year, Ukraine recorded a 9.8% increase in paper and cardboard production (up to 405.3 thousand tons) and a 17.7% increase in cardboard boxes (up to 379.6 million square meters).

Kyiv Pulp and Paper Mill is one of Europe’s largest cardboard and paper products producers, employing over 2,500 people.

As reported, in 2022, the mill produced UAH 7 billion 432 million worth of products, which is 3.5% less than in 2021.

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TAS Insurance Group has increased payments by 37%

In September, TAS Insurance Group (Kyiv) paid out a total of UAH 118.5 million under the concluded insurance contracts, which is 37.1% more than the amount of the company’s indemnities in September last year.

According to the company’s website, payments under hull insurance contracts increased by 37.7% to UAH 32.29 million compared to the reporting period of 2022, which is 27.25% of the insurer’s total payments for September this year, MTPL – by 31.1% to UAH 39.43 million (33.27%), Green Card – by 22.5% to UAH 27.35 million (23.08% of total payments).

At the same time, VHI payments increased by 86.4% to UAH 15.41 million, which is 13% of the total amount of payments made by the insurer for the reporting period.

Under other insurance contracts, TAS IG paid UAH 4.02 million in insurance indemnities for the month, which is 75% more than a year ago.

TAS Insurance Group was registered in 1998. It is a universal company offering more than 80 types of insurance products in various types of voluntary and compulsory insurance. It has an extensive regional network of 28 regional directorates and branches.

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Papierfabrik Kokhavyno steigert Produktion um 25%

Von Januar bis September 2023 hat die Papierfabrik Kokhava (KPM, Region Lviv), die Hygienepapierprodukte herstellt, ihre Produktion im Vergleich zum Vorjahr um 24,8 % auf 858 Mio. UAH gesteigert, wie aus den Statistiken der Vereinigung Ukrpapir hervorgeht.

Nach den Daten, die Interfax-Ukraine zur Verfügung gestellt wurden, stieg die physische Produktion von Rohpapier für Sanitärprodukte um 2,3% auf 30,9 Tausend Tonnen. Im September stieg die Produktion leicht auf 2,95 Tausend Tonnen an, was ebenfalls 18% weniger als im August dieses Jahres ist.

Die Produktion von Toilettenpapier in Rollen stieg in diesem Zeitraum um 4,1 % auf 100,9 Millionen Stück. KBF behält den zweiten Platz in Bezug auf die Produktion nach der Kiewer Zellstoff- und Papierfabrik (188,2 Millionen Einheiten), knapp vor VGP JSC (Ruta TM).

Die Zellstoff- und Papierfabrik Kokhavynsk, die seit 1939 in Betrieb ist, produziert das Rohpapier für Sanitär- und Hygieneprodukte sowie Toilettenpapier und Papierhandtücher.

Wie bereits berichtet, erhielt KBF im Jahr 2021 ein EBWE-Darlehen in Höhe von 13,8 Mio. EUR für die Errichtung einer Produktionsanlage für zellstoffbasiertes Papier.

Seit dem Beginn der russischen Aggression in der Ukraine hat die Fabrik ihre Produktion praktisch nicht eingestellt.

Wie berichtet, produzierte KBF im Jahr 2023 Produkte im Wert von 975,3 Mio. UAH, 44,8 % mehr als im Vorjahr. Der Nettogewinn sank um 12,7 % auf 52,4 Mio. UAH.

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Up to 60% of Ukrainian citizens have not had contact with family doctor – study

From 30% to 60% of Ukrainians have not had contact with a family doctor or been examined during the year, and the state should develop mechanisms for reimbursement of research and analysis under the Health Insurance Program (HIP).

Serhiy Kutsevlyak, PhD in Medicine, Master of Public Administration, told Interfax-Ukraine that this is evidenced by the results of the analysis of the monitoring of the medical information system (MIS) data, as well as a patient survey conducted in one of Kyiv’s primary healthcare centers in May-July 2023.

“We analyzed how many patients have never seen their family doctor: not a single appointment, not a single referral, not a single prescription, not a single sick leave, not a single certificate, that is, zero activity during the year for a person who has a declaration with a family doctor. In the agrarian rural region, we saw about 30% of such patients. And in the central region, we counted up to 60% of people who have never seen a family doctor,” he said.

At the same time, referring to the monitoring of MHI data for 2019-2021, Kutsevlyak noted that “a lot of people simply do not visit family doctors, which logically leads to high mortality rates, in particular from cardiovascular diseases (CVD), and high rates of disability after heart attacks and strokes.”

He said that in the summer of 2023, a pilot project was implemented in one of Kyiv’s primary healthcare centers, during which the clinic conducted cardiac examinations and tests in 500 people aged 40-65.

“They found 41% of people who need in-depth attention and corrective therapy. That is why we are now talking about forming a state policy so that the state provides a minimum set of tests for the patient to ensure consumables for the study,” he said.

Kutsevlyak noted that, according to preliminary calculations, the cost of implementing the project for monitoring the health status of residents of a city with a population of about 250 thousand people could be about UAH 80-90 million.

“We are saying that the state should introduce reimbursement for examinations to be able to motivate and control family doctors. It is clear that family medicine will not be able to do this with the current level of payment per patient, so the state should shift its focus to have this opportunity,” he said.

Kutsevlyak emphasized that the implementation of preventive medicine projects in the context of war is becoming even more important.

“Not only does the war affect mortality, but we lose tens of thousands of people at the front, and in the rear we lose hundreds of thousands of people from undiagnosed diseases. Therefore, we need to shift the emphasis to monitoring the health of a particular citizen, so that an increase in healthcare funding by billions will have an effect and save tens of billions across the country,” he said.

Kutsevlyak clarified that he had initiated the development of a corresponding state program aimed at intensifying the work of the primary healthcare system in the area of preventive medicine, in particular, at encouraging primary healthcare doctors to monitor the health of patients who have declarations with them.

According to the expert, “all state investments over the past 10 years have been spent on stands, contrast, angiographs, CT scans, and other equipment, but there is no timely basic diagnosis and timely identification of risk factors that lead to disease.

“The problem of timely diagnostics to identify risk factors remains relevant. High-tech equipment, such as CT scanners and angiographs, cannot be effectively used without systematic mass screening of working-age residents,” he said.

Kutsevlyak noted that many Ukrainians face a lack of regular medical check-ups. At the same time, the shortage of doctors, especially in remote regions, as well as economic and socio-cultural factors, can cause delayed or complete neglect of medical examinations, which is especially important for the elderly and rural residents.

“Today, there is a problem of patients seeking treatment at late stages of disease. Unfortunately, the culture of check-ups and regular medical examinations is not well developed in Ukraine. Doctors have little interest in helping to diagnose and start treatment in time. We see great prospects for development if the state pays attention to this issue and starts directing doctors to work towards disease prevention,” Kutsevlyak summarized.

Kutsevlyak noted that “the emphasis should be on efforts at the primary health care stage.”

“Family doctors play a key role in timely diagnosis and prevention of diseases. The development of family medicine, advanced training of doctors and intensification of their interaction with patients can contribute to the early detection of risks and diseases,” he said.

In addition, according to Kutsevlyak, “we should pay attention to educational programs aimed at improving the medical literacy of the population, awareness of personal responsibility for their own health.”

“An informed patient will take more responsibility for his or her health and undergo regular medical examinations. It is necessary to intensify the work of the primary healthcare system and provide citizens with the necessary medical examinations for timely diagnosis. This will help reduce mortality and disability, and will be economically beneficial for the state. A 5% reduction in the number of strokes alone will generate an economic effect of at least UAH 1.5 billion per year, saving the lives and active working condition of 7.5 thousand Ukrainian citizens. Implementation of the principle of continuous monitoring of citizens’ health should become the basis of state policy,” he said.