Business news from Ukraine

Business news from Ukraine

Number of ships in Danube ports increased by 2.3-2.7 times during week

The number of ships in the port of Izmail (Odessa region) increased to 111 on Monday against 48 last week, according to data from the Marine Traffic monitoring application. The arrival of 33 vessels is expected.

The number of vessels in the port of Reni increased to 33 vessels on Monday against 12 last week. 11 vessels are expected to arrive.

At the same time, last Wednesday the number of vessels in the port of “Izmail” increased to 60 – in the port of “Izmail” and in the port of “Reni” – 13. On Saturday the number of ships in the port “Izmail” was already 72, while in “Reni” it was reduced to six.

In comparison, in the Russian port “Novorossiysk” the number of ships remained unchanged – 136 this Monday against 137 last week, 72 ships are expected to arrive.

The ports of Greater Odessa have not resumed their work after the termination of the “grain initiative”.

Earlier it was reported that due to the Russian night attack in the middle of last week on the seaport “Izmail” and the infrastructure of the “Ukrainian Danube Shipping Company” destroyed 40 thousand tons of grain, which was expected by African countries, China and Israel.

In addition, about 10 residential houses, 15 apartments, hotel and office buildings of the “Ukrainian Danube Shipping Company” and an educational institution were damaged or destroyed.

After the attack on Wednesday night last week, two ships heading to the port of Izmail for loading refused to moor.

As reported, Ukraine announced a military threat to ship navigation in the waters of six Russian ports on the Black Sea.

The Ukrainian Defense Ministry released a statement in which it warns that all ships that from July 21 will go to the ports of the Russian Federation or occupied Ukrainian ports may be considered as carrying military cargo.

In addition, according to the warning, navigation in the areas of the Northeastern Black Sea and the Kerch-Yenikal Strait of Ukraine is prohibited as dangerous, from 05:00 on July 20, 2023.

The day before, the Russian Defense Ministry announced that all vessels, regardless of the flag, which will be heading to Ukrainian ports from midnight, July 20, Russia will consider as involved in the military conflict.

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Oil prices decline, Brent trades around $86 per barrel

Oil prices are falling on Monday amid a general outflow of investors’ funds from risky assets due to signals of a new wave of crisis in the Chinese real estate market.

The US dollar is strengthening, which reduces the attractiveness of investments in commodities. The ICE dollar index is up 0.12% during trading.

The cost of October futures for Brent crude oil on the London ICE Futures exchange at 8:10 a.m. on Monday is $85.97 per barrel, which is $0.84 (0.97%) lower than the price at the previous session’s close. On Friday, these contracts rose by $0.41 (0.5%) to $86.81 per barrel.

The price of September futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) fell by $0.85 (1.02%) to $82.34 per barrel by this time. As a result of the previous trading, the value of these contracts increased by $0.37 (0.5%) to $83.19 per barrel.

Last week, Brent rose in price by 0.7%, WTI – by 0.5%. Both grades finished in the black for the seventh week in a row due to fears of an oil shortage on the global market. Expectations that the US economy will be able to avoid recession despite the Federal Reserve tightening monetary policy supported demand forecasts. At the same time, the reduction in oil supplies from Saudi Arabia to the global market raises fears of a reduction in supply.

“Traders have been overly focused on the economic situation in the United States, ignoring the serious problems in Europe and China,” said Vanda Insights founder Vandana Hari. – “It’s about time they came back to reality.

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Italy will help restore Cathedral in Odesa

The Italian government will help reconstruct the Transfiguration Cathedral, which the Russians destroyed during the shelling of Odesa on July 23, the Italian government said.

“Italian restoration schools, meaning university departments, vocational institutes, studios and laboratories, are today making their traditional expertise available to a project to restore and enhance the walls and frescoes that were hit by the Russian bombs, thereby marking an age-old friendship between two peoples and an effective rebirth for the city,” according to the report on the Italian government’s website.

“The Italian government has involved two of Italy’s most authoritative cultural institutions, the Milan Triennale and the MAXXI museum in Rome, in order to gather the best economic, technical and cultural resources able to contribute to the restoration of the Transfiguration Cathedral,” the report says.

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State Tax Service of Ukraine will inspect approximately 1 thousand companies by this year

Following the lifting of the legislative ban, the State Tax Service has published a schedule of approximately 1,000 documentary scheduled tax audits of taxpayers for August-December 2023, affecting a number of major players in their markets.

According to the data published on the agency’s website, the list includes, in particular, the oil market companies Neftekhimik Prykarpattya, several companies from the OKKO group, Avantazh-7, Naftogaz Oil Trading, Glusko Retail, Sokar-Ukraine Trading House, and Ukrtransnafta.

The list also includes other representatives of the fuel and energy sector, including the Gas Transmission System Operator of Ukraine, Bila Tserkva and Odesa CHP, Kharkiv CHP-5, Ukrainian Drilling Company, Clear Energy, and Ternopilmiskgaz.

A significant number of companies on the list represent producers of alcoholic beverages: “Obolon, Global Spirit Group, Radomyshl Brewery and First Private Brewery, Zlatogor, Carlsberg Ukraine, Koblevo, Shabo, Odesavinprom, Poltavapivo, Mykulynetsky Brewery, and Kvass Beverages.

The list also includes some representatives of the food industry and distribution: “Ukrainian Dairy Company, a subsidiary of Lviv Kholodokombinat, Chernihiv Confectionery Factory Strila, MHP-Retail, Fozzy Commerce, and Kremenchukmeat.

Other industries on the list include transport companies (e.g., Ukrrichflot and its branches, Pride), health centers (e.g., Rixos-Prykarpattia), catering establishments (e.g., Kumpel Brewery, Sushiya, Dominos Pizza Ukraine), and tobacconists (e.g., JT International).

The list also includes the Kyiv Cardboard and Paper Mill, Avtomagistral-Pivden, and the Central Mining and Processing Plant.

A separate section of the list contains almost a hundred financial market representatives. Among them are 17 banks, including Ukrgasbank, Vostok, Alliance, Globus, Ukrainian Capital, RVS, Piraeus Bank ICB, First Investment Bank, and 15 insurance companies.

In addition, the list includes some financial companies, including Business Loan, Miloan, Manifesto, Globalmani, Contract House, Investrum, Sun-Rise Finance, and TAS Asset Management, an asset management company.

The list also includes gambling companies, both those that have been sanctioned – Parimatch, Pointlotto, PokerMatch.UA – and those that continue to operate in the market, such as the betting company Favbet and Favbet Game Slots, and Wave 444. They are largely included in a separate list of about 30 companies being inspected for payment of personal income tax, military duty, and unified social tax.

The State Tax Service has also approved a list of 256 individuals who will also undergo scheduled documentary audits in September-December this year.

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Number of refugees from Ukraine with temporary protection status in EU has reached 4 mln 65 thousand

As of June 30, 2023, 4 million 65.6 thousand non-EU citizens who fled Ukraine as a result of the Russian invasion on February 24, 2022, had temporary protection status in the EU, Eurostat reports.
“Compared to the end of May 2023, the number of recipients of temporary protection from Ukraine increased in the EU by 45,800 people (+1.1%). The largest increase was observed in Germany (+21,830; +2.0%), the Czech Republic (+9,050; +2.7%) and Ireland (+3,100; +3.7%),” the statistical agency said.
According to its data, the main EU countries hosting recipients of temporary protection from Ukraine were Germany (1 million 133.4 thousand people; 28% of the total), Poland (977.74 thousand people; 24%) and the Czech Republic (349.14 thousand people; 9%).
On the other hand, Eurostat added, four countries saw a decrease in the number of persons enjoying temporary protection: Poland (-4,700; -0.5%), Portugal (-2,520; -4%), Estonia (-1,885; -5%) and France (-985; -1%).
The agency recalled that in May the number of recipients of temporary protection from Ukraine increased by 57.3 thousand people (+1.4%) in the EU, and in April – by 51.0 thousand (+1.3%). In all three months of the second quarter, the largest increase was observed in Germany – a total of 65.7 thousand people, followed by the Czech Republic – 23.9 thousand, while Poland was the leader in the reduction in all three months, by 22.0 thousand.
In general, in the second quarter of this year, the number of recipients of temporary protection from Ukraine increased in the EU by 154.1 thousand (+3.9%), and in the first half of the year – by 239.0 thousand (+6.2%). The main inflow was provided by Germany – 165.7 thousand people for the first half of the year (+17.1%).
Eurostat clarified that, compared to the population of each EU member state, the largest number of temporary protection beneficiaries per thousand people in June 2023 was observed in the Czech Republic (32.2), Poland (26.6), Estonia (25.8), Bulgaria (24.9) and Lithuania (24.7), while the corresponding figure at the EU level was 9.1 per thousand people.
It is also said that as of June 30, 2023, Ukrainian citizens accounted for more than 98% of the beneficiaries of temporary protection.
According to the data provided, more than 100 thousand refugees from Ukraine with temporary protection status in the EU as of the middle of this year were also in Spain – 180.2 thousand, Bulgaria – 160.7 thousand, Italy – 157.3 thousand, Romania – 133.5 thousand, the Netherlands – 125.8 thousand and Slovakia – 104.0 thousand.
Between 50 thousand and 100 thousand of them were in Ireland – 86.9 thousand, Austria – 75.8 thousand, Lithuania – 70.7 thousand, Belgium – 67.7 thousand, France – 67.3 thousand (data on children are mostly not included – Eurostat), Switzerland – 65.2 thousand, Finland – 56.1 thousand and Portugal – 55.4 thousand.
Eurostat clarified that all the above data relate to the granting of temporary protection on the basis of EU Council Decision 2022/382 of March 4, 2022, which establishes the existence of a massive influx of displaced persons from Ukraine due to Russia’s military invasion and entails the introduction of temporary protection.
According to the UN, a total of 5.88 million refugees from Ukraine were registered in Europe as of August 8, and 6.24 million worldwide.

Since August 1, more than 1400 applications for compensation for destroyed housing have already been submitted

Since August 1, the day of launching the mechanism of compensation for destroyed housing, more than 1400 applications have already been submitted, the commissions are scheduled to start their work on August 15, the press service of the Ministry of Community Development, Territories and Infrastructure of Ukraine reports.

According to the press service of the ministry, the most applications have been submitted by residents of Kharkiv (597), Kyiv (428) and Chernihiv (113) regions. The total area of destroyed housing, for which applications have been filed, is about 100 thousand square meters. m. About 60% of the submitted applications relate to compensation for the destroyed apartment.

As reported, since August 1, “Dia” started accepting applications for compensation for housing destroyed because of the war.

Compensation will be paid to sole owners of housing, which was destroyed due to hostilities after February 24, 2022, is not subject to reconstruction and is located in the non-occupied territory and not in the zone of active hostilities. In addition, an information report on the destroyed property submitted by its owner must be registered in the registry.

Applications will be considered by the commissions previously established at local governments to process eRecovery applications. According to the press service of the Ministry of Restoration, the commissions will start to consider this type of applications from August 15.

At this stage, compensations will be paid in the form of electronic housing certificates for the purchase of housing.

The Ministry of Reclamation is also developing a mechanism for the payment of funds for the construction of new private houses on the land plot of the compensation recipient.

At the first stage of implementation of the program “eRestoration” compensation will not be provided for destroyed housing located in the temporarily occupied territories or in the combat zone.

Earlier in May, the state aid program “eRestoration” was launched, providing assistance for the current repair of housing damaged as a result of the war.

As reported with reference to KSE Institute data, as of June 2023, the total number of dwellings destroyed or damaged as a result of hostilities: about 167.2 thousand dwellings, of which 147.8 thousand – private houses; 19.1 thousand – apartment buildings, another 0.35 thousand – dormitories.