The first stage of the currency restrictions easing roadmap includes minimizing the multiplicity of exchange rates, liberalizing trade operations and facilitating new loans and investments.
The National Bank of Ukraine released the relevant public version of the Strategy to Ease Exchange Restrictions, Transition to a More Flexible Exchange Rate and Return to Inflation Targeting on Friday evening.
According to it, the second stage is liberalization of trade finance, management of currency risks of banks, the possibility of repatriation of interest on “old” debt obligations and investments.
Finally, the third stage includes the possibility of repayment of loans and investments, liberalization of household transactions and transactions in derivatives, the possibility of lending to non-residents and investments abroad.
As announced by the National Bank, the Roadmap and the Strategy have no specific calendar dates.
“Softening of currency restrictions is carried out gradually, taking into account the above priorities and is determined not by timeframes, but by the formation of appropriate macroeconomic prerequisites,” said the NBU.
According to the document, although the Roadmap defines the sequence of easing of currency restrictions, some steps (in particular, within the specified stages) may be implemented earlier or later than initially envisaged. This could happen if the conditions are such that a deviation from the stipulated sequence would be determined to be more beneficial to the economy, the currency market and the financial system.
The National Bank added that the easing of currency restrictions could occur gradually, in particular by changing the limits, calibration of levels, etc.
The regulator noted that the Roadmap reflects the following priorities: easing restrictions on transactions related to the movement of goods and services, then – related to capital flows and, finally, with its own foreign currency in respect of transactions at the expense of purchased foreign currency.
The NBU stressed that it will follow the general approach in which the refusal to fix the exchange rate will precede a large-scale liberalization of capital flows. “For its part, the increase in exchange rate flexibility will be preceded by the relaxation of most currency restrictions on trade transactions and restrictions that distort the functioning of the foreign exchange market because of the multiplicity of exchange rates,” the central bank added.
The National Bank added that during the implementation of the Strategy it will maintain tight monetary conditions by maintaining a sufficiently high level of real interest rates, which will ensure sufficient attractiveness of hryvnia assets and thus minimize the risks to exchange rate stability with the abandonment of the exchange rate fixing regime and the easing of currency restrictions.
According to the strategy, the NBU will base its decisions on the dynamics of the following key parameters: inflation and inflation expectations; the level of international reserves and foreign exchange market stability; interest rates and financial stability parameters.
“The appropriate preconditions and positive result of the conducted analysis have already allowed the NBU to soften a number of currency restrictions in June. At the same time, the prerequisites for the next steps of the Strategy are still forming,” the regulator noted.
The size of the cyber insurance market could reach $50 billion by 2030, according to the third annual report on the topic by analysts at international insurance broker Howden, according to its website.
After a major market correction due to an increase in ransomware claims in 2020 and 2021 that more than doubled the cost of cyber protection, conditions began to stabilize last year as activity declined and more robust risk controls deterred or mitigated attacks.
However, the report notes that cyberspace is not standing still, and events in 2023 point to a nuanced market. That said, optimism about more favorable supply dynamics for insurance buyers (through improved underwriting efficiency for insurers) is tempered by resurgent ransomware activity, lingering concerns about potential systemic losses and capital availability.
According to the report, there was a significant increase in ransomware attacks in the first half of 2023, but disclosures from a number of carriers in the first quarter of 2023 suggest that this has not (yet) been accompanied by a corresponding increase in claims. This in turn points to the effectiveness of risk controls that make companies more resilient and support a more stable cyber insurance market. Terms are now softening, and buyers who have the right risk controls are rewarded with better prices and terms, the paper explains.
As for cyber insurance pricing, the cost of cyber insurance is now more commensurate with the cost of loss after the recent correction, according to Dan Leahy, deputy director of Howden, whose words are cited in the report, after going through the early stages of development, which often involve new, fast-growing lines of business.
“While there has been a decline in prices in the first half of 2023, the sustainability of this trend remains uncertain given the ubiquity of threats,” he added.
As noted, while risk awareness is growing everywhere, cyber insurance, in fact, remains a large corporate market at present, and “needs to work, especially with smaller companies.” This is supported by the example of France, where 85% of the premiums paid for cyber insurance in 2022 came from large companies. The remaining 15% came from mid-sized companies and SMEs, but they accounted for a disproportionate share of claims reported
The report indicates that the use of direct market reinsurance is the biggest differentiator between cyber and any other class, as approximately 45% of cyber premiums are currently ceded to reinsurers, broad bandwidth limitations apply and price adjustments in the reinsurance market also represent potential limitations.
Ukrainians will turn to the courts in masses to demand compensation for damage caused by military aggression, directly from the Russian Federation and to the state of Ukraine – regarding the provision of their rights in connection with Russian aggression, the Supreme Court noted.
“Most of all we expect cases of compensation for damage caused by military aggression. Here it is necessary to separate two categories of such cases. In terms of defendants, these disputes are brought against both the Russian Federation and the state of Ukraine,” Boris Gulko, chairman of the Cassation Civil Court, said at a press conference Friday.
He explained that in the first case, citizens raise the issue of damages from the Russian Federation, while lawsuits against Ukraine are filed because the state failed to ensure the safety, health and life, and safety of their property.
“We have repeatedly confirmed in our court decisions the position that the rf has no judicial immunity on the territory of Ukraine during the military aggression. The decision states that there is no immunity since February 2014, when the territories of Donbass and Crimea were actually occupied,” he noted.
Gulko stressed that the citizens of Ukraine filed lawsuits against the Russian Federation for compensation for property and moral damages.
“Also, the court expressed its position on the appeals of citizens to the state of Ukraine in connection with the destruction of property or damage due to the loss of life…. The state of Ukraine is not responsible for this, because these actions were committed by the rf, but the state of Ukraine by all possible means contributes to the compensation of material and moral damage”, – he said.
The Chairman of the Civil Court of Cassation explained that the actions of the state of Ukraine in this context relate to the creation of appropriate registries, looking for the possibility of redress through international mechanisms.
“We have not yet received any cases that the state of Ukraine has not taken any measures in relation to ensuring the safety of citizens,” the chairman of the Civil Court of Cassation stressed.
He also noted that with the war, disputes over children and communication with them became frequent as parents took their children abroad.
“With the court decisions that come to the Court of Cassation Civil Court, we actually form the practice. In particular, one of the last decisions was that the state executor does not have the right to change the way parents communicate with their child,” he said.
According to Gulko, the case concerned the way of communication between father and child, whom the mother had taken abroad. According to the decision of the bailiff, the method of communication with the child can be through the Internet and messengers. “We said with our decision that the state bailiff does not have the power to change the way the decision is enforced. This can only be done by the relevant court on the presentation of the bailiff,” explained Gulko.
EU High Representative for Foreign Affairs Josep Borrell welcomed the completion of the elimination of chemical weapons in the United States.
“The European Union welcomes the information that the United States achieved the complete destruction of its stockpile of chemical weapons on July 7. The elimination was completed before the scheduled September deadline in a safe and environmentally sound manner,” said a communiqué issued Saturday in Brussels.
Borrell thanked the Organization for the Prohibition of Chemical Weapons (OPCW) and its team that verified the destruction on site for their professional work in this context.
According to the EU diplomatic chief, the completion of the destruction work marks an important milestone in the implementation of the Chemical Weapons Convention 25 years after its entry into force.
“The Convention is a key element of the international nonproliferation and disarmament architecture. The EU will continue to provide strong political and financial support for its implementation, with a particular focus on preventing the re-emergence of chemical weapons and fighting impunity for their use,” the document said.
Earlier it was announced that the process of elimination of declared arsenals of chemical weapons in a military warehouse in Kentucky had been completed in the United States. U.S. media reported that under the Chemical Weapons Convention, the U.S. had until September 30, 2023 to complete the process.
The Chemical Weapons Convention (CWC) entered into force on April 29, 1997.
Ukrainian metallurgical enterprises in January-June this year reduced the production of total rolled steel, according to operational data, by 41% compared to the same period last year – to 2.375 million tons.
According to the association “Ukrmetallurgprom” on Saturday, in the first six months of this year, steel production fell by 37.7% compared with January-June 2022 – to 2.829 million tons.
Cast iron production during this period decreased by 37.5% to 2.836 million tons.
As reported, Ukraine in 5M-2023 decreased the production of rolled steel by 47.8% over the same period last year – to 1.982 million tons, steel by 43.7% to 2.392 million tons, and cast iron by 43.9% to 2.350 million tons.
Ukraine in 2022 reduced the production of total rolled products by 72% compared to the previous year – up to 5.350 million tons, steel by 70.7% – to 6.263 million tons, cast iron by 69.8% – to 6.391 million tons.
In 2021, the company produced 21.165 million tons of cast iron (103.6% by 2020), 21.366 million tons of steel (103.6%), 19.079 million tons of rolled steel (103.5%).
Turkish President Recep Erdogan said he would like to continue the work of the Black Sea Grain Initiative. He said this in Istanbul on Friday night to Saturday after talks with Ukrainian President Volodymyr Zelensky.
“In July 2022, we embodied the Black Sea Grain Initiative with our signatures in Istanbul as a result of the mediation efforts we had with the United Nations. On July 17, this initiative expires, during which about 33 million tons of grain were delivered to those in need in one year through the Turkish straits, which have become an artery for the whole world,” Erdoğan said.
“I wish this initiative to continue. I am convinced that all parties concerned will act with global responsibility for this purpose,” he said.
The Turkish president also noted that he would like the term of the grain corridor agreement to be extended to 2 years.
