Business news from Ukraine

Business news from Ukraine

“Ukrzaliznytsia” has reduced cost of grain cargo transportation

“Ukrzaliznytsia” has significantly reduced the cost of transportation of grain cargo by rail (by reducing the wagon component of the tariff), and also fixed the average speed of cars for the quarter until September 1, 2023, said Valery Tkachev, deputy director of the department of commercial work UZ.
“From July 1, 2023, the cost of using Ukrzaliznytsia JSC grain railcars is 300 UAH/day without VAT,” he wrote on Facebook.
According to the updated tariffs UZ, the cost of transporting 1 ton of grain by rail is 9.4 $ / ton and 11.4-11.9 $ / ton for a distance of 300 km in the export direction through seaports and dry crossings, respectively, at a distance of 400 km – 11.7 $ / ton and 13.7-14.3 $ / ton; 500 km – 13.4 $ / ton and 15.4-16.3 $ / ton; 600 km – 15 $ / ton and 17.2-18.2 $ / ton.
In particular the cost of transportation takes into account the additional charges at the station of departure (2500 UAH/ton), the two days of use of the car during loading/unloading, freight charges, the return of empty wagons, and other indicators.
The UZ Board will also fix the average speed of movement of cars until September 1, 2023 (per quarter) for the predictability of the work of consignors with the rolling stock UZ.
Previously, average railcar speeds changed monthly and were announced on the 28th.
“This will allow shippers to better plan their work in the cars of Ukrzaliznytsia, as well as accurately calculate the cost of transportation,” – summarized Tkachev and urged shippers of grain cargo to actively use the rolling stock UZ for transportation of grain.

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Rating agency Rurik withdrew ratings of insurer “Grandvis”

June 23 the Rating Committee of National Rating Agency “Rurik” has withdrawn the ratings of PrJSC IC “Grandvis” (Chernihiv), according to the website of RA.
The report explains that the rating is withdrawn due to the fact that the borrower fails to provide the necessary information to update the rating or for other reasons.
As earlier reported, on March 7, 2023 RA “Rurik” has confirmed a long-term credit rating of the borrower at the level uaAА of investment category with the “in development” outlook.
Analyzing the results of the company’s activity in 2022, the agency considered as positive the high indices of the company’s liquidity. Thus, the ratio of quick liquidity as of January 1, 2023 amounted to 952% while the recommended 60%. Also the RA noted a high margin of solvency of asset quality, a sufficient level of financial autonomy of the insurer, since the coverage level of assets and insurance reserves by shareholders’ equity amounted to 85% and 1109%, respectively.
The negative factors include low diversification of the company’s insurance portfolio by types of insurance. According to the results of 2022 three largest types of insurance corresponded to 81% of insurance payments, which, as stated, indicates a high dependence of the company on the key areas of insurance activity, its significant costs, given a high specific weight of administrative expenses.
IC Grandvis has been working in insurance market since 1995. It specializes on risk kinds of insurance.
The authorized capital of the company is UAH 14,3 m.

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Ministry of Economy predicts diesel fuel and gasoline price increase

First deputy prime minister of economy of Ukraine Yulia Sviridenko predicts that the retail price of diesel fuel during the month will increase by 5 UAH/liter, gasoline – by 7-8 UAH/liter.

“We see and forecast together with gas station operators that by the end of July the increase will be 5 UAH for diesel and 7-8 UAH for gasoline,” she said on the air of the national marathon on Tuesday.

Sviridenko specified that arithmetically returning to the prewar level of excises on motor fuel and increase of VAT on it may lead to increase of price on diesel fuel up to 8 UAH/liter and petrol – up to 11 UAH/liter. At the same time the accumulated fuel reserves and lack of shortages should not lead to a sharp rise in prices.

“We see that there will not be a sharp rise in price. There are several factors – there is no shortage, there are stocks, the market in Europe is flooded with resources, so there will not be sharp jumps. Much, of course, depends on the price situation in the world, but today we do not expect sharp fluctuations,” she added.

As it was reported with reference to director of A-95 Sergii Kuyun, fuel prices will not rise from July 1, but will rise gradually. According to him, the tax burden on gasoline will increase by 11 UAH / l, 8 UAH / l – on diesel fuel, 3 UAH / l – on liquefied gas.

“Some part of it, at least 2-3 hryvnias per liter will be taken by the network, but diesel will add 100 per cent 5 hryvnias per liter, petrol – 7-8 hryvnias per liter. The price for gas will be the same 3 hryvnias/liter higher,” he predicted in his comments to Energoreforma a few days before the end of June.

Much will depend on the purchase price of petroleum products, most of which are imported. According to Kuyun, if world prices fail, there will be preconditions for them to compensate the increase of tax burden.

In the middle of March 2022, the Rada passed a law on additional tax incentives for business support during the war, aimed, in particular, at keeping fuel prices down. According to it, temporarily, for the period of martial law, a zero excise tax and VAT of 7% instead of 20% were set for fuel.

On September 21, 2022, the Rada passed the bill No. 7668-d on the return of excise taxes on motor fuel, setting them at EUR100 for gasoline and diesel (hereinafter 1,000 liters), EUR52 for liquefied gas, butane and isobutane, and EUR100 for alternative motor fuel and biodiesel.

VAT for all fuels remained at 7%. But according to this law, starting July 1, 2023, fuel taxes return to the prewar level: VAT – to 20%, excise tax on gasoline – to EUR213, diesel fuel – to EUR140 per 1000 liters.

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Parliament of Ukraine plans to consider draft law on medical cannabis at next meeting

At its next plenary session, the Verkhovna Rada plans to consider draft law No. 7457 on regulating the circulation of cannabis plants for medical, scientific and industrial purposes to create conditions for expanding patients’ access to treatment of cancer and post-traumatic stress disorders resulting from the war, said Yaroslav Zheleznyak, a member of the Voice faction.
“At the next plenary session, the draft law on the legalization of medical cannabis No. 7457 should be submitted (for consideration). It’s still risky with the votes, though,” he wrote on his telegram channel on Tuesday.
The draft law proposes to create regulatory conditions for the legal limited circulation of cannabis, cannabis resin, cannabis extracts and tinctures for the purposes specified by law, in particular, for their use for medical, industrial purposes, scientific and scientific and technical activities, as well as its varieties in certain areas of activity.
The government considers it necessary to regulate issues related to the organization of activities at each stage of such circulation, including operations for the import, export, transportation through the territory of Ukraine, storage and sale of hemp, to promote the level and quality of medical care by ensuring the realization of the right to health care with the use of more effective medicines and treatments, in particular in the field of palliative care, which, among other things, are based on symptomatic treatment, as well as on symptom management.
As reported, the Cabinet of Ministers submitted draft law No. 7457 to the Verkhovna Rada in June 2022. The parliamentary committee on national health recommended its adoption as a basis. Later, in September, committee chairman Mykhailo Radutsky (Servant of the People) said that the Rada would probably not have enough votes to support the medical cannabis bill.

American Chamber of Commerce in Ukraine is delighted to invite to join Blood Donation Initiative

The American Chamber of Commerce in Ukraine and member company Sayenko Kharenko are delighted to invite you to join our Blood Donation Initiative.

Since Russia’s full-scale invasion of Ukraine, the need for blood donations has become even more crucial to help save lives and support the local hospitals in Kyiv. Donating blood is an easy way to help people: on donation can save as many as three lives. Your blood could go to lionhearted soldiers who are defending our nation, someone who’s been in a car accident or a child with cancer to name just a few.

We encourage you to bring your friends and relatives to participate in our Blood Donation Initiative. Let us come together to demonstrate our unity, compassion, and commitment to making a positive change in our community.

Please follow all the rules and recommendations to get prepared for donating blood.

Please take your passport and identification code with you. Citizens of other countries can also be donors if they have a residence permit in Ukraine and an identity document.

*DonorUA is an automated social platform for recruiting and managing blood donors designed to promote the blood donor movement in Ukraine.

The location will be sent with a confirmation email.

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