Business news from Ukraine

Business news from Ukraine

Borodyansk Center for Social and Psychological Rehabilitation of Population to Receive UAH 200.6 Mln for Reconstruction

The Cabinet of Ministers of Ukraine has allocated 200.6 million UAH for the reconstruction of the Borodyansk social and psychological rehabilitation center.
According to the representative of the Cabinet of Ministers in the Verkhovna Rada Taras Melnychuk in Telegram, the relevant decision was made at the government meeting.
In particular, the Ministry of Veteran Affairs allocated 200 million 633.87 thousand UAH from the fund to eliminate the effects of the armed aggression on the budget program “Measures for psychological assistance, social and professional adaptation, provision of sanatorium treatment and development of sports of war veterans, those who have rendered special services to the homeland, the family members of such persons, victims of the Revolution of Dignity, family members of the deceased (deceased) war veterans, family members of deceased Defenders and Defenders of Ukraine and production for them forms of certificates
As reported, in May the Cabinet of Ministers reallocated UAH 100 million to provide funding for the reconstruction of the Borodyansk center of social and psychological rehabilitation.

State mortgage institution announced tender for property insurance

June 23 state mortgage institutions announced a tender for property insurance (2282 units), according to the system of electronic procurement Prozorro.
The expected cost of purchasing services is UAH 1.3 mln.
Tender security is 390 thousand UAH.
Tender offers will be accepted until July 3.
As previously reported, the winner of a similar tender a year earlier was IC “Universalna”. The price offer of which was 1 million UAH with an expected cost of 1.842 million UAH. IC “INGO” participated in the tender with a price offer of UAH 1,473 mln and UASKA “ASKA” with UAH 1,842 mln.

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Danube Shipping Company announces tenders for transportation of agro products

Ukrainian Danube Shipping Company (UDP) has announced tenders for the transportation of agricultural products by barge from Ukrainian ports on the Danube River to the Romanian port of Constanta, Acting Director General of UDP Dmitry Moskalenko said in Facebook.
“A rush of demand for the transportation of agricultural products from Ukrainian Danube ports to Constanta is coming back. After all, this is the most stable logistical direction,” he wrote.
According to the UPD head, some private shipowners have begun to raise the rates of river freight. Therefore, the department, given the high number of applications from customers, put the transportation services at a tender.
The first tender is planned for June 29. Applications for participation will be accepted till June 28. The starting price is 1 million 497 thousand 690 UAH.
“UDP has always been a supporter of predictable, but market and transparent mechanism for forming tariffs,” – summarized Moskalenko.

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National Bank Raises Fines for Banks from 2 to 8 Times for Violations of Financial Monitoring and Currency Legislation

The National Bank announces a comprehensive review and updating of approaches to the application of fines to banks for key violations of anti-money laundering (AML/CFT) and currency legislation, a comparison of documents indicates an increase in individual fines from 2 to 8 times.
“(This) will help prevent banks from committing violations of legal requirements, increasing responsibility for their failure/inadequate implementation, as well as the effectiveness of the impact measure, its deterrent nature in order to change the approach to the proper organization of the bank, the functioning of an appropriate risk management system,” the NBU said in a press release on Friday.
It is specified that the amendments were introduced by the NBU №80 of June 21, which comes into force on June 24, 2023.
In particular, for the violation of financial monitoring the scale with the ceiling of fines now starts from UAH 1 million, while previously it was UAH 0.4 million, and after the step of UAH 10 million the new value of UAH 50 million with a saved ceiling of UAH 135.15 million, with the specification that this ceiling applies even if there are several violations.
The NBU specified that fines of up to UAH 50 mln may be imposed for violations of legislative requirements in the field of CDD / CFT risk management or for improper checks on customers, while banks may receive fines of up to UAH 1 mln for failure to comply with internal documents on CDD / CFT legislative requirements in this area.
Inappropriate application of the risk-oriented approach to PEP clients, in particular, setting them an unreasonable risk level, taking disproportionate measures in accordance with the risk category, will be subject to a fine of up to UAH 10 million.
Also, the limits of fines for key violations in the field of currency legislation were revised and increased. In particular, significant violations (from UAH 1 million per transaction or from UAH 10 million in total) in the order of settlement of currency transactions, foreign exchange trading, transfer of currency valuables, cross-border movement, failure to perform / improper performance by the bank of currency supervision, violations of security measures are now punishable by a fine of up to UAH 1 million, whereas previously there were UAH 0.4 million.
Small amounts of violations may now be fined up to UAH 400 thousand instead of the previous UAH 50 thousand.
Other significant violations of currency legislation by the bank, including preventing or hindering to check the employees of the National Bank, failure of the bank to carry out the analysis, check documents on currency operations – up to 1% of the registered authorized capital of the bank, whereas before there was a limit of 8 million UAH.

Hungary proposes to expand maritime routes for agro exports from Ukraine

Hungarian Minister of Agriculture Istvan Nagy is not satisfied with the work of European solidarity corridors and believes that the expansion of the traditional maritime transport route, which now takes only 12% of Ukrainian agricultural products, will help to reduce the pressure on domestic markets of the EU.

“The current solidarity routes are not fulfilling their role, as the products remain in Ukraine’s neighboring countries. We used to have 40-50 thousand tons of grain, now we have 2.5 million tons. The purpose is to expand the traditional sea transport route, by which now only 12% of Ukrainian products leave. This will reduce the load on the land route and reduce the pressure on EU domestic markets,” the Hungarian Ministry of Agriculture quoted him as saying at a press conference with his Polish counterpart Robert Telusz in Warsaw on Thursday.

Nagy said he had asked his Polish counterpart for a mandate to negotiate with the Turkish side to open new sea routes for grain exports in addition to the existing three Black Sea ports.

He called it important to maintain and expand cooperation among the five EU member states. “We are determined to continue to cooperate (…) to find a common European solution to this problem; it is an important humanitarian and solidarity goal,” the Hungarian minister stressed.

Nagy praised the joint actions of the five EU member states – Bulgaria, Romania and Slovakia, as well as Poland and Hungary – in suspending imports of Ukrainian grain. Thanks to the joint implementation of the will “today we can protect our borders and farmers as a result of measures of the European Union, not national measures,” he said, and expressed regret that the restrictive measures are valid only until September 15.

Hungarian and Polish ministers stated that the restriction period until Sept. 15 was too short. “For example, the corn harvest will still be going on, so we definitely need to push for the extension (of restrictive measures – IF),” Nagy said.

Polish Minister of Agriculture Robert Telusz called important the Hungarian initiative to expand the Black Sea Route, which he said Warsaw would support. At the same time, he stressed the need for the development of land transport routes.

Telusz praised the merits of the Hungarian side in the creation of the five-member coalition on the grain issue. He noted that without the actions of this association the European Commission “would not have seen the problem at all”.

The Polish minister also stressed the importance of maintaining this alliance. “Together we can fight not only for issues important to our countries, but also for the future of Europe,” he said.

According to him, after the war is over, the process of Ukraine’s integration into the European Union can continue, and with it, “the issue of Ukrainian products will come up again.” “If today we do not make the European Commission develop real tools to solve this problem, the problem will have unpleasant consequences,” Telusz said.

He also said that he agreed with his Hungarian colleague to organize a meeting with Ukrainian Minister of Agrarian Policy and Food Nicholas Solsky to find common solutions to solve the problem of grain imports.

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Rains and winds up to 20 m/s are expected in Kyiv on June 25-26

On Sunday, June 25, rains are expected in Ukraine, with heavy rains in some southern and southeastern regions, with hail and wind gusts of up to 20 m/s, the Ukrainian Weather Center reports.
“Moderate – light rains and thunderstorms in the western, night and southern regions, heavy rains in the central, Zaporizhzhia, Kherson, Donetsk and Kharkiv regions, sometimes hail in some places, wind gusts and squalls of 15-20 m/s during the day,” the Ukrainian Weather Center said in a statement on Saturday.
The wind will be north, northwest (in the east and northeast, northeast), 5-10 m/s. Temperature at night 15-20°, during the day 20-25°, in the southern and southeastern regions 26-31°; in the highlands of the Carpathians during the day 7-12°.
Rains are also expected in Kyiv on June 25. Northwest wind, 5-10 m/s. The temperature at night will be 18-20°, during the day 23-25°.
According to the Central Geophysical Observatory named after Borys Sreznevsky. Borys Sreznevsky Central Geophysical Observatory in Kyiv, on June 25, the highest daytime temperature was 35.4° in 2021, the lowest at night was 5.8° in 1908.
On Monday, June 26, the rainy weather will continue. “Sometimes rains with thunderstorms are expected, on the Left Bank, at night and in Odesa and Mykolaiv regions, in some places significant rains (at night in the western regions without precipitation). Northwest wind with a transition to northeast, 7-12 m/s, in the northern, central and eastern regions gusts of 15-20 m/s in some places,” the weather service reports.
The temperature will be 11-16° at night, 21-26° during the day, 15-20° in the east and northeast of the country; in the southern part at night 17-22°, 24-29° during the day.
On June 26, rain with thunderstorms is forecast in the capital of Ukraine, with northwest winds shifting to northeast, 7-12 m/s, gusts of 15-20 m/s in some places. The temperature at night will be 14-16°, during the day 21-23°.

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