Business news from Ukraine

Business news from Ukraine

Level of floods in Dnieper decreases

The water level of the Dnieper river in the capital near the Metro bridge has decreased by 4 cm compared to the previous day, the Kyiv city military administration said.
“As of 10:00 on 07.05.2023, the Dnieper in Kiev near the bridge “Metro” is 9,299 cm (according to the Baltic system of heights). Water temperature: 14°C. Compared to the previous day, the flood level has decreased by 4 cm,” – indicated in a message in the telegram channel.
The head of KHWA Sergey Popko noted that for more than 2 weeks the height of the flood in the capital fluctuates around 9300 cm, which is less than 60 cm maximum high water in the middle of April, so there is no threat to the city of high water. Emergency flooding in the city of Kiev has not been recorded.
“The danger level of hydrological phenomena remains I (yellow). At the same time there is flooding of the floodplain with a layer of about 45 cm. Floodplain areas remain flooded – islands in the park Muromets, Hidropark, Trukhanov Island, Galerny bay, Korchevatoe, private areas near Osokorki. Industrial facilities and residential massive cities are out of danger of flooding. Monitoring of the current floods continues”, – said Popko.

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Wet snow possible in Carpathians on Monday

Monday, May 8, at night in most western regions, as well as during the day in the Carpathian region and the southern part at times rain, in the Carpathians with wet snow. In the rest of the territory without precipitation, reports Ukrhydrometecenter.
The wind is north-east, 7-12 m/s.
Temperatures at night 1-6°, in the northern part of the country, frosts of 0-5 degrees on the soil surface. Temperatures in the south of the country are 4-9°. Daytime temperatures are 9-14°, in Transcarpathian and southern parts of the country up to 17°. Carpathian highlands have night and daytime temperatures of 0-5°.
In Kiev, without precipitation, the wind is north-east, 7-12 m/s. The temperature at night is 4-6° warm, while during the day it is 11-13°.
According to the Central Geophysical Observatory. The highest daytime temperature in Kiev on May 8, was recorded in 1907 and amounted to 28.2 ° C, the lowest at night – 0.5 ° in 1953.
Tuesday, May 9, in the south-east, in the southern regions it will be raining, thunderstorms, light rain and sleet in the Carpathians. The rest of the territory is dry.
Winds are north-east, 5-10 m/sec.
The temperature at night is 1-6° warm, in the northern western regions there are frosts of 0-5° on the ground. Temperatures in the south of the country are 4-9° warm. Daytime temperatures are 10-15°, in Transcarpathia 14-19°. At night and daytime in the Carpathian highlands it is 0-5° heat.
In Kiev, without precipitation, the wind is northeastern, 5-10 m/s. Temperatures at night 3-5° warm, during the day 12-14°.

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National Bank improves unemployment forecast in Ukraine to 18.3%

Ukraine’s unemployment rate will decline to an average of 21.1% in 2023 from 21.1% in 2022, the National Bank said in its inflation report, explaining the improvement by revised methodology and positive trends in the labor market.
In its January report, it estimated unemployment in 2022 at 25.8% and expected it to rise slightly to 26.1% this year.
“In the absence of official statistics, assessing the impact of the war on the labor market, both in general and in terms of certain categories of the population and regions, is difficult and requires additional research methods, including the use of alternative sources of information. These are the data and survey results that allowed us to refine the unemployment estimate for 2022,” the NBU said.
He specified that based on such surveys, the average unemployment rate in 2022 is estimated at 19% to 23%. In addition, an improvement in the unemployment rate in the second half of 2022 was confirmed.
“Since the beginning of 2023, the labor market has been gradually recovering, but this process is still unstable… Since the beginning of 2023, the situation on the labor market has been improving. However, unemployment remains high and is becoming structural,” the NBU said.
It is noted that imbalances in the labor market will persist, the unemployment rate will remain higher than before the war, and real wage growth will be more restrained, but uneven by sector and region.
According to the published information, the recovery in the labor market was driven by an improved situation in the energy sector and a seasonal pickup in activity.
The NBU added that the burden per vacancy has increased and differs significantly between regions and professions. This is due to both changes in the structure of the economy as a result of the war and a large number of IDPs, and may indicate increased signs of structural unemployment. One of the reasons for structural unemployment is the difficulty of moving potential employees to a region where there is work in their specialty.
In terms of wages, the SSSU estimates that in 2022, thanks to the public sector, the average nominal wage increased by 5.9% (real wages decreased by 11.8%), which is better than the NBU’s previous estimates.
It is expected that real wages will grow by 3.7% on average in 2023, while nominal wages will grow by 21.9%, while in January the NBU estimated these figures at 3.3% and 25%, respectively.
As reported, the NBU improved its inflation forecast for this year to 14.8% from 18.7% compared to its January report. According to its estimates, inflation in annual terms will decline from 21.3% to 14.5% in the second quarter, after which it will fluctuate between 14.9 and 14.7% by the end of the first quarter of 2024.

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“Zaporizhstal” handed over modern Mavic drones to defenders of Ukraine

Zaporizhstal Iron and Steel Works and Metinvest Group have handed over two modern DJI Mavic 3 reconnaissance drones to the Ukrainian Armed Forces as part of the Rinat Akhmetov Steel Front military initiative.
According to the company’s statement on Friday, the delivery took place this week.
“Ukrainian defenders use drones for reconnaissance, correction or strike. However, their first and most important mission is to contribute to saving the lives of the personnel of the Ukrainian Armed Forces. That’s why we can never have too many copters, and we systematically transfer these “birds” to our defenders. Today, two more Mavic drones from Zaporizhstal and Metinvest are on their way to the National Guard,” Yevgeny Avdzhi, Zaporizhstal’s procurement director, commented on the situation, as quoted by the press service.
It is specified that the DJI Mavic 3 is the most needed and popular model of drones in the Armed Forces of Ukraine, which helps to detect and destroy the enemy on the front line. The copter is used for reconnaissance and fire control. The competitive advantage of this model is its excellent optics and navigation. Two new Mavic drones have already been delivered to the Donetsk sector, where a Zaporizhstal employee with the call sign “Thunder” serves in the Armed Forces.
“Zaporizhstal and Metinvest always support their employees. And even now, when we are at the front line, the company does not stand aside, the soldier noted.
“Today we received two reconnaissance drones. These drones are our eyes at the front. They help us to detect the accumulation of military equipment and enemy manpower and then, if necessary, adjust our fire. This drone is operated remotely from a control panel. The pilot sees in real time where, what is located and what is happening, and then a decision is made to evacuate or fire,” explained Hrom.
“The Steel Front is an initiative that brings together all the military assistance provided by Rinat Akhmetov’s SCM businesses to the Ukrainian Armed Forces, medical workers and critical infrastructure. From the first day of the full-scale war in Ukraine, Rinat Akhmetov’s businesses (Metinvest, DTEK, FUIB, Ukrtelecom and others) and FC Shakhtar started helping the defenders of Ukraine by buying and delivering protective equipment, first aid kits, vehicles, fuel and more. As part of the military initiative, the soldiers also receive modern copters on a regular basis, which, as the military say, become their eyes on the front line. As part of the Rinat Akhmetov’s Steel Front military initiative, Metinvest Group has supplied more than 1,200 modern copters to Ukrainian defenders.
“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries around the world. The plant specializes in high-quality steel hot-rolled coils, hot-rolled sheets, cold-rolled sheets, cold-rolled coils made of carbon and low-alloy steels, as well as steel strips, ferrous tin, and bent sections.
The main consumers of the products are producers of welded pipes, automotive, transport and agricultural machinery companies, and manufacturers of household appliances.
“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).
Metinvest Holding LLC is the management company of Metinvest Group.

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Real GDP percentage changes over previous period in 2010-2023

Real GDP percentage changes over previous period in 2010-2023

Source: Open4Business.com.ua and experts.news

NBU revoked license of insurer “Universal policy”

On May 5, the National Bank of Ukraine (NBU) has cancelled the licenses of Universal Policy Insurance Company (Kyiv) due to repeated violations of license conditions during the year.
According to the regulator’s website, the company fails to comply with mandatory financial ratios (solvency and capital adequacy ratio and risk operations ratio).
Earlier it was reported that “IC “Universalniy Polis” was subjected to a temporary suspension of the license on November 11, 2022.
The NBU notes that according to accounts for 2022, the amount of insurance premiums collected by the company was UAH 72 million (90% of them – from reinsurers), insurance payments – UAH 36 million. The market share of the company according to the results of 2022 is 0,2%.
According to reports for the first quarter of 2023, “IC “Universal polis” has not received insurance premiums.
IC “Universal polis”, registered in 2001, specializes in providing services in the field of risk insurance.

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