Business news from Ukraine

ELON MUSK AND HIS COMPANIES SUED FOR $258 BLN

Elon Musk and his companies Tesla Inc. and Space Exploration Technologies Corp. (SpaceX) filed a $258 billion lawsuit in connection with their promotion of the Dogecoin cryptocurrency, reports Bloomberg.
The plaintiff – Keith Johnson – alleges that Musk and his companies created a fraudulent scheme to inflate the value of Dogecoin.
“Defendants falsely claimed that the Dogecoin cryptocurrency is a prudent investment even though it has no value at all,” the lawsuit filed in Manhattan federal court says.
Johnson, who claims he “lost money because of the crypto pyramid created by the defendants,” expects his lawsuit to become a class action, with other people who have also lost money trading Dogecoin since April 2019 joining him.
In addition to damages, he demands that the court prohibit Musk and his companies from promoting Dogecoin.
The cryptocurrency, created in 2013 in honor of the Internet meme Doge with a Shiba Inu dog, is trading on Thursday at $0.057, since the beginning of this year its rate has fallen by 67%. Last year, the value of Dogecoin rose to $0.74.
Musk has previously stated that Tesla and SpaceX will sell their merchandise for Dogecoin. In January, he suggested that McDonald’s start accepting the cryptocurrency, tweeting that he would “eat the Happy Meal on TV if McDonald’s accepts Dogecoin.”

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RUUKKI STANDS WITH UKRAINE AND STOPS BUSINESS WITH RUSSIAN AND BELARUSSIAN COMPANIES

The war in Ukraine has dramatically changed the geopolitical landscape in Europe. Ruukki Construction fully condemns Russia’s attack and the hostility towards Ukraine and its people.
Safety of our employees, customers and partners is of the highest importance at Ruukki. All of Ruukki’s operations in Ukraine have been suspended and all shipments and sales to Russia and Belarus have been discontinued. For some time, this will also affect the delivery capabilities of some product groups.
Our thoughts are with the people of Ukraine and our colleagues, customers and partners, who are in the middle of the war. Ruukki and our employees in various countries help our Ukrainian colleagues and their families by providing financial support and resettlement assistance. We are grateful to all those who work tirelessly to help the people of Ukraine.
SSAB supports Ukraine through UNHCR
As part of SSAB, Ruukki is donating to UNHCR, the UN High Commissioner for Refugees to support the people in Ukraine. UNHCR is present in the country with a structure already set up and has vast experience in rapid response, relief and refugee assistance, including people fleeing inside Ukraine.
Ruukki is constantly monitoring the development of the situation and taking any necessary actions to secure the safety of its people.
Ruukki has a factory in Kopyliv, some 50 kilometers west from Kyiv, and sales offices in some ten locations in Ukraine. Altogether, Ruukki has 73 employees in Ukraine.
In Ukraine, Ruukki products for commercial construction are represented by Rauta. Rauta Group was set up in 2014. Its core business is the design of constructions, supply and assembly of construction materials. The company has a license for the construction of facilities with medium (CC2) and high (CC3) consequences.
According to the unified state register, the owner of a 100% stake in the statutory capital of the company is Andriy Ozeychuk.

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MTIBU EXCLUDES 2 COMPANIES FROM ITS MEMBERS

The Motor (Transport) Insurance Bureau of Ukraine has excluded U.S.I. insurance company (Kyiv) and Kharkiv Municipal Insurance Company from the bureau’s associate members, the MTIBU told Interfax-Ukraine
The reason for this decision was the two-month indebtedness of the insurers to pay the guarantee fee to the MTIBU’s funds.
As reported, on April 20, 2021, the MTIBU reported that U.S.I. loses the right to conclude new contracts of compulsory insurance of civil liability of land vehicle owners (OSAGO), since a day earlier the NBU applied to it a measure in the form of suspension of licenses to carry out activities. For failure by the company to meet the solvency and capital adequacy standards, as well as the riskiness of operations, the formed insurance reserves were not placed in certain categories of eligible assets in full.
According to the data of the bureau, U.S.I. in 2020 entered into 87,050 contracts, premiums for which amounted to UAH 65.868 million, and paid to clients UAH 12.713 million.
Kharkiv Municipal Insurance Company in the first quarter of 2021 raised UAH 6.3 million of gross insurance premiums for OSAGO, paid UAH 1.33 million.

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OVER 14,000 COMPANIES FROM UKRAINE EXPORT THEIR PRODUCTS TO EUROPEAN UNION

Over 14,000 Ukrainian companies annually export their products to the European Union, said Minister of Economy Ihor Petrashko.
“Over 14,000 companies annually export their products to the EU. And as of mid-January, 362 companies producing animal products have the right to export their products to the EU, which is subject to the most stringent requirements from the EU,” the press service of the ministry quoted Petrashko as saying in the release on Friday.
Reforms in technical regulation, public procurement, sanitary and phytosanitary standards, as well as improving the product safety control system, customs, intellectual property protection system will allow to remove barriers to trade and provide more free access to the EU internal market for Ukrainian companies, the minister said.
“Today we see that we are ready to go further in our European aspirations,” Petrashko added.

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FOREIGN COMPANIES STORE 2.8 BCM OF NATURAL GAS IN UKRAINE

The volume of natural gas stored by foreign companies in Ukrainian underground gas storage facilities (UGS) in the “customs warehouse” mode as of mid-June is 2.8 billion cubic meters (bcm), which is three times more than the same figure of the previous year, the press service of Ukrtransgaz said on Facebook.
Some 54 companies are currently using Ukrainian capacities, while a year earlier their number was seven.
Earlier, the company informed that as of June 1, non-residents stored 2 billion cubic meters in the “customs warehouse” mode, which is four times more than in the same period in 2019.
As reported, according to the estimates of head of Gas Transmission System Operator of Ukraine (GTSOU) Serhiy Makogon, the capacity of Ukrainian underground storage facilities that may be available to European companies at the end of the third quarter of this year will amount to about 10 billion cubic meters

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INSURANCE COMPANIES OF UKRAINE REDUCE VOLUME OF REINSURANCE BY 37% IN Q1

Insurance companies of Ukraine in January-March 2020 paid insurance premiums in the amount of UAH 2.78 billion under insurance risk reinsurance contracts, which is 37.4% or UAH 1.66 billion less than in the same period in 2019, member of the National Commission for the State Regulation of Financial Services Markets Oleksandr Zaletov has told Interfax-Ukraine.
According to him, despite the fact that in the first quarter of 2020, net insurance premiums compared to the same period in 2019 increased by a mere 1.8%, to UAH 9.85 billion, the situation in the reinsurance market has changed.
Firstly, cooperation with international reinsurers has intensified. So non-resident reinsurers were paid UAH 884 million, which is 12.6% or UAH 98.9 million more than in the same period in 2019 (UAH 785.3 million for the first quarter of 2019). In the first quarter of 2020, as before, predominantly reinsurance is carried out in the member countries of the Organization for Economic Cooperation and Development (OECD). The most actively cooperating with Ukraine in the field of reinsurance were insurers and specialized reinsurers from Germany, which accounted for 19.7% of the premiums in this segment, as well as Austria (19.4%), the UK (14.6%), and Poland (12.4%), France (7.2%), Switzerland (5.6%), Italy (3.9%), the Czech Republic (3.8%), the United States (3%) and Belgium (2.4%), and the rest accounted for less than 2%.
In January-March 2020, non-resident reinsurers made insurance payments in the amount of UAH 473 million, which is 62.2% or UAH 181 million more than in the same period in 2019 (UAH 292 million for the first quarter of 2019). A significant share was held by reinsurers from the Czech Republic (31.2%), Germany (24.3%), Poland (17.6%), Great Britain (9%), Austria (7.6%), France (2.4%), and Italy (2.4%), the rest less than 2%.
Secondly, there were significant reductions in operations in the domestic reinsurance market. So, in the first quarter of 2020, resident reinsurers were paid insurance premiums in the amount of UAH 1.89 billion, which is 48.3% less compared to the same period in 2019 (UAH 3.65 billion for the first quarter of 2019).

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