Integration of European standards, in particular the provisions of EU Regulation 305/2011 on the quality of construction products and new environmental standards, is one of the important criteria for attracting investments in the reconstruction of Ukraine, the growth of the local construction market and increasing the competitiveness of domestic producers of construction materials, believes the executive director of the association “Ukrcement” Lyudmyla Krypka.
“European integration is one of the criteria for investing in Ukraine. The key factors that will contribute to the growth of construction in Ukraine and the development of the construction sector are government programs for infrastructure rehabilitation, intensification of construction works, localization of production, introduction of modern technologies and focus on environmental standards. It is those Ukrainian producers who will focus on these areas that will be able to consolidate competitive positions, stimulate the development of the industry and provide the market with quality building materials,” she said at the press conference ‘State Partnership and Investments in Rehabilitation of Territories’ at the Interfax-Ukraine agency on Friday.
According to her, cement industry enterprises were among the first to implement the provisions of the 305th regulation in their activities and are now working on the implementation of environmental standards, which are also included in the new EU directive.
Kripka noted that the implementation of Euro standards not only increases the competitiveness of Ukrainian producers in international markets, but also opens the way to development and innovation.
One of the important tasks for the cement industry is to reduce CO2 emissions.
“The industry is working to reduce emissions. Enterprises introduce the best available technologies and management methods, take part in monitoring, reporting and verification of greenhouse gas emissions. Ukraine can become an example of simple methods to reduce CO2 emissions by using biomass in clinker firing,” the expert said.
Cement industry companies themselves invest in their own production, Kripka noted. Companies also invest in the construction of additional technological lines, clinker storage silos, terminals, kiln modernization and transition to alternative fuels. Further capacity expansion of cement plants will start during the active recovery phase, when cement consumption will increase to 10-10.5 million tons. Over the past two years, this figure is about 6.3 million tons, she explained.
The Ukrcement Association was established in January 2004 by reorganizing the Ukrainian Concern of Cement Industry Enterprises and Organizations Ukrcement. The association comprises five groups of companies, including nine cement enterprises.
CONSTRUCTION, European standards, INTEGRATION, investments in Ukraine
The National Bank of Ukraine (NBU) has developed a regulation on the transition of the Ukrainian insurance market to European standards to bring insurers’ activities in line with Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the establishment and conduct of insurance and reinsurance activities (Solvency II).
According to the NBU’s website, the regulation on establishing requirements for insurer solvency and investment activities has been developed and proposed for public discussion and consists of two main blocks.
The first block includes requirements for ensuring solvency, in particular, establishes the procedure for calculating regulatory capital and eligible regulatory capital, taking into account restrictions on the composition and structure of eligible assets for their calculation, as well as the procedure for calculating solvency capital. Thus, the minimum capital under the simplified approach for certain categories of insurers, in particular, life insurers and non-life insurers with significant volumes of activities, is set at the level of at least UAH 48 million, and for others – UAH 32 million.
Insurers will apply a simplified approach to calculating solvency capital based on insurance premiums, insurance claims, technical reserves, etc. until 2027.
The second block includes requirements for the insurer’s investment activities, including assets to cover technical reserves and restrictions on investment.
The NBU notes that the regulation will come into force on January 1, 2024, and will provide for a six-month period for insurers to bring their activities in line with the new requirements. After that date, the NBU will not apply any enforcement actions to insurers for violating solvency requirements if they implement their recovery and/or financing plans.
Comments and suggestions on the draft are accepted until December 18, 2023.
The EU Solvency II Directive primarily concerns the amount of capital that insurance companies must hold to reduce the risk of insolvency. The next steps to strengthen the solvency requirements for insurers in Ukraine, according to this directive, will be to determine the procedure for assessing certain categories of eligible assets and to introduce requirements for calculating solvency capital and minimum capital under the basic approach for certain categories of insurers from 2027.
Order No. 285 on the package adoption of CEN-CENELEC European normative documents in Ukraine was signed by Oleg Shvydky, head of the national standards body, the Economy Ministry press service said Thursday.
“The adoption and implementation of European standards in the Ukrainian economy will allow faster ratification of the ACAA Agreement, will open new opportunities and prospects for Ukrainian business,” the statement said.
As it was specified in the press-service, national standardization body of Ukraine with support of Ministry of economy carried out work with European experts of CEN-CENELEC on actualization of base of European standards and studying of legal bases, what provided an opportunity of package adoption of European standards in Ukraine as national.
The European Committee for Standardization (CEN) European Committee for Standardization in Electrotechnics (CENELEC) together form a European system of technical standardization. Standards agreed by these agencies are regularly adopted in many countries outside Europe that follow European technical standards.
