Business news from Ukraine

National Bank has revoked all licenses of Salamandra IC

The National Bank of Ukraine has decided to apply to PJSC Insurance Company Salamandra (Kiev) a measure of influence in the form of revocation of all licenses, according to the regulator’s website.

Also, in compliance with the requirements of the law “On Insurance”, in connection with the presence of the company’s obligations under insurance (reinsurance, coinsurance) contracts on May 14, 2024 decided to appoint a temporary administration in PJSC “IC “Salamandra” and removal of the governing bodies from the management of the company.

These decisions have been taken according to the results of planned inspection, conducted in October-December 2023, during which it was established the fact of realization by IC of risk activity, threatening the interests of creditors and insurers, namely formation of insurance reserves in insufficient amount (more than 10% of their sufficient amount, determined by the legislation of Ukraine) three times during the calendar year.

The decision on application of the measure of influence came into force on May 14, 2024.

After taking this decision, the temporary administrator should immediately begin to fulfill his duties, is noted in the message.

IC “Salamandra” (formerly – “DIM Insurance”) is part of the eponymous non-banking financial group, the ultimate beneficiary and owner of which is Yuri Yavtushenko.

IC Salamandra is a member of the Motor (Transport) Insurance Bureau of Ukraine.

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Cabinet of Ministers simplified rules for obtaining licenses for small distillers in Ukraine

The Cabinet of Ministers has approved the form of the declaration of compliance of the material and technical base of small distillers with the requirements of the law and determined the procedure for its submission and registration.

The relevant Resolution No. 56 of January 19, 2024 was published on the website of the Ministry of Agrarian Policy and Food.

According to the document, small distillers will be able to submit a declaration of compliance of the material and technical base with the legal requirements to the territorial bodies of the State Service of Ukraine for Food Safety and Consumer Protection. Instead of the production certificate, they will be able to use the declaration of compliance of the material and technical base registered by the State Service of Ukraine on Food Safety and Consumer Protection to obtain licenses for the production of alcohol distillates and alcoholic beverages, which will greatly simplify this procedure.

It is expected that the adopted innovations will ensure the development of the market for alcohol distillates and alcoholic beverages, stimulate the development and legalization of small businesses, and contribute to the creation of new jobs, particularly in rural areas.

Earlier, Interfax-Ukraine news agency held a press conference to support the new industry, for more details, please follow the link

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NBU revokes licenses of two more insurance companies

On September 7, the National Bank of Ukraine (NBU) revoked the licenses of Gestalt Group Insurance Company and INTO Insurance Company (both based in Kyiv) to conduct financial services business.

According to the regulator’s website, the decision was made with respect to Gestalt Group due to the fact that the insurer’s ownership structure does not meet the requirements of Ukrainian legislation, and with respect to INTO for failure to comply with the National Bank’s decisions to eliminate violations of license conditions.

According to the latest financial statements submitted by Gestalt Group Insurance Company, as of June 30, 2023, the company’s insurance premiums amounted to UAH 5,971 million, assets amounted to UAH 81,642 million, and insurance reserves amounted to UAH 1,952 million. The company’s market share in terms of insurance premiums amounted to 0.03%.

According to the latest reports submitted by INTO Insurance Company, the volume of insurance premiums amounted to UAH 28.767 million, the value of assets – UAH 139.178 million, insurance reserves – UAH 18.028 million. The company’s market share in terms of insurance premiums amounted to -0.2%.

The NBU emphasizes that the decisions come into force on September 8. In the event of license revocation, a financial services representative must fulfill its obligations under contracts with clients for the type of financial services specified in the decision, concluded before the date of entry into force of the decision to revoke the license.

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NBU revokes licenses of Financial Company No. 1

The National Bank of Ukraine (NBU) has revoked the licenses of Financial Company No. 1 LLC, which ranked 97th in terms of market revenue in the first half of this year.

“The said financial company does not comply with the legal requirements for maintaining the minimum amount of equity capital. This negatively affects its real and potential financial capabilities, in particular, the level of liquidity, solvency, financial stability, and working capital (equity),” the regulator explained its actions on its website.

According to the NBU, the decision was made by the Committee for Supervision and Regulation of Non-Banking Financial Services Markets on August 28 and came into force on August 29.

According to the NBU, Financial Company No. 1 finished the first half of this year with revenues of UAH 14.9 million and a net loss of UAH 7.96 million.

In terms of labor costs (UAH 1.23 million), FC “No. 1” was 87th in the market in the first half of the year, and 403rd in terms of assets (UAH 15.1 million).

According to OpenDataBot, Financial Company No. 1 LLC was founded in August 2013 by Andriy Stepanenko, co-owner of four IT-related companies (IT Nonstop, Finayti, IT Finance, 24. IT) with a registered capital of UAH 8 million.

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International eSports bookmaker GG.BET has obtained licenses for betting and online casino operations in Ukraine

GGBET LLC acquired the rights to use the GG.BET brand in Ukraine and received a decision to issue licenses from the Commission for Regulation of Gambling and Lotteries for its activities (decisions No. 128, No. 129 of 08.08.2023). The date of the start of GGBET UA operations will be announced shortly.
GG.BET is an international esports bookmaker with Ukrainian roots, known for its partnerships with the world’s largest CS:GO and Dota 2 tournaments. The brand actively supports the development of global esports and acts as an official partner of major esports tournaments. In addition, the brand is a sponsor of the legendary NAVI and Team Vitality clubs.
GGBET UA will develop the esports community and promote the principles of responsible betting and online casinos. It also plans to support Ukrainian sports through investments, implementation of thematic social projects, and collaborations with sports leaders.
“Ukraine has a great potential for the development of the betting market, so obtaining licenses for the GG.BET brand is an expected and balanced decision. Ukrainian esports is characterized by a developed fan base and its own history of tournaments and high-profile victories. In addition, we are confident that fans of classic sports will also find attractive conditions and gain new interesting experience. We will offer Ukrainian bettors an excellent betting product and high-level service that the GG.BET brand provides to users in the global market,” the company’s press service commented.
As a reminder, the GG.BET brand has recently started operating in the UK under the license of the UK Gambling Commission, which is considered one of the most standardized and prestigious in the world.
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About GG.BET
GG.BET is an international eSports betting brand with operations in the UK, Europe, South America and Asia, operating under the licenses of the UK Gambling Commission, Antillephone (Curacao) and Malta Gaming Authority. GG.BET is a member of the ESIC public organization and stands for fair play in esports.

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NBU has revoked licenses of IC Kyivska Rus

The National Bank of Ukraine (NBU) on July 11 revoked the license of PJSC Insurance Company Kyivska Rus (Kyiv) to provide financial services, according to the regulator’s website.
The reason for this decision was the failure to submit reports for 2022, failure to submit information and documents at the request of the National Bank and the company’s failure to eliminate the identified violations in the time specified by the regulator (June 8, 2023).
According to the last submitted to the NBU statements of PJSC IC Kyivska Rus for nine months of 2022, the amount of insurance payments amounted to UAH 85,4 mln, of which UAH 76,9 mln was transferred to reinsurance. The insurer has not made any payments during the specified period.
As it was informed, on May 8, 2023 the NBU has applied to IC “Kyivska Rus” a measure of influence in the form of temporary suspension of licenses in connection with non-submission of reports for the first half of 2022 and for 2022, as well as actuarial report for 2022.
The company also did not submit the report on corporate governance and information on key risks and results of stress testing for 2022, did not provide information and documents at the request of the NBU.
Private JSC IC Kyivska Rus carries out activities on voluntary and compulsory types of insurance other than life insurance.

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