Business news from Ukraine

Business news from Ukraine

PrivatBank and MasterCard launch contactless metro fare payment in Dnipro

The State PrivatBank (Kyiv) and the MasterCard international payment system have launched contactless fare payment at all metro stations in Dnipro, the bank’s press service reported on Thursday.
“In August 2022, as part of the program with MasterCard, the bank installed turnstiles with contactless payment technology with a bank card at four more stations of the Dniprovsky metro – Metrostroiteley, Prospekt Svobody, Metallurgov and Zavodskaya. Now you can pay for travel with a card or smartphone at all metro stations,” the statement said.
For two years of operation of such turnstiles at the stations “Vokzalnaya” and “Pokrovskaya” in the Dnieper, more than 420 thousand trips were paid contactlessly.
The press service noted that the Dnipro metro has become the second metro in Ukraine after the Kyiv one, where you can pay for travel with a card or an NFC device right at the turnstile.

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VITALI KLITSCHKO: KYIV MADE ANOTHER PAYMENT ON EXTERNAL DEBT IN AMOUNT OF $28.8 MLN

Kyiv has redeemed the payment on the participation bonds in the PBR Kyiv Finance Plc loan in the amount of $28.8 million on June 13 in accordance with the schedule, Kyiv Mayor Vitaliy Klitschko said.
In addition, the city will also pay a semi-annual $2.2 million coupon.
“Despite the war in Ukraine and the difficult economic situation, Kyiv fulfills its obligations, remaining a stable and predictable partner for foreign investors,” the mayor stressed.
As reported, the international rating agency S&P Global Ratings downgraded the long-term credit rating of Kyiv in foreign and national currency from “B-” to “CCC +” with a negative outlook.

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PRIME MINISTER OF UKRAINE: PAYMENT OF UAH 6,500 FOR THOSE WHO LOST JOBS DUE TO WAR TO BEGIN NEXT WEEK

Prime Minister of Ukraine Denys Shmyhal says that the payment of UAH 6,500 for those who have lost their jobs due to the war will begin next week.
“I appeal to the Ukrainians! The war came as a shock to all of us. Many have lost their homes, jobs, savings, but remained to defend Ukraine. Today the state will support you. On behalf of the President of Ukraine, the updated ePidtrymka program will start working next week. As part of this program, every employee, every private entrepreneur whose job was taken away by the war will be able to receive UAH 6,500,” Shmyhal said in his address on Sunday afternoon.
According to him, the program will work by analogy with payments for vaccination, that is, through the Diia application.
“The Ministry of Digital Transformation will inform about the details of how to issue assistance,” the prime minister added.

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METINVEST AND OTHER COMPANIES OF THIS GROUP PLAN TO ALLOCATE MORE THAN UAH 20 BLN FOR PAYMENT OF DIVIDENDS

PrJSC Mariupol-based Illich Iron and Steel Works (Donetsk region), part of Metinvest Group, will allocate UAH 11.004 billion for the payment of dividends from retained earnings, Azovstal, also part of Group – UAH 7.718 billion, and PrJSC Dniprovsky Coke and Chemical Plant (Kamianske, Dnipropetrovsk region), part of Metinvest, – UAH 1.774 billion.
According to the official statements of the companies in the information disclosure system of the National Securities and Stock Market Commission, the sole shareholder of the three companies made decisions on the payment of dividends at the extraordinary shareholders’ meetings held on September 13, and on September 14 the companies decided to set the date for compiling the list of persons entitled to receive dividends – September 29, 2021.
Earlier it was reported about similar decisions of PrJSC Avdiyivka Coke and Chemical Plant on the direction of UAH 2.365 billion to dividends, and PrJSC Zaporizhkoks – UAH 3.867 billion.
Thus, a total of five Metinvest enterprises will allocate UAH 26.7 billion for dividend payments.

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OSAGO PAYMENT 5% UP IN UKRAINE

The average OSAGO payment in Ukraine in January-June 2020 amounted to UAH 18,271, which is 5.01% more than in the same period a year earlier, the Motor (Transport) Insurance Bureau of Ukraine has said on the website.
At the same time, it is noted that the average cost of an OSAGO policy was UAH 685, while in the first half of 2019 it was UAH 664.
It is reported, with reference to Director General of the MTIBU Volodymyr Shevchenko, that in 7.1% of insured events the amount of property damage exceeded UAH 100,000, while in 2019 there were only 4% of such events.
“These data emphasize the importance of increasing the sums insured (by 30%), which took place at the initiative of the MTIBU in September last year, and the need to ensure their further approximation to European sizes by changing the norms laid down in the law on OSAGO,” Shevchenko notes.
According to the report, in January-June 2020 the MTIBU made 3,154 payments from the bureau’s guarantee funds for a total of more than UAH 104.3 million. Compared to the same period last year, this indicator slightly decreased by 4.3%, while the amount of payments increased by 10.6%.
The largest number of payments was made for harm caused by the owners of unsecured vehicles (who became the perpetrators of road accidents without a valid OSAGO policy): 1,931 payments in the amount of UAH 68.6 million. The number of payments under this item increased by 23.2%, and the amount of payments by 25.7%.

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DEFICIT OF UKRAINE’S BALANCE OF PAYMENT IN JULY TOTALS $88 MLN

The deficit of Ukraine’s consolidated balance of payments in July 2020 was $88 million, while in the same period last year the surplus was $1.3 billion, according to preliminary data published by the National Bank of Ukraine (NBU).
According to them, the surplus of the current account of the balance of payments in July 2020 amounted to $360 million, while in July 2019 there was a deficit in the amount of $1 billion.
The volume of exports of goods in July 2020 decreased by 15.9% (in June 2020 by 6.7%), to $ 3.3 billion. The corresponding dynamics was due to a decrease in exports of ferrous and non-ferrous metals by 23.3% (by 18.7%), food products by 16.1% (5%), engineering products by 11.2% (by 4.7%), as well as export of mineral products by 21.4%, which in June grew by 3.6%.
At the same time, in July, export of chemical products increased by 25.7% (in June 2020 by 18.7%), in particular export of fertilizers by 7.5 times (2.3 times). In addition, export of industrial products rose by 7.3% (by 6.7%), and timber and wood products by 2.3% (by 3.9%).
For the seven months of 2020, exports to Asian countries in nominal terms grew (by $ 1.3 billion, or 15.3%), while exports to the EU, Africa and the Russian Federation decreased by $ 2 billion (19.4%), $ 414 million (14.3%) and $ 253 million (16.5%) respectively. Thus, the share of exports to Asian countries increased to 39.4% (from 31.6% in the same period of 2019) in total exports, and to the EU, Africa and Russia decreased to 33.1% (from 38%), 10.1% (from 10.9%) and to 5.2% (from 5.8%) respectively.
In July 2020, imports of goods continued to decline significantly, by 21.6% (in June by 16.9%), to $ 4.3 billion, in particular energy imports decreased by 1.8 times (in June halved), and non-energy by 15.5% (6.9%).
In the second month of summer, in particular, imports of ferrous and non-ferrous metals decreased by 20.4% (a month earlier by 10.9%), mechanical engineering products by 16.7% (by 6.6%), chemical products by 5.4% (by 4.5%), timber by 5.2% (by 10.8%), and import of industrial products decreased by 16.3%, while in June it increased by 3.2%.

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