Business news from Ukraine

Tariffs for “Green Card” policies for those who travel abroad have been increased in Ukraine

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) has increased tariffs for Green Card policies for those traveling abroad by 3.1% from December 30, 2022, the Bureau’s website reports.
According to the MTIBU, the last change in tariffs took place on November 17, 2022 upward by 6.9%, on October 3, 2022 – downward by 5.5%, and before that (July 26) – upward by 26.3%.
Green Card policies have been sold since 2009 in two types: all of Europe and Moldova. Also, from January 1, 2016, Ukrainian policies “Green Card” began to operate in Azerbaijan.
According to the MTIBU, the cost of the “Green Card” in Ukraine for 15 days for traveling in Europe for passenger cars rises to UAH 952 (previously – UAH 923), for buses – up to UAH 3.578 thousand (UAH 3.469 thousand), for trucks – up to UAH 2.246 thousand (UAH 2.178 thousand).
The cost of “Green Card” for one month for cars is now UAH 1.516 thousand (against UAH 1.470 thousand before), buses – UAH 4.970 thousand (UAH 4.818 thousand), trucks – UAH 2.982 thousand (UAH 2.891 thousand).
Six-month and annual policies “Green Card” for cars will now cost UAH 6.731 thousand and UAH 8.333 thousand respectively, for buses – UAH 17.396 thousand and UAH 32.307 thousand, for trucks – UAH 14.116 thousand and UAH 26.641 thousand.
The cost of policies for trips to Azerbaijan and Moldova for passenger cars for 15 days will be UAH 694 (previously UAH 672), for one month – UAH 1,020 thousand (UAH 989), for six months – UAH 2,340 thousand (UAH 2,268 thousand), for a year – UAH 3,331 thousand (UAH 3,230 thousand).
The amounts of single insurance payments under the contracts of international compulsory insurance of civil liability of owners of land vehicles are established by the Resolution of the Cabinet of Ministers of January 6, 2005 and are determined in euros.
“Green Card” is a system of insurance protection for victims of road accidents regardless of their country of residence and country of vehicle registration. “Green Card” covers the territory of 44 countries in Europe, Asia and Africa.
According to the decision of the General Assembly of the Council of the Bureau of the international motor insurance system “Green Card”, adopted in Luxembourg in May 2004, Ukraine is a full member of this system since January 1, 2005.

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ASSOCIATIONS OF UKRAINIAN MANUFACTURERS CALL ON THE AUTHORITIES TO IMPOSE A MORATORIUM ON THE INCREASE IN TARIFFS FOR CARGO TRANSPORTATION

Associations of Ukrainian manufacturers call on the Ministry of Infrastructure of Ukraine to introduce a moratorium on raising tariffs for rail freight for the period of martial law and 6 months. after its termination.
“There was no real discussion between shippers and the carrier about a compromise solution to increase tariffs – we were simply presented with a fact. When Ukrzaliznytsia announced the discussion of raising tariffs by 70%, the order to increase tariffs had already been signed. We had specific proposals: to introduce a moratorium for the period of martial law and 6 months after on the increase in tariffs within the borders of Ukraine, and all related services,” said Ludmila Kripka, executive director of the Ukrcement association, at a press conference at the Interfax-Ukraine agency on Thursday.
According to her, UZ did not take into account the transportation of raw materials, coal, fillers in the infrastructure component of transportation, and did not include the tariff distance, which is why the cost of the final product will increase more significantly than in the carrier’s forecast.
“The impact on the cost of the final product will be much higher than presented by UZ. On the example of cement: for us, the main raw material is limestone, and there the highest figure is 55%. Other industries fell into the values of 0-13%,” Kripka said.
In addition, from August 1, the calculation for the use of wagons will be changed to the actual one instead of the planned one, which will also increase the costs of shippers due to delays in border crossings, the expert noted.
Oleg Misyuk, a representative of the Ukrainian Association of the Limestone Industry, pointed out that the decision to raise tariffs would have a significant impact on the lime market, which is already undergoing a significant decline in production volumes.
“Before the war, the cost of delivery from the west of Ukraine to the Dnieper was 400 UAH per ton, now it is 650 UAH. With a producer price of up to 300 UAH / t, the consumer overpays another 200-250 UAH from July 1. In general, lime production has fallen from pre-war 1, 2 million tons per month to 350 thousand tons in May-June. The decision of UZ to increase tariffs will hit the market even harder, we expect a fall by another 30-40%,” he said.
The expert also noted that the increase in tariffs may put Ukrainian lime producers in a non-competitive position in front of foreign companies interested in entering the Ukrainian market.
At the same time, the increase in the cost of logistics for grain exporters, coupled with the blocking of Ukrainian ports, can play a decisive role in the bankruptcy of most agricultural producers, says Nikolai Gorbachev, president of the Ukrainian Grain Association.
“With this increase in tariffs, the logistics to the port of Constanta in Romania is already $180. The price for a loaded vessel is about $240 per ton. Thus, the agricultural producer needs to sell barley from the elevator for $50-60. The cost of growing it is more than $160. He will not receive even a third of his costs, so he will not carry out any sowing campaign in August. This will lead to the bankruptcy of most agricultural producers,” he said.
The Ukrainian Association of Ferroalloys and Other Electrometallurgical Products also opposed the increase in tariffs.
“Ferroalloys are cargo of the third tariff class, and are transported by rail only accompanied by guards paid by the hour. And given the change in the logistics of transportation due to the war, cargo in some directions is on the road 9-10 times longer than before the war” – explained the head of the association Sergey Kudryavtsev.
Meanwhile, transportation of ferroalloy products was cost-effective for UZ even with tariffs before the increase, he added.
Metallurgical enterprises are currently not operating at full capacity, many of them have been stopped and destroyed, while they continue to pay wages to workers, said Alexander Kalenkov, head of the Ukrmetallurgprom association.

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AUSTRALIA CANCELS TARIFFS ON ALL UKRAINIAN IMPORTS FROM JULY 5, EXCEPT FOR ALCOHOL, FUEL AND TOBACCO

Since July 5, Australia has marked tariffs on Ukrainian imports of goods, in addition to alcohol, fuel and tobacco, as a support package for a year, according to the website of the Australian Department of Trade and Tourism.
As indicated by the agency, we are talking about reducing tariffs from 5% to zero for a period of 12 months for a number of goods that are produced or produced in Ukraine. At the same time, it is clarified that duties equivalent to excises remain in force, for example, those that apply to fuel, alcohol and tobacco products.
According to the report, such measures from Australia and other states support the economy of Ukraine and expand its trading opportunities, and they are also important for Ukraine’s recovery in the near and long term.
According to the report, in 2021, Ukrainian exports to Australia amounted to $122 million.

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KYIVSTAR CUSTOMERS IN 16 COUNTRIES CAN USE DOMESTIC TARIFFS IN ROAMING

Subscribers of the Kyivstar mobile operator can now communicate at their “home” tariffs in 16 EU countries.
According to the press service of the company on Wednesday, up to nine EU countries (Poland, Slovakia, Romania, Hungary, Moldova, Germany, Italy, Lithuania and the Czech Republic), where for more than a month subscribers can use mobile communications and the Internet at tariffs, as in Ukraine , Kyivstar adds France, Spain, Austria, Bulgaria, the Netherlands, Latvia and Estonia.
In addition, as noted, the operator increases the list of tariff plans for which new conditions apply. In contract and business clients, as before, they work in almost all tariffs, and for prepaid subscribers they will be available not only in the tariffs “Your” and “All together”, but also in part of the offers for 2019-2020.
“In collaboration with foreign partners, we were able to significantly change the conditions of international roaming. Thanks to this, more than 80% of our customers can use calls and the Internet abroad by simply paying their own tariff. This is not only cheaper and more convenient for them, but is very important for Ukrainian telecom. The more customers abroad pay their tariff and use Kyivstar services, the more we will be able to invest in the restoration of infrastructure in Ukraine and in supporting customers in areas with hostilities,” Oleksandr, head of the additional services and operator relations department at Kyivstar, is quoted. Galushko.

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TARIFFS FOR RAILWAY TRANSPORTATION OF GRAIN IN UKRAINE INCREASE BY 15% IN FIRST QUARTER

Tariffs for the transportation of grain cargo by rail in Ukraine in January-March 2022 increased by 15% compared to the first quarter of 2021, and by 6.5% compared to the fourth quarter of 2021, according to the website of the State Service Ukrainian statistics.
In its report, the agency does not provide data on the growth of the tariff rate in monetary terms.
In the first quarter of 2022, the tariffs for the transportation of chemical and mineral fertilizers increased more significantly – by 41.7% compared to January-March 2021, while the tariff for the transportation of timber increased in price similarly to grain cargoes – by 15%.
In general, tariffs for freight transportation by rail in Ukraine increased by 25.4% in the first three months of 2022.

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KYIV MAYOR KLITSCHKO: HOT WATER TARIFFS IN KYIV WON’T RISE UNTIL MAY 31

Kyiv will leave tariffs for hot water at the level of the previous heating season until May 31, Kyiv Mayor Vitali Klitschko said.
“Today, in the conditions of martial law, when people found themselves in a difficult financial situation, we made an important decision on the provision of public services in the capital. This decision will ensure the use of tariffs for hot water and heat energy for its preparation until May 31 at the level of the previous heating season. That is, we will extend these tariffs without raising them!” Klitschko said after a meeting of the city council on Friday.
The Kyiv mayor recalled that the city authorities managed to keep tariffs for heat and hot water in the 2021-2022 heating season – “despite a significant increase in the costs of producing these services.”
“So today, in difficult conditions for the state and people, the city continues to restrain tariffs. Further adjustment of the cost will depend on the price of gas, which will be set at the state level. Today, we are doing what we can and what depends on us,” he said.

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