Business news from Ukraine

Kametstal increases payment of taxes and duties by one third

Metinvest Group’s Kametstal plant, which was set up at the facilities of Dnipro Metallurgical Plant (DMK, Kamianske, Dnipro region), increased its tax and fee payments by 34.8% in 2023 compared to 2022, to UAH 2.154 billion.

According to a press release, despite the economic, logistical and energy challenges of operating under martial law, Kametstal increased its tax revenues last year compared to 2022. At the same time, the budget of the city of Kamenskoye received almost UAH 605 million. The regional and state budgets received more than UAH 1.549 billion.

Kametstal’s most significant sources of revenues to the budgets of various levels are: a single social contribution of over UAH 401 million; land tax of over UAH 364.5 million; and personal income tax of UAH 352.5 million last year.

In addition, almost UAH 156.5 million of income tax and more than UAH 154 million of environmental tax were transferred to the treasury in 2023.

KAMETSTAL’s Chief Financial Officer Sergey Polukhin noted that despite the trials and tribulations of wartime, KAMETSTAL, along with other Metinvest Group companies, remains a stable producer of steel products important to the country’s economy and a responsible taxpayer.

“Today, the plant is also a reliable pillar of Kamenskoye’s economy and the largest donor to the city budget. The funds contributed by the enterprise significantly help to maintain the stability of salary payments to employees of the city’s utilities, ensure the operation of hospitals and other city programs. We work together for Ukraine and Ukrainians,” said the CFO.

It is also noted that in 2023, including associates and joint ventures, Metinvest Group paid UAH 14.6 billion in taxes and fees to the budgets of all levels in Ukraine. The rejection of tax benefits that the company is entitled to under the law made it possible to allocate additional funds to those areas where it is needed most.

As reported, in 2022, Kametstal paid UAH 1.598 billion in taxes and duties, which is higher than in 2021.

“Kametstal was created on the basis of Dnipro Coke Plant (DKKhZ) and Central Metallurgical Plant (DMK) of PJSC Dnipro Metallurgical Plant.

According to the 2020 report of Metinvest Group’s parent company, Metinvest B.V. (Netherlands) owned 100% of the shares in DCCP.

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BES secures UAH 13.4 mln of unpaid taxes of !Fest holding to budget

The Bureau of Economic Security (BES) has ensured that the state budget receives more than UAH 13.4 million in taxes refunded by a Lviv-based holding company that includes 60 restaurants and retail outlets, the bureau’s press service reports.

According to the report, the investigation found that the holding’s employees received their salaries in two installments, one of which was paid through shadow registers. During the pre-trial investigation, the BES detectives conducted a series of searches, interrogated the company’s employees and collected the necessary evidence.

In addition, the Bureau initiated a tax audit to determine the correctness of the company’s tax and fee payments. As a result of the audit, an additional UAH 13.4 million in taxes and fees were accrued, the press release said.

“The company’s director pleaded guilty at the pre-trial investigation stage. The company has paid to the state budget the damages caused to the state in full. The person involved in the criminal case was served a notice of suspicion of committing criminal offenses under Part 2 of Article 212, Part 3 of Article 212-1 of the Criminal Code of Ukraine,” the Bureau said.

According to the BES, the case has been sent to court. The pre-trial investigation was conducted by detectives of the BES territorial office in Lviv region. Prosecutors of the Lviv Regional Prosecutor’s Office are in charge of the proceedings.

As reported, on October 17, 2023, the BES announced the exposure of a large-scale tax evasion scheme in Lviv by a holding company that includes 60 restaurants and retail outlets. On the same day, Yuriy Nazaruk, co-owner of the !Fest holding, reported that the BES and the Security Service of Ukraine conducted searches at one of the holding’s sites in Lviv. According to him, the searches were related to the holding’s business activities, but there were no requests or appeals from law enforcement officers in connection with criminal cases.

The !Fest holding was founded in 2007. It develops a network of creative restaurants, cafes, shops and real estate in Ukraine. Its owners are Andriy Khudo, Yuriy Nazaruk, and Dmitry Gerasimov.

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Confectionery producers paid UAH 2.6 bln in taxes in 2023

In 2023, bun and cookie producers paid taxes worth UAH 2.6 billion, which is UAH 0.4 billion or 17.7% more than a year earlier, Danylo Hetmantsev, chairman of the parliamentary committee on finance, tax and customs policy, said on Telegram.

According to the report, the leaders in paying taxes and financing the Ukrainian Armed Forces among bun and cookie producers in 2023 were Vinnytsia Bakery No. 2, Dnipro Food Concentrates Plant, Stolychnyi Mlyn, Dnipro Mlyn, and Kviten Confectionery.

“These producers have a higher VAT and income tax burden than the industry average, and at the same time covered a fifth of tax revenues,” summarized the chairman of the parliamentary financial committee.

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Tourism enterprises paid over UAH 2 bln in taxes in 2023

Tourism enterprises paid UAH 2 billion 49.462 million in taxes in 2023, which is 32% more than in the previous year, but 8% less than in 2021, said Mariana Oleskiv, head of the State Agency for Tourism Development of Ukraine, during a final press conference on Wednesday.

“After a very stressful year of 2022, people just needed time to recover, to reboot psychologically, and it was by traveling, visiting tourist destinations, that they achieved their goals. Interest in their culture is realized through travel,” Oleskiv said.

Hotels accounted for 63.6% of tax revenues, tour operators for 10.1%, other accommodation facilities for 9.7%, and travel agencies for 9.4%. At the same time, the total number of taxpayers in 2023 amounted to 16645, which is 9% less than in 2022 and 25% less than in 2021.

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“Metinvest” paid UAH 14.6 bln in taxes to Ukrainian budget

Metinvest Mining and Metallurgical Group, including its associates and joint ventures, paid UAH 14.6 billion in taxes and duties to the budgets of all levels in Ukraine in 2023.

According to the company’s press release on Wednesday, Metinvest remains the backbone of the country’s economy in the face of Russia’s full-scale invasion of Ukraine.

The press release specifies that the largest deductions include a unified social tax, which amounted to UAH 3.3 billion, income tax – UAH 3.2 billion, and personal income tax – more than UAH 3 billion.

At the same time, last year Metinvest’s Ukrainian enterprises increased land payments by almost 10% compared to 2022, to UAH 1.2 billion. Environmental tax payments also increased to UAH 608 million.

In addition, subsoil use fees in the amount of UAH 2.2 billion became a significant source of revenues for the state and local budgets of Ukraine in 2023.

Yuriy Ryzhenkov, CEO of Metinvest Group, noted that the company had survived another extremely difficult year of war. Despite the serious challenges for the country in general and Ukrainian business in particular, it managed to survive and rebuild its operations in the new environment.

“Despite the problems with asset utilization and the aggressor’s naval blockade, despite the loss of control over assets in Mariupol, the shutdown of Avdiivka Coke and a significant reduction in the number of employees due to the war, Metinvest remains one of the largest taxpayers in Ukraine. And the refusal of tax benefits due to the company under the law allowed us to allocate additional funds to those areas where it is most needed. We continue to support Ukrainians and the army on their path to victory and call on every business to join in and support Ukraine through taxes, donations, assistance to the Armed Forces and civilians during the challenges we are all facing now,” the top manager emphasized.

“Metinvest is a vertically integrated group of steel and mining companies. The group’s enterprises are located mainly in Donetsk, Luhansk, Zaporizhzhia and Dnipropetrovs’k regions.

The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.

Metinvest Holding LLC is the management company of Metinvest Group.

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“Ukrnafta” paid UAH 25.7 bln in taxes

In 2023, Ukrnafta paid over UAH 25.7 billion in taxes, including UAH 4.36 billion in income tax, said Sergiy Koretsky, CEO of the company.

“By paying taxes, each of us helps the Ukrainian defense forces in the fight against the common enemy. In turn, each hryvnia received by the budget should be transformed into high-quality body armor, uniforms, drones, weapons, ammunition and other important purchases for the army. By paying taxes, we make the best investment together – in our free future!” he wrote on his Facebook page.

As reported, in 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022 – up to 1 million 409.9 thousand tons, gas production by 5.8% (by 60.4 million cubic meters), up to 1 billion 97.4 million cubic meters.

“Ukrnafta’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.

“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense, to the state.

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