Business news from Ukraine

Boryspil automobile plant in Kyiv region sold for UAH 108 mln

State-owned Ukreximbank (Kiev) is selling a complex of buildings and structures, as well as a land plot in Kiev region through the OpenMarket electronic bidding system (SE “SETAM” of the Ministry of Justice of Ukraine), according to a press release of SETAM.

The starting price of the lot is 108 million 412 thousand 224 UAH. The auction is scheduled for April 17. The guarantee fee for participation in the auction is UAH 10.841 mln.

The press release notes that Ukreximbank is selling the car plant, but does not specify the name, but judging by the address of location in Boryspil and the attached photos, it is PJSC “Boryspil Automobile Plant” (“BAZ”) of the corporation “Etalon”.

The total area of the sold lot is 18.67 thousand square meters, including the main production building (7679.9 square meters) and production building (644.8 square meters); administrative and utility building with canteen (3 213.6 square meters); spare parts warehouse (4016.6 square meters) and other buildings.

The land plot has an area of 7.5205 hectares. Target purpose: for placement and operation of main auxiliary and auxiliary buildings and structures of processing, machine-building and other industries.

In the press release it is noted that the buildings and structures are in exploitable technical condition. The facility is fully operational as a production and warehouse complex with an administrative part. Its territory is fenced and guarded.

Borispol Motor Plant was established in 2002, where the corporation “Etalon” organized the production of small class buses. Currently, buses of various classes and trolleybuses are produced at the corporation’s Chernihiv auto plant.

According to the register of court decisions, in January 2023 PJSC BAZ was recognized bankrupt and liquidation procedure was opened.

According to the data of the National Commission on Securities and Stock Market for the third quarter of 2023, Bodmin AG (registered in Switzerland) owns 74.37% of BAZ shares, another 22.81% belongs to Kirayn LLC (Kiev).

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Ukreximbank announces competition for position of Chairman of Board

State-owned Ukreximbank has announced a competition for the position of Chairman of the Board, which has been held by Serhiy Yermakov since October 2021, according to a statement on the financial institution’s website on Monday.

“According to the decision of the Supervisory Board, a competitive selection for the position of Chairman of the Board of JSC State Export-Import Bank of Ukraine is announced,” the information says.

According to it, the submission of documents for the vacant position will begin on Monday and will last until April 1, and from April 2 to April 22, the recruitment company Telent Advisors LLC (Odgers Berndtson) will analyze the candidates and select the five most suitable ones who will be admitted to the next stage of the competitive selection.

From April 23 to 29, the Nomination and Remuneration Committee of the Supervisory Board of the state-owned bank, together with Telent Advisors, will interview them and select three to five people for the final interviews with Ukrexim’s Supervisory Board, scheduled for April 30 to May 6.

“The discredited Sergiy Yermakov continues to work until the new CEO takes office, the Supervisory Board is fully satisfied with the cooperation with Sergiy, but there are life circumstances that do not depend on the will of people…”, commented Victoria Strakhova, a member of the Supervisory Board of the financial institution, on Facebook.

As reported, on October 6, 2021, the Supervisory Board of Ukreximbank suspended the Chairman of the Board Yevhen Metzger for the period of investigation of the attack on journalists of the Schemes program, and on October 11 dismissed the Chairman at his own request. Board member Serhiy Yermakov was appointed acting chairman of the bank.

Then Ukreximbank signed an agreement with the recruiting company Korn Ferry (USA) and in mid-December 2021 announced a competition for the chairman of the board, but after the outbreak of war it refused to hold it, and in the spring of 2022, after approval by the NBU, Yermakov became chairman of the board.

According to the National Bank of Ukraine, as of February 1, 2024, Ukreximbank ranked 3rd (UAH 274.65 billion) among 63 banks operating in the country in terms of total assets.

Ukreximbank is actively considering integration of AI into its systems

The team of the transformation office of state-owned Ukreximbank (Kyiv) is actively considering the integration of artificial intelligence (AI) into its systems and has already started using it in pilot modes, said Andriy Malakhov, head of the transformation office of the financial institution.

“That is, in parallel with the internal transformation, we understand that if we do not develop our skills in step with the market, we will simply not be competitive in five years. There are many areas: uninterrupted operations, information security, changing internal operating models, remote channels,” he said at the International Financial Club BANKIR conference.

In addition, Malakhov noted that Ukrexim is now in the middle of its path to what it wants to achieve in the transformational direction.

“In 2021-2022, we closed infrastructure issues to prepare our bank for the transformation of business processes, and the next stage is the transformation of our remote channels. We have quite ambitious plans,” the banker emphasized.

However, he noted that the state-owned bank does not always manage to implement changes promptly due to the specifics of its clients in the form of government agencies, but, according to him, Ukrexim’s team is striving for this.

According to the National Bank of Ukraine, as of November 1, 2023, Ukreximbank ranked 3rd (UAH 255.01 billion) among 63 banks operating in the country in terms of total assets.


Ukreximbank and Nibulon agree on long-term debt restructuring

State-owned Ukreximbank (Kyiv) and one of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv), signed agreements on long-term debt restructuring of the company’s financial obligations in late January, the press service of the financial institution reported on Tuesday.

“Thanks to this, the parties ensured, on the one hand, a working asset and the return of funds to the state bank, and, on the other hand, an acceptable level of financial burden for one of the market leaders, which makes it possible for it to function successfully,” the state bank’s website reports.

Andriy Vadatursky, CEO of the agricultural holding, noted that Ukreximbank is the company’s largest creditor, and cooperation with the bank started 27 years ago.

In particular, he recalled that earlier, thanks to the support of Ukreximbank, Nibulon managed to build a sea transshipment terminal in Mykolaiv, and in 2013-2014 the company’s largest loan portfolio to the bank was recorded at $165 million, which, according to him, “characterizes the level of cooperation and mutual understanding that we have achieved in previous years and confirmed now during the restructuring.”

“I am convinced that now we should not wait for help from abroad, we should look for support and understanding on our territory. We have found this support in our Ukrainian banks, which are the embodiment of government policy,” Vadatursky stated.

JV Nibulon LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.

“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries. In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.

Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.

Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and was forced to move its headquarters from Mykolaiv to Kyiv.

According to the National Bank of Ukraine, as of November 1, 2023, Ukreximbank ranked 3rd (UAH 255.01 billion) among 63 banks operating in the country in terms of total assets.

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Ukreximbank is first collector to examine and put up pledged gold jewelry on SETAM

State-owned Ukreximbank is the first in the Ukrainian market to conduct a public sale of pledged property – jewelry made of precious metals and gems – through the OpenMarket electronic trading system (SE SETAM of the Ministry of Justice of Ukraine).

Unique nature of the sale

For a long period of time, the sale of pledged gold jewelry was complicated due to the lack of clear procedures that would allow the sale of jewelry at public auctions. Until 2022, jewelry was redeemed in favor of the state through the State Storage of Precious Metals, but due to a lack of funds in the budget, this process was “frozen”.

In 2022, a new Procedure for the Sale of Jewelry and Other Household Items Made of Precious Metals in the Course of Enforcement of Court Decisions and Decisions of Other Authorities was adopted. The Procedure, approved in February 2022, provides for a number of examinations prior to public bidding to determine the metal sample, determine the characteristics of gemstone inserts, etc.

Ukreximbank is the first bank in Ukraine to carry out all the necessary procedures for the sale of jewelry within the framework of enforcement proceedings, involving the Ministry of Finance of Ukraine and the Central State Assay Control Enterprise.

Thus, within the framework of the enforcement proceedings initiated in accordance with the requirements of the court decision on debt collection in favor of Ukreximbank, for the first time, a lengthy and extremely complicated procedure was completed from the preparation of the act of inventory and seizure of the debtor’s property, namely, jewelry made of precious metals and precious stones to the publication of the relevant announcements on the platform of the electronic system of SE SETAM on the date of the scheduled electronic auction.

The procedure for obtaining the statutory expertise is regulated and complex, but the coordination of the actions of the recoverer and the state enforcement officer made it possible to complete it in the shortest possible time. The property appraisal report, on the basis of which the starting price of the property put up for sale was formed, received by the state enforcement officer, contains references to

– an act of examination of valuables that have been accepted by the Central State Assay Control Enterprise;
– the act of the results of the examination of jewelry by an employee of the Ministry of Finance of Ukraine;
– the act of gemological examination of inserts.

Also, this is one of the rare cases when the Bank manages to successfully foreclose on such type of collateral as goods in circulation, usually when the borrower is recognized as a problematic borrower and the goods are no longer available.

Terms of sale

Lot No. 1
The starting price of the lot is UAH 1,972,320.00.
The total weight of the items is 1,355 kg.
The guarantee fee for participation in the auction is UAH 98,616.00.
The auction date is December 29, 2023.
Register for the auction, detailed description of the auction conditions and the lot itself by following the link.

Lot No. 2
The starting price of the lot is UAH 594 520.00.
The total weight of the products is 482.56 g.
The guarantee fee for participation in the auction is UAH 29,726.00.
The auction step is UAH 11,890.40.
The auction date is December 19, 2023.
To register for the auction, for a detailed description of the auction conditions and the lot itself, please follow the link.

Lot No. 3
The starting price of the lot is UAH 75 330.00.
The total weight of the products is 61.13 g.
The guarantee fee for participation in the auction is UAH 3,766.50.
Auction step is UAH 2,259.90.
The auction date is December 19, 2023.
To register for the auction, for a detailed description of the auction conditions and the lot itself, please follow the link.

The OpenMarket auction (SE SETAM of the Ministry of Justice of Ukraine) is a simple and effective means of selling and purchasing property via the Internet. The online auction has been operating throughout Ukraine since 2014, and the total amount of sales since its launch is UAH 21.4 billion.

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Ukreximbank joins “єOsela” program

Ukreximbank has joined the “єOsela” program, the press service of the Ministry of Economy reported.

It is reported that Ukreximbank and “Ukrfinzhytlo” signed a corresponding agreement on August 1. Now 6 partner banks take part in the program: Sberbank, Privatbank, Ukrgasbank, Globus Bank, Sky Bank and Ukreximbank.

“Joining one more bank to the list of partners expands opportunities for borrowers wishing to purchase housing or improve housing conditions,” the release said.

As reported, the program of affordable mortgage lending “єOselia” has worked in Ukraine since October 2022. On a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing can qualify for contract servicemen of the AFU, security and defense sector workers, medical workers, teachers, researchers. Since its launch in 2022, partner banks have already issued more than UAH 3 billion in loans to more than 2.2 thousand participants.

Since August 1, to apply for participation in the program “єOsela” at 7% can be war veterans, combatants, IDPs and citizens who do not have their own housing more than the standard area.

An apartment can be chosen in a house not older than three years or built by a developer accredited by a partner bank. At the same time, the normative requirements for the area and the marginal cost of the apartment are preserved.

You can apply for participation in the program in the mobile application “Diya”.

At the end of 2022, the government additional capitalized Ukrfinzhytlo for 30 billion UAH through the issue of domestic state loan bonds. According to Deputy Prime Minister and Minister of Economy Yulia Sviridenko, such financing is enough to issue 12-15 thousand mortgage loans in 2023.