Business news from Ukraine

OSCHADBANK SEES 30-FOLD RISE IN SALES OF INSURANCE POLICIES IN JAN-MAY

KYIV. June 9 (Interfax-Ukraine) – Oschadbank (Kyiv) as of June 1, 2016 sold 135,000 insurance policies and this was 30 times more than a year ago – 4,500 policies, the bank has said in a press release.

“This year it was decided to increase operations on the bank insurance market. After studying the needs of people we offered two new products in April – Protect Your House and Obereh,” Director of the retail business department Valeria Malakhova said.

The leader in the insurance segment of the bank is compulsory insurance of civil liability of motor vehicle owners (OSAGO) – over 27,000 policies were sold in January through May 2016. Over 85,000 policies were sold for the new product Protect Your House (insurance of leased houses). These policies are signed for the period from one month to one year. The bank also sells the Doctor on the Way insurance product.

The bank said that OSAGO agreements are signed on behalf of PRO100-Strakhuvannia, AXA Insurance, Krayina and Brokbusiness. The policies for voluntary insurance of civil liability of motor vehicle owners and medical insurance (Doctor on the Way) policies are signed on behalf of AXA Insurance. The bank cooperates with MetLife under the Obereh accident insurance program and with Strahovoy Dom under the Protect Your House program.

The franchise for the policies is nil, and the fee for buying the policy is not collected. The bank’s network includes 4,500 departments.

Oschadbank was founded in 1991. Its sole owner is the state.

The bank ranked second among 109 operating banks in the country on April 1, 2015 by total assets (UAH 180.982 billion), according to the National Bank of Ukraine.

STATE AND STATE GUARANTEED DEBT OF UKRAINE FROM 2010 TILL 2016 (MLN UAH)

Source: The Ministry of Finance

Source: The Ministry of Finance

Source: The Ministry of Finance

Source: The Ministry of Finance

KHARKIV REGION LAUNCHES UKRAINE’S FIRST SOLID WASTE HANDLING COMPLEX

KHARKIV. June 8 (Interfax-Ukraine) – A new complex to handle solid domestic waste was launched in Kharkiv region’s Bohodukhivsky district, Kharkiv Regional State Administration’s press service reported.

“The solid waste handling complex in the town of Bohodukhiv has become Ukraine’s first facility that utilizes this technology,” the press service said.

Waste sorting and recycling equipment is used by the complex. All organic waste is composted with the use of special bacteria. After some time, the waste could be used as soil fertilizers. The complex uses an independent heating system, which works using waste.

The complex will be able to process 65,000 – 70,000 cubic meters of solid waste per year.

“It will be the prototype of 11 complexes that will be built in Kharkiv region in keeping with our environmental strategy. They, according to specialists’ estimates, will fully provide the region with modern methods of collecting, disposing and recycling solid waste,” the press service quoted Kharkiv Governor Ihor Rainin as saying.

These modern complexes that will be built will be transferred on concession terms to companies that will be ready to develop separate waste collection and buy needed equipment.

REGIONAL DEVELOPMENT MINISTRY TO LAUNCH ENERGY EFFICIENCY FUND BY JANUARY 2017

KYIV. June 8 (Interfax-Ukraine) – The Energy Efficiency Fund aimed to reduce natural gas consumption and lower households spending on housing and utilities will start work in Ukraine in January 2017, Vice Prime Minister and Minister for Regional Development, Construction, Housing and Utilities Hennadiy Zubko has said.

“The launch of the Fund is a national strategy to protect, support our citizens as part of energy efficiency policy, [it’s] a step towards the country’s energy independence. Our plans are to launch the Fund as early as in January 2017. These are ambitious plans, as legislation should be taken by that time with subsequent budget allocations. A government resolution on the creation of the Fund, a draft law on the Energy Efficiency Fund, and other legal acts are expected to be adopted,” he said at a National Reforms meeting in Kyiv on Tuesday.

The launch of the Fund requires that the draft law on the Energy Efficiency Fund should be drawn up and sent to the Verkhovna Rada by the end of this summer. Lawmakers are expected to vote on the bill by the end of October, and in the coming month an international agreement is due to be signed.

What is more, parliament is expected to pass a bill on housing and utilities services by the end of August, and bills on energy efficient buildings and on commercial accounting should be passed by the end of October.

By the end of the summer, the Cabinet should elaborate procedures to fully or partly monetize housing and utilities services.

Zubko says that the recent meeting of the National Reforms Council considered a model of the future Fund, which is being created on the basis of partnership of the state, international financial organizations and donors. “We’ve developed an efficient model of the Fund jointly with partners from the European Union and the German government. Its innovation has been proven in neighboring countries – Poland, Lithuania, and the Czech Republic,” he said.

He said he was sure that the Fund would be efficient, transparent and free from corruption.

“Its mission is to safeguard citizens, improve their housing conditions, reduce gas consumption and reduce households’ utilities bills, make a step towards Ukraine’s energy efficiency. The Fund will draw investment in financing energy efficient projects. These will be low-priced long-term loans, donor and state financing, citizens’ savings on housing subsidies. What is more, the Fund will propose available standard energy efficiency projects for multi-storey residential buildings, recommendations for individual houses,” he said.

An ad hoc group, which has analyzed the Fund’s possible activity, concluded that by 2021, its activity will bring UAH 10 billion in tax revenue to the budget, will annually save about UAH 5 billion in budget funds spent on subsidies, UAH 1.5 billion (about $30 million) on the purchase of import gas.

SALE OF SUMYKHIMPROM CHEMICAL PLANT SLATED FOR NOVEMBER

KYIV. June 8 (Interfax-Ukraine) – Ukraine’s State Property Fund has reviewed privatization plans for 2016, having slated the sale of almost 100% of PJSC Sumykhimprom chemical plant’s shares from October to November 2016.

PJSC Centrenergo remained on privatization plans in November, according to the privatization scheduled published by the Vidomosti Pryvatyzatsii privatization bulleting.

Tenders to sell power distribution companies, as was originally planned, are scheduled for September-October 2016.

SPF STARTS PREPARING 25% OF SHARES IN SUMYOBLENERGO FOR SALE

KYIV. June 8 (Interfax-Ukraine) – Ukraine’s State Property Fund (SPF) has started preparing for the sale of 25% plus one share stake in public joint-stock company Sumyoblenergo, an electricity supply company at a stock exchange.

According to SPF order No. 1047 of May 30, the documents from the company’s board chairman are to be passed to the property appraisal department of the fund before Jun 21, 2016.

The fund on April 15 scheduled the sale of the blocking stake in Sumyoblenergo for September 2016.

Businessmen Ihor Kolomoisky and Konstantin Grigorishin hold around 72% of shares in Sumyoblenergo.