Business news from Ukraine

MHP WANTS TO OPEN GASTRO STUDIOS IN UKRAINE

Myronivsky Hliboproduct (MHP) plans to open 10-20 gastro studios Chef’s Secrets (Sekrety Shefa) in Ukraine next year, which it develops through franchising.
“This model is not as scaled as Myasomarket stores, therefore, we will try to open about 10-20 outlets within the next year,” Serhiy Ivanov, the deputy head of the board of MHP for commerce, said during the official opening of the first outlet in Kyiv.
According to him, it is planned to open such gastro studios not only in Kyiv, but also in other cities.
MHP opened its first gastronomic studio Chef’s Secrets at 22/20 Petra Hryhorenka Street in Kyiv on September 24.
MHP is the largest chicken producer in Ukraine. It is also engaged in production of grain, sunflower oil, meat products. MHP supplies the European market with chilled half-carcasses of chickens, which are processed, in particular at its factories in the Netherlands and Slovakia.

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MACRO SUMMARY OF UKRAINIAN ECONOMY IN JULY-AUGUST

The gross domestic product (GDP) of Ukraine, according to the Ministry of Economy, in the first half of 2020 decreased by 6.5% compared to the same period in 2019, in particular in the second quarter the decline was 11%, which is less than expected earlier (14%).
The drop in Ukraine’s GDP in 2020 will amount to 6% instead of 4.2% expected in April this year, such a consensus forecast on the impact of СOVID-19 on the economy and the society was announced by the Ministry of Economic Development, Trade and Agriculture.
The fall in the gross domestic product (GDP) of Ukraine in the second quarter of 2020 amounted to 11.4% compared to the same period in 2019 against 1.3% in the first quarter, the State Statistics Service has reported in its preliminary estimate.
The Ministry of Economic Development, Trade and Agriculture of Ukraine improved the inflation forecast for 2020 to 5.9% December over December, while in the macroeconomic forecast approved in March, this indicator was at the level of 11.6%, according to the forecast of the socio-economic development of Ukraine for 2021-2023.
Real wages in Ukraine in July 2020 compared to July 2019 increased by 5.1%, and from June 2020 by 2.6%, the State Statistics Service has said.
The Ukrainian Finance Ministry has redeemed the second series of eurobonds issued in the course of restructuring in 2015 and maturing this year worth $1.69 billion and paid some $400 million in interest payments on eurobonds maturing in 2020-2027.
The deficit of Ukraine’s foreign trade in goods in January-August 2020 halved compared with January-August 2019, to $2.43 billion from $4.96 billion, according to data from the State Customs Service presented.
Consumer prices in Ukraine in July 2020 decreased by 0.6% after growing by 0.2% in June, 0.3% in May and 0.8% in April and March, the State Statistics Service has reported.
State budget revenues in July 2020 amounted to UAH 68.92 billion, which is 8% more than the target, but 10.8% behind the last year’s level, according to data from the State Treasury Service.
Ukraine’s international reserves in July 2020, according to preliminary data, increased by 1%, to $28.802 billion, according to the website of the National Bank of Ukraine (NBU).
The debt of the population of Ukraine for housing and utilities services in July 2020 decreased by 3.6% compared to June and amounted to UAH 50.5 billion (excluding electricity).
The prices of industrial producers in Ukraine in July 2020 increased by 0.4%, while in June they decreased by 2%, in May by 0.6% with an increase in April by 0.1%, in March by 1.8%, February by 0.1% and January by 2.5%, the State Statistics Service has reported.
Since the beginning of the new 2020/2021 marketing year (MY, July-June) and as of August 21, Ukraine had exported 5.62 million tonnes of grains and legumes, which is 1.22 million tonnes less (due to corn) than on this date in the past MY.
Prices for construction and installation works in Ukraine in January-June 2020 increased by 1.3% compared to January-June 2019, the State Statistics Service of Ukraine reports.
The turnover of retail trade in Ukraine in July 2020 compared to the same month in 2019 in comparable prices increased by 8.5%, while in the previous month the growth was 1.4%, the State Statistics Service has said.

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ENERGY MINISTRY OF UKRAINE PLANS TO ESTABLISH INDUSTRY CENTRE FOR CYBERSECURITY

The Ministry of Energy of Ukraine plans to establish Industry Centre for Cybersecurity for critical infrastructure facilities in the Ukrainian energy sector.
As the Ministry’s press office reports, negotiations with partners on obtaining technical assistance are currently underway.
“International companies leading in the field of cybersecurity and digital transformation, such as, Microsoft, Cisco, HPE, Dell, McAfee, Huawei, Fortinet, Trend Micro, Micro Focus, Palo Alto Networks, have expressed interest in joining work together,” the ministry said.
In the near future, together with the International Cybersecurity University (ICU), it is planned to hold a meeting of the working group on the development of cyber defense of critical energy infrastructure facilities under the Ministry of Energy.
“The purpose of the meeting is to draw attention to cybersecurity issues in the energy sector, to establish closer cooperation with global companies and international partners, to develop a plan for the further development of the sectoral cybersecurity system,” the Ministry of Energy reported.

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UKRAINE AND SLOVAKIA SIGN AGREEMENT TO REOPEN UZHGOROD AIRPORT

Ukraine and the Slovak Republic have signed an intergovernmental agreement on the provision of aviation operational services by their Ukrainian supplier in a certain part of the Slovak airspace relative to Uzhgorod airport.
According to Minister of Infrastructure Vladyslav Krykliy, the document was signed by him and Minister of Transport and Construction of Slovakia Andrej Dolezal.
“The full operation of Uzhgorod airport will be restored. Just now, together with my Slovak colleague, Minister of Transport and Construction of the Slovak Republic Andrej Dolezal, we signed an appropriate bilateral intergovernmental agreement. Finally, after so many months of inactivity, we will connect Zakarpattia by air service with other regions and with abroad,” he wrote on his Telegram channel on Thursday.
According to the press service of the Infrastructure Ministry of Ukraine with reference to the head of the department, the signing of this agreement will also help strengthen mutual bilateral relations in the civil aviation sector between the countries and in terms of expanding the possibilities of international air transportation.
However, Krykliy expressed hope for the early completion of the coordination of technical issues related to the implementation of the agreement and the signing by the parties of the implementation protocols within a month.
The ministry said that the agreement was initialed by both countries during negotiations in Kyiv on December 18, 2019. The document takes into account the security and defense aspects arising from the membership of Slovakia in NATO, as well as from the fact that the Ukrainian-Slovak border is also the external border of the Alliance.
According to the ministry, the agreement was concluded for an indefinite period and comes into force from the date of receipt through diplomatic channels of the last written notification of the completion of the domestic procedures necessary for its entry into force.

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BROKBUSINESS LIFE INSURER COULD BE RENAMED

The shareholders of PJSC Brokbusiness Life Insurance Company (Kyiv) at a meeting on October 27 will consider the issue of amendments to the charter of the company, including the change of name to JSC Brokbusiness-Life, according to the official information of the insurer.
In addition, during the meeting, it is planned to make changes to the types of activities of the company by excluding life insurance (65.11), while including the following activities: 66.22 – activities of insurance agents and brokers (main), 63.99 – other information services, 66.29 – other auxiliary activities in insurance, 70.22 – business and management consulting, 73.20 – market research and public opinion research, 82.30 – organization of congresses and trade shows.
As reported, the National Financial Services Market Regulation Commission, by an order dated April 28, 2020, excluded information about PJSC Brokbusiness Life Insurance Company (Kyiv) from the public register of financial institutions and canceled the registration certificate at the request of the company.
The company had been operating in the insurance market since November 2007.

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UKRAINE, SLOVAKIA TO COOPERATE IN DEVELOPMENT OF TRANSPORT

Ukrainian Infrastructure Minister Vladyslav Krykliy and Minister of Transport and Construction of the Slovak Republic Andrej Doležal signed a memorandum of cooperation within the Silk Road Economic Belt.
The press service of the Infrastructure Ministry said on Thursday that the document will contribute to creating conditions for the further development of multimodal transport in transfer between Asia and the EU through Ukraine and Slovakia, as well as for increasing the number of container block trains that will be used for combined freight transport; putting into practice the implementation of the project on the creation of multimodal logistics centers that will handle cargo on the Silk Road route, which will make it possible to form an appropriate bilateral working group and create a basis for negotiations with the Chinese side; developing a common approach to organizing the movement of container trains running between Asia and the EU through Ukraine and Slovakia.
“Both Ukraine and Slovakia are extremely interested in developing their transit potential and improving the processes of organizing the delivery of goods in containers from the EU countries to China and vice versa. In early September, we held consultations with the Slovak side to intensify cooperation in the development of the Silk Road through the territory of Ukraine and Slovakia. Today we are fixing them with the relevant memorandum,” the press service said, citing Vladyslav Krykliy.
The ministry said that the memorandum has been drawn up for an indefinite period and will enter into force on Thursday, September 24.
In addition, according to the ministry, during a meeting with the Slovak side, the Minister of Infrastructure confirmed the readiness to intensify the work of the Ukrainian and Slovak sides on the development of logistics terminals in Chop, Mukacheve and Košice and proposed a joint search for financial resources for the implementation of the Creation of Multimodal Logistics Center Between Ukraine and Slovakia Based on the Existing Terminal in Chop project.

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