Business news from Ukraine

EU FREEZES ASSETS OF RUSSIA AND BELARUS FOR 29.5 BILLION EUROS

The EU authorities blocked the assets of 29.5 billion euros of individuals and organizations included in the sanctions lists for the Russian Federation and Belarus, according to a press release issued by the European Commission on Friday.
“More than half of EU Member States have reported asset freeze measures to the European Commission. They have reported a €29.5 billion asset freeze, including yachts, helicopters, real estate, and €6.7 billion worth of art,” the report reads. document.
It also refers to the blocking of relevant transactions in the amount of 196 billion euros.
The press release clarifies that such measures are being taken within the framework of the working group created by the EU in March to block the assets of sanctioned persons and structures. The European Commission recalled that on Friday the members of the group are meeting with representatives of the United States and Ukraine to discuss cooperation in this area and that such meetings will continue to be regular.

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PROCESS OF SEPARATING ASSETS OF UKRNAFTA HAS BEEN SUSPENDED FOR NOW

The process of unbundling the assets of PJSC Ukrnafta between NJSC Naftogaz Ukrainy and minority shareholders has been put on hold for now, although it was planned to be completed at the end of 2021, businessman Ihor Kolomoisky has said.
“Yes, on a pause… Naftogaz faced the problem of public opinion, government, the like, they need to get permission for some significant transactions, and so on,” he said in an interview with Ukrayinska Pravda.
According to the businessman, Naftogaz was the initiator of the unbundling process, and he supported it.
“Since life together does not work out, it is necessary to separate intelligently and culturally,” he said.
Earlier, at the end of November, President of Ukraine Volodymyr Zelensky said that the unbundling of Ukrnafta did not take place, since the state did not yet have the necessary funds to buy the assets.
As reported, in November-December 2021, due to the lack of a quorum, two meetings were not held at which it was planned to consider the issue of unbundling Ukrnafta’s assets between NJSC Naftogaz Ukrainy and minority shareholders – Ihor Kolomoisky and his partners. Another meeting of shareholders with a similar agenda is scheduled for February 17, 2022.
Ukrnafta is the largest oil company in the country. NJSC Naftogaz Ukrainy owns 50% plus 1 share in Ukrnafta, a group of companies associated with the former shareholders of PrivatBank – about 42% of shares.

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OSCHADBANK SELLS NON-SPECIALIZED ASSETS FOR UAH 674 MILLION IN 2021

State-controlled Oschadbank (Kyiv) in 2021 sold property that is not used in banking activities with a book cost of UAH 517 million for UAH 674 million, member of the bank’s board Arsen Miliutin said.
“In 2021, we planned to sell property with a book value of UAH 670 million, sold by the beginning of November, in terms of book value, for UAH 517 million. But the real selling price is UAH 674 million,” he said in an interview with Interfax-Ukraine.
The banker added that one of the main reasons for not fulfilling the plan was the rather lengthy, ongoing negotiations with Kyiv on the sale of the bank’s land plots in Mykilska Slobidka.

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POROSHENKO’S ATTORNEY RELEASES COURT DESICION ON SEIZURE OF ASSETS OF PRYAMIY, CHANNEL 5 TV CHANNELS

Ihor Holovan, an attorney for leader of the European Solidarity party Petro Poroshenko, released an extract from a court ruling on the seizure of the assets of TV channels Pryamiy and Channel 5, as well as a corresponding extract from a prosecutor’s petition.
“Here is a screenshot of the seizure warrant, and below is a screenshot of the prosecutor’s petition, which her honor Bortnytska rewrote in her ruling, along with mistakes and typos. And everything is listed there in the light of day: subsidiary company NBM-Zaporizhia Television and Radio Broadcasting Company and Author TV Television Company LLC. Companies directly involved in broadcasting programs of opposition TV channels,” Holovan said on Facebook.
At the same time, the attorney said, there is no Poroshenko’s share in the capital of these legal entities.
“Petro Poroshenko has long ago and publicly transferred these assets to Free Media LLC, whose founders are a dozen well-known journalists and MPs. That is, prosecutors and the judge deliberately seized media assets that do not belong to Petro Poroshenko,” he said.
Holovan also said that instead of the code of Author TV Television Company LLC, the documents indicate the code of another asset of Free Media LLC – Express-Inform Television and Radio Broadcasting Company LLC.
“However, we do not think that this is due to stupidity and unprofessionalism typical of the Prosecutor General’s Office and the SBI. We are convinced that Belkin, Potapenko, Safaryan and her honor Bortnytska acted deliberately, since the main customer, in our opinion, Zelensky is interested precisely in the destruction of opposition television channels. Anyway, the media assets of Free Media LLC were illegally seized. And I am convinced that the owners of Free Media LLC will not only file an appeal, but also demand an investigation into the actions of Belkin, Potapenko, Safaryan and Bortnytska for corpus delicti, provided for in Article 171 of the Criminal Code of Ukraine [obstruction of the legitimate professional activities of journalists],” Holovan said.

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ASSETS OF UKRAINIAN FINANCIAL COMPANIES INCREASE BY 5%

The assets of financial companies in January-September 2021 increased by 4.7% compared to the beginning of the year (UAH 182.13 billion), to UAH 190.704 billion, according to a review of the nonbank financial sector on the website of the National Bank of Ukraine (NBU) on Tuesday.
According to the report, the growth of assets in July-September 2021 amounted to 6.2% due to the growth in the volume of all types of financial services provided during the quarter, thanks to it, the volume of assets recovered to the highest level of 2019.
The NBU said that the total volume of services provided by financial companies in the third quarter grew by 21.1%, to UAH 281.077 billion, including services for trading foreign exchange valuables by 18.3%, to UAH 75.695 billion, funds transfer by 10.2%, to UAH 127.336 billion.
The volume of loans issued by financial companies in the third quarter rose by 16.6%, to UAH 33.91 billion, including loans to individuals by 5.8%, to UAH 17.18 billion, and loans to legal entities by 30%, to UAH 16.528 billion.
The number of financial companies in Ukraine in the third quarter grew by 1.3%, to 984, while their total equity capital increased 8.2%, to UAH 29.695 billion.

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ASSETS OF INSURANCE COMPANIES IN UKRAINE 1% DOWN IN Q1

The assets of insurance companies in January-March 2021 decreased by 1%, to UAH 64.24 billion, according to a review of the non-banking financial sector, published on the website of the National Bank of Ukraine (NBU) on Friday.
According to the review, in January-March 2021, the number of registered insurers decreased to 208, which is 7.5% less than at the end of the first quarter of 2020 and 1% less than at the end of 2020.
The number of signed loan agreements with insurance companies in the first three months of 2021 amounted to 29.25 million, which is 27.8% less than in the first quarter of last year (40.53 million).
The NBU said that gross insurance premiums decreased slightly, mainly due to a seasonal decrease in revenues from insurance in the corporate sector and from life insurance.
At the same time, the volume of premiums in the risk and life insurance segments increased 6% year-over-year.
According to the report, risk insurers showed close to zero profits and margins, which is due to an excessive share of operating expenses – about 70% of net insurance premiums.
The loss ratios that were reduced to the annual target in the first quarter remained almost unchanged and amount to 47% for compulsory and 41% for voluntary types of insurance, the NBU said.
As of April 1, 2021, 44 licensee insurers did not meet the solvency and capital adequacy requirements or the riskiness of assets.

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