Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in January-June 2020 reduced capital investments by 35% compared to the same period in 2019, to $ 313 million.
According to preliminary unaudited interim financial results for the first half of 2020, the capex reduction was planned during this period.
“In line with the group’s 2020 capex priorities for critical asset maintenance and the completion of ongoing strategic investment projects, investments in maintenance and repairs decreased by 33%, while investments in strategic projects were reduced by 38%, which brought their share in capital investments to 65% and 35%, respectively (63% and 37% in the first half of 2019),” the report states.
At the same time, it is clarified that the metallurgical segment accounted for 47% of capital investments (50% in the first half of 2019), and the mining segment for 49% (46% in the same comparison).
The shareholders of Arsenal Insurance (Kyiv) insurance company at a meeting on June 26 decided to increase the charter capital of the company from UAH 121.5 million to UAH 202.5 million via a closed additional placement of shares.
According to information in the publicly available database of the National Securities and Stock Market Commission of Ukraine, 120,000 shares with a nominal value of UAH 675 per share will be additionally sold for a total of UAH 81 million.
The report also notes that the received financial resources in the form of cash will be placed on current accounts and bank deposits in the ratio of 30% to 70%. The shares of the company, on which the decision on the issue was made, do not provide for the possibility of conversion.
As reported, the company’s shareholders at a meeting on April 24, 2020 considered the issue of increasing the charter capital of the company from UAH 77.4 million to UAH 121.5 million by increasing the nominal value of shares from UAH 430 to UAH 675 (for one ordinary registered share) due to sending part of profit to the charter capital.
Arsenal Insurance is among the top three largest insurance companies in Ukraine and is number one among insurers with Ukrainian capital. Every day the company makes over UAH 2 million of insurance payments. The partners of the Ukrainian company are the leading European reinsurers: HannoverRe, PolishReinsuranceCompany, SCOR SE, Gen.
According to the information on the company’s website, chairman of the board Serhiy Avdeyev owns 24.5% of Arsenal Insurance, Maksym Tuz owns 21%, Kostiantyn Tuz some 9%, Oleksandr Solop holds 17.5%, Anatoliy Solop 12.51%, Hennadiy Moldavsky 9.99%, and Maryna Avdeyeva some 5.5%.
The level of capital declared by many insurance companies is overestimated, and financial stability indicators are not true, according to the Financial Stability Report of the National Bank of Ukraine (NBU) published on Wednesday.
According to the report, the central bank is concerned about most of the requirements to reinsurers. At the same time, about a third of the premiums were transferred to insurers whose solvency is uncertain, which means that the probability of receiving reimbursement is small.
In addition, some insurance companies hold funds in bank accounts exclusively for reporting on quarterly dates. After that, the funds from the accounts are transformed into other assets. Of 150 financial institutions analyzed, similar behavior is characteristic of more than half of the companies. But in general, their deposits in banks make up less than 20% of the total deposits of insurers.
The NBU said that insurance companies need high-quality and liquid assets in order to make insurance payments on time. Such assets, in particular, are government bonds and funds in deposit accounts. At the same time, many insurers invest in illiquid assets which real market value is impossible to establish – capital of enterprises, shares and investment certificates. The income from such assets declared in their financial statements averages less than 5% per year, which is significantly lower than the current profitability of deposits or government bonds, and it is almost impossible to turn them into liquid assets. Some of the securities are seized or their circulation is stopped. Another significant component of the assets of a number of companies – accounts receivable – often in practice has no market value.
According to the regulator, the insurance market requires a fundamental change in the rules of the game, since its development is constrained by imperfect regulation, which in many aspects is not consistent with the Insurance Core Principles of the International Association of Insurance Market Supervisors (IAIS) and the European Solvency directive. Consumers should receive additional guarantees that their rights will be protected, and they will receive insurance indemnities on time and in full, the central bank said.
“The priority for the NBU will be to strengthen the financial stability of insurance companies, introduce the best corporate governance practices and internal supervision systems, respond in advance to financial problems and violations of the protection of the rights of consumers of financial services,” the NBU said.
Capital LLC (Kapital, Kyiv) has commissioned the second phase of the Oberig clinic, co-owner of Oberig and the Milk Alliance group of companies Oleksandr Derkach said on Facebook.
“As you already understood from my previous posts, our construction was completed. The second phase of the Oberig clinic was commissioned, and we began to receive the first patients there. Some 25,000 square meters, seven above ground floors and three underground, a large parking lot for employees and visitors, a charger station for electric vehicles, etc. Built in 2 years,” he wrote.
As reported, the beneficiaries of Capital LLC are Derkach and the director general of the Oberig clinic (Kyiv), Viktor Rybchuk.
Capital LLC was registered in 2005. Its core business is specialized medical practice.
The Oberig Universal Clinic medical center, one of the largest private investment projects in the field of healthcare in Ukraine, began work in 2008.
At the end of 2017, Capital LLC, within the framework of business social partnership and following the results of the won competition, began the construction of the second phase of the Oberig clinic in the territory of Kyiv City Clinical Hospital No. 14 in Zoolohichna Street.
Kyiv is one of the ten best cities in the world with the development of sharing services, the rating was held in 52 cities, the press service of Kyiv City State Administration has reported.
“Kyiv entered the top ten cities with the best level of development of sharing services. The assessment was carried out according to the level of access to such services as Uber and Airbnb, electronic scooters, applications for sharing professional cars, the ability to rent a car from private owners, as well as the ability to access all the gyms of Kyiv from one mobile application,” the report said.
It is noted that the best sharing services are developed in Tallinn, Vilnius, Riga, Warsaw, Kyiv, Sao Paulo, Tbilisi and other cities. In general, the rating was carried out in 52 cities of the world.
“Now in the capital in the field of sharing services, among other things, the bike sharing investment project from Next Bike with 45 rental points is being implemented and a project to rent electric scooters is being prepared for implementation,” Kyiv City State Administration added.
Minister of Culture, Youth and Sports of Ukraine Volodymyr Borodiansky has announced the creation of a new institution in 2020 – the Museum of Modern Art, the press service of the ministry has said. “It will include several parallel processes: the concept of the museum, its material component and, at the same time, filling of the collection. This means that the state must buy art works, which are then to be displayed and stored in this museum,” said Borodiansky.
According to the Ministry of Culture, the creation of the museum is planned from 2020 and will last up to four-five years.
“The problem of our contemporary art is the physical absence of a museum that would accumulate the works of our outstanding masters. I am convinced that separate halls should be dedicated to outstanding Ukrainian artists such as Ivan Marchuk and other outstanding contemporary Ukrainian artists,” Borodiansky added.