Business news from Ukraine

IC “Express Insurance” increased payments by almost 60%, number of contracts – by 91.5%

In January-November 2023, Express Insurance (Kyiv) collected insurance premiums worth UAH 652 million, which is 59.8% more than in the same period a year earlier, according to the company’s website.

The number of concluded contracts increased by 91.5% compared to January-November 2022 and by 26.2% compared to the same period in 2021, before the full-scale invasion.

Payments for hull insurance for 11 months amounted to UAH 563 million, which is 54.5% more compared to January-November 2022, for VHI – UAH 9.7 million (+42.8%), for other types of insurance – UAH 7 million (+32.5%).

The company reports that in November 2023, it attracted UAH 73.5 million in payments, which is almost 40% more than in November last year.

As reported, for 11 months of 2023, the company paid insurance claims in the amount of UAH 297.9 million, which is 43.9% more than in the same period a year earlier. Motor hull insurance payments amounted to UAH 258.7 million, which is 40.1% more than in the first 11 months of 2023, MTPL – UAH 28.7 million (+53.6%), VHI – UAH 6.1 million (+169%).

Payments on other types of insurance amounted to UAH 4.4 million (+124%).

Express Insurance ALC was founded in 2008 with the participation of UkrAVTO Corporation. Since April 2012, it has been an associate member of the Motor Transport Insurance Bureau of Ukraine.

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Ukrainian insurers reduced the number of MTPL contracts by 22% in 9 months

In January-September 2022, insurance companies – members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) concluded 5.228 million contracts of compulsory civil liability insurance of motor vehicles owners (CMTPL), which is 22.9% less than during the same period of 2021.
According to data released on the website of MTSBU, 3.184 million of the total number of contracts were concluded electronically – 3.86% less than for the same period last year.
During nine months of 2022 the Bureau members reduced the amount of insurance payments on CMTPL policy by 5,8% compared to the same period of 2021 – up to UAH 4,962 billion, including UAH 3,346 billion (+17%) on electronic contracts.
The total of accrued insurance reimbursements under domestic insurance contracts in January-September reduced by 22,77% – up to UAH 2,015 bn. Including UAH 414,562 mln. was paid out using the “Europrotocol (-14,54%).
The Bureau has also reduced the number of settled claims for insurance compensation by 34.2% – to 82.795 thsd. – up to 32,583 thousand (-28,23%).
MLIBU is the only union of insurers providing compulsory insurance of civil liability of ground transport owners for damages, caused to third parties. There are 42 insurance companies that are members of the bureau.

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UKRAINE DISAPPOINED WITH HUNGARY’S DECISION TO SIGN CONTRACT WITH RUSSIA’S GAZPROM FOR SUPPLY OF GAS BYPASSING UKRAINE

Ukraine is surprised and disappointed with Hungary’s decision to sign a new long-term contract with Russia’s Gazprom in Budapest on September 27, 2021, regarding gas supply to Hungary bypassing Ukraine, the Ukrainian Foreign Ministry said in a statement.
“We view this as nothing but a political, economically unfounded decision, which has been made to the benefit of the Kremlin and to the detriment of national interests of Ukraine and Ukrainian-Hungarian relations, in violation of the principles of the Treaty of Neighborliness and Cooperation between Ukraine and the Hungarian Republic dated December 6, 1991,” the statement said.
The Ukrainian Foreign Ministry has initiated a delay of the next meeting of the Joint Ukrainian-Hungarian Intergovernmental Economic Cooperation co-chaired by the two foreign ministers, which was planned for September 29-30.
“Earlier today, the Ukrainian Foreign Ministry initiated a delay of the Commission meeting, considering that the Hungarian-Russian gas agreement will have a substantial influence on the energy security of Ukraine and Europe, and will create new circumstances that require a comprehensive analysis of risks and threats and coordinated efforts of countries of the region in order to minimize its negative implications,” the statement said.
The Ukrainian side will also apply to the European Commission to provide an assessment of the conformity of the new Hungarian-Russian gas agreement with European energy legislation.

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LEADING TELECOM OPERATOR OF UKRAINE KYIVSTAR PLANS TO INCREASE CONTRACT SUBSCRIBER BASE BY 20%

By the end of 2021, the mobile network operator Kyivstar plans to increase the base of contract clients by 500,000, President of Kyivstar Alexander Komarov told reporters on Wednesday.
At the end of 2020, the operator’s total client base was about 25.9 million mobile subscribers. At present, according to the operator, almost 90% of the Kyivstar network are prepaid mobile subscribers and the company has more than 10% are contract subscribers.
“The [number of] contract [subscribers] should grow by 500,000 new clients this year. This is a definite ambition of Kyivstar. We are generally supporters of identifying our client base and transferring it to more stable forms of connection,” Komarov said.
According to him, despite the fact that, in general, Kyivstar’s client base is stable (no more than 1% decrease year-on-year), in 2020 the prepaid subscriber base decreased 4%, which were redistributed into two segments: FMC (clients using fixed-line and mobile communication) and the contract subscribers.
“Our enemy of the contract is a very low average bill. The main means of transferring a client to a contract is a combination of a phone and payment for communication services. An average smartphone in Ukraine costs UAH 5,000-6,000, and communication services for 12 months – about UAH 1,000. Accordingly, we have very little of this added value to transfer a client to a contract. And in the gray market, the difference in price for a phone between a legal store and an online seller can reach 10-15%,” the president of Kyivstar said.
Kyivstar is a market-leading telecoms operator in Ukraine. It provides communication and data services based on a wide range of mobile and fixed-line technologies, including 3G. By the end of 2020, its services were used by about 25.9 million mobile subscribers and about 1.1 million fixed Internet customers.
The shareholder of Kyivstar is the international group VEON (earlier – VimpelCom Ltd.). The group’s shares are listed on the NASDAQ stock exchange (New York).

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UKRAVTODOR AND TURKEY’S DOGUS SIGN CONTRACT FOR BUILDING NEW BRIDGE

The State Agency of Automobile Roads of Ukraine (Ukravtodor) has signed an agreement for the construction of a new bridge in Kremenchuk (Poltava region) for UAH 11.249 billion with the Turkish company Dogus Insaat Ve Ticaret.
On the part of Ukravtodor, the contract was signed by the head of the road service in Poltava region, Ivan Krapovnytsky, from Dogus Insaat Ve Ticaret – executive director Tolga Akkas.
Ukravtodor noted that the new bridge will improve the optimization of logistics routes in the center of Ukraine by reducing travel times for road transport. This will be achieved by increasing the speed limit for trucks from 36.8-53.3 km/h to 72.9 km/h, buses from 35.7-53.4 km/h to 71.1 km/h, passenger cars from 39.6-55.3 km/h to 81.5 km/h.
“All plots that fall under the construction zone will be bought for state funds. If these are private plots where people live, or some other private plots, they will be bought out, transferred to the state ownership, and people will receive monetary compensation for this,” Krapovnytsky said.

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SINOHYDRO FROM CHINA TO SUE STATE-RUN UKRAVTODOR FOR TERMINATION OF CONTRACT IN UKRAINE

The Chinese company Sinohydro Corporation Limited intends to file a claim in international arbitration for the termination of the contract for the reconstruction of the bypass road around Zhytomyr by the State Agency of Automobile Roads of Ukraine (Ukravtodor).
According to the company’s statement, Sinohydro considers it unfair that Ukravtodor, having failed to effectively fulfill its contractual obligations, unilaterally decided to terminate the contract, while the Dispute Settlement Council (created under the contract together with Ukravtodor in May 2020) is still considering disputes surrounding this contract and has already ruled on some of them, allowing Sinohydro to renew the contract.
Sinohydro says the untimely transfer of a land plot for public use by Ukravtodor, the introduction of a number of design changes not provided for in the contract, failure to fulfill payment obligations, as well as force majeure in the form of the COVID-19 epidemic and many other factors influenced the project schedule and led to a violation of the terms of work.
“Since June 2020, facing an unfavorable situation caused by the fact that Ukravtodor did not complete the interim payment for construction work on time, and the continuing impact of the COVID-19 epidemic, Sinohydro has advanced over EUR 5 million to meet its contractual obligations and reduce the delay,” the company said.
It is emphasized that in comparison with other sections of roads under construction in Ukraine at the same time, this project is being implemented at a rather fast pace and is already nearing completion.
“Under the circumstances, the Dispute Settlement Council decided on the first contract dispute initiated by Sinohydro in September 2020. It agreed to extend the contractor’s deadline for construction work by 87 days. However, when the Council began considering at least four disputes over damages to Sinohydro, Ukravtodor unexpectedly announced the termination of the contract,” the report says.

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