Business news from Ukraine

ANTIMONOPOLY COMMITTEE OF UKRAINE STARTS INVESTIGATION ON POSSIBLE COAL PRICE FIXING OF STATE MINES

The Antimonopoly Committee of Ukraine (AMCU) has started an investigation on the indices of possible anti-competitive coordinated actions when fixing price on the energy coal of state-run mines for the needs of thermal power plants (TPP) and combined heat and power supply plants (CHPP).
“The committee established that within 2017-2018 Energy and Coal Industry Ministry of Ukraine held meetings with state-owned enterprise Derzhvuhlepostach, PJSC Donbasenergo, LLC DTEK Energo, Ukrinterenergo State Foreign Trade Company, PJSC Cherkasy Khimvolokno, LLC TehNova company to reach the agreements over fixing prices for coal products of state-run enterprises for TPPs and CHPs that is confirmed by the protocols of these meetings,” reads by regulator-issued report.
According to the AMCU, these companies are potential competitors in the electricity and steam coal markets, respectively, the support of these companies to increase prices for coal products for TPPs and CHPs to a certain level could lead to distortion of competition.
In this regard, the committee began consideration of the case regarding anti-competitive actions of these companies, violation by the Energy and Coal Industry Ministry of law on the protection of economic competition in the form of inducing business entities to take anti-competitive concerted actions and promotion of such violations.
As reported, in recent years Ukraine’s Energy and Coal Industry Ministry during meetings recommended prices for coal sales of state mines for thermal power plants.

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STATE BUREAU OF INVESTIGATION STARS WORK IN UKRAINE

The State Bureau of Investigation (SBI) will officially start working on November 27, the Uriadovy Kurier newspaper said. In an announcement published in the paper on November 23, SBI chief Roman Truba says the State Bureau of Investigation will start working from November 27, 2018 as a central body of the Ukrainian government to perform law enforcement activities aimed at preventing, exposing, stopping, solving, and investigating crimes placed under its jurisdiction.
Earlier in November, Truba said that 295 investigators of the SBI will be appointed on November 27 and they will be taking the oath of office. Among them are 102 investigators of the central office and 193 investigators of the SBI’s territorial departments.
The SBI said investigation units have been set up at the central and regional offices to work in three areas, such as investigations into crimes involving official activities and corruption, investigations into crimes committed by members of law enforcement agencies and in court activities, and investigations into military and war crimes.

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RADA COMMITTEE HEAD VIKTOR HALASIUK ADVOCATES INVESTIGATION INTO 25% RISE IN IMPORTS OF METAL

Chairman of the parliamentary committee for industrial policy and entrepreneurship (Deputy Head of the Liashko Radical Party for Economic Policy) MP Viktor Halasiuk has said that a special investigation into growth of imports of ferrous metals to Ukraine by 25% should be conducted and he advocates the introduction of safeguard measures for the supplies of ferrous metals from China, Turkey, Russia and other countries.
“The Radical Party demands from the government and the Ministry of Economy to immediately conduct a special investigation into the unprecedented 25% growth this year in imports of ferrous metals and products from Ukraine. In addition, the people’s deputies insist on the introduction of preventive measures to protect Ukrainian metallurgy from predatory imports from China, Turkey , Russia and other countries,” the industrial policy committee said in a press release of with reference to Halasiuk.
According to him, the closure of the largest global markets and the intensification of the struggle for existing sales markets for metal products is a real threat to the Ukrainian industry and economy. At the same time, imports of ferrous metals in Ukraine have already grown by 25%, therefore, hundreds of thousands of jobs in the mining and metallurgy sector and related industries are under attack.
“We demand urgent measures to prevent the growth of imports of metal products from China, Turkey, the Russian Federation and other countries that are fiercely fighting for new markets for their products. It is also important to lobby for access of Ukrainian metal products to foreign markets, including through the export credit agency,” Halasiuk said, stressing that the United States, Canada, the EU, China, EurAsEC, Turkey, some African countries and others actively protect the domestic market of metal products from imports, increasing imports duties by 25% and more.
“Governments of the world’s largest economies are taking all possible and impossible measures to protect their own producers of metal and metal products,” he said.

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RADA COMMITTEE HEAD VIKTOR HALASIUK ADVOCATES INVESTIGATION INTO 25% RISE IN IMPORTS OF METAL

Chairman of the parliamentary committee for industrial policy and entrepreneurship (Deputy Head of the Liashko Radical Party for Economic Policy) MP Viktor Halasiuk has said that a special investigation into growth of imports of ferrous metals to Ukraine by 25% should be conducted and he advocates the introduction of safeguard measures for the supplies of ferrous metals from China, Turkey, Russia and other countries.
“The Radical Party demands from the government and the Ministry of Economy to immediately conduct a special investigation into the unprecedented 25% growth this year in imports of ferrous metals and products from Ukraine. In addition, the people’s deputies insist on the introduction of preventive measures to protect Ukrainian metallurgy from predatory imports from China, Turkey , Russia and other countries,” the industrial policy committee said in a press release of with reference to Halasiuk.
According to him, the closure of the largest global markets and the intensification of the struggle for existing sales markets for metal products is a real threat to the Ukrainian industry and economy. At the same time, imports of ferrous metals in Ukraine have already grown by 25%, therefore, hundreds of thousands of jobs in the mining and metallurgy sector and related industries are under attack.
“We demand urgent measures to prevent the growth of imports of metal products from China, Turkey, the Russian Federation and other countries that are fiercely fighting for new markets for their products. It is also important to lobby for access of Ukrainian metal products to foreign markets, including through the export credit agency,” Halasiuk said, stressing that the United States, Canada, the EU, China, EurAsEC, Turkey, some African countries and others actively protect the domestic market of metal products from imports, increasing imports duties by 25% and more.
“Governments of the world’s largest economies are taking all possible and impossible measures to protect their own producers of metal and metal products,” he said.

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STATEMENT BY MASTER-AVIA COMPANY ABOUT NABU INVESTIGATION IN RELATION TO INTERNATIONAL KYIV SIKORSKY AIRPORT

On June 14, 2018, the administrative buildings and terminals of Kyiv International Airport named after Igor Sikorsky was blocked by National Anti-corruption Bureau of Ukraine (NABU) personnel equipped with automatic weapons. From 10:00 a.m. on June 14 to 05:00 a.m. on June 15, during the 19 hours, the management of municipally owned Kyiv International Airport and the Master-Avia company, including the heads of departments, and senior employees, were kept in their own offices without any means of communication and the possibility of coordinating the work of the airport. As a result, the work of both the municipal company and the Master-Avia private company, which is engaged in the development and maintenance of the airport, was blocked.
NABU’s operation resulted in the inability to prevent an accident that occurred with a plane operated by the BRAVO airlines, which performed the Antalya-Kyiv flight. During landing amid a violent storm, the airplane carrying 169 passengers aboard overshot runway and landed on its belly. The situation was complicated by the increased threat of an explosion: there were four tonnes of aviation fuel on board, there was a threat to the lives and health of the passengers. At that time, the airport’s management, which was, in fact, hostage to the security forces, was not able to take measures that are appropriate to that weather condition. Only thanks to the coordinated work of the airport’s rescue services, the situation was under control and nobody was injured as a result of the incident. This was the first case registered within 94 years of the airport’s work.
The airport’s management did not publish the details of the incident before because of the investigation of the aviation event by a special commission. However, as there is a probability that raids and other investigative measures may continue, the team of Kyiv International Airport considers it is their duty to warn that in case of new attempts to block the airport’s work by the security forces, it will suspend handling flights for the sake of the safety of passengers and crews. The safety of passengers remains a priority for the company.
Currently, the airfield and runway are on the balance sheets of municipally owned International Airport Kyiv. Master-Avia owns terminals and an apron. There was no reason for the use of force: the company’s activities are open and transparent, the management is always ready for constructive interaction with the control authorities and for required procedures. However, instead of asking for the necessary documentation, the Bureau’s agents chose a different path – the seizure of buildings, keeping the management and personnel without means of communication, searches both at the airport and in apartments in the top managers, seizure of documents and things, including personal ones, the blocking of activity and communications in the strictly policed security facility. Such actions by state authorities negatively affect the airport’s safety and the investment attractiveness of Ukraine.
Kyiv International Airport operates strictly in accordance with international and Ukrainian legislation and today it is one of the largest taxpayers in the capital among municipally owned enterprises. Master-Avia has invested more than $50 million in the creation of new airport infrastructure, and still spends all available resources on the repayment of a loan and the development of the only international airport located directly in Kyiv.
Reference information:
In 2010, an investment tender was held under the government program for the development of Ukrainian aviation infrastructure Master-Avia LLC won the tender. The company has concluded an agreement for the lease of the airport’s property for 49 years. The second bidder, a company with Russian roots, unsuccessfully challenged the results of the tender in courts of all instances.
Today, Kyiv International Airport, being operated by Master-Avia, cooperates with more than 40 airlines, performing flights to 140 cities in 48 countries. Every month, about 2,500 flights are operated, and almost two million passengers are served annually. Investment in the airport exceeds $50 million. More than 10,000 jobs have been created. Kyiv International Airport is the second largest taxpayer among municipally owned companies.

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