Business news from Ukraine

UKRENERGO AND ENERGOMARKET TO LAUNCH SOFTWARE FOR RETAIL SEGMENT OF POWER MARKET BY LATE 2018

National Energy Company Ukrenergo and state-owned enterprise (SOE) Energomarket in December 2018 will launch software required for the operation of the retail segment of the new power market, Deputy Prime Minister of Ukraine Volodymyr Kistion has said. He said that the terms are outlined in the plan of the implementation of the law on the electricity market verified by the heads of the Energy and Coal Industry Ministry, the National Commission for the State Regulation of Energy, Housing and Utilities Services (NCER) and the parliamentary committee for fuel and energy complex.
“The first stage of the reform related to the retail market segment will start already in December 2018. Two months later, Ukrenergo and Energomarket will launch the required software, and NCER will approve the last part of the acts needed to effectively launch a new market,” Kistion wrote on his Facebook page.
The deputy prime minister added that the Energy and Coal Industry Ministry, in turn, is obliged to forward the bills on the rules of ensuring the supply of electricity to protected consumers and the rules of holding a tender for the construction of generating capacities, the introduction of energy efficient measures to the government in the shortest possible time.

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BASF PLANS TO INCREASE ITS SHARE IN UKRAINIAN MARKET OF PLANT PROTECTION AGENTS

BASF, the world’s leading producer of plant protection agents, plans to increase its share of the Ukrainian market of plant protection agents in 2018 by 1.5-2 percentage points with the acquisition of business shares and assets of the German chemical company Bayer, to 17-17.5%. “We are planning to increase the share of the Ukrainian market of plant protection products by 1.5-2%. At present the company has a 15.5% stake in Ukraine,” Head of the BASF Agribusiness Department in Ukraine, Moldova and the Caucasus Tiberiu Dima said.
He specified that BASF intends to keep the share of the Ukrainian seed market next year at the level of 8-9%. “We also intend in the first ten days of October to officially open a research seed center for working with grains in the village of Tsentralne in Kyiv region, which was purchased from Bayer,” the expert noted.
It is part of a global network of research centers. Already in the near future the center will close the full cycle of seed production: from the creation of new varieties of wheat to the presentation of developments in the demonstration center.
BASF is the world’s leading manufacturer of plant protection products. The product portfolio consists of five segments: chemicals, special products, functional materials and solutions, solutions for agriculture, as well as oil and gas.

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UKRAINIAN PAYMENT SYSTEMS INCREASE THEIR SHARE IN PAYMENT SYSTEMS MARKET TO 15.6% COMPARED TO 4.8% IN 2017

The share of payment systems created by banking and non-bank resident institutions in Ukraine in the amount of money transfers to the country in the first half of 2018 was 15.6% compared to 4.8% in 2017, the National Bank of Ukraine (NBU) has said. According to data on its website, if over the past year $113.7 million was transferred to the country through Ukrainian payment systems, then for the six months of this year some $189 million.
The statistics of the National Bank contains no data on the turnover of specific Ukrainian systems in this market, it gives only their share in the market of transfers within Ukraine, the total volume of which amounted to UAH 69.34 billion (almost $2.6 billion compared with $4.45 billion for the entire year of 2017).
Here the leader was the TYME payment system, whose registration the National Bank canceled on June 22 this year, with 42.78%, followed by Postal Transfer from Ukrposhta with 27.98%. They are followed by Financial World (Finansovy Svit) with 7.2%, City24 with 6.73%, InterPayService with 5.34%, Flashplay with 4.43%, while each of the following 22 systems has a share less than 1%. The National Bank specifies that according to the number of participants the leaders in the first half of the year were Post Finance LLC with 44.34% and Ukrposhta with 27.97%.
Regarding the systems created by non-residents, the leader among them remains Western Union, which increased the gap from MoneyGram: if in 2017 their share in transfers to Ukraine among non-residents was 54.5% and 23.8% respectively, then in the first half of 2018 some 56% and 23% respectively. The share of IntelExpress ranking third fell from 12.7% to 9%.

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MARKET OF GREEN CARD INTERNATIONAL INSURANCE GROWS IN UKRAINE

The number of Green Card international insurance contracts signed by the members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-June 2018 increased by 5.64% compared to the same period in 2017, to UAH 338,318, according to the bureau’s website. The amount of accrued insurance premiums increased by 26.59%, to UAH 642.4 million.
The amount of claim fee payments for January-June fell by 0.38%, to almost EUR 5.98 million.
The number of paid claims increased by 3.53% to 2,609.
The MTIBU is the only association of insurers that carry out compulsory insurance of vehicle owners’ civil liability for harm caused to third parties. Its members are 56 insurance companies, in particular full members of the bureau that have the right to sign Green Card contracts are nine companies.

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NEW COMMERCIAL CARS MARKET IS STILL GROWING IN UKRAINE

The market of new commercial vehicles in Ukraine (including heavy trucks) in January-July 2018 increased by 17% compared to the same period in 2017, to 7,300 units, according to the Ukrautoprom association. Thus, following the results of seven months, the market reduced its growth rates (in January-May the growth from the same period of 2017 was 22%, in January-June some 24%).
This situation is associated with a fall in sales of commercial vehicles in July this year by 18% from July 2017 and by 25% from June this year, to 928 units.
The highest demand in the July market (like in June) was recorded for Renault cars, which occupied almost 23% of the market with the registration of 211 vehicles (18% more than in July last year). Fiat ranked second with 109 registrations, which is 36% more than last year’s July figure, and Mercedes-Benz ranks third with a reduction of 31% and with 83 vehicles sold. According to the association, the Ukrainian auto brand ZAZ ranks 13th with 21 cars (against 15 units in July of last year and 13 in June of the current year), KrAZ, as in last year’s July, sold 13 trucks. At the same time, Russian brands UAZ (22 cars against 11 in July 2017) and KAMAZ (20 against 10) increased their registration, while GAZ more than halved sales, to 60 units. Belarusian MAZ in July also significantly reduced sales from July of last year, by 55.8%, to 42 vehicles.

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UKRAINIAN BIOPHARMA PLANS TO BRING TIG TO MARKET IN 2019

Biopharma, a blood products maker, plans to bring tetanus immune globulin (TIG) to the market by the end of 2019, Biopharma Group President Kostiantyn Yefymenko has said in an interview with Interfax-Ukraine. “Taking into account the country’s needs, we are working on the specific tetanus immune globulin. We hope that we would be able to bring it to the market by late 2019,” he said.
Biopharma is one of the ten largest Ukrainian producers of medicines. It produces more than 20 immunobiological preparations from donor blood, preparations obtained by recombinant DNA technology and probiotics.

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