Business news from Ukraine

UKRAINIAN MOTOR FUEL MARKET IN 2021 GOES UP BY 6%

The volume of the motor fuel market, including petrol, diesel fuel liquefied gas, in Ukraine, in 2021 increased by 6%, to 12.22 million tonnes, according to a press release from the A-95 Consulting Group.
According to the group, the growth of the market is dictated by economic activity and de-shadowing of the sector.
“The increase in supplies was the result of not only the growing economic activity, especially in the agricultural sector and road construction, but also comprehensive efforts to combat the illegal market. Part of the volumes were brought out of the “shadow,” but this sector, especially with regard to petrol, still accounts for up to 20% of the market,” Serhiy Kuyun, the director of A-95 Consulting Group, said.
According to A-95, the volume of diesel fuel and motor gasoline markets increased by 7% in 2021, to 7.97 million tonnes and 2.29 million tonnes, respectively. At the same time, the liquefied natural gas market showed negative dynamics for the first time in the last eight years, decreasing by 1% to 1.96 million tonnes.
Last year, in the structure of diesel fuel supplies, the share of imports increased in percentage terms from 84% to 86%. At the same time, the share of Russian diesel fuel decreased from 35% to 25% (2.05 million tonnes against 2.61 million tonnes in 2020), the main reason for which was the cessation of pumping through the PrykarpatZakhidTrans oil product pipeline.
At the same time, 2.89 million tonnes were supplied from Belarus in 2021, which amounted to 36% of the Ukrainian market against 30% of the share of Belarusian supplies in 2020.
A record volume of diesel fuel – 1.2 million tonnes, which is 1.5 times more than in 2020 – entered Ukraine by sea.
In 2021, Ukraine imported 1.28 million tonnes of gasoline, or 56% of the market volume. At the same time, Belarusian refineries supplied up to 1 million tonnes and retained their share in gasoline imports at the level of 2020 – 78%. The Polish concern Orlen increased deliveries by 11% over the year – up to 262,200 tonnes.
Domestic gasoline production in 2021 amounted to 1.01 million tonnes, demonstrating a 3% drop due to malfunctions at the Ukrtatnafta refinery last fall (the plant produced 880,000 tonnes of gasoline for the year).

,

ILLEGAL ALCOHOL MARKET TAXES COULD BRING UAH 9 BLN TO UKRAINIAN BUDGET

The poor work of government agencies leads to an annual budget shortfall of about UAH 9 billion from the sale of alcoholic beverages, competent agencies in 2019-2020 and over nine months of 2021 also did not provide an effective system of control over production and circulation of alcohol and administration of the excise tax.
These results were announced by auditors of the Accounting Chamber following an audit of the planning efficiency and control over the completeness and timeliness of a receipt of the excise tax on alcoholic beverages to the state budget on the department’s website on Tuesday.
“According to the World Health Organization, the share of illegal alcohol in Ukraine is more than a third of the total alcohol market and more than half of the strong alcohol market. Taxation of illegally produced and imported alcoholic beverages only can replenish the state budget from the excise tax by about UAH 9 billion a year,” the chamber says in a report.
The Accounting Chamber refers to the data of the State Tax Service, according to which production of alcoholic beverages in 2020 increased compared to 2019 by 11%, wine – decreased by 13%, and beer – by 0.5%. At the same time, according to the State Customs Service, imports of alcoholic beverages increased by almost 45%, wine – by half, and beer – by 11%.
At the same time, in 2020, the state budget received a total of UAH 42 billion of the excise tax on imported and produced in Ukraine alcoholic beverages, however, despite the increase in imports, the share of this tax in the total amount of tax revenues decreased from 1.9% in 2018 to 1.6% over nine months of 2021.
“The State Fiscal Service, the State Tax Service and the State Customs Service did not ensure proper intersectoral coordination on administration of the excise tax on alcoholic beverages, effective control of their production and circulation. This created the preconditions for illegal production and circulation of these products and, as a consequence, for the non-receipt of this tax in the state budget,” the chamber says in the report.
In addition, due to the poor work of the Ministry of Finance and the State Fiscal Service, the automated control system Electronic Excise Stamp has not been fully implemented, since the corresponding changes have not yet been made to the Tax Code and other legislative acts. The Accounting Chamber clarified that due to the software imperfection of the system for monitoring excise tax stamps, the State Customs Service inspectors still monitor circulation of excise stamps at customs posts mainly in paper, not electronic form.
The department recalled that in 2020 the State Customs Service did not plan and did not conduct documentary field checks, since the Ministry of Finance untimely approved the planning procedure by the customs authorities. At the same time, over nine months of 2021, the State Customs Service authorities conducted only two documentary checks of exporters of alcoholic beverages, as a result of which they additionally charged UAH 2.6 million in taxes (of which 0.8% was paid to the budget).
The auditors indicated in the report that the control by the State Fiscal Service bodies over the illegal movement of alcohol and alcoholic beverages was ineffective. During the study period (2019-2020 and nine months of 2021), customs officers seized more than 158,000 liters of alcohol, over 25,000 liters of alcoholic beverages and over 2 million stamps of excise tax, however, almost 74% of the seized alcohol was returned to the owners by a court ruling. According to the Accounting Chamber, this testifies to the groundlessness of separate decisions of the customs authorities, as well as the ineffectiveness of spending funds from the state budget to pay court fees in these cases.
“Based on the results of the audit, the Accounting Chamber recommended the government to improve legislation on administration of the excise tax. In particular, to speed up the implementation of the Electronic Excise Stamp full automated system of control over circulation of alcoholic beverages and tobacco products, to improve the licensing of activities in this area, and to streamline the trade in alcoholic beverages through the Internet,” the organization says.

, ,

GERMAN AMBASSADOR SAYS IN INTERVIEW THAT ENERGY MARKET SITUATION CAN NOT INFLUENCE NORD STREAM 2 CERTIFICATION

The situation on the European energy market is unable to influence the certification of the Nord Stream 2 operating company as an independent network operator, German Ambassador to Russia Geza Andreas von Geyr said in an interview with Interfax.”The conclusion of the certification process is required for the pipeline to begin commercial operations, irrespective of the situation on the European energy market. We expect Gazprom to continue to fulfil all contractual obligations towards Europe, particularly in relation to gas transit through Ukraine,” von Geyr said.As reported earlier, the German Federal Network Agency started to process the application from the Nord Stream 2 operating company as an independent operator on September 8. The processing has been suspended as Bundesnetzagentur decided that a subject of its regulation could be only a German subsidiary of the Swiss-based Nord Stream 2 AG, which should be the owner and operator of the German part of the pipeline. The Polish company PGNiG and the Ukrainian opponents of the Project, Naftogaz and Gas Transmission System Operator of Ukraine, have received access to the certification process. The application processing deadline has been moved to the middle of 2022, which means Europe cannot count on gas supply through the new pipeline in the winter season of 2021/22.”The certification process for Nord Stream 2 is being conducted by the independent German regulator, the Bundesnetzagentur, in strict accordance with the provisions of the European Gas Directive. Interested parties can raise their views within that legal framework and have their voices heard. Politically, we have made a commitment that this pipeline must not be used to exert pressure on Ukraine. That is why we are campaigning to see reliable, long-term, contractually agreed gas supplies and transit agreements for Ukraine,” von Geyr said.

, ,

QUOTES OF INTERBANK CURRENCY MARKET OF UKRAINE (UAH FOR 1 RUB, IN 01.10.2021-30.10.2021)

Quotes of interbank currency market of Ukraine (UAH for 1 rub, in 01.10.2021-30.10.2021)

, , ,

QUOTES OF INTERBANK CURRENCY MARKET OF UKRAINE (UAH FOR €1, IN 01.10.2021-30.10.2021)

Quotes of interbank currency market of Ukraine (UAH for €1, in 01.10.2021-30.10.2021)

, , ,

QUOTES OF INTERBANK CURRENCY MARKET OF UKRAINE (UAH FOR $1, IN 01.10.2021-39.10.2021)

Quotes of interbank currency market of Ukraine (UAH for $1, in 01.10.2021-39.10.2021)

, ,