Business news from Ukraine

ENERGOATOM REDUCES ELECTRICITY PRODUCTION BY 2.2%

Electricity production by all power plants of state enterprise Energoatom in January-November 2019 decreased by 2.2% (by 1.656 billion kWh) compared to the same period of the previous year, to 74.889 billion kWh.
According to the press service of the company, the plan for the production of electricity for the specified period in 2019 was overfulfilled by 1.4%.
The share of Energoatom in the overall structure of electricity production in the country amounted to 53.6%, which is 0.2 percentage points more than in January-November 2018.
The power plants of the state enterprise for the reporting period supplied 70.34 billion kWh, which is 2.3% less than a year earlier.
The volume of capital investments for the 11 months amounted to UAH 12.094 billion against UAH 10.069 billion. in January-November 2019, financing of capital investments totaled UAH 12.957 billion against UAH 10.798 billion.
During the reporting period, the company transferred UAH 12.328 billion to the budgets of all levels, insurance payments amounted to UAH 2.343 billion.
Some 12 violations were recorded in the operation of Ukrainian nuclear power plants for the 11 months of 2019 against 20 violations for the 11 months of 2018.

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ENERGOATOM REDUCES ELECTRICITY PRODUCTION BY 2%

Electricity production by all power plants of state enterprise Energoatom in January-October 2019 decreased by 1.9% (by 1.3 billion kWh) compared to the same period of the previous year, to 67.271 billion kWh.
According to the press service of the company, the plan for production of electricity for the specified period in 2019 was exceeded by 1.6%.
The share of Energoatom in the overall structure of electricity production in the country amounted to 53.1%, which is 0.1 percentage points less than in January-October 2018.
The power plants of the state enterprise for the reporting period supplied 63.170 billion kWh, which is 2% less than a year earlier.
The volume of capital investments for the ten months amounted to UAH 10.253 billion against UAH 9.270 billion. in January-October 2019, financing of capital investments was UAH 12.465 billion against UAH 9.983 billion.
During the reporting period, the company transferred UAH 12.205 billion to the budgets of all levels, insurance payments amounted to UAH 2.109 billion.

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UKRAINE SEES PRODUCTION OF MEAT RISE BY 6.3%

Milk production in Ukraine in January-October 2019 decreased by 3.6% compared to the same period in 2018, to 8.4 million tonnes.
According to the State Statistics Service, in January-October 2019, farmers produced 2.73 million tonnes of meat (live weight), which is 6.3% more than in the same period of 2018.
Egg production grew by 4%, to 14.32 billion units.

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UKRAINE’S PARLIAMENT PASSES AT FIRST READING BILL REGULATING AMBER PRODUCTION

Ukraine’s parliament on November 12 passed at first reading bill No. 2240 settling the issue of amber production, which envisages the introduction of unified licenses for exploration with the right to produce amber during the period of five years for the sites up to 10 ha sold at electronic auctions on the ProZorro platform.
A total of 342 MPs backed the document.
According to the bill, access to amber deposits will be regulated by establishing the right of land easements and the definition of separate Article 971 of the Land Code for the exploration and mining of amber deposits on disturbed lands.
In addition, the document introduces criminal liability for illegal mining and administrative liability for violation of mining requirements, as well as toughens liability for non-compliance with land reclamation requirements and the obligation to compensate for losses incurred.
According to the Ministry of Energy and Environment Protection, the bill also removes a number of duplicate and archaic approvals for amber deposits (in particular, mineral titles and permission to remove the fertile layer) and introduces the filing of all documents in electronic form through an electronic account.

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JTI UKRAINE ANNOUNCES RESUMPTION OF PRODUCTION AT FACTORY IN KREMENCHUK FROM NOV 11

JTI Ukraine, a large tobacco company, after a meeting with Ukrainian President Volodymyr Zelensky and ministers on Thursday has said that it resumes production at its factory in Kremenchuk (Poltava region) following the similar announcement made by British American Tobacco Ukraine.
“After yesterday’s fruitful meeting with the President of Ukraine, we decided to fully resume production of cigarettes at the Kremenchuk factory. From Monday, November 11, the JTI Ukraine factory will resume production at all lines,” Director Corporate Affairs at JT International Ukraine Gintautas Dirgela told Interfax-Ukraine on Friday.
As reported, British American Tobacco Ukraine after a meeting with Zelensky and ministers on November 7 has announced the resumption of production at the B.A.T.-Pryluky plant (Chernihiv region), starting from November 8, 2019.
“We heard words of support and assurances about an early solution to the problem that has damaged our industry and the country’s economy as a whole. Therefore, despite some uncertainty about the fate of bill No. 1049, but relying on the president’s guarantees, we plan to gradually restore production in Pryluky, starting as early as November 8, 2019,” the company said in the statement.
British American Tobacco Ukraine on October 11, 2019 stopped production at B.A.T.-Pryluky plant. The company explained its decision by the adoption by the Verkhovna Rada of bill No. 1049 with the norm on the state regulation of the trade margin on cigarettes. Then the company turned to the State Fiscal Service to withdraw 25 million excise stamps and return UAH 505 million paid for them.
JTI Ukraine, one of the largest tobacco companies in Ukraine, on October 22 said that it refused to pay for 16 million excise labels worth UAH 350 million in connection with the reduction of production over the adoption of bill No. 1049 containing a requirement of regulating the cigarette markup. The company cut production by 73% compared with its plans in the second half of October.
Earlier Philip Morris Ukraine, British American Tobacco, JTI and Imperial Tobacco in Ukraine are mulling the possibility of decreasing production and later closing the tobacco factories on the territory of Ukraine over the adoption of the legislative requirement on the government regulation of markup on their goods by the Verkhovna Rada.
Bill No. 1049, passed at second reading, introducing a single account for paying taxes and duties, the single social security contribution, sets a fixed markup for wholesale and retail traders of tobacco products at 7% and 13% of the maximum retail price per package.

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SKHIDNY MINING CUTS URANIUM CONCENTRATE PRODUCTION BY 15%

State-owned enterprise (SOE) Skhidny (Eastern) Mining and Processing Plant (Dnipropetrovsk region) in January-September 2019 cut production of uranium concentrate by 14.9% year-over-year, to 684.8 tonnes, according to information on the unified government portal of open data.
According to the enterprise, 72.6 tonnes of uranium concentrate were produced in January, 93.7 tonnes in February, 84.3 tonnes in March, 72.9 tonnes in April, 52.2 tonnes in May, and 80 tonnes in June, in July – 72.2 tonnes, in August – 84 tonnes, and in September – 72.9 tonnes.
As reported, Skhidny Mining in 2018 increased the production of uranium concentrate 41.1% compared to 2017, to 1,179.5 tonnes.
Skhidny Mining is the only uranium ore mining and processing enterprise in Ukraine and the largest in Europe. The annual needs of Ukrainian nuclear power plants for uranium concentrate are about 2,400 tonnes, while its production by Skhidny Mining is about 1,000 tonnes.

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