Business news from Ukraine

KHARKIV COMPANY BIOLIK CONFIRMS APPLICATION FOR REGISTRATION OF RUSSIAN VACCINE AGAINST COVID-19

The pharmaceutical company JSC Biolik (Kharkiv) confirmed that on December 31, 2020, it submitted an application to the Ministry of Health of Ukraine for registration of the Sputnik V vaccine against COVID-19 developed in Russia.
“In connection with numerous inquiries, the administration of JSC Biolik informs that on December 31, 2020 we did send to the Ministry of Health of Ukraine an application for state registration of a medicinal product – vaccine Gam-COVID-Vac, combined vector vaccine for the prevention of coronavirus infection caused by SARS-CoV-2 virus, produced by the Gamaleya Research Institute of Epidemiology and Microbiology of the Russian Federation,” the company’s press service said.
The text of the statement was also made public.
As reported, earlier, head of the political council of the Opposition Platform – For Life party Viktor Medvedchuk said that on December 30, the Biolik pharmaceutical company applied to the Ministry of Health of Ukraine and the State Expert Center of the Ministry of Health with an application for state registration of the Sputnik V coronavirus vaccine.
On January 4, the State Expert Center, with reference to its head Mykhailo Babenko, told Interfax-Ukraine that “as of 11:00 of January 4, 2021, the State Expert Center didn’t receive applications for registration of any vaccines against COVID-19 from the company Biolik.
The Sputnik V vaccine has not passed the third phase of clinical trials.
In turn, Deputy Minister of Health, Chief Sanitary Doctor of Ukraine Viktor Liashko assured that only those vaccines against coronavirus infection that have successfully completed clinical trials will be used in Ukraine, “therefore, all rumors and political statements about the state registration of the Russian vaccine candidate in Ukraine do not correspond to reality.” Liashko said that according to available data, the completion of the third phase of clinical trials of the Sputnik V vaccine is scheduled for December 2021.
In early December, the Russian Direct Investment Fund announced readiness of JSC Biolik (Kharkiv) to produce the Russian Sputnik V vaccine against COVID-19 in Ukraine. At the same time, Biolik company denied that statement then.

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Registrations of electric vehicles in Ukraine in Jan-Nov decreased by 2% to 6,823 units

Initial registrations of electric vehicles (new and used) in January-November 2020 decreased by 2% compared to the same period in 2019, to 6,823 units, including 92% of used cars, the Ukrautoprom association reports.

Thus, in the 11 months, the market of electric vehicles turned to negative dynamics, while over the ten months there was still a slight increase (by 1%), despite the drop in sales in October by 15%, and in the seven months, the growth was 7%.

This situation is due to the fact that, according to the association, in November compared to the same month of 2019 the number of registrations of electric cars decreased by almost 28% from November 2019, to 514 units (481 passenger cars and 33 commercial vehicles), which is also almost 22% less than in October 2020.

However, at the same time, the report states, the share of new cars increased to 10% from 6% in November last year, used electric cars from abroad were purchased by 461 persons (31% less than a year earlier), while the demand for new cars rose by 29%, to 53 units.

The most popular passenger electric car remains Nissan Leaf (126 cars were bought in November). The top five cars also include Chevrolet Bolt with 69 units, Tesla Model 3 with 55 units, Tesla Model S with 36 cars, and BMW i3 with 23 vehicles.

Commercial electric vehicle statistics for November were formed by Renault Kangoo Z.E. with 26 vehicles and NISSAN e-NV200 with seven units.

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UKRAINE TO RELAX REGISTRATION OF INTERNATIONAL AID

The Cabinet of Ministers will approve a resolution facilitating the registration of international technical assistance and will replace the wording “donors” with “partners in development,” Prime Minister Denys Shmyhal has said.
“We are planning to approve a resolution that will relax the registration procedure for international technical assistance… In addition, now the concept of “donors” has been replaced by “partners in development,” Shmyhal said, opening a government meeting on Friday.
“This is the kind of relationship we want to develop with colleagues – partnership for the sake of development,” he said.

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EUROPEAN BUSINESS ASSOCIATION URGES TO UNLOCK REGISTRATION OF AGROCHEMICALS

The European Business Association (EBA) has addressed Prime Minister of Ukraine Denys Shmyhal with a request to resume the work of the system of state registration of pesticides and agrochemicals, which was suspended in late May 2020, according to a statement posted on the association’s website on Tuesday.
According to the member companies of the EBA Agrochemical Committee, the problems have become relevant since the renaming of the Ministry of Energy and Environmental Protection of Ukraine and the establishment of the Ministry of Environmental Protection and Natural Resources.
“At the end of May, the Scientific Expert Council at the Ministry recommended 100 chemical products as a result of the meeting. However, as of today, the Ministry of Environmental Protection and Natural Resources has not yet made a decision on their registration. Therefore, the abovementioned chemical products are not included in the State Register of pesticides and agrochemicals approved for use in Ukraine,” the EBA said.
The association also noted that if chemicals are not included in the State Register, Ukrainian and international importers and manufacturers of plant protection products will not be able to provide farmers timely with a significant number of next-generation products.
“Due to this situation, legal businesses suffer losses as they fail to sell their products. As the result, the state budget lacks revenues from taxes and customs duties estimated at millions of hryvnias,” the association said.
In addition, the EBA noted that the use period of PPPs is quite short. Accordingly, the farmer will buy what is available on the market.
“Due to the lack of high-quality registered PPPs, there is a risk of a significant increase in demand for gray imports and counterfeit products. Thus, the quality and security of the future harvest, and, consequently, the export potential and currency stability of the country may be threatened,” it said.
Therefore, the business community appealed to the prime minister to pay attention to this situation and adjust the work of relevant departments, offices, and divisions of the Ministry of Environmental Protection so that to restore the system of state registration of pesticides and agrochemicals and, in general, to ensure quality conditions for doing business in the country, which is one of the tasks of the reorganized ministry.

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NISSAN STILL LEADING IN REGISTRATION OF ELECTRIC VEHICLES IN UKRAINE

The registrations of new and used electric vehicles in Ukraine in January-June of this year increased by 16% compared to the same period in 2019, to 3,384 units, the Employers’ Federation of the Automotive Industry of Ukraine has reported.
According to data with reference to the Interior Ministry, in the second quarter of the current year, registrations increased by 10%, to 1,776 units.
The association clarifies that registrations included the initial registration and registration of vehicles brought from abroad by customs or on customs clearance certificates (not included in statistics of re-registration and temporary registration), while the share of primary registrations accounted for 24% (against 29% a year earlier).
Nissan is steadily leading the market, which covers 39% of the market, although the registrations of these cars decreased by a quarter from the first half of 2019, to 1,168 units.
At the same time, Tesla significantly strengthened its presence, occupying 30% of the market and increasing registration rates by 2.5 times, to 909 cars.
The third position in the ranking by a large margin from the leaders is occupied by Chevrolet with a market share of 6% and an increase in registrations of 68%, to 181 units.
The next two brands Volkswagen and Fiat ranked fourth and fifth in the ranking with indicators of 5% each, displacing the position of BMW.
The most popular models in the first half of the year were Nissan Leaf (34%), Tesla Model S and TESLA Model 3 (10% each), and the latter tripled registration to 347 units.
The fourth most popular car was Chevrolet Bolt Ev (5%), the fifth Volkswagen e-Golf (4%).

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BAN ON REGISTRATION IN UKRAINE OF SALVAGED CARS FROM ABROAD TO ENTAIL $327 MLN BUDGET LOSSES/YEAR –COMPANY

Changes to the registration of vehicles, initiated by the Interior Ministry of Ukraine, which, in particular, prohibit the registration of cars with salvage titles imported from abroad, will create problems for companies involved in this business, will make it impossible for Ukrainians to buy such cars with a clear history at reasonable prices and also entail losses of the national budget in the amount of at least $327 million, according to Columb Trade company.
“Now more than 90% of cars with salvage titles come to Ukraine with such documents (marked for recycling), but in fact they have minor damage (lighting, bumpers, wings) and after restoration pass certification in authorized bodies. The proposed changes may replace the functionality of certification bodies, while citizens are deprived of the opportunity to purchase a car with a clear history of origin,” Roman Voloshin, a lawyer of the company, said at a press conference at Interfax-Ukraine.
He emphasized that in general the draft resolution, posted on the website of the Interior Ministry for discussion, contains many positive norms that will simplify the process of registration (re-registration of a car), however, two provisions on the prohibition of registration of cars with salvage titles, as well as on the need for mandatory translation of accompanying documents to the official language with an apostille will create chaos in the market, will entail additional costs for buyers and budget losses.
“Only the requirement of compulsory apostille, according to our calculations, will lead to additional costs for buyers of $200-300,” Voloshin said.
According to the calculations cited by Columb Trade co-founder Volodymyr Kovel, about 36,800 people who want to buy a car from abroad can suffer from such innovations (registration ban).
“The transit of a car from the United States takes three months, and the average monthly supply is 10,000 cars. Now 30,000 cars are in transit. Even minor repairs, taking into account certification and registration, take about a month. Respectively, there will be 40,000 such cars, not yet registered, of which 92% with the status of to be recycled, that is, 36,800 cars,” Kovel said.
He considers it incorrect to take into account the status of recycling, which the United States accept for itself, since there it is done by the method of financial accounting of the residual value of a car, while the damage can be minor and in Ukraine they can be repaired for $2,500-3,000.
Kovel stressed that these restrictions will not force Ukrainians to refuse buying cars from abroad, and they will be forced to buy the same cars from the United States, for example, in Georgia or Latvia, where this business has long been established, but then they will serve the orders of Ukrainians and get receipts from customs clearance and other fees going to the budget of their countries. As a result, the car will cost a Ukrainian almost $3,000 more, taking into account the extension of the logistics chain, the need to bring cars from neighboring countries and other expenses.

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