Business news from Ukraine

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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REGISTRATION OF NEW PASSENGER CARS IN UKRAINE 6% UP IN 11 MONTHS

The primary registration of new cars in Ukraine in January-November 2019 increased by 6% compared to the same period in 2018, to 79,300 units, the Ukrautoprom association has said.
As reported, in January-October the market for new passenger cars showed a 5% increase over the same period last year, in January-September it grew by 2%.
According to the association, in November Ukrainians purchased and registered 8,565 new cars, which is 17% more than last November, but 4% less than in October this year.
Renault retained leadership in November, doubling the November 2018 result to 1,751 registered cars. As in November last year, Toyota ranked second with an increase of 66%, to 1,254 cars.
KIA ranked third (in November 2018 it occupied the fourth position), increasing registrations by 21%, to 753 vehicles.
Volkswagen with a 50% increase (up to 581 cars) ranked fourth in the rating being seventh in November last year, and Skoda closes the top five leaders of the month, like last year, with 527 cars (8% less).
In addition, the top ten brands in November included Hyundai with 440 units (0.5% more), Nissan with 361 cars (47% less), Peugeot with 258 cars (40% more), Mitsubishi with 254 cars (24% more), and Suzuki with 250 vehicles (30% more).

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LEADING PRODUCER OF CEREALS IN UKRAINE DECIDES TO CHANGE PLACE OF REGISTRATION FROM CYPRUS TO POLAND

The Board of Directors of the Cereal Planet Group, a leading producer of cereals in Ukraine, has approved the decision to change the place of registration from Cyprus to Poland, the company has reported on the Warsaw Stock Exchange (WSE) on Friday.
According to the report, shareholders at an extraordinary meeting on August 12 made this decision. Now Cereal Planet is going through the registration process in the relevant authorities of Poland. The plans are to register a holding company of the group called Cereal Planet S.A. in Warsaw.
Cereal Planet produces weight grains for B2B under the OLIMP trademark – four product lines: Bulgur, Ridlan, Mayfayna, Zlatokositsa, and under the Lyuba Ferma trademark – animal feed mixtures. It exports cereals to more than 30 countries.
Cereal Planet, according to the company, occupies up to 10% of the Ukrainian cereal market. The monthly production volume is 4,500-5,000 tonnes.
The owners of the group are Anatoliy and Oleksandr Vlasenko (33.54% and 29.93% respectively), Oleksandr Slavhorodsky (29.93%), and Ihor Dobruskin (5.5%).

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STATE-RUN UKRENERGO ON APRIL 1 STARTS REGISTRATION OF ELECTRICITY MARKET PLAYERS

National energy company Ukrenergo on April 1, 2019 started accepting documents to register electricity market players, the company has said.
Ukrenergo recalled that the registration is a mandatory condition for operation on the electricity market from July 1, 2019, as well as for testing the subsystem accepting and processing timetables of market players and the function of the payment administrator.
The form of the application for the registration that is to be sent to Ukrenergo in paper and guidelines are posted on the company’s website (https://u.to/aZkCFQ). The company also created a call center for consultations, phone (044) 238 37 00.
As reported, in July 2019 in Ukraine, the launch of a new model of the wholesale electricity market is scheduled pursuant to the law on the electricity market passed in April 2017. It is planned to move from work on the “single buyer” model to a competitive mechanism providing for bilateral contracts between producers and large consumers, suppliers, the introduction of the balancing market, the day-ahead market and the intraday market.

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