Business news from Ukraine

PHARMACY SALES IN UKRAINE IN JAN-OCT AMOUNTES UAH 66.663 BLN

Pharmacy sales in Ukraine in January-October 2019 in monetary terms decreased by 3.37% compared to the same period in 2018 and amounted to UAH 66.663 billion. Business Credit told Interfax-Ukraine over the period pharmacy sales in natural terms decreased by 9%, to 1.139 billion packages.
According to the company, retail sales of medicines in January-October in monetary terms fell by 4.79%, to UAH 53.987 billion, in natural terms by 16.8%, to 693.988 million packages.
The average weighted price of all categories of pharmacy retail products in January-October amounted to UAH 58, medicines some UAH 77.79.

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INSTITUTE FOR EDUCATION DEVELOPMENT OPENS IN UKRAINE

The Education and Science Ministry of Ukraine has announced the opening of the Ukrainian Institute for Education Development which will be in charge of the implementation of the New Ukrainian School Project. “The Ukrainian Institute for Education Development has opened. This agency will replace the Institute for Education Content Modernization to implement the New Ukrainian School Project and later all of the latter institution’s functions will be passed to it,” the ministry said.
Education and Science Minister Hanna Novosad noted that the Institute for Education Content Modernization was not always effective and successful during the implementation of the New Ukrainian School Project.
Vadym Karandiy has been appointed as Head of the new Ukrainian Institute for Education Development.
He headed that Ukrainian Center for Education Quality Assessment from 2015 until 2019, according to the ministry’s press service.
The ministry also said that the transformation of the old institution will be held until 2021.
The priority tasks of the Ukrainian Institute for Education Development will be coordination of the introduction of new education standards for students of the 3rd and 4th grades, assessment of quality of pre-school education with the help if the international tool ECERS, participation in the development of the national standards for secondary education and a typical secondary education program, support for professional development and growth of teachers, development of effective procedures for assessment of study books and piloting them during the selection of 4th grade students.

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UKRAINE DECREASES GAS PRODUCTION

Production of natural gas in Ukraine in January-October 2019 decreased 0.4% (by 67.5 million cubic meters, mcm) compared to the same period in 2018, to 17.237 billion cubic meters (bcm), the Ministry of Energy and Environment Protection has reported. According to the ministry, enterprises of NJSC Naftogaz Ukrainy saw 1.6% decline (214.7 mcm) in gas production, to 13.432 bcm. Gas production by PJSC Ukrgazvydobuvannia amounted to 12.459 bcm (2.3% lower from January-October 2018), by PJSC Ukrnafta to 966.8 mcm (8.6% up), and PJSC Chornomornaftogaz – 5.8 mcm (7.9% down).
Other companies increased gas production by 4% year-over-year (by 147.2 mcm), to 3.805 bcm.
Other large gas producers were PrJSC Naftogazvydobuvannia (1.367 bcm), PrJSC Ukrnaftoburinnia (608.42 mcm), ESKO-Pivnich LLC (448.45 mcm), JV Poltava Petroleum Company (222.39 mcm), PrJSC Natural Resources (154.23 mcm), PrJSC Ukrgazvydobutok (132.21 mcm), Regal Petroleum LLC (122.52 mcm), KUB-Gas LLC (111.76 mcm) and PrJSC Davon (82.1 mcm).
As reported, Ukraine in 2018 increased gas production by 0.5%, to 20.898 bcm.

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BILL CANCELLING STATE ALCOHOL PRODUCTION MONOPOLY IN UKRAINE PASSES SECOND READING

Presidential bill No. 2300 on the abolition of a government monopoly on alcohol production from July 1, 2020, has passed its second reading and has been adopted as a whole. It was backed by 284 lawmakers, namely 229 MPs from the Servant of the People parliamentary faction, three from Batkivschyna, 19 from the Holos (Voice) Party, 14 from the For Future parliamentary group, and 19 independent lawmakers. Bill No. 2300 on amendments to the law on state regulation of the production and sale of ethyl, cognac and fruit alcohol, alcoholic beverages, tobacco and fuels provides for the abolition of a government monopoly on the production of alcohol from July 1, 2020.
In addition, the bill allows business entities – regardless of their form of ownership – to produce alcohol with an appropriate license, and also provides for the full liberalization of alcohol exports from Ukraine.
A license for the production of ethyl alcohol is issued to enterprises with established round-the-clock video surveillance systems for the production and distribution of products. Disabling video surveillance systems is the basis for the refusal to issue a license or its recall, the document says.
At the same time, to protect the local commodity producer, the bill provides that only state-owned enterprises authorized by the Cabinet of Ministers will be able to import ethyl alcohol until January 1, 2024.
In addition, the bill provides for a ban on commissioning new alcohol production facilities before July 1, 2021. It also introduces an obligation to maintain jobs at privatized enterprises at 70% of the total number of employees for this period.
The bill also introduces mandatory denaturation of bioethanol with petrol from 1-10% for use in the domestic market.

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UKRAINE INCREASES GAS TRANSIT

Ukraine in January-November 2019 increased transit of natural gas through its gas transmission system (GTS) by 2.9% (by 2.327 billion cubic meters) compared to the same period in 2018, to 81.494 billion cubic meters, according to recent data from JSC Ukrtransgaz. According to the calculations of the Interfax-Ukraine agency, in particular gas transit through the country to Europe for the 11 months amounted to 78.960 billion cubic meters (3.1% more compared to January-November 2018), to Moldova some 2.534 billion cubic meters (0.9% down).
In November 2019, gas transit rose by 15.4% (by 1.095 billion cubic meters) compared to the same month of 2018, to 8.197 billion cubic meters. In particular, gas transit through Ukraine to Europe amounted to 7.910 billion cubic meters (16.8% more), Moldova some 286.9 million cubic meters (13.1% less).

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EUROPEAN INVESTMENT BANK LAUNCHES EUR 400 MLN PROJECT TO PROVIDE FINANCING FOR SMALL AND MEDIUM ENTERPRISES IN AGRI SECTOR OF UKRAINE

The European Investment Bank (EIB) has launched a EUR 400 million project to provide long-term financing for small and medium enterprises in the agricultural sector of Ukraine. “The EIB loan will be made available through financial intermediaries to private and public sector final beneficiaries, and is further supported by the EU and the United Kingdom through a combined grant amount of EUR 5.5 million for technical assistance services,” the bank said in a press release.
“The EIB funds will provide long-term finance to support productive investments by SMEs and mid-caps, as well as public service providers, along the entire value chain. Potential beneficiaries, therefore, include input suppliers, farmers, processors, and storage and logistics operators, as well as testing laboratories, research and education institutions and extension services that contribute to the functioning of the target value chains,” the report says.
“The cereals, oil seeds and aquaculture/fisheries value chains are being targeted by the program, as they have been identified as being best placed to satisfy domestic demand for quality produce and to increase the competitiveness of the sector and its exports to the EU and global markets,” according to the document.
The EIB announced the start of cooperation with Ukraine on the project for EUR 400 million in 2015. Since that time, a series of negotiations took place to determine the structure, technical executives, and the model for providing financing.

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