More strains between Odesa customs, Kyiv
The fight continues between Yulia Marushevska, the head of Odesa Oblast’s customs service, and her boss Roman Nasirov, the head of the State Fiscal Service of Ukraine. The pair have been at odds since Marushevska was appointed by Odesa Governor Mikheil Saakashvili in October 2015 to end corruption in Odesa customs operations. Marushevska says her reforms are being repeatedly thwarted by Kyiv.
One major argument has been over the introduction of a new information technology system to make customs clearance more systematized in pricing and accountability. The current system allows people to change declarations and results retroactively, according to Marushevska. The United Nations gave Odesa a modern international customs system, known as ASYCUDA for free. Kyiv is now saying that the introduction of the system could be a security risk. Marushevska has also yet to find Hr 17 million needed to implement it.
In July, Marushevksa announced she was taking Nasirov to court, alleging he is behind non-transparent hiring. He also refuses to approve her chosen candidate, Roman Bakhovskyy, who is resigned to work as deputy head of the pilot project. Higher level appointments require Kyiv’s approval. Marushevska also claims Nasirov is blocking disciplinary proceedings against customs officials suspected of corruption.
Nasirov has continued to appoint his people to the Hryhorivka and Bilhorod-Dnistrovskyi customs points, Marushevska wrote on Facebook on Aug. 23. She says that a court date is set for Sept. 28 and she expects the judge to annul Nasirov’s appointments.
So far, Marushevska’s team has managed to reduce time spent on registration of containers from four hours to an hour or less by favoring companies with good reputations and those from European Union countries where controls are more rigorous.
State Property Fund cuts price of Odesa Portside Plant for November sale
State Property Fund Chief Ihor Bilous announced that the Ukrainian government wants to sell a 99.6 percent stake in the Odesa Portside Plant by November from $400 to $450 million.
Bilous’s remarks come about a month after the state fund failed to find a single bidder for the Black Sea ammonia producer, with foreign investors complaining that the $527 million price tag was too high. An ongoing legal challenge from oligarch Igor Kolomoisky, when paired with a $190 million debt claim from billionaire Dmytro Firtash, also did nothing to help.
The reduced price falls short of the 30 percent discount Bilous said he was considering immediately after the failed sale. Selling the factory – which employs around 3,800 workers and produced 1.1 million tons of ammonia in 2015 – has been a priority for the Ukrainian government.
In a research note, Empire State Capital called Bilous’ announcement “a desperate step toward saving the fund’s privatization plan for the current year.” Analysts at the investment firm added that other external factors, like Russia’s recent ramping up of the war as well as a pause in International Monetary Fund lending reduce the chances that a foreign investor will come in and make such a large purchase. Alexander Paraschiy of Concorde Capital noted that the budget anticipates Hr 17 billion ($670 million) in privatization profits for 2016, but that there doesn’t seem to be “a desire of top officials to fulfill these plans.”
Finance Ministry wants alcohol price hike
The Ministry of Finance is proposing to raise the minimum price of alcohol. According to the ministry, the current minimum prices do not reflect the cost of production and sale of alcoholic drinks. The ministry believes that the price increase will also help reduce sales of illegally produced, low-quality alcohol that is damaging to health.
“The proposed minimal prices are actually in line with the average price currently present at the market representing legal producers, wholesale and retail companies,” states the ministry website.
Under the draft plan, the wholesale minimum price of vodka, per liter of 100 percent alcohol, would be set at Hr 218.32 while the retail price would rise to Hr 340.57.
The retail price for three star cognac, per liter of 100 percent alcohol, would rise to Hr 524.5 while a 0.7 liter bottle of wine would be retailed at a minimum of Hr 33. n
