Business news from Ukraine


Average retail prices for petrol in Ukraine in the period from April 30 to May 11 grew by UAH 0.3-0.5 per liter, according to the data of the A-95 consulting group (Kyiv).
So, the average retail prices for petrol grade A-92 during the May holidays increased by UAH 0.31 per liter, to UAH 28.09 per liter, A-95 – by UAH 0.45 per liter, to UAH 29.10 per liter, premium A-95 – by UAH 0.47 per liter, to UAH 30.67 per liter.
In addition, retail prices for diesel fuel from April 30 to May 11 grew by UAH 0.07, to UAH 28.29 per liter, while prices for liquefied petroleum gas (LPG) fell by UAH 0.03 per liter, to UAH 15.77 per liter.
As reported, on April 2, the Cabinet of Ministers and most of the country’s large filling station networks signed a memorandum on the creation of fair competition in the petroleum product market, as well as on meeting the needs of consumers during the period of quarantine restrictions.
According to Interfax-Ukraine, before the signing of the document, representatives of the authorities were actively negotiating with large networks of filling stations, persistently offering them to lower the prices for petroleum products that have increased in recent months. In particular, they were advised to set a price of up to UAH 30 per liter for A-95 petrol. As a result, after the signing of the document, the chains dropped the price of petrol by UAH 0.2-1 per liter.
At the same time, during the May holidays, retail petrol prices have already won back this decline. On May 11, the Cabinet of Ministers, by resolution No. 450 dated March 29, 2021, introduced a declaration of an increase in retail prices for petrol and diesel fuel in excess of 1%. According to the document, petrol grades A-92 and A-95, as well as diesel fuel, are included in the list of socially important goods.



The Black Iron Canadian mining company, which is implementing a project to create a new iron ore plant in Kryvy Rih (Dnipropetrovsk region), has chosen Cargill (the United States) with the right to purchase the first 4 million tonnes of production per year, which will provide financing for the project in the amount of $75 million.
According to the company’s press release on Monday, May 10, the agreement will be concluded subject to the completion of the due diligence of the project and the successful completion of negotiations.
“Cargill will offtake the production and extend financing of $75 million for the construction of the Project through a finance facility. Drawdown on this funding will be subject to certain conditions being met, as is customary for this type of transaction, mainly related to the Project being fully permitted and financed for construction. Black Iron and Cargill will now start work on definitive binding offtake and financing agreements which reflect the Proposal,” the company said in the press release.
It also clarifies that based on the proposal agreed between Black Iron and Cargill, the offtake agreement will be for an initial term of ten years and will include a profit-sharing component which will align the interests of both parties and thereby generate a strong interdependent relationship of benefit to both parties. On the profit share, Black Iron will receive 100% of the 65% iron content fines benchmark price, currently $230 per tonne, and share with Cargill a portion of the incremental sale price of its 3% higher (68%) iron content and low impurity magnetite product.
“Black Iron and Cargill Metals agree that, as the world is becoming more environmentally conscious it will naturally turn to ores with a higher iron content and in forms such as pellets/pellet feed that reduce emissions in the production of steel,” the company said in the press release.
At the same time, it is noted that the Black Iron’s planned 68% iron content magnetite pellet feed is in the top 4% of global production by iron content and is anticipated to reduce emissions generated in the production of steel by an estimated 30% as compared to the more commonly consumed 62% iron content hematite fines. It is envisaged that the high-quality product from the Shymanivske iron ore project will attract a premium price in a variety of markets.
Black Iron’s CEO Matt Simpson said: “Black Iron received several offtake and investment proposals and chose Cargill based on its proposal striking the optimal balance of investment quantum, structure and shared vision on the increasing demand for high-grade ore as the global ferrous industry is shifting to become greener.”
“Cargill brings tremendous value not only in strengthening the project funding with a $75 million financing facility but, more importantly, its global network and local footprints, unique industry insight and successful experience in the technical marketing of high-grade ore to customers around the world,” the company’s CEO said.
In turn, in the press release, the company quotes the words of Lee Kirk, Managing Director of Cargill Metals, who announced his readiness to help finance the Black Iron’s Shymanivske Project.
“A relationship with Black Iron would be an excellent fit with Cargill Metals’ growth strategy to develop a high-grade and CO2 reducing iron ore portfolio, to help customers navigate the environmental and carbon challenges and opportunities ahead, and to support the sustainability efforts and low carbon ambitions of the ferrous industry,” the top manager said.
According to the attached certificate, Cargill has operated in Ukraine since 1991 with offices in several cities to support its more than 500 in-country employees. Cargill’s main Ukraine businesses are in the agricultural sector and include a deep-sea vessel terminal at Port Yuzhny close to the terminal Black Iron plans to use to ship its iron ore.
The selection of Cargill as Black Iron’s preferred offtake purchaser has triggered the following activities to bring the Project to a fully financed state for construction: update of the Project’s feasibility study will commence upon receipt and review of proposals already requested; selection and negotiation of binding terms with the preferred engineering, procurement and construction contractor who proposes to invest $65 million in the Project; commencement of third-party due diligence with a consortium of major international financial institutions on binding agreements for senior debt, $100 million royalty investment and political risk insurance.
The above activities will be supported by the outputs from the environmental impact assessment and Ukraine land transfer work currently ongoing which were previously announced.

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National bank of Ukraine’s official rates as of 11/05/21

Source: National Bank of Ukraine


Official rates of banking metals from national bank as of May 11

One troy ounce=31.10 grams



President of Ukraine Volodymyr Zelensky instructed the National Security and Defense Council (NSDC), the Antimonopoly Committee and the President’s Office to draft a law on oligarchs, NSDC Secretary Oleksiy Danilov said and added that NSDC confidently classifies 13 persons as oligarchs.
“At the last meeting of the National Security and Defense Council, the President the NSDC, the Antimonopoly Committee, and the President’s Office to draft a law on oligarchs who today have a very large impact on our economy, our domestic and foreign political processes,” Danilov said, speaking at the Ukraine 30. National Security forum in Kyiv on Tuesday.
According to Danilov, “the NSDC considers 13 persons who can be confidently classified as oligarchs according to the NSDC criteria.” At the same time, he did not specify who he was talking about.
As reported, on April 15, President of Ukraine Volodymyr Zelensky, following a meeting of the National Security and Defense Council, announced an initiative to draft a bill on oligarchs in order to limit their influence on politics and the adoption of laws in Ukraine.


Manufacturers of vaccines against coronavirus (COVID-19) disease have begun to “cancel debts” on contacts for supplies, Health Minister Maksym Stepanov has said.
“Now the situation has begun to level out and manufacturing companies have begun to cancel the debts they owe us,” he said at a briefing on Tuesday.
Stepanov said that “in the last ten days alone, we have received 1 million doses of vaccines from the Chinese company Sinovac, deliveries have begun under the COVAX initiative – 367,000 doses of AstraZeneca vaccine and 117,000 doses of Pfizer vaccine, and in total we expect 1.4 million doses under COVAX by the end of May.”
Stepanov also expressed hope for the resumption of vaccine supplies from India.
“We expect that the embargo on the export of vaccines in India will be lifted, and that debt of 1.5 million doses of AstraZeneca vaccines that we have contracted will be closed to us,” he said.
Stepanov said that by the end of the second quarter, Ukraine expects first 500,000 doses of Pfizer vaccine, the main deliveries through this contact will begin in July, in particular, 4.5 million doses are expected in the third quarter.