The Chinese company China Machinery Engineering Corporation (CMEC) is threatening Serbia with a lawsuit in international arbitration worth USD 795 million due to years of delays in the construction of the Kostolac B3 thermal power plant. The Chinese believe that the four-year delay was not their fault, and that EPS is responsible. In case of a loss, Serbia intends to file a counterclaim for damage caused by the need to import electricity. If the case goes to arbitration, the project could cost Serbia $1.5 billion, including the $715 million already paid.
The Chinese side claims that the increase in costs is due to inflation, the coronavirus and the war in Ukraine, as well as changes in the scope of work by EPS. The main disagreement concerns the revision of prices that were stipulated in the 2013 contract, when the project was supposed to be completed in 2019.
Despite the completion of construction and commissioning of the facility in December 2024, negotiations on compensation have not been completed, as the Chinese company is demanding a revision of the contract price. The Chinese argue that inflation and changes in the design documents have led to additional costs, and also take into account problems with obtaining permits and the effects of the pandemic and war in Ukraine.
Serbia tried to negotiate, but the Chinese did not agree to a compromise and continued to seek compensation through arbitration. In the event of arbitration, China is expected to file a claim for an amount exceeding the original project amount.
Source: https://t.me/relocationrs/516
The International Monetary Fund (IMF) has revised downward its forecast for Ukraine’s economic growth in 2025, lowering it by 0.5 percentage points (p.p.) from the previous forecast to 2-3%, according to a press release from the Fund based on the results of the mission for the seventh review of the Extended Fund Facility (EFF).
“Real GDP growth is estimated at 3.5% in 2024, but is expected to slow to 2-3% in 2025, reflecting unfavorable factors related to labor market constraints, damage to energy infrastructure, and Russia’s ongoing war in Ukraine,” the release said following the staff-level agreement (SLA) on Friday.
Earlier this week, the European Bank for Reconstruction and Development (EBRD) downgraded its forecast for Ukraine’s economic growth in 2025 to 3.5%, while last September it expected it to reach 4.7%.
As reported, the World Bank (WB) in its Global Economic Prospects published on January 17 downgraded its forecast for Ukraine’s GDP growth in 2025 to 2% from 6.5% in the June report, but improved it for 2026 to 7% from 5.1%.
The National Bank of Ukraine also changed its forecasts. Given the security risks and the difficult situation on the labor market, the NBU lowered its real GDP growth forecast for 2025 from 4.1% to 3.6% in late January, while the state budget for 2025 is based on a 2.7% GDP growth forecast.
Zaporizhstal Iron and Steel Works allocated UAH 938 million to maintain its production facilities in 2024, and plans to increase investments to UAH 1.1 billion in 2025.
According to the company, in 2024, Zaporizhstal carried out major overhauls of its main production units in accordance with its investment program, and implemented investment projects in occupational safety, information technology, and social sphere with a total investment of UAH 938 million.
The key equipment upgrade projects implemented in 2024 include the repair of blast furnaces No. 2, 3 and 4 with a total investment of over UAH 230 million. Similar investments were made to carry out a set of overhauls of the main rolling units.
The plant also overhauled the equipment of two sintering machines, including the revision of environmental protection equipment. In addition, a number of investment projects have been implemented to digitize production processes and upgrade the IT infrastructure. Every year, the company invests in improving working conditions for its employees: two sanitary facilities have been overhauled and two new modular sanitary facilities have been installed.
According to Taras Shevchenko, acting general director of the plant, the main focus of the capital investment program is to maintain efficient and trouble-free operation of production equipment and its treatment facilities.
“A functioning enterprise provides employment, exports and foreign currency earnings, revenues to the state budget, support for the region of operation, etc. Despite the challenging economic situation, Zaporizhstal has been gradually increasing its capital investments in production during the war: in 2022, investments amounted to UAH 500 million, in 2023 – UAH 750 million, in 2024 – UAH 938 million. The capital investment budget for 2025 is planned at UAH 1.1 billion, and we are already implementing the first projects of the planned ones,” the top manager stated.
In particular, in 2025, the plant will overhaul BF No. 3, two sintering machines, BTS-1680 and Slabbing-1150 mills, heating wells, BTA-4 line, modernize rolling production, as well as upgrade the amenities of the steelmaking shop, water supply shop, and implement a number of other projects.
“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries around the world.
“Zaporizhstal is in the process of being integrated into Metinvest Group, whose main shareholders are System Capital Management PrJSC (71.24%) and Smart Holding Group (23.76%).
Metinvest Holding LLC is the management company of Metinvest Group.
The Industrial Parks of Ukraine Group of Companies manages the development of six industrial parks in Ukraine, including the fact that last week it became the management company of another industrial park, said Valeriy Kirilko, CEO and General Director of the group of companies.
“Last week we became the management company of another industrial park. We are now the management company in six industrial parks in Ukraine. Thus, we have become the company that manages the development of the largest number of industrial parks,” he wrote on his Facebook page.
According to the Ministry of Economy, Concept Real Estate LLC, owned by Kyrylko, according to opendatabot, became the management company of the Yellow Waters IP last week. The agreement was signed on February 18.
According to Kyrylko, Industrial Parks of Ukraine currently supports the development and promotion of 28 industrial parks in Ukraine.
“To date, we have registered 30 industrial parks out of 97 that are currently in the state register of industrial parks in Ukraine. Another 27 industrial parks are in the process of registration or at the stage of preparing a concept or documents,” Kyrylko wrote.
As reported, the government made the decision to include the Zhovti Vody IP in the Register of Industrial Parks at a meeting on February 4.
The park will create about 500 jobs, in particular in the chemical industry, alternative energy production and information technology.
The initiator of the Zhovti Vody IP is Zhovti Vody Industrial Park LLC, while the concept development and registration support was provided by Industrial Parks of Ukraine.
PJSC Ukrnafta has started implementing new systems for dosing liquid reagents at oil and gas wells, continuing the transition to modern equipment from world leaders.
“We have already installed 30 automatic dosing units at wells in the eastern and western regions,” the company’s press service toldInterfax-Ukraine on Friday.
According to the press release, the injection of reagents into wells protects underground equipment from corrosion, formation of mineralized and paraffinic deposits, well drainage and other complications.
With the old method, oil companies had to periodically use special vehicles and obsolete pumping equipment to supply reagents, which is inefficient and economically unprofitable compared to the new technology, the company explained.
At the same time, modern systems allow for the use of a wider range of higher quality reagents and a smaller amount of them. They are equipped with remote control and monitoring of pumping equipment, as well as remote control of well pressure. The pumping equipment has low power consumption, which is especially important in the current environment.
“In 2025, the company plans to install 60 new systems complete with a capillary tube for injecting chemicals directly to the wellhead, and plans to purchase more than 50 similar systems,” Ukrnafta said.
“Ukrnafta is the largest oil company in Ukraine and the operator of the national network of filling stations. In March 2024, the company took over the management of Glusco assets and operates a total of 544 filling stations – 461 owned and 83 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, the company has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
“Ukrnafta holds 92 special permits for commercial development of fields. It has 1832 oil and 154 gas production wells on its balance sheet.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is currently managed by the Ministry of Defense.
As of February 28, Ukraine exported 28.853 mln tonnes of grains and pulses since the beginning of 2024/25 marketing year (MY, July 2024 – June 2025), of which 3.162 mln tonnes were shipped this month, the press service of the Ministry of Agrarian Policy and Food reported, citing the data of the State Customs Service.
According to the report, as of the same date last year, the total shipments amounted to 29.136 mln tonnes, including 5.26 mln tonnes in February-2024.
At the same time, since the beginning of the current season, Ukraine has exported 11.883 mln tonnes of wheat (11.449 mln tonnes in 2023/24 MY), 2.124 mln tonnes of barley (1.597 mln tonnes), 10.8 thsd tonnes of rye (1 thsd tonnes), and 14.405 mln tonnes of corn (15.671 mln tonnes).
The total export of Ukrainian flour since the beginning of the season as of February 24 is estimated at 46.4 thsd tonnes (in 2023/24 MY – 73 thsd tonnes), including wheat – 42.9 thsd tonnes (69.3 thsd tonnes).
