Business news from Ukraine

Business news from Ukraine

Apples and grapes have brought super-profits to Ukrainian producers – expert

This year, Ukrainian gardeners will finally be able to make money on apples, as prices for these products have risen not only in Ukraine but also around the world. And winegrowers, although they received a smaller harvest, received good prices for it.

Taras Bashtannyk, President ofthe Ukrainian Fruit and Vegetable Association, told SEEDS about the end of the apple and grape season in Ukraine.

Taras Bashtannik, President of the Ukrainian Fruit and Vegetable Association

– Many Ukrainians have not had a good harvest of apples this year, and it is said that this is the main reason for the high prices of these fruits. Is this true?

– This year’s apple harvest in Ukraine is actually quite good. For once in many years, Ukrainian apple producers are making some money.

But there are no cheap apples and there will be no cheap apples. Everyone knows that the price of apple concentrate has tripled, which has also raised the price of an ordinary apple. And the price of concentrate has risen because of crop failure and problems with oranges, especially in Brazil.

The fact is that apple concentrate is an analog or substitute for orange concentrate and juice. Orange concentrate and juice are now very expensive, and as a result, there is a huge demand for apples and their concentrate.

This year can definitely be called an “apple year”. Compared to last year, the profit for apple growers has roughly doubled. But just as apples have become profitable this year, they can also become unprofitable next year.

“Apple growers in Ukraine have been suffering for the last five years, either because of the weather or the price. At least this year was a good one for them. Now I wish them the wisdom to reinvest their earnings properly.

– What prices for apples can we expect in the near future?

– I think that prices will be high. That is, they will grow. But, in my opinion, it will not be some kind of global growth, because there are stocks.

And it is likely that the price of apples will grow until spring in sync with the cost of storage, inflation, and the devaluation of the hryvnia. In other words, these are the macroeconomic factors that will have an impact, but not speculative ones.

– If massive and prolonged power outages start again in Ukraine, will they affect the formation of new apple prices?

– Unlike the same freezing, an apple storage facility is certainly a large refrigerator, which required large investments to build. But in terms of energy consumption, it is not that powerful.

That is, the owners of the company who built the storage facility for millions of dollars will find the funds to buy a 100 kilowatt generator. And these additional costs will have little impact on the cost of storing products. Therefore, we should not expect that during power outages everyone will quickly sell their products.

– Is the number of apple orchards in Ukraine increasing, or are they being uprooted?

– Some people uproot old orchards. Some simply change the varieties. But I can’t say that it is a mass phenomenon. Those who are engaged in gardening professionally continue to do so.

And some even expand their areas thanks to grant programs. Given the excessive profits, especially this year, I think that the area of apple orchards in Ukraine will be further expanded, in particular, due to new varieties that have the potential for an expert.

Because those orchards in Ukraine that were planted 10-15 years ago usually have outdated varieties that are not in demand in foreign markets. Therefore, they need to be changed, but again, this is an investment. And from year to year, apple growers have always had financial problems.

– Lately, you can often see giant apples in stores and markets in Ukraine. What is the reason for this, or is it just a coincidence?

– To be honest, I haven’t noticed that this is a widespread phenomenon. Usually, medium and medium-large caliber apples are exported. It is quite possible that extra-large or small apples go to retail chains.

Yes, this year apples have a good price in Ukraine, but apple prices have gone up globally. Moreover, systemic players will not rush in different directions, looking for where it is more expensive or cheaper. They prefer to fulfill their contracts or obligations. Therefore, I think that even despite the logistical difficulties, all the fruit will go abroad, according to the contractual agreement.

– What export destinations would you recommend to Ukrainian apple producers?

– I would recommend expanding exports to the East, Southeast Asia, the Middle East, the Emirates, and Indonesia. It is better to choose this direction, because in Europe it is rather “crowded” for Ukrainian apples.

– What kind of harvest did Ukrainian farmers enjoy or, on the contrary, disappoint?

– As for grapes, this year we are facing a crop failure due to a terrible drought. I talked to farmers about this, and they say that it was not so much the spring frosts as the severe summer drought that affected the harvest.

Those who had drip irrigation – those farms were “on a horse”. They got a fairly good harvest, and most importantly, they sold their products at a fairly high price. 40-45 hryvnias per kilogram is a lot for table grapes.

Grapes have once again shown that it is a good and promising crop for Ukraine, but we need to invest in technology. This includes pruning, approaches to growing, storage, and especially watering. The climate is changing, especially in the South. And grapes are a more southern crop. The farther south the plantations are, the more dramatic the issues with this year’s harvest were.

– Today, vineyards are “migrating” further north, how massive is this process?

– Of course, they are trying to shift grape growing to the North. The climate itself is drifting. It’s just that grapes are not such a “fast” crop, unlike vegetables. It is difficult to plant it immediately and get a quick harvest and profit in the same year.

Modern technologies allow us to get a certain harvest only in the third year. But viticulture is also about experience, time, and tradition. Traditionally, grapes are grown in the Odesa region, so it is easier to find specialists for pruning, harvesting, and any other work there.

I am also confident that grapes will gradually be adapted to grow in more northern regions of Ukraine. Actually, Austrian white wines are popular all over the world. But is the climate in Austria warmer than, say, the same Khmelnytsky region? Of course, we need to study this topic in more detail.

But I’m sure that since the Soviet Union, and even later, Ukrainian agricultural science has not paid attention to the central or northern regions in terms of grapes. And no one even thought that grapes could be grown in Zhytomyr.

I am convinced that everything will develop with grapes in Ukraine. Especially, perhaps, with table grapes, not with technical varieties.

Even in Norway, certain peach clones grow quite normally near the fjords. If you choose the right variety, you can grow anything.

Source: https://www.seeds.org.ua/yabluka-ta-vinograd-prinesli-cogorich-nadpributki-ukrainskim-virobnikam/

“TAS Dneprovagonmash” will supply more than 400 railcars for Ukrzaliznytsia and Lithuania

“TAS Dneprovagonmash (DVM, Kamianske, Dnipro region) will supply more than 400 freight cars (gondola cars and platform cars) to Ukrzaliznytsia and Lithuanian Railways by the end of the first half of 2025 following the results of the tenders won in November-2024, the company reports on its Facebook page.
“The company started the winter production season by signing two major contracts with Ukrzaliznytsia and Lithuanian Railways,” the company said in a statement.
DVM clarifies that gondola cars of the 12-4106 model will be manufactured for Lithuanian partners, and a new development of the plant – 40-foot platform cars for large-tonnage containers of the 13-4155 model – will be delivered to UZ.
As reported, the Lithuanian rail freight operator LTG Cargo (part of Lithuanian Railways) will purchase 200 gondola cars for bulk cargo transportation from DVM for EUR 12.7 million. The first gondola cars are expected to be delivered in February-April 2025.
For its part, according to Prozorro, on December 3, TAS Dniprovagonmash and Ukrzaliznytsia signed a contract for the supply of 252 units of 40-foot fitting platform cars by June 30, 2025, for UAH 707.011 million (including VAT).
The contract provides for a 50% advance payment within 20 calendar days from the date of invoice.
In addition to TAS Dneprovagonmash, the Research and Mechanical Plant Karpaty participated in the tender for the supply of platform cars to UZ, with a bid of UAH 589.680 million against UAH 589.176 million from DVM, for an expected purchase price of UAH 608.58 million (all excluding VAT).
According to the State Railways Administration, the new platform cars have a tare weight of 20.5 tons and a carrying capacity of 73.5 tons, which “will guarantee the transportation of maximum cargo volumes compared to analogous cars available on the market.”
In addition, the platforms will be able to run on the EU rail network.
“TAS Dneprovagonmash is controlled by the TAS financial and industrial group of businessman Serhiy Tigipko. The plant, which has the capacity to produce 9,000 railcars a year, produced 378 freight cars in 2023, down 34.5% from 2022.
In January-September, the company posted a consolidated net profit of UAH 84.08 million, up 6% compared to the same period in 2023, while consolidated net income increased by 62.8% to UAH 1.61 billion.

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HITBIT PRO – new word in financial technology at SBC Ukraine Awards

On December 15, the Kyiv Event Hall by Ramada Encore hosted an outstanding event – the annual SBC Ukraine Awards ceremony. Among the partners of the event, a special place was taken by HITBIT PRO, which presented its innovative cryptocard and confirmed its status as a technological leader in Ukraine.

HITBIT PRO is a Ukrainian startup created by Igor Kucherenko and Dmitry Nikiforov that is changing the way people think about the convenience of financial transactions. Their main product – a cryptocard – allows you to pay for purchases in cryptocurrency, exchange and withdraw funds directly through POS terminals in any country in the world.

At the event, the HITBIT PRO team presented an interactive stand where guests had the opportunity to see the product in action. Visitors were able to register, order a card, and try out real-time payment. This demonstration caused a real sensation among the participants of the SBC Ukraine Awards.

“Our mission is to make financial transactions simple, convenient and accessible to everyone. We are proud that our product represents Ukraine in the global financial arena,” said Igor Kucherenko, co-founder of HITBIT PRO.

HITBIT PRO has received positive feedback not only from business representatives, but also from marketing agencies that already see the prospects of cooperation with such an innovative product. Thanks to such initiatives, SBC Ukraine Awards is becoming a platform for discovering new ideas and solutions in the field of sports, business, and technology.

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ECA supported exports worth UAH 7.22 bln in 11 months of 2024

The Export Credit Agency of Ukraine (ECA) has supported exports worth UAH 7.22 billion in 11 months of 2024, First Vice Prime Minister and Minister of Economy Yulia Svyrydenko said.

“Supporting and developing non-resource exports is one of the key areas of the Made in Ukraine policy. Over eleven months, the ECA has insured UAH 1 billion of export credits, supporting UAH 7.22 billion of exports. This is almost UAH 2 billion more than in January-November 2023. It is important that one hryvnia of insurance liability was converted into UAH 7.83 of future export revenue,” the press service of the Ministry of Economy quoted the Deputy Prime Minister as saying.

According to the Ministry, the top three regions in terms of exports supported over 11 months are as follows: Kyiv – UAH 3.8 billion (UAH 304 million of loans issued), Lviv – UAH 1.25 billion (UAH 147 million), Vinnytsia – UAH 702.8 million (UAH 183 million).

In 2024, eight banks insured their clients’ loans with the ECA. Ukrgasbank ranked first in terms of supported exports for the period under review (UAH 2.9 billion), FUIB was second (UAH 1.78 billion), and MTB Bank was third (UAH 980 million).

The most popular countries for exporting Ukrainian goods are Poland, the UAE, Azerbaijan, Germany, and Slovakia.

The largest export volumes were in the commodity groups of milk and dairy products, wood and wood products, and processed fruits and vegetables.

The ECA instruments are one of the elements of the “Made in Ukraine” policy, which was presented by President Volodymyr Zelenskyy in February. Its goal is to support non-resource exports, develop production and attract investment in the real sector, the Ministry of Economy reminded.

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Kyivstar corporate volunteering: UAH 3 mln of assistance from employees

In 2024, Kyivstar strengthened its support for the culture of corporate volunteering among its employees, believing in the power of small actions that can change the world for the better. The Kyivstar team joined the implementation of socially important projects and raised UAH 3 million to help the military, children and victims of war during the full-scale war.

Kyivstar’s large volunteer community regularly supports the company’s social initiatives. One of the key areas is corporate donation. This year, employees donated about 100 liters of blood to save the lives of civilians and soldiers.

A special initiative this year was a project in partnership with the SOS Children’s Villages charity. On Christmas Eve, the company’s employees made the dreams of more than 100 young Ukrainians come true. These are children and teenagers from vulnerable and internally displaced families affected by the war, as well as children from foster care from different parts of Ukraine. The employees not only donated gifts but also organized jewelry making workshops in Brovary, Kyiv and Lviv, where they participated together with the children.

“We believe that change starts with each of us. Corporate volunteering has become an integral part of Kyivstar’s culture. Our colleagues do not just support the company’s initiatives, they inspire and engage others in doing good deeds. I thank our entire team for this. Together we can do more,” comments Olesya Olenytska, Kyivstar’s Director of Corporate Communications.

Employees also join the company’s meetings. “As part of the Children’s Hope project, our volunteers raised about UAH 300 thousand for an ultrasound system for the burn department of the Unbreakable rehabilitation center. They also supported the company’s joint project with the Come Back Alive Foundation to demine the country – We Live Here 2.0.

The company’s internal social network has a group for mutual assistance, where employees regularly initiate and close each other’s meetings for various needs: assistance to the Armed Forces, health issues.

Kyivstar continues to develop a culture of corporate volunteering, inspiring its employees and partners to new achievements and supporting Ukrainian society in difficult times of war.

About Kyivstar

Kyivstar is Ukraine’s largest electronic communications operator, serving about 23.3 million mobile subscribers and more than 1.1 million Home Internet subscribers as of September 2024. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, cybersecurity services, digital TV, etc. Kyivstar is developing new telecom technologies in Ukraine and plans to invest USD 1 billion in this area in 2023-2027. THE COMPANY PLANS TO INVEST USD 1 BILLION IN THIS AREA. The company helps Ukraine overcome wartime challenges and has allocated over UAH 2 billion over the past two years to support the Armed Forces, subscribers, and social projects. Kyivstar’s shareholder is the international VEON Group. The Group’s shares are listed on the NASDAQ stock exchange (New York). Kyivstar has been operating in Ukraine for 27 years and is recognized as the largest taxpayer in the electronic communications market, the best employer and a socially responsible company. For more information: pr@kyivstar.net, www.kyivstar.ua

Ruta TM increased production by 7.7%

In January-November 2024, Ruta, a major Ukrainian manufacturer of sanitary and hygienic paper products, whose management company is VGP JSC (Lutsk), produced products worth UAH 1 billion 588 million, up 7.7% compared to the same period in 2023.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the company has thus slightly accelerated the positive dynamics of production volumes over the first 11 months of the year compared to the same period last year, which it reached in the first nine months.
In physical terms, the company’s production of toilet paper in rolls slightly exceeded the previous year’s figure and amounted to 121.68 million units, which remains the third best result in the industry after Kyiv Cardboard and Paper Mill (248 million units) and Kokhava Paper Mill (125 million units).
The company produces pulp-based sanitary and hygienic products from imported base paper.
VGP’s portfolio includes dry and wet wipes, toilet paper, paper handkerchiefs, and kitchen towels. The assortment includes more than 180 items.
As reported, in 2023, VGP JSC produced products worth UAH 1 billion 611 million, which is 64.8% more than in 2022.

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