Business news from Ukraine

Business news from Ukraine

Norwegian government allocates €48 million for UAVs and air defense equipment for Ukraine

The Government of Norway has allocated funds for the purchase of drones and air defense equipment for Ukraine as part of a joint project between the UK, the Netherlands, Lithuania, and Norway.
“Norway has contributed NOK 570 million (EUR 48.2 million – IF-U) to this donation. The acquisition is being made through the UK-led International Fund for Ukraine,” the Norwegian government’s press service said.
It is noted that the purpose of the UK-led fund is to provide Ukraine with military materials through industrial procurement. Norway has previously contributed a total of NOK 1.8 billion to the fund since 2022. Together with the United Kingdom, the Netherlands, Denmark, Sweden, Lithuania, Australia, New Zealand and Iceland, a total of more than NOK 12.5 billion has been allocated.
“Ukraine is in dire need of more military equipment to protect itself from Russia’s aggressive war. Together with other countries, Norway will do everything possible to contribute,” commented Norwegian Defense Minister Bjørn Aril Gram.
Earlier, Norway contributed to the purchase of, among other things, air defense equipment, demining equipment, artillery ammunition, transport vehicles, engineering vehicles, asphalt pavers, spare parts and maintenance equipment for Ukrainian platforms and small boats.
The support is funded through the Nansen program.

Ukrainian Foreign Minister Kuleba submits his resignation

The Verkhovna Rada has received a letter of resignation from Ukrainian Foreign Minister Dmytro Kuleba, Parliament Speaker Ruslan Stefanchuk wrote.
“The statement will be considered at one of the next plenary sessions,” he wrote on his Facebook page, attaching a photo of Kuleba’s statement.

Source: https://interfax.com.ua/

Milk price has risen by 15% – analysts

The price of milk in Ukraine has risen by UAH 2, or 15%, since the beginning of July and will continue to rise in September, according to Infagro, an industry analytical agency.
“This scale of price increase is unprecedented for the Ukrainian raw materials market. And this is not the limit of price growth. In September, analysts predict a further increase in milk prices,” the analysts said.
They cited market changes, shortages of raw materials and rising costs due to limited energy supply as the reasons for the significant rise in the price of milk and dairy products.
Experts also noted that in the second half of August, hot weather set in again, which did not allow cattle to recover from the abnormal July heat. Cow productivity did not increase. The seasonal decline in milk production also contributed to the problem. At the same time, demand for raw materials increased, which led to a further significant rise in milk prices. In the last week of August, the problem of energy supply became more acute due to another hostile shelling.
In addition, in July, both the number of cows and milk production decreased significantly. Analysts cited data from the Ministry of Agrarian Policy and Food, according to which, as of August 1, 2024, 1 million 255.4 thousand cows were kept in the private and industrial sectors of Ukraine, which is 7% less than a year ago. In agricultural enterprises, the number of cows decreased by 2%, to 380 thousand. The statistics for August are not better, according to the analytical review.
“Given the high cost of raw materials and the influence of other factors, dairy products are becoming more expensive. And if prices for finished dairy products are growing slowly, the cost of exchange goods has increased quite quickly and significantly,” Infagro summarized.

Market of new cars in Ukraine grew by 50-60% due to rumors of 15% military tax

The market of new passenger cars has added 50-60% in 1.5 months amid the government’s initiative to introduce a 15% military tax on car buyers, according to AUTO-Consulting, an information and analytical group.
“It is safe to say that rumors of a 15% additional tax have activated about 4000+ buyers of new cars in 1.5 months. And this added 50-60% to the market. We can’t think of a more effective advertising campaign,” the group said in a statement on its website.
At the same time, in August, AUTO-Consulting recorded a 36 percent increase in sales by August 2023 and a 38 percent increase by July this year – up to 8.3 thousand units, and noted that such a number of cars have not been sold in Ukraine in a month for a long time.
“At the end of July, the beginning of the rush was already recorded, which brought a thousand additional cars to the car market,” the report recalls.
As reported, on July 18, the Cabinet of Ministers submitted to the Rada Bill No. 11416 on amendments to the Tax Code of Ukraine, which, in particular, proposed to levy 15% of the military tax on car buyers, which was opposed by a number of car business representatives.
In late August, the finalized draft law no longer contained this provision.
AUTO-Consulting notes that not all dealers were ready for such a sharp jump in sales, but the market leader Toyota confidently kept its pace (up 44.5% compared to July), and Renault managed to move up to second place from third in July with a 76.2% increase in sales. BMW has consolidated its position in the top three, while Skoda, which took fourth place, almost doubled its sales.
“It is interesting that for the second month we have seen an abnormal number of electric vehicles – 16%, and some brands of ‘Chinese imports’ have already registered in the top ten,” the group’s analysts note.
At the same time, they suggest that some of these cars were indeed purchased, but a significant amount was simply registered by dealers to avoid the possible consequences of a 15% rise in price during the introduction of the military tax.
“Therefore, we will see the real volume of “electric trains” by the end of September, when the excitement around the new taxes will disappear,” they summarize.
AUTO-Consulting also emphasizes that not only the threat of the military tax has activated the car market – during the month there were large purchases by corporate clients, many cars were bought by the state, so this is a complex result.

Autumn sowing campaign 2024 has started in Ukraine, winter crops have already been sown on 484 thou hectares

Agrarians in all regions of Ukraine have started sowing winter crops for grain and are actively sowing rapeseed. As of the beginning of September, 484.1 thou hectares of winter crops have been sown, including 446.2 thou hectares of rapeseed and 37.9 thou hectares of grain, the press service of the Ministry of Agrarian Policy and Food reported.
According to the report, winter wheat has already been sown on 27.7 thousand hectares, winter barley – on 2.2 thousand hectares, winter rye – on 8 thousand hectares.
According to the Ministry, due to favorable weather conditions, rapeseed sowing has already been completed in Volyn, Sumy and Ternopil regions. Agrarians in Vinnytsia, Lviv and Chernivtsi regions have started sowing winter crops.
As of September 5, 699.7 thou hectares of winter crops were sown in Ukraine, including 654.9 thou hectares of rapeseed, 42.5 thou hectares of winter wheat, 1.2 thou hectares of winter barley, and 1.1 thou hectares of winter rye.

IAEA chief meets Ukrainian energy chiefs on way to nuclear plant

U.N. nuclear agency chief Rafael Grossi met Ukrainian energy officials on Tuesday before a planned visit to the Russian-occupied Zaporizhzhia nuclear plant, part of efforts to prevent a wartime nuclear catastrophe.

Grossi, the director of the International Atomic Energy Agency (IAEA), arrived in Ukraine a week after visiting the Kursk nuclear power station in Russia and warning of the danger of a nuclear accident there.

On his latest visit to Ukraine since Russia’s invasion in February 2022, Grossi met Energy Minister German Galushchenko, as well as Petro Kotin, head of state nuclear power company Energoatom, and Oleh Korikov, acting head of Ukraine’s State Nuclear Regulatory Inspectorate.

The IAEA was “fully committed to safety & security of (Ukrainian) nuclear sites, with (a) presence at each,” Grossi wrote on X alongside photos showing him and Ukrainian officials holding talks.

He said they were “exchanging (views) on our support to Ukraine’s NPPs (nuclear power plants) ahead of my ZNPP visit.”

Grossi said on X on Monday that he was on his way to the Zaporizhzhia nuclear power plant (ZNPP) “to continue our assistance & help prevent a nuclear accident.”

Ukrainian President Volodymyr Zelenskiy said he would meet Grossi after the IAEA chief visits the country’s nuclear plants.

The ZNPP in southeastern Ukraine, Europe’s largest nuclear power plant, fell to Russian troops soon after Moscow’s full-scale invasion and is not operating now.

Both sides have frequently accused each other of shelling the plant. Moscow and Kyiv both deny the accusations.

Zelenskiy and Dutch Prime Minister Dick Schoof on Monday visited the city of Zaporizhzhia, which lies across the Dnipro River to the northeast of the plant.

Zelenskiy also said that at this stage of the war, it is not possible for Ukraine to take back control of the plant.

“It is safer for Ukraine to control the Zaporizhzhia plant, but so far, from the point of view of the battlefield, I do not see such possibilities, and those that probably exist, they are dangerous,” Zelenskiy said.

Russian news agencies reported on Monday that a high-voltage power supply line at the plant had automatically disconnected, but the plant’s needs are supplied by another line. There was no reason given for the automatic disconnection.

Ukraine said Russian attacks had damaged one of the two external overhead lines connecting the plant to the Ukrainian power grid on Monday. Russia did not immediately comment on this assertion.

Russia says the Kursk nuclear plant visited by Grossi last week has been repeatedly attacked by Ukrainian forces that are just 40 km (25 miles) away since Ukraine carved out a slice of Russian territory in a cross-border attack this month.

Grossi said after visiting the Kursk nuclear plant that it was extremely fragile because it had no protective dome and that the “danger or possibility of a nuclear accident has emerged near here.”

Ukraine’s foreign ministry on Thursday denounced what it said were Russian efforts to “accuse Ukraine of alleged provocations against nuclear safety”.

It said Russia had intensified a “disinformation campaign to distract attention from its own criminal acts at the Zaporizhzhia nuclear power plant.”

In a statement, it described such accusations as “cynical” following attacks on energy infrastructure that forced Ukraine to disconnect several nuclear power units from the grid last week.

Source: https://www.reuters.com/world/europe/iaea-chief-meets-ukrainian-energy-chiefs-way-nuclear-plant-2024-09-03/

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