Trade between the European Union and Russia has fallen significantly since Russia’s invasion of Ukraine, especially noticeably in recent months, the EU statistics office (Eurostat) reported Friday.
Russia’s share of EU imports fell to 4.3 percent from 9.5 percent between February and December 2022, according to the statistical data. During the same period, Russia’s share of EU exports fell to 2 percent from 4 percent.
The EU’s trade deficit with Russia peaked at €18.2 billion in March 2022 and then gradually declined to €6.0 billion in December 2022. The value of imports from Russia during this period fell 53% to €10.3 billion from €21.8 billion.
Eurostat notes that “as Russia gradually replaced other trading partners, its share of EU imports fell across six key commodities. Among them, the largest drop was recorded for coal (to 22% in 2022 from 45% a year earlier), natural gas (to 21% from 36%), fertilizers (to 22% from 29%), iron and steel (to 10% from 16%).
Ukrainian Defense Minister Alexei Reznikov on Friday signed an order approving the regulations on the Public Anti-Corruption Council under the Ukrainian Defense Ministry.
“The newly established consultative and advisory body, after holding an open nationwide vote for candidates on the platform of the National Agency for the Prevention of Corruption and after determining the winners who will join the anti-corruption council, should ensure transparent activities of the Ministry of Defense and civilian control. Among other things, the list of tasks of the council includes analysis of corruption risks, prevention and counteraction to corruption, establishing interaction of the Ministry of Defense with public associations and other civil society institutions,” the website of the Ministry of Defense said on Saturday.
The Anti-Corruption Council is created on the basis of an open and transparent competition of 15 members for a one year term. Its activity provides for public participation in the formation of anti-corruption measures in the Defense Ministry of Ukraine. The composition of the council is approved based on the results of the competition. Candidates for participation can be nominated by public associations, state registration of which took place at least two years before the day of announcement of the competition and the statutory activity of which is related to prevention and counteraction to corruption.
“The Public Anti-Corruption Council is endowed with an exhaustive list of tools, which are sufficient to exclude any corrupt practices. It can create expert groups, involve specialists, and the regulation of the council’s activity provides for a wide range of actions. I am sure that the anti-corruption council will not only improve the work within the ministry, but also strengthen the foundation of public trust. Both the former and the latter are extremely important moments for achieving Ukraine’s main strategic goal – to win the war,” Reznikov said.
The U.S. Agency for International Development (USAID) has announced cooperation with three major Ukrainian agricultural holdings to develop their grain export and storage infrastructure, with total investments in the project totaling $44 million.
According to CNN’s website, the three companies are large Ukrainian agricultural producers Kernel, Nibulon and Grain Alliance.
It is specified that the cooperation with the companies will help increase Ukraine’s capacity to ship over 3 million tons of grain to foreign markets per year. Investments will be used to develop the infrastructure of agricultural products storage and expansion of elevators.
“This announcement is part of a deliberate effort by the Biden administration to develop Ukraine’s economy and mitigate the global food security crisis that escalated after Russia’s invasion of Ukraine,” the publication specified in the report.
As earlier reported, before the war Kernel was the world’s number one producer and exporter of sunflower oil (about 7% of world production) and was the largest producer and seller of bottled sunflower oil in Ukraine. The company was also engaged in cultivation and sale of other agricultural products.
In FY2022 (July-2021 – June-2022), the holding posted a net loss of $41 mln versus $506 mln net profit in the previous FY. Its revenue decreased by 5% to $5.332 bln, and EBITDA decreased by 3.7 times to $220 mln.
Nibulon, one of the largest grain market operators in Ukraine, on April 15, 2022 received the permit from Izmail city council (Odessa region) for the construction of the terminal for handling grain cargoes on the land plot with the total area of 20 hectares.
“Nibulon” was established in 1991. Before Russian military invasion grain trader had 27 transshipment terminals and complexes to receive the crops, the capacities for one-time storage of 2,25 mln. tons of agroindustrial complex products, fleet of 83 vessels (including 23 tugs), and also owned Nikolaev shipyard.
“Nibulon” before the war worked 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
The grain trader exported maximum 5.64 million tons of agricultural products in 2021, reaching record volumes of deliveries to foreign markets in August – 0.7 million tons, the fourth quarter – 1.88 million tons and in the second half of the year – 3.71 million tons.
Grain Alliance Agro Holding in spring 2022 purchased a grain logistics hub near the border of Ukraine and Slovakia to deliver agricultural products by land bypassing Ukrainian ports, the throughput capacity of which was significantly reduced due to the full-scale Russian military invasion. The transshipment capacity of the grain terminal in Černá nad Tysou (Slovakia) will be up to 400,000 tons per year.
Before the war, Grain Alliance farmed 57,000 hectares in Kyiv, Poltava, Chernigov and Cherkasy regions, grew more than 300,000 tons of grain and oilseeds a year, and owned more than a thousand head of cattle.
Agroholding has six granaries in Ukraine with a total capacity of over 260 thousand tons.
The founders of Harvest Moon East LLC (Baryshevka village, Kyiv region) and BZK Grain Alliance (Sweden) established a joint company, Grain Alliance, in 2009.
Employees of the Cyber Police Department together with the investigation department of the Kyiv region police and bank security officers have exposed a group of malefactors who issued credit cards and loans to servicemen who had been captured or considered missing, the press service of the National Police of Ukraine reported.
“It was established that three people received data on mobile numbers of military personnel with whom their relatives have lost contact or are in captivity. Attackers carried out the reissue of SIM-cards and checked whether the reissued numbers are financial. Then they gained access to online banking. From the accounts of defenders transferred the balance of money, as well as issued credit cards and embezzled loan amounts”, – was stated in the report.
According to preliminary data, the group managed to get access to mobile numbers of more than 20 servicemen in captivity or missing. The total amount of damage is more than 2 million hryvnias.
During a search in the homes of the defendants law enforcement officers seized bank cards, SIM-cards, cell phones, which were used in illegal activities.
Also police found grenades. They were sent for examination.
The organizer of the criminal group was detained. He is suspected under part 3 of article 190 (fraud) of the Criminal Code of Ukraine.
After the events will be provided legal qualification of the actions of all defendants.
European Bank for Reconstruction and Development (EBRD) First Vice President Jurgen Rigterink led the bank’s high-level delegation to western Ukraine to discuss in Lviv further strengthening the bank’s commitments to Ukraine as the country enters its second year of war, the EBRD press service reported.
With the participation of EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone and the bank’s Deputy Head of Industry, Trade and Agribusiness in Ukraine Lesya Kuzmenko, Rigterink discussed future investments with Lviv Mayor Andriy Sadovy.
According to the press release, Lviv and western regions of Ukraine are near the border with several European Union countries. As the war challenges Ukraine’s ability to import and export through its Black Sea ports, road and rail connections to the west of Lviv become crucial to support the economy. The area is also seen as a likely starting point for future reconstruction efforts.
That said, as the largest population center in the west, Lviv has received a significant number of internally displaced people, putting pressure on key municipal services at a time when the city needs to generate revenue. In December 2022, the EBRD provided EUR25 million to Lviv and its municipal enterprises, and U.S. credit support covered half of that loan to provide liquidity for adaptation.
EBRD representatives reportedly visited the city’s hospital and the Nezlamni rehabilitation ecosystem being built in Lviv, where war wounded warriors have access to multidisciplinary teams of surgeons, trauma surgeons, prosthetists, psychotherapists and rehabilitation specialists.
The delegation also visited several EBRD projects in Lviv and the region and discussed existing and potential projects with clients. In particular, among them is the Bank Lviv, which received a syndicated loan of EUR 10 million in August 2022 for lending to small and medium-sized enterprises.
In addition, representatives of the EBRD got acquainted with the implementation of the project “Lviv Industrial Park M10”, located 60 km from the Polish border. Its first phase = construction of a warehouse complex of 14,400 square meters is nearing completion. In December 2022 the EBRD undertook to invest up to $24,5 mln to acquire a 35% share in the project.
According to the bank’s press service, other meetings included visits to new production facilities recently created with the EBRD’s support by yeast producer Enzyme, communication with representatives of pet food producer Kormotech, gas station operator Galneftegas (GNG), ventilation system producer Prana and IT company Softserve.
In Lviv EBRD representatives also visited the Superhumans rehabilitation center – a humanitarian project of the bank’s client, owner of one of Ukraine’s largest container terminals TLC Andriy Stavnitser. The center provides prosthetic limbs for adults and children.
The delegation toured the small company, a car wash that was destroyed by rocket fire last April, but resumed and returned to work within a month.
As reported, the EBRD allocated a record EUR1.7 billion to Ukraine in 2022, while attracting additional co-financing from partner banks and international grants and guarantees from donors and shareholders.
The EBRD, Ukraine’s largest institutional investor, has committed to invest EUR3 billion during 2022-2023 and is ready to play a leading role in financing the country’s reconstruction when conditions permit.
The press release stresses that since the start of the war, the EBRD has moved quickly from condemning the Russian invasion to preparing an immediate financial response. This assistance is aimed at ensuring the sustainability of Ukraine and the refugee host countries in preparation for the country’s future reconstruction.
Ukraine exported 9.1 million tons of goods in February 2023 compared to 7.89 million tons in January, in monetary terms it rose to $3.32 billion from $3.1 billion, wrote Deputy Minister of Economy – Trade Representative of Ukraine Taras Kachka in Facebook.
“But less than the peak military September (9.6 million tons) and, of course, still a long way to 12.8 million tons in February 2022 … Since September there is a trend of slow decline in the value of exports: 4.1 – 3.8 – 3.8 – 3.48 – 3.1 – 3.32 billion dollars. The reasons are clear – the slowdown of the grain corridor and the price correction on the world market,” he added.
He said the value of imports in February was $5.03 billion.
“However, this is good news, because imports in war conditions is the reliability of supply of everything we need: fuel, pharmacy, generators and everything we need to endure. It is also fertilizers for the sowing season,” noted Kachka, without specifying the data for January.
He recalled that in general 2022 set a clear strategy in trade: to ensure security of supply in imports, restore logistics capabilities for exports and reduce the trade deficit through services.
The Ukrainian trade representative pointed out that last year merchandise exports totaled $44.1 billion and imports $55.2 billion, services exports $9.1 billion and imports $3.0 billion.
Kachka specified that the top ten most exported goods in February 2023 in descending order of value formed corn (code 1005) – $699.3 million, sunflower oil (1512) – $419.3 million, wheat (1001) – $322, 9 million, soybeans (1201) – $128.69 million, iron ore (2601) – $125.5 million, insulated wires (8544) – $82.9 million, sunflower meal (2306) – $75.4 million, pig iron (7201) – $65.03 million, poultry (0207) – $58.76 million and sunflower seeds (1206) – $58.69 million.
In the second ten, seamless pipes (7304) – $56.88 million, barley (1003) – $43.9 million, semi-finished iron products (7207) – $36.1 million, sugar (1701) – $34.1 million, ferroalloys (7202) – $33, 6 million, furniture (9403) – $32.38 million, rapeseed (1205) – $32.37 million, lumber (4407) – $31.4 million, soybean meal (2304) – $28.9 million and seating furniture (9401) – $24.9 million.
Finally in the third top ten are electric water heaters (8516) – $24.3 million, soybean oil (1507) – $24.1 million, plywood (4408) – $19.9 million, drugs (3004) – $19.1 million, hot rolled steel (7208) – $16.04 million joinery products (4418) – $15.8 million, juices (2009) – $15.5 million, confectionery, bakery products (1905) – $13.7 million, crates and boxes (4415) – $13.1 million and confectionery sugar products (1704) – $12.9 million.
