Business news from Ukraine

Business news from Ukraine

DTEK manufactured 7 new mining combines in 5 months

In January-May this year, DTEK Energo’s machine builders manufactured and repaired 606 units of mining equipment, including seven new roadheaders and shearers.
“Machine-builders also provided miners with 450 thousand spare parts and components,” the energy holding company said in a press release on Friday.
As the company noted, such volumes of necessary manufactured equipment allow it to continue laying a stronger foundation for the thermal generation to pass the next heating season.
“Debris removal and restoration work at thermal power plants damaged by the attacks continues 24/7. Everyone is working in their place. Miners and machine builders are also in their places. Miners – to extract enough coal for reliable operation of thermal power plants. And machine builders – to make sure that miners always have everything they need,” said Ildar Saleev, CEO of DTEK Energy, quoted in the press release.
As reported, in 2023, the company’s investments in Ukrainian coal mining amounted to about UAH 7 billion, which is almost twice as much as in 2022.
“DTEK Energo” provides a closed cycle of electricity production from coal. As of January 2022, the company’s installed capacity in thermal generation amounted to 13.3 GW. A full production cycle has been created in coal mining: coal extraction and preparation, machine building and servicing of mining equipment.

 

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Innovative pharmaceutical companies remain leaders of the Ukrainian market due to budget purchases – analytics

Innovative pharmaceutical companies remain in the top 15 leaders of the Ukrainian pharmaceutical market due to budget procurement.
According to the presentation of SMD analytical company, presented during the joint seminar with Arzinger law firm “Participation in budget procurement brings multinational pharmaceutical companies good results”.
In particular, budget purchases account for 68% of sales in Ukraine of Roche, 54% of Boehringer and 46% of Pfizer. At the same time, Yuria Pharm is the leader among domestic pharmaceutical companies in budget purchases, budget purchases from which account for 68% of total sales.
At the same time, the reimbursement program “Affordable Medicines” provides a significant volume of sales to such companies as Kyiv Vitamin Plant (KVZ), Astra Zeneca, KRKA and TEVA.
In general, Pharmak with a 6.1% share, Darnitsa (4.6%) and Yuria-Pharm (4.1%) remained the leaders of the pharmaceutical market in terms of sales in 2024.
Among foreign pharmaceutical companies, the leaders were Sanofi and Teva, which at the end of 2023 held 2.7% of the market each, as well as AstraZeneca with a 2.1% share.

 

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Weather conditions are expected to worsen in Ukraine on Sunday

In Ukraine on Sunday, June 16, is expected to worsen weather conditions, reports Ukrhydrometcenter.

“In most southern, central and Kharkiv regions heavy rains, in the afternoon in some areas hail and squalls 15-20 m/s (I level of danger, yellow),” – stated in the message.

 

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Profitability of oilseeds in Ukraine this season will be higher – experts

Profitability of the main types of agricultural crops has been steadily improving since 2023, but the production of cereals has not yet reached break-even, and the profitability of oilseeds remains minimal, in 2024 the profitability of oilseeds will be higher than previously predicted, and the production of cereals will remain unprofitable. The corresponding forecast is contained in the study of the Ministry of Agrarian Policy and Food and the Ukrainian Club of Agrarian Business (UCAB).

“The improvement in the level of profitability compared to the previous period is due to the restoration of export sea routes. This reduced the cost of logistics and allowed to increase purchase prices in the domestic market, even despite the decline in world prices for all types of grains and oilseeds,” the analysts said.

According to their information, over the past six months, prices at elevators have increased by 38% for grain crops and 14% for oilseeds compared to the same period last year. Prices in Ukrainian ports have also increased, but not so significantly, as the cost of logistics remains quite high. At the same time, purchase prices in the Ukrainian market are still far behind the world market.

Since the beginning of 2024, the structure of export routes has changed. Logistics of agro-products through the Danube river ports played an important role for Ukraine when the deep-water ports of Odessa did not work. But today the potential of the Danube export route is not fully utilized due to the higher cost of logistics in this direction compared to the deep-water ports of Odessa, the experts reminded.

The trend towards lower average fertilizer application rates in the industry continues. Although an increase in fertilizer application rates for winter crops was recorded in the autumn of 2023, in the spring of 2024 application rates decreased again – on average by 5% compared to the same period last year. The main reasons for the decrease in fertilizer application rates are the lack of working capital and rising cost of fertilizers due to changes in the Customs Code and the general situation of uncertainty in the industry due to the war.

Analysts noted that large producers practically did not reduce fertilizer application rates, while small farmers were forced to reduce them by an average of 10-15%. Application rates of plant protection products remained at the same level, because a reduction in the use of crop protection products can lead to deterioration in yields and quality of grain and oilseed crops.

According to the results of 2024, the Ministry of Agrarian Policy and UCAB forecast a higher level of profitability of crop production compared to the previous forecast. Sunflower profitability is expected at $45/t (-$4/t in 2023), soybeans at $83/t ($69), and rapeseed at $78/t ($5/t). Grain production, on the other hand, will remain unprofitable.

“The results of crop production this year will be most influenced by such factors as reduction of fertilizer application rates and, as a consequence, a slight decrease in yields, as well as reducing the cost of export logistics, reducing the price gap between prices at elevators and Ukrainian ports due to the establishment of export shipments, which will contribute to a more active recovery of domestic purchase prices”, – stated analysts.

 

Situation in Ukrainian energy sector next week will be noticeably more difficult – head of Ukrenergo

The situation in the Ukrainian energy system next week will be perceptibly more difficult compared to the current week, said the Chairman of the Board of the NEC Ukrenergo Volodymyr Kudrytskyy.

“Next week will be more difficult for the energy system, because the heat wave will return and we will have a reduced capacity of nuclear power plants, if compared to the current week,” he said in an interview with Ukrayinska Pravda on Friday.

According to the NEC head, due to the massive shelling, the energy system has lost its reserve of strength and has become dependent on sudden changes in electricity consumption and weather, forcing it to balance by shutting down consumers.

“Our energy system, having lost more than 9 GW of capacity due to shelling, now has no reserve of strength. If earlier we had additional power plants that could be switched on promptly, we would overlap by switching on some hydro units or TPP units, now we simply do not have such a maneuver,” – explained Kudrytskyy.”

As previously reported, Energoatom announced that it would put a 1000 MW nuclear power plant unit under repair as part of a planned repair campaign in 2024. The company pointed out that, given this and the increase in electricity consumption in July, the generation deficit in the power system may increase.

Prime Minister Denys Shmygal noted that saving e/e will be part of Ukraine’s daily life in the coming years due to Russian attacks on the country’s energy sector.

 

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“INGO will insure risks of state enterprise Antonov for 3 million euros

On June 13, the state enterprise Antonov (Kiev) announced its intention to conclude a contract with ASK INGO (Kiev) for services of compulsory aviation insurance of civil aviation and liability insurance. As reported in the Prozorro e-procurement system, the price offer of ASK INGO amounted to UAH 2.976 mln, with an expected value of EUR 5.607 mln.

The second bidder was IC “Universalna” with a price offer of 3.348 million euros.

As reported, the tender was announced for insurance of liability of developers, manufacturers of civil aviation equipment, maintenance organizations authorized to conduct test flights, for damage caused to third parties; insurance of liability of educational institution when performing training flights for damage caused to third parties; insurance of crew members of aircraft and other aviation personnel; insurance of persons entitled to be on board the aircraft on legal grounds

The tender was also announced for civil aviation risk insurance services (insurance classes 1, 5, 11): aircraft insurance, insurance of aviation carrier’s liability for damage caused to passengers, baggage, cargo and mail; insurance of liability of commercial civil aircraft operator for damage caused to third parties.

INGO Insurance Company JSC has been providing insurance services for 30 years. Since 2017, the main shareholder is the Ukrainian business group DCH.

 

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