Export of important goods from Ukraine in Jan-Oct 2023
Source: Open4Business.com.ua and experts.news
The majority of Ukrainian refugees and internally displaced persons surveyed (65% and 72% respectively) still express a desire to return home one day, but their share has decreased.
This is evidenced by the study of the UN Refugee Agency (UNHCR) “Life in Waiting: Intentions and Prospects of Refugees, Refugee-Repatriates and IDPs from Ukraine”, the results of which are published on its website.
According to UN data, the share of refugees who plan or hope to return to Ukraine in the future has decreased compared to last year (from 77% to 65%), but the share of those who are undecided about returning has increased (from 18% to 24%), as well as those who have no hope of returning (from 5% to 11%). A similar trend is observed among internally displaced persons.
According to the report on the results of the survey, the interviewed IDPs predominantly named the danger in Ukraine as the main factor hindering their return. Other problems were the lack of economic opportunities and housing. A significant part of the interviewed Ukrainian refugees (about 59%) indicated that they may be forced to return home if they continue to face problems in the host countries, mainly related to work opportunities and legal status.
It is also noted that more refugees are now making short-term visits to Ukraine – almost 50% compared to 39% last year, mainly to visit family members but also to check on their property.
The UN believes that such visits may eventually contribute to fully informed decisions on long-term return when conditions are conducive.
The UN recalls that there are now nearly 6.5 million refugees from Ukraine seeking asylum around the world and nearly 3.7 million people remain internally displaced.
UNHCR’s report is based on interviews conducted between January and February 2024 with nearly 4,000 refugee households in Europe, 4,800 internally displaced households in Ukraine and about 1,100 refugee households returning to Ukraine (total sample of over 9,900 households).
OTP Bank and SVD-Development LLC have signed the first agreement on provision of factoring services under the joint program to support financing of Ukrainian business between OTP Bank and the USAID Project “Investments for Business Sustainability” (formerly USAID Financial Sector Reform Project).
The factoring agreement provides for financing in the amount of UAH 20 million for the supply of products by SVD-Distribution LLC to the network of a Ukrainian retailer of household appliances and electronics.
“Our company was established in difficult times – in November 2022. We decided not to postpone the implementation of the new project. Given our experience, the project is developing, creating jobs (16 people), gaining momentum, and we plan to grow in 2024, including through the OTP Bank and USAID program. Providing financial support, namely factoring on special terms, which we receive under the OTP Bank and USAID program, will help us replenish working capital for the supplied household appliances to the chain of stores and provide additional resources and opportunities for further development. Given the lengthening of logistics chains, our project needs just such a financing instrument,” said Natalia Teslenko, Managing Director of SVD-Distribution LLC.
Olga Volkova, Director of the Sales Department for Medium and Small Corporate Clients of OTP Bank, said that a significant number of corporate clients, especially large companies, when concluding agreements with suppliers, ask for a certain delay in payments for the delivered goods, which can reach 90 days and significantly increases the need for working capital for their partners. “Factoring allows the supplier to receive funds for its goods in the form of a tranche from the Bank immediately after delivery, without waiting for the buyer to pay. This is an effective means of quickly replenishing working capital, which, I emphasize, does not require collateral. It is especially beneficial and convenient for MSMEs, and partial compensation of the interest rate under the OTP Bank’s program with USAID makes it even more economically attractive. Therefore, companies that provide deferred payments for the supply of their goods and need working capital to finance such cash gaps are welcome to apply to the Bank and receive financing at a reduced interest rate,” she emphasized.
The USAID Project “Invest for Business Resilience” increases the supply of financing for businesses by working with a wide range of financial intermediaries, including banks, leasing, insurance companies and others, who raise funds and channel them into effective investments. “We help to unlock access to financial products for MSMEs on acceptable terms to support their businesses. As part of our joint program with OTP Bank, we facilitate access to affordable factoring financing, as this tool has been successfully used in Europe and other parts of the world. It improves business cash flow and frees up funds associated with unpaid invoices. The Business Resilience Investment Project expects to increase the number of factoring transactions and will continue to support the development of the factoring market in Ukraine,” said Yulia Vitka, Acting Chief of Party of the USAID Business Resilience Investment Project.
To learn more about SME factoring financing under the joint program of OTP Bank and USAID, as well as to apply for the service, please follow the link.
Forecast of dynamics of changes in ukrainian GDP in % for 2022-2025 in relation to previous period
Source: Open4Business.com.ua and experts.news
Agrochemical company Grossdorf LLC, specializing in the production of granular and liquid mineral fertilizers, has decided to expand its product range by developing a line of products for retail sales, industry analyst publication Infoindustria reported.
“Entering the retail market opens up new opportunities for growth and expansion of the consumer audience. The company believes in the quality of its products and is ready to meet the needs of retail customers with the same dedication it shows in the agrochemical sector market,” said Andrei Khalyavka, director of the agrochemical company.
According to him, Grossdorf produced about 20,000 tons of various NPK fertilizer formulas in 2023. In addition, the company became Ukraine’s second supplier of UAN in 2023 and produced more than 106 thousand tons of this fertilizer. In addition, Grossdorf produces granulated potassium chloride, NPK fertilizers and granulated (compacted) ammonium sulfate.
“In just one year, the manufacturer supplied more than 150 thousand tons of fertilizers to the market, becoming the second fertilizer producer in Ukraine,” Infoindustria summarized.
Grossdorf LLC was established in 2001. The company is a producer of mineral fertilizers, one of the leaders in UAN production in Ukraine, importer, supplier and end user of mineral fertilizers. It has its own plant in Odessa region for production of liquid fertilizers (RKD, UAN, UAN), storage for liquid fertilizers with the volume of more than 10 thousand tons, capacities for production of loose granular fertilizers, extensive network of agrochemical warehouses practically in all regions of Ukraine.
Real GDP in 2021-2025 (forecast)
Source: Open4Business.com.ua and experts.news
