Business news from Ukraine

Business news from Ukraine

REQUIREMENT FOR LOCAL CONTENT IN PUBLIC PROCUREMENT FROM JAN 1 INCREASES TO 15% FROM 10%

The requirement for the local content in certain groups of goods during public procurement will increase from 10% to 15% from January 1, 2023, MP Dmytro Kysylevsky has recalled.
“Let me remind the participants and customers of public procurement that from January 1, 2023, the requirement for the local content will increase from 10% to 15% for certain groups of goods: such as urban and railway transport, municipal and special equipment, power equipment, etc,” Kysylevsky wrote on Facebook on Monday.
He said that the register of goods with a designated degree of the local content of the Ministry of Economy has been kept since August 2022 and said that in four months more than 250 enterprises have registered about 2,000 goods, including 750 with a degree of the local content of more than 40% and only 400 – less than 15% .
“There is significant competition in some categories of product groups. In particular, 58 enterprises registered diesel generators, 24 companies registered pumps and compressors, and more than 30 enterprises registered special trucks,” Kysylevsky wrote.
As reported, the requirement for the local content was introduced by amendments to the law on public procurement, which the Verkhovna Rada approved in December 2021. They became effective on July 14, 2022 after the approval of by-laws by the Cabinet of Ministers.
The local content requirement will increase by 5% each year until reaching 40% in 2028. It does not apply to countries that have ratified the GPA on procurement under the WTO, in particular the United States and EU countries.

CERT-UA responds to over 2,000 cyber attacks on Ukraine in 2022

The CERT-UA Government Computer Emergency Response Team, operating under the State Service for Special Communications and Information Protection, registered and investigated more than 2,100 cyber incidents and cyber attacks during 2022.
As reported by the State Service for Special Communications and Information Protection of Ukraine on its website, more than 1,500 of the total number of cyber attacks have been registered since the beginning of Russia’s full-scale military invasion of Ukraine.
According to CERT-UA, the public sector is the most frequently targeted by enemy hackers, accounting for about one quarter of all cases studied.
In addition, the energy sector remains under the special attention of Russian hackers – cyber attacks on energy enterprises are difficult to carry out and prepare, they are harder to detect.
Companies that are providers of services, hardware and software for energy companies are under constant scrutiny. As such, supply chain attacks remain a growing threat. In particular, in December 2022, experts recorded an attempt to attack one of the Ukrainian energy facilities by hacking a software supplier and developer.
In addition, enemy hackers actively attacked the logistics, telecommunications, commercial and defense sectors.

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Ukraine exported over 7 million tons of agricultural products in December

Ukraine exported 7.0 million tons of agricultural products in December 2022, down 2% from the previous month, the Ukrainian Agribusiness Club (UCAB) said on its Facebook page on Monday.
“3% of these exports were made through the “grain corridor”, the rest through alternative export routes. However, it is necessary to take into account that not all products had time to physically cross the border. A lot of products are now in line for export both by rail and road transport, which will negatively affect exports by alternative routes next month”, – Association specifies in its report.
UCAB noted that 4.9 million tons of crops were exported in December 2022, which is 4% more than in November. By crops, 3.09 million tons of corn (63% of total), 1.67 million tons of wheat (34%) and 147 thousand tons of barley (3%) were exported to foreign markets.
Ukraine also exported 868 thousand tons of oilseeds during this period – a third less than in November. Ukraine exported 295 tons of sunflower seeds (34%), 251 tons of soybeans (29%) and 217 tons of rapeseed (25%).
UCAB also noted that exports of vegetable oils in December fell by 9% against the previous month – down to 468 thousand tons, 94% of which was sunflower oil (440 thousand tons) and 6% soybean oil (29 thousand tons). In turn, exports of sunflower and soybean cake and meal increased by 58% to 506 thousand tons, including 90% of sunflower waste (455 thousand tons) and 10% of soybean oil (51 thousand tons).
“The greatest changes in the structure of exports in December 2022 are associated with a decrease in export shipments of oilseeds, which showed a drop of one-third from the previous volumes. This is primarily due to a decrease in export volumes of rapeseed. The rape grown in 2022 and intended for export is almost completely exported, there will be no significant shipments of this crop until next year’s harvest”, – UCAB stressed in the report.
However, the reduction in rapeseed exports will allow for increased shipments of other crops, particularly oilseed cake.
“In any case, Ukraine still has a significant amount of products destined for export, and there is a stable demand for Ukrainian agribusiness products in the world market. With current export volumes, it is gradually possible to take out stocks of grown products and partially generate foreign exchange earnings. The prices in Ukraine are still low, and logistics costs “eat up” the entire profit of the agrarians, which in turn jeopardizes the sowing season 2023″, the organization stated in its report.
As previously reported UCAB, Ukraine exported 7.2 million tons of agricultural products in November 2022, in October and September – 6.9 million tons, in August – 4.6 million tons, in July – 3.0 million tons and in June – 2.7 million tons. According to the Ministry of Agrarian Policy of Ukraine, in May agricultural exports amounted to 1.74 million tons, in April – 0.96 million tons and in March – 0.33 million tons.
Prior to the full-scale military invasion by the Russian Federation, Ukraine exported on average 5-6 million tons of agricultural products per month, mostly through its maritime infrastructure in the Black Sea.

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Croatia officially joined Schengen zone

People checks at internal land and sea borders between Croatia and other Schengen zone countries will be abolished from January 1, 2023, according to an EU Council decision of December 8, 2022.
Checks at internal air borders will be abolished from March 26, 2023, given the need to coordinate with International Air Transport Association (IATA) timetable dates, Brussels explained the decision, under which Croatia became the 27th member of the Schengen area and its rules now apply to the country.
“I am very pleased that during the Czech Presidency (of the EU Council in the second half of 2022 – IF-U) Croatia was able to take two important steps in its European integration by joining both the euro area and the Schengen area. I am confident that these successes will pave the way for other member states that fulfill the conditions to take the next step in their European advancement,” said Czech Interior Minister Vit Rakušan, announcing the EU Council decision.
At the same time, the applications of Bulgaria and Romania to join the free movement zone remained unsatisfied.
Commenting on this situation, the Czech Interior Minister assured: “Both I and my colleagues will continue to work hard so that we can welcome Bulgaria and Romania to the family of the Schengen area in the near future.
According to Western media reports, Bulgaria’s accession to the Schengen zone was opposed by Austria and the Netherlands, and Romania’s accession was opposed by Austria.
Agreement on the gradual abandonment of border control was signed June 14, 1985 in the Luxembourg village of Schengen, where the borders of Luxembourg, France and Germany, the representatives of five countries: Belgium, Luxembourg, the Netherlands, France and Germany. The Schengen area began its existence on March 26, 1995 when border and customs controls were abolished at the internal borders of these countries which had by then been joined also by Spain and Portugal.
Due to the further increase in the number of Schengen countries, the agreement with its legal framework was included from 1999 into the unified community legislation (Treaty of Amsterdam). After Croatia joined the Schengen Area, there are 23 EU states and four European Free Trade Association countries: Iceland, Liechtenstein, Norway and Switzerland.
De facto, without the conclusion of formal agreements, the dwarf states of Vatican City, Monaco and San Marino joined the Schengen rules.

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Portugal will support Ukraine’s recovery – Yulia Sviridenko

Portugal will support Ukraine’s recovery and help build international support for the country’s victory, says First Deputy Prime Minister – Minister of Economy of Ukraine Yulia Sviridenko.
She expressed this opinion after her meeting with Portuguese President Marcelo Rebelo de Sousa in the Brazilian capital, Brasilia, where the Ukrainian delegation, led by Sviridenko, attended the inauguration ceremony of Brazilian President Luiz Inacio Lula da Silva.
“I am grateful to Marcelo Rebelo de Souza for his personal involvement and diplomatic efforts in achieving victory and peace. I am convinced that economic and political cooperation with Portugal will only increase. It is not unreasonable to expect assistance in the movement of our state to the European Union and the participation of Portugal in the reconstruction of Ukraine,” Sviridenko said, as quoted by her press service in a statement on Monday.
As the economy minister noted, Portugal will help Ukraine “in the reconstruction of educational facilities. We are also grateful for help in strengthening our cooperation with the Portuguese-speaking community around the world.”
Portuguese President Rebelo de Souza reaffirmed his country’s full solidarity with Ukraine and its willingness to expand cooperation during the meeting.
During the meeting, they discussed cooperation in the economic sphere, the situation in Ukraine, in particular in connection with missile attacks on energy infrastructure, practical issues of reconstruction, etc.

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Quotes of interbank currency market of Ukraine (UAH for 1 pln, in 01.11.2022-30.11.2022)

Quotes of interbank currency market of Ukraine (UAH for 1 pln, in 01.11.2022-30.11.2022)

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