Business news from Ukraine

Business news from Ukraine

According to a study, in Ukraine there are 4 times fewer people wishing to emigrate to US or EU

The Kyiv International Institute of Sociology notes a multiple drop in the share of those wishing to leave for permanent residence in the United States or EU countries in the event of obtaining citizenship of these countries from the fall of 2020.
“In October 2020, KIIS conducted an all-Ukrainian telephone survey, which, among other things, posed the question “And if you were now granted US or EU citizenship without conditions, would you go to these countries for permanent residence?” At that time, 28% of all adults of Ukrainians were ready to go abroad.In September 2022, we asked this question again… 91% became more of those who would not want to leave,” the press release on the results of the study says.
At the same time, KIIS notes that currently about 10% of adult Ukrainians are now abroad as refugees. “However, even if half of them would answer yes to this question (recent surveys of Ukrainian refugees show that in fact the majority still want to return home, that is, the answers “yes” would most likely be less than half), then the decline in emigration sentiment would also be significant, from 28% to around 13%.
According to the results of the study, in all regions of Ukraine, the absolute majority of the population (90-92%) would not want to travel abroad.
In terms of age, younger respondents are more willing to emigrate, but in fact, among all ages, the vast majority (at least 84%) would not want to go to live in the US/EU. “In 2020, almost half (46%) of young people under 30 would like to leave, now it is 13%,” the KIIS stressed.
The survey was conducted on September 7-13 by the method of telephone interviews using a computer (CATI) among 2,000 respondents from all regions of Ukraine, controlled before February 24, and did not cover citizens who left abroad. The statistical sampling error under normal circumstances (with a probability of 0.95 and taking into account the design effect of 1.1) did not exceed 2.4% for indicators close to 50% and 1.1% for indicators close to 5%. In war conditions, a certain systematic deviation is added to the error, but the results obtained still retain high representativeness, the KIIS notes.

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Internal and external debt of Ukraine in 2009-2022

Internal and external debt of Ukraine in 2009-2022

SSC of Ukraine

Joe Biden called for an extension of “grain deal”

It is necessary to achieve an extension of the Istanbul food deal, as this will help feed the world, US President Joe Biden said during a speech at the UN General Assembly on Wednesday.
“I am grateful for the work of the UN, including the leadership of Secretary General António Guterres, thanks to which it was possible to create a mechanism that allows exporting grain from Ukrainian ports in the Black Sea … We need to ensure that it is extended,” Biden said during of his speech, noting “faith in the need to feed the world”.
The US President added that Russia is trying to blame the food crisis on the sanctions that Western countries have imposed against it. However, according to him, “our sanctions regimes quite clearly allow Russia to export food and fertilizers.”
Biden also said the US will donate $2.9 billion in humanitarian aid and food security assistance this year.

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Agricultural holding KSG Agro started exporting sunflower oil to Poland and Italy

Agroholding KSG Agro has begun exporting sunflower oil to Poland and Italy, and the first batch of 2,000 tons of rapeseed has been sent to Slovakia, according to a press release from the agrarian group on Thursday.
“Currently, there are very good conditions for agricultural producers to export to the EU – in fact, there are no taxes (in particular, VAT) and import duties. So, if you solve problems with transportation, establish efficient logistics, you can have a good source of replenishment of foreign exchange income”, – quotes the agricultural holding of its owner Sergey Kasyanov.
According to him, the export of agricultural products to the EU makes it difficult to increase the cost of logistics and increase its time. So, if earlier one delivery to the EU was carried out on average in 5-7 days, then in the conditions of the Russian military invasion and queues at border crossings, delivery can last 20-30 days.
It is specified that the supply of sunflower oil to Poland and Italy will be carried out with the help of flexitanks – polymer containers designed for the transportation of liquid cargo on conventional trucks.
In addition to KSG Agro LLP, we are currently negotiating with partners regarding the possibility of bottling and refining sunflower oil in the EU countries in order to quickly increase its exports and sell products ready for consumption.
“We managed to build effective supply chains for export supplies of both grain and high value-added products (vegetable oil) to the markets of the EU countries, despite the blockade of seaports. In 2022-2023, we plan to focus on developing the export of our products in order to increase foreign exchange earnings. There are all the prerequisites for this, for example, high demand in the EU for grain and the same rapeseed,” Kasyanov summed up in the message.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares.
According to the agricultural holding, he is in the top 5 pork producers in Ukraine.
In 2021, the holding increased its net profit by 16 times compared to 2020, to $20.27 million, revenue by 44%, to $30.75 million, while doubling EBITDA to $12.28 million.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.

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The US dollar continues to strengthen against the euro

The US dollar continues to strengthen against the euro in trading on Thursday after jumping the day before at the results of the meeting of the Federal Reserve System (FRS).
The American Central Bank raised the base interest rate on Wednesday by 75 basis points (bp) to 3-3.25% per annum. Fed Chairman Jerome Powell said during a press conference following the meeting on the need for further rate hikes to curb inflation.
The median forecast of Fed officials suggests that the rate will reach 4.4% per annum by the end of this year and will be 4.6% by the end of 2023.
The euro/dollar pair is trading at $0.9828 as of 09:05 Moscow time on Thursday, compared to $0.9839 at the close of the previous session. On the eve of the euro lost 1.31% against the dollar.
“The Fed, in addition to another 75 bp rate hike on Wednesday, signaled that it sees the need to keep rates high for a long time,” said Sophia Ng, a currency analyst at MUFG Bank, quoted by Dow Jones.
The yen exchange rate against the dollar updated a 24-year low on Thursday after the publication of the results of the meeting of the Bank of Japan.
The Japanese Central Bank left unchanged the main parameters of monetary policy: the short-term interest rate on deposits of commercial banks in the Central Bank was left at minus 0.1% per annum, the target yield on ten-year government bonds is about zero.
The Bank of Japan also confirmed that it intends to keep the rate “at the current level or below.”
As of 9:05 Moscow time, the dollar/yen pair is trading at 144.89 yen against 144.08 yen at the close of the previous session. During the auction, the dollar rose to 145.37 yen.
The pound sterling depreciates against the dollar ahead of the Bank of England meeting. The pound dropped to $1.1241 from $1.1271 the day before.
Experts believe that the British Central Bank may raise the base rate on Thursday by 75 bp, which will be the highest increase since 1989. In this case, the rate will reach 2.5% per annum.
The ICE-calculated index, which shows the dynamics of the dollar against six currencies (the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swedish krona), adds 0.89%, the broader WSJ Dollar Index – 0.31%.

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President of United States and Prime Minister of Great Britain discussed Ukraine and energy

U.S. President Joe Biden and British Prime Minister Liz Truss discussed Ukraine, energy and economic security during the first official talks since she headed the British government, the White House reported on Wednesday.
“We want closer cooperation with the US, in particular on energy and economic security issues, as well as reaching out to other democracies around the world to ensure the triumph of democracies,” Truss said, quoted by the US administration.
In turn, Biden told Truss that he expects further close cooperation between the United States and Britain, and that they have a lot to do together.
“I look forward to working closely with you, our closest ally in the world,” the US president said.
Truss also added that she is “very eager to work with the US to make sure we support the Ukrainians.”

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