Ukraine will consider the possibility of opening a quota for the export of 100,000 tons of coal to Poland in September, Prime Minister Denys Shmygal said.
“On behalf of the President of Ukraine, at the request of the Polish side, Ukraine is ready to consider the possibility of opening quotas for coal exports to Poland. We are talking about 100,000 tons in September, which are now critically needed by our Polish partners,” he wrote on his Telegram channel.
Shmyhal specified that coal reserves in the warehouses of Ukrainian power plants amount to almost 2 million tons, which is 2.5 times more than a year ago. “Therefore, we are ready to lend a shoulder of support to our Polish friends,” he stressed.
The Prime Minister of Ukraine added that during the visit of his Polish counterpart Mateusz Morawiecki to Kyiv, the parties also discussed the restoration and commissioning of the Khmelnytsky NPP-Rzeszow power line.
“We planned to finish before December 14, but thanks to the acceleration of work, we can complete a week earlier. This will allow us to export an additional 1,000 MW to Poland. For our part, we ask Poland to assist in expanding export quotas within the framework of ENTSO-E,” Shmyhal said.
According to him, Ukraine expects that by the end of 2022 the amount of available transmission capacity in the direction of Slovakia, Romania and Hungary will increase from 300 MW by another 200-300 MW, and in the direction of Poland – over 1000 MW.
As reported, since mid-June 2022, Ukraine has set zero quotas for the export of all types of coal, except for coking coal, and on September 7, it completely banned the export of Ukrainian coal.
According to the State Customs Service, Ukraine’s coal exports for seven months of 2022 amounted to 450.6 thousand tons for $145.917 million, incl. to Slovakia – by $93.349 million, Poland – by $34.084 million, Hungary – by $15.919 million, other countries – by $2.565 million.
Exports of goods in % to the previous period in 2021 and 2022
SSC of Ukraine
Since the beginning of the 2022/2023 marketing year (MY, July-June), Ukraine has exported 5.29 million tons of grain crops, including 3.17 million tons of corn (60% of total supplies), 1.65 million tons of wheat (31%) and 447 thousand tons of barley (8%).
As reported on the website of the Ministry of Agrarian Policy and Food on Friday, since the beginning of the current marketing year, the rate of grain exports has been 1.94 times lower than the same period last year (10.29 million tons were exported from July 1 to September 9, 2021).
At the same time, according to the agency, from August 31 to September 9, 1.33 million tons of grain crops were delivered to foreign markets (147.8 thousand tons daily), while for the previous period, August 26-31 – 550 thousand tons grain crops (110 thousand tons daily), on August 19-26 – 430 thousand tons of grain crops (61.4 thousand tons daily), and on August 11-19 – 770 thousand tons (96.2 thousand tons daily ). Thus, the average daily export rates over the past nine days increased by a third compared to the previous period and reached the maximum value since the beginning of the MY.
In general, from the beginning of 2022/2023 MY and until September 9, 2022, Ukraine exported 1.65 million tons of wheat (3.6 times less compared to the same date in 2021/2022 MY), 447 thousand tons of barley (6.7 times less), 0.8 thousand tons of rye (18 times less) and 15.6 thousand tons of flour (1.7 times less). However, the pace of corn exports exceeded last year’s volumes – 3.17 million tons were exported, which is 2.37 times higher than in 2021/2022 MY.
In total, for the period August 31-September 9, 680 thousand tons of corn, 510 thousand tons of wheat, 137 thousand tons of barley, 0.3 thousand tons of rye and 3.7 thousand tons of flour were delivered to foreign markets.
As reported, in MY 2021/2022, Ukraine exported 48.51 million tons of grains and legumes, which is 8.4% higher than in the previous marketing year, despite the full-scale invasion of the Russian Federation and difficulties with the export of agricultural products due to the blockade of Ukrainian seaports. 18.74 million tons of wheat were delivered to foreign markets (12.6% more than in 2020/2021MY), 23.54 million tons of corn (+1.9%), 5.75 million tons of barley (+35.9%) , 70.9 thousand tons of flour (-44.1%).
In 2020/2021 MY, the country exported 44.72 million tons of grain and leguminous crops: 16.64 million tons of wheat, 23.08 million tons of corn, 4.23 million tons of barley, 126.9 thousand tons of flour and 18.4 thousand . tons of rye.
In 2019/2020 MY, Ukraine exported 56.72 million tons of grain and leguminous crops.
President of Ukraine Volodymyr Zelensky said that Ukraine will look for opportunities to help Poland in the energy sector and find a way out of their future energy risks in the near future.
“Today we raised important energy issues. We discussed energy challenges. We are interested that Ukraine can help Poland. We are doing everything to find a way out of their future energy risks in the near future,” Zelensky said at a press conference with Polish Prime Minister Mateusz Moravetsky and Latvian President Egils Levits in Kyiv on Friday.
He also called this issue a priority in relations with Poland.
“For us, this is a priority in our relations. Despite the fact that we have a ban on the export of coal during this difficult period, we will look for an opportunity to help Poland. Because Poland, in spite of everything, found certain steps to help us, when it was not easy for her. We understand this responsibility,” the President added.
The Textile-Contact group of companies will open the country’s first industrial park for the production of non-narcotic technical hemp in the Rivne region, where a full cycle of research, selection, cultivation and processing of this plant will be launched.
As reported on the Facebook page of the Rivne Regional Military Administration (OVA), the fabric made from hemp will be used, in particular, as a material for sewing military uniforms that are invisible to the radiation of thermal imagers. In addition, industrial hemp is a good antiseptic; heating pellets and food products are produced from it.
“Back in April, I met with the owners of the company Alexander Sokolovsky and project manager Alexei Bolshev. This is the largest company in Ukraine engaged in the production of fabrics and clothing. Then they discussed the possibility of opening their production in the Rivne region. Now we have reached the finish line,” the Regional State Administration quotes its head Vitaliy Koval.
According to him, the creation of an industrial park will not be limited to investments in the region and the creation of jobs, but will launch a new industry in the country.
“We have already signed a memorandum on the relocation of the fabric production line. We have received the terms of reference for the land plot. We are working on finding options. I urge the communities to submit their proposals to the Department of Economics of the ROVA,” Koval summed up.
Textile-Contact is one of the largest trade and production groups in the light industry market of Ukraine, founded in 1995. Currently, it represents a holding uniting various areas of assets: wholesale and retail trade, import of fabrics, accessories and home textiles, production of fabrics, threads, dry cleaning, as well as tailoring and overalls (including military uniforms), medical products.
Before the Russian invasion, the factory produced about 400 thousand meters of fabric per month.
Stock indices of Western European countries are steadily rising during trading on Friday, following Wall Street and Asian stock markets.
The composite index of the largest companies in the Stoxx Europe 600 region increased by 1.41% by 11:28 Moscow time and amounted to 419.92 points.
The German DAX rose 1.59%, the French CAC 40 rose 1.5%, and the British FTSE 100 rose 1.41%. The Italian FTSE MIB and the Spanish IBEX 35 gained 1.88% and 1.65% respectively.
Investors continue to evaluate the results of the meeting of the European Central Bank (ECB).
The ECB raised the base rate on loans to 1.25% per annum, the rate on deposits – up to 0.75%, the rate on margin loans – up to 1.5%. He also announced his intention to continue raising rates in the next few meetings.
ECB President Christine Lagarde said during a press conference following the meeting that further rate increases will be determined by incoming statistical data.
The ECB raised its forecast for consumer price growth this year to 8.1%, next year to 5.5%, and in 2024 to 2.3%. In June, the bank’s analysts estimated these figures at 6.8%, 3.5% and 2.1%, respectively.
According to the new forecast, the GDP of the Eurozone in 2022 will increase by 3.1% against the previously estimated 2.8%. However, expectations for the coming year are worsened to 0.9% from 2.1%, for 2024 – to 1.9% from 2.3%.
Meanwhile, the energy crisis remains a reason for investors’ fears. Market participants are worried about the consequences of the crisis on the eurozone economy, writes Trading Economics.
Statistics released on Friday showed that industrial production in France fell in July for the first time since April, indicating that companies are cutting production amid slowing demand and high price pressures.
The indicator decreased by 1.6% in monthly terms after rising by 1.2% in June. Economists polled by The Wall Street Journal had expected a 0.5% decline in industrial production.
Among the growth leaders among the components of the Stoxx Europe 600 indicator are shares of the German energy company Uniper SE, which are rising in price by 10.5%.
Shares of London Security PLC are down 4.8%. The British fire protection company cut its pre-tax profit in the first half of the year amid rising costs due to inflationary pressures.
ASOS PLC added 1.6%. The British retailer is forecasting FY22 revenue and earnings in line with analysts’ expectations, but said August sales were weaker than expected.
