Business news from Ukraine

Business news from Ukraine

EC allocates EUR 500 mln to Ukraine as part of budget support program

On Monday, the European Commission is signing a new budget support program with Ukraine in the amount of EUR 500 million.
The corresponding announcement in Brussels on Monday was made by the representative of the European Commission, Eric Mamer, talking about the documents to be signed within the meeting of the Council of the Ukraine-EU Association.
Mamer said on the sidelines of the Council, the European Commission is signing four sectoral agreements with Ukraine to further strengthen Ukraine’s cooperation with the EU. According to him, first, the European Commission and Ukraine are signing a new EUR 500 million budget support program as part of a pledge announced by the President as part of the Support Campaign for Ukraine in April and at a high-level conference held in Warsaw in May. This funding will guarantee housing and education for internally displaced persons, and will also support the agricultural sector, Mamer said.
The European Commission will also sign a number of other agreements. Among them is the participation of Ukraine in the European Union’s program “Digital Europe,” another agreement will allow Ukraine to participate in the tax program.

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Scientists from USA have found that tea favorably affects health

Scientists from the US National Institutes of Health recently found that tea has a beneficial effect on human health.
So, according to the study, those who drink at least two cups of black tea a day are more likely to live a long life than those who do not drink tea at all.
The researchers analyzed data from the British Biobank Genetic Information Repository of nearly 500,000 men and women aged 40 to 69 living in the UK.
As it turned out, 85% of these people regularly consumed tea. This is not surprising, given the love of the British population for tea and the traditions associated with this drink.
The results showed that the risk of death in the middle age group from diseases associated with the cardiovascular system is 9-13% lower in those who drink at least two cups of tea per day than in those who refuse this drink in general. .
At the same time, the authors of the study note that it does not matter exactly how you drink tea – with milk, sugar or lemon, the presence of the drink itself in your diet is important.
Professor of Medical Sciences and one of the authors of this work, Fernando Artalejo, however, notes that it is still impossible to say categorically that it was tea that caused less mortality in the studied population category. According to him, it cannot be ruled out that there were other factors not related to the use of tea.
Meanwhile, Chinese scientists have also reached similar conclusions about a possible connection between tea consumption and health effects. They found that the risk of dementia and heart attack is lower in people who drink two to three cups of coffee a day, or three to five cups of tea a day.

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Rivneazot resumed operation of key mineral fertilizer shops

PJSC “Rivneazot” from the group of enterprises of the nitrogen business Group DF resumed the operation of the ammonia complex with a capacity of more than 650 tons of ammonia / day, and also began the launch of a limestone-ammonium nitrate (IAC) shop with a capacity of 1600 tons / day and a shop for non-concentrated nitric acid – a raw material for the production of fertilizers – with a capacity of 960 thousand tons of nitric acid per year.
“We have begun a planned seasonal campaign to launch key workshops. First of all, we will increase the production of IAC, the most demanded fertilizer today. Further resumption of production capacities will depend on market conditions – capacities will be loaded in proportion to effective demand,” the statement reads. Group DF message on Monday, the words of the head of the board of the enterprise Mikhail Zabluda.
He emphasized that an equally important factor in the resumption of the full cycle of production of mineral fertilizers is the availability and current cost of gas required for the production of fertilizers.
Zabluda pointed out that the decision to increase IAS production is due to the gradual resumption of seasonal demand for this fertilizer, as well as the opening of new export opportunities.
“Being a part of the Ostchem holding, Rivneazot prepared for the autumn season in a timely manner and in full in order to supply Ukrainian farmers with basic nitrogen fertilizers,” the head of the board noted.
According to the release, the restoration of work was preceded by the completion of the planned overhaul of the gas synthesis treatment unit in the Ammonia-2 shop, the overhaul of the turbogenerator unit, as well as the overhaul of unit No. 6 with a capacity of 120 thousand tons per year in the non-concentrated nitric acid shop and a number of necessary preparatory work equipment.
Group DF consolidates assets in the gas distribution, chemical, titanium and port industries, as well as in agriculture and media. The founder and owner of Group DF is Ukrainian businessman Dmitry Firtash.
Ostchem is a Group DF nitrogen holding uniting the largest producers of mineral fertilizers in Ukraine. It includes Rivneazot, Cherkasy Azot, as well as Severodonetsk Azot and Stirol located in the occupied territories.
PJSC “Rivneazot” has been part of the Ostchem group since 2011. According to Group DF, more than UAH 1.3 billion was invested in the enterprise during this time.
Rivneazot for 9 months 2021 received UAH 1 billion 811.79 million of net profit with a revenue of UAH 1 billion 676.24 million. The company ended 2020 with a net loss of UAH 4 billion 623.96 million after a net profit of UAH 4 billion 73.49 million a year earlier with a decrease in revenue by 7.3% to UAH 1 billion 831.63 million.
In the report for the 4th quarter of last year, the company indicated that it works on tolling raw materials, and its loss for the 4th quarter of UAH 624.7 million was caused by exchange rate differences, without which the company’s profit would have amounted to UAH 179.6 million.

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Polish drivers went on strike at one of checkpoints and almost paralyzed its work

Truck drivers blocked the road at the Polish checkpoint Yagodin-Dorogusk and went on strike demanding to improve the work of the Polish phytosanitary and veterinary control, said Deputy Minister of Infrastructure of Ukraine Mustafa Nayem.
“Polish drivers put forward three demands: speed up phytosanitary and veterinary control and transfer the service to a round-the-clock mode of operation,” he wrote on Facebook on Monday.
According to Nayem, every hour drivers let 2 cars pass: 1 with goods and 1 empty.
He clarified that 2,650 trucks are now waiting on the border with Poland in front of the Yagodin checkpoint to leave Poland, while 300 trucks are waiting to enter Ukraine. At the same time, the line for the last day has increased by 8 km and reaches 53 km.
Naem stressed that the cause of the strike was the indifference of the Polish authorities and the pretense that “nothing is happening.”
According to the Deputy Minister of Infrastructure, before the war, up to 80 trucks per day passed control, and in recent days – from 12 to 25.
“If there are objective reasons for such a slowdown, then we are ready to do everything in our power to speed up the process and increase the throughput of the checkpoint. But at the same time, we expect the same progress from all services on the Polish side,” Nayem said.
He added that the striking Polish drivers also want empty vehicles to leave Ukraine for Poland out of turn.
At the same time, the Deputy Minister stressed, it is also extremely important for Ukraine that goods leave the country for export as soon as possible.
“We have to export our products. Our carriers have to cross the border in a normal time. Because when they wait 7-10 days in line, they lose about 400 euros per car every day. In a week in line, the carrier loses more than just money , but any point in working at all,” Nayem said.
According to him, the problem of many days of idle time of carriers at the entrance to Poland should be solved by the establishment of round-the-clock phytosanitary and veterinary control.
In addition, the Deputy Minister stressed that there is no talk of abolishing the “transport visa-free regime”. “Most likely, this is a political demand of Polish carriers. The goal is to put additional pressure on the Polish government to solve the above problems,” Nayem said.
The day before, he said that the Ukrainian side repeatedly, at many closed, open, joint and bilateral meetings offered the Polish side a simple solution – to increase the number of employees of phytosanitary and veterinary services, to provide Ukrainian experts who would help Polish colleagues, or to remove this control beyond the points passes inland. However, the situation is only getting worse.

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Indian pharmaceutical companies-members of IPMA continue to work in Ukraine despite huge drop in sales – IPMA

The retail pharmaceutical market of Ukraine in March-June 2022 fell by 30-40% in monetary terms and by 20-30% in kind compared to the same period in 2021, hospital purchases dropped by 70-80%.

Such assessments of the development of the Ukrainian pharmaceutical market in the first half of 2022 were announced to Interfax-Ukraine by the Indian Pharmaceutical Manufacturers Association (IPMA).

“The pharmaceutical market of Ukraine in the first half of 2022, except for January and February, plummeted by 30-40%. The volume of sales of over-the-counter and prescription drugs fell by 30-40% in monetary terms and in packages by 20-30%, the volume of hospital supplies of medicines dropped by 70-80%,” IPMA said.

At the same time, the association said that “the distribution channel was disrupted, and distributors and pharmacy chains had to compensate for losses due to the bombardment of their warehouses and their pharmacies.”

According to IPMA participants, sales in the first two months since the start of the war in money and packages fell by 70%. In the following months, the fall was slightly less, but the average level of decline for six months is about 40%.

“This is due to several factors, firstly, a sharp drop in demand, the outflow of the population, hostilities in a large part of Ukraine and, secondly, problems in the supply of products. In the first months, it was problematic to ship products even from a local warehouse, since the territory of Kyiv was under shelling, almost all workers were not at work, mobilized or involved in local public works or territorially displaced,” the association said.

According to IPMA experts, in the future, problems with logistics to Ukraine came to the fore, since the main logistics channels through seaports and air were blocked.

“Logistics had to be built from scratch through European ports with the next truck delivery to Ukraine. The total cost of logistics has increased several times,” IPMA said.

In particular, the IPMA member company Konark Intelmed(Kharkiv)/Euro Lifecare PVT ltd. (India, a representative office in Kyiv) said that the company had to move its warehouse, which was located in Kharkiv, to the west of Ukraine.

“It cost us too much, plus we have to move our staff to the west of Ukraine, and also, in addition to the salary, provide them with a place to live. In general, it caused us a lot of damage,” said company director Sanjeev Bhagat.

At the same time, according to IPMA participants, the decline was very different in different categories of medicines. In particular, medicines for chronic diseases (diabetes, cardiovascular, etc.) showed a smaller drop, while medicines for acute respiratory infections, vitamins, antibiotics and in general non-essential drugs fell much more than the average.

IPMA said that due to the complexity of logistics, Indian pharmaceutical companies were unable to quickly establish supplies after the sudden cessation of direct air and sea communications with Ukraine.

The association said that “all Indian companies participating in IPMA remained to work in the Ukrainian market, although some had to significantly reduce their activities.”

“Our pharmaceutical companies are still rebuilding to work in the new conditions, but we continue to work on the Ukrainian market,” IPMA said.

The association reported that Indian pharmaceutical companies have provided assistance to Ukraine in the form of medicines and financial assistance, supported and continue to support Ukrainian citizens who were forced to leave their homes.

In particular, in the first months of the war, when the shortage of medicines was particularly acute, the IPMA participant, the Indian pharmaceutical company Macleods, provided medical aid to Ukraine in the amount of about UAH 27 million. It included hemostatic drugs, antibiotics, cardio- and other drugs. The company continues to provide assistance.

The representatives of the pharmaceutical company Hetero Labs and the Amarox company have been supporting Ukraine and its army since the first days of the Russian military invasion. These companies have repeatedly organized the collection of funds for the urgent needs of various medical institutions in Kyiv, including helping in the organization of food for hospital employees, in providing for the needs of operating blocks, resuscitation and surgical departments, and have handed over drugs for a total amount of UAH 4.5 million for the needs of the Armed Forces of Ukraine through representatives of the Ministry of Health, purchased and handed over the things necessary for the Armed Forces to representatives of the Ministry of Defense.

Employees of Ranbaxy Pharmaceuticals Ukraine in the western regions of Ukraine help refugees from areas affected by military actions, as well as help units of the territorial defense and the Armed Forces of Ukraine. Since the beginning of the military aggression, the company has donated UAH 3.8 million worth of medicines to 28 Ukrainian hospitals as humanitarian aid. Terapia company (Sun Pharma group of companies) transferred $500,000 to public organizations in Romania to help people who come from Ukraine.

The pharmaceutical marketing company Euro Lifecare together with the Ukrainian pharmaceutical distributor Konark Intelmed, in addition to helping Kharkiv, has already shipped humanitarian aid worth more than UAH 22.3 million and continues to help Ukrainians.

The Abril company has already resumed importing its products so that Ukrainian patients and the Ministry of Health of Ukraine can count on their help and support. Earlier, the company sent charity aid with antibiotics in the amount of about UAH 10 million.

In addition, IPMA joined the initiative of the President of Ukraine Volodymyr Zelensky UNITED24 and transferred UAH 500,000 in support of the Armed Forces of Ukraine on Independence Day of Ukraine.

“All our assistance is for the sake of the life and health of Ukrainians and for the approach of victory and peace in Ukraine. Despite all the challenges, Indian pharmaceutical companies in Ukraine continue to support Ukrainian patients by providing access to high-quality and affordable medicines and providing humanitarian assistance, as well as supporting their Ukrainian employees, providing access to labor and paying taxes,” IPMA said.

Predicting the further development of the market, the association said that “the state of Ukraine is increasing the share of sales through government procurement, and in some places they also buy Indian drugs.”

“All our companies plan to stay on the market and continue to work in Ukraine. The forecast directly depends on the military-political situation. If the situation remains the same as at the end of August until the end of the year, then we optimistically plan to end the year with a drop to the previous level of 30%. Unfortunately, a 30-40% decrease in US dollars is possible,” the association said.

The IPMA also noted the impact of the devaluation of the hryvnia, which, according to forecasts, will affect the pricing of vital and other medicines in the very near future.

The association said that “all IPMA members are separate representative offices of Indian companies or separate legal entities that are residents of Ukraine and have been present on the Ukrainian market for almost all the years of its independence.”

“Indian pharmaceutical companies – members of IPMA are making significant efforts to effectively provide the healthcare system of Ukraine with the necessary medicines, maintain supply chains and partnerships,” the association said.

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Kernel completed the harvesting campaign and harvested 364,000 tons of winter wheat

Agroindustrial holding “Kernel” has completed the harvesting campaign of early grains in 2022, having collected, according to the calculations of the Interfax-Ukraine agency, at least 364 thousand tons of winter wheat.
As reported on the holding’s Facebook page on Monday, the winter wheat crop was harvested from an area of ​​more than 70,000 hectares with a yield of 5.2 tons/ha.
At the same time, it is specified that the harvesting of early grains and rapeseed was completed before the end of August, despite adverse weather conditions.
“The sowing and harvesting campaigns were complicated by the military situation and weather conditions. Due to precipitation, grain harvesting continued for almost 40 days. Prolonged rains in some regions led to a deterioration in the quality indicators of the grown grain,” explained Igor Chikin, director of the Agribusiness segment, quoted by the press agricultural holding service.
According to him, the agro-industrial group experienced major organizational difficulties in the spring during the Russian large-scale invasion, when the holding was unable to grow winter crops according to the required technology. However, subsequently Kernel managed to optimize the technology and costs, carry out top dressing and protection of crops, thanks to which it was possible to get a good harvest.
The agricultural holding specified that the yield of winter rapeseed in the current season reached 3.4 tons/ha, varying between 2.8-3.7 tons/ha.
Before the war, Kernel ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%), and was also the largest producer and seller of bottled sunflower oil in Ukraine. In addition, the company was engaged in the cultivation of other agricultural products and their sale.
The largest co-owner of Kernel through Namsen Ltd. is Ukrainian businessman Andrey Verevsky with a share of 39.3%.
The agricultural holding in fiscal year 2021 (FY, July 2020 – June 2021), increased its net profit by 4.3 times compared to FY 2020 – up to $513 million, its EBITDA increased 2.1 times – up to $929 million, revenue – by 38%, to $5.65 billion.

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