In the July report, the US Department of Agriculture (USDA) reduced the forecast for the harvest of Ukrainian wheat in 2022/2023 marketing year (MY, July-June) by 2 million tons compared to June, to 19.5 million tons, while the estimate of its exports is kept at the level of 10 million tons.
“Production in Ukraine is reduced by 2 million tons to 19.5 million due to a reduction in acreage, as indicated in the statistics provided by the government of the country,” the US Department of Agriculture said in a report released on Tuesday.
According to the document, the assessment of domestic wheat consumption in Ukraine was reduced by 1 million tons – from 11.2 million tons to 10.2 million tons, including for feed – from 6 to 5 million tons, follows from the USDA July report.
In addition, from 6.01 million tons to 5.24 million tons, the forecast for carryovers at the end of the current marketing year was reduced compared to 5.84 million tons at its beginning.
The US Department of Agriculture in the new forecast kept the forecast for corn exports from Ukraine in 2022/2023 MY at the level of 9 million tons, and its harvest – 25 million tons. At the same time, the forecast for its domestic consumption in Ukraine was also left at the same level of 10.7 million tons.
According to the report, in general, the forecast for the feed grain harvest in Ukraine for MY 2022/23 remains at 31.76 million tons, and its exports at 10.83 million tons.
As reported, Ukraine in the marketing year 2021/2022 (MY, July-June) exported 48.51 million tons of grain and leguminous crops, 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 from -for the blockade of Ukrainian seaports.
In general, in MY 2021/2022, the country supplied to foreign markets 18.74 million tons of wheat (12.6% more compared to the same date 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%).
The wheat harvest last year amounted to 33 million tons, feed grain – 53.5 million tons, including corn – 42.13 million tons.
President of Ukraine Volodymyr Zelenskyy has appointed Maxim Subkh as Special Representative of Ukraine for the Middle East and Africa.
The corresponding decree is dated July 12 and published on the website of the head of state.
Ukraine, while active hostilities with the Russian aggressor continue, is in survival mode, and during this period it is too early to take on billion-dollar projects for decades, Infrastructure Minister Oleksandr Kubrakov believes.
“Now we need to launch a lot of low-cost and small projects that will help us and our trading partners to implement them quickly and concretely,” he said in an interview with the Swiss newspaper Neue Zürcher Zeitung.
“Instead of planning completely destroyed hospitals from scratch, I prefer to focus on repairing hospitals with broken windows and damaged roofs,” the minister explained.
Among such priority projects, he named the rapid repair of bridges, roads and railway lines, which are key for the army and economic recovery, as well as all projects related to increasing the country’s export capabilities.
“Honestly, we are not talking about billions, but millions and many other small projects. New, more efficient checkpoints on the border with Poland, Romania and Moldova, new railway lines from the nearest cargo points in Ukraine, which use the European standard track instead of the Russian wide track,” Kubrakov explained.
According to him, global reconstruction in Ukraine will begin with the end of the war. The Minister of Infrastructure noted the need not just for the reconstruction of old Soviet bridges, but for the construction of new ones using modern technologies.
“Instead of repairing Soviet bridges, we should seize the opportunity to create new ones using the latest technology. And we should at least convert and electrify railways from the Soviet wide track to the European standard one in such a way that all the country’s important cargo hubs are directly connected with Europe,” the minister said.
Ukraine has received $1.7 billion from the United States to support the Medical Guarantee Program (MGP), Health Minister Viktor Liashko has said.
“As a result of agreements with the U.S. government, Ukraine received $1.7 billion in support of the MGP. The funds were provided through the World Bank trust fund on a gratuitous, non-refundable basis to the state budget of Ukraine,” he said at a briefing on Tuesday.
Liashko also said that since the beginning of 2022, as part of the MGP, UAH 74 billion have been transferred to medical institutions, including more than UAH 54 billion directed to the salaries of doctors.
In addition, Liashko recalled that out of 834 health facilities destroyed by the aggressor, 123 cannot be restored.
“The terrorist country is destroying the walls of hospitals, but it will never destroy the heroism and dedication of our doctors, who continue to work in the most difficult conditions,” he stressed.
The Finnish chain of fast food restaurants Hesburger is resuming the work of four establishments in Kyiv and the Kyiv region in July, and three more in August, according to the network’s website.
“We had a conversation with the managers of each restaurant and the management of the network in Ukraine. Ukrainians want to return to normal life as soon as possible. That is why we decided to open restaurants at the request of the managers of our establishments. According to our employees, local customers also hope and expect the opening of restaurants “, Hesburger CEO Kari Salmela was quoted as saying.
He stressed that the safety of customers and employees remains a priority, so the company is closely monitoring the development of the situation in Ukraine in connection with Russia’s military aggression.
According to the report, Hesburger continued to pay salaries to all employees, despite the closure of establishments due to the military invasion of the Russian Federation. In addition, the company, through charitable organizations, donated free food to orphanages, nursing homes, social workers and the Ukrainian army.
Earlier in March 2022, Hesburger made the decision to close all 38 restaurants in Russia and 4 in Belarus.
Hesburger was founded in 1980 in Finland. The network has more than 450 restaurants and is also represented in Lithuania, Latvia, Estonia, Bulgaria, Ukraine and Germany.
The Hesburger chain in Ukraine has seven restaurants in Kyiv and the Kyiv region. The company has 100 employees.
NJSC Naftogaz Ukrainy, through the issuer of its Eurobonds, Kondor Finance plc, has approached the holders of these securities in the amount of almost $1.5 billion with a proposal to defer coupon payments on them for two years, including postponing the repayment of Eurobonds for the same period – 2022 for $335 million.
“In light of the protracted circumstances affecting Ukraine as a result of the ongoing full-scale Russian military intervention and its impact on Ukraine’s energy security, the Issuer, at the request of the Borrower, has initiated this Consent Request in order to obtain the approval of the Noteholders to facilitate the Borrower’s retention of available cash to support strategic priorities. Ukraine,” the stock exchange said.
As reported, there are currently three issues of Naftogaz Eurobonds circulating on the market, all of which were placed in 2019: in July – three-year for $335 million at 7.375% and five-year for EUR600 million at 7.125% (one fifth of the euro bonds were bought by the EBRD ), and in November – 7-year for $500 million with a yield of 7.625%. The maturity date for the $335 million issue is July 18, 2022.
Naftogaz proposes to pay all coupons on 2022 and 2024 Eurobonds on July 19, 2024 and redeem 2022 Eurobonds on the same day. And NAC would like to pay coupons for Eurobonds-2026 on November 8, 2024.
The offer also includes a waiver of any default that occurs as a result of such a deferred payment and compliance with certain covenants for a two-year period (from July 19, 2022 to July 19, 2024 for Eurobonds 2022 and 2024 and until November 8, 2024 for Eurobonds-2026)
Naftogaz, in the argumentation of its request, indicates that the government, by Decree No. 691 of June 17 of this year, obliged the group to ensure the availability of natural gas in storage facilities as of October 1 in an amount sufficient for the stable passage of the autumn-winter period, including to meet the needs household consumers and heat supply organizations.
“Thus, the borrower needs to purchase and import natural gas in the amount of up to 5.6 billion cubic meters of natural gas for a total amount of more than UAH 230 billion (about $7.8 billion). Naftogaz is also obliged to provide natural gas to the most vulnerable consumers ( primarily the population of Ukraine) at fixed prices, which in many cases are many times lower than market prices for natural gas in Ukraine and Europe,” the stock exchange said.
The NAC adds that the Russian invasion of Ukraine has led to a significant economic and business downturn in the country, the inability of many Naftogaz customers to pay for the consumed gas has increased debt on the company’s balance sheet and negatively affected its liquidity, and any continuation of aggression will put additional pressure on NAC balance.
“It is possible that the borrower may not be able to comply with the current provisions of the relevant loan agreements (…) while the invasion continues. Therefore, the borrower considers it necessary and prudent to remove restrictions that may jeopardize its priorities and objectives, in addition to removing the administrative burden on the borrower in these exceptional circumstances,” the company argues for the need to lift covenants.
According to the report, Naftogaz does not plan to pay any premium to holders of its bonds for deferring payments.
In accordance with the document, the deadline for voting on proposals expires in the afternoon on July 21, and the meeting and announcement of the results are scheduled for July 26.
Naftogaz attracted Citigroup Global Markets Limited as an agent for this proposal.
This announcement led to a drop in quotations of NAK Eurobonds maturing in 2024 on the Frankfurt Stock Exchange, according to information on its website, from 29% to 10% of face value, and Eurobonds-2026 – from 24.44% to 20% of face value.
