Business news from Ukraine

Business news from Ukraine

MEMBER OF EC FOR ENERGY: EU HAS PLAN FOR GAS SUPPLIES TO UKRAINE AND MOLDOVA IN CASE OF INTERRUPTIONS IN SUPPLIES FROM RUSSIA

The EU has developed a plan for reverse gas supplies to Ukraine and Moldova in case these countries experience interruptions in supplies from Russia, Bloomberg reported on Monday, citing Energy Commissioner Kadri Simson.
“She told reporters in Vienna that the EU in the current situation cannot consider Russia a trustworthy partner, and therefore interruptions are not ruled out,” the agency writes.
In addition, Simson noted that Brussels is assessing what difficulties the economies and citizens of the EU countries will face if this integration association imposes an embargo on oil supplies from Russia.

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UKRAINIAN PRESIDENT ZELENSKY: WEST COULD PREVENT RUSSIAN AGGRESSION

Ukrainian President Volodymyr Zelensky believes that the West could have prevented Russian aggression, but humoured Putin for a long time.
“Could the West have prevented this? I believe that there is a high percentage that they could have done this. I believe that Putin may not hear me. But he could not hear the United States, Great Britain or the Western world. The West was not united. They [in the West] are people of principle, they defend common values, but, first of all, they think about the political situation inside the state, and only then what is happening outside,” Zelensky said in an interview with the 60 Minutes program on the American CBS television channel, published on Monday by the President’s Office of Ukraine.
According to Zelensky, “they could put powerful pressure on Putin, and he would be forced to hear them.”
At the same time, Zelensky said that he has no legal claims against the leaders of NATO countries, however, in general, in his opinion, they are responsible.
“When you can close the sky… Yes, it is scary that the Third World War will start. It is scary, I understand it. I cannot put pressure on them every day, because everyone is afraid of war. But the world is responsible,” the president said.
“I saw the leaders of small countries with big hearts. Not everyone played down to Putin. But the one who has something to lose always flirts. Small Lithuania, Latvia, Estonia are countries with big hearts. Countries where major business is Germany always have a choice and difficulties, France, Italy, Portugal, where there are great interests, great trade, long historical relations, cultural ties, many people who emigrated with the capital of the Russian Empire went to Europe with their families. And therefore the influence there is great,” he said, noting that all of these countries tried not to spoil relations with Russia.
“No one wants to leave the comfort zone. And fighting Putin, supporting Ukraine, is leaving the comfort zone. Political, financial, and even risking a career, because a war may start. A financial crisis, people may not forgive,” Zelensky said.
At the same time, according to him, “there are less and less of these people every day.”
“The war in Ukraine, which separated our families, at the same time united us as a nation and united the West,” the head of state said.

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UKRAINE IN CURRENT SEASON CAN GROW AND HARVEST 63 MILLION TONS OF GRAIN AND OILSEEDS – EXPERTS

Ukraine in the current season can grow and harvest 63 million tons of grain and oilseeds, approximately from 20 million hectares.

The corresponding estimates of the possible harvest were published on the website of the Ukrainian Grain Association (UGA) on Monday.

“Ukraine, in the conditions of aggression from Russia, will still be with grain. This year, despite the fact that 5 million hectares cannot be sown or it will be impossible to harvest on them, Ukraine can receive about 63 million tons of grain and oilseeds from an area of about 20 million hectares. At the same time, the domestic market of Ukraine consumes about 30 million tons of grain and oilseeds annually,” the association’s report says.

In addition, subject to the reorientation of exports from seaports blocked by the aggressor country of the Russian Federation to land transportation, the country will be able to export up to 35 million tons of agricultural crops in the 2022/2023 marketing year (MY, July-June).

UGA recalled that Ukraine in the current MY 2021/2022 due to the Russian blockade of seaports will not be able to export about 20 million tons of grain, which will be forced to store in elevators as transitional balances for the next MY.

According to the association, today the capacity of alternative logistics routes bypassing seaports is 600,000 tons of crops per month, but this figure can be increased by increasing the capacity of railway and logistics crossings at the borders with EU countries. Thus, thanks to the optimization of logistics, the export of grain and oilseeds in MY 2022/2023 can be expected at the level of 35 million tons.

“The current developments of the government and the public in the field of logistics and exports allow expanding the throughput to 2 million tons of crops per month. To reach the level of exports of 35 million tons of grains and oilseeds per year, it is necessary to further expand the throughput at the EU borders to 3 million tons per month,” the UGA said.

According to her, the wheat harvest in Ukraine in the current MY will decrease by 1.8 times – from 33 million tons in 2021/2022 MY to 18.2 million tons, but this figure is almost three times more than Ukraine consumes wheat per year. Taking into account the transitional stocks of wheat of the last harvest of almost 10 million tons, exports of wheat in 2022/2023 MY, with such harvest indicators and taking into account large transitional stocks, can amount to about 10 million tons.

In addition, the country can harvest up to 6.2 million tons of barley this season (in 2021 – 10.1 million tons), so its export in 2022/2023 MY can be expected at the level of 2 million tons.

The corn harvest can be expected at the level of 23.1 million tons (in 2021 – 37.6 million tons), while its exports may reach about 20 million tons.

The rapeseed harvest can be expected at the level of 1.5 million tons (2.9 million tons), while its export in 2022/2023 MY is expected at the level of 1.3 million tons.

The soybean harvest can be expected at the level of 1.8 million tons (in 2021 – 3.5 million tons), and exports in 2022/2023 MY are projected at the level of 0.6 million tons.

“Thus, Ukraine will be guaranteed to have sufficient grain reserves, while the countries of the world will not receive a significant amount of grain from Ukraine due to Russia’s war against Ukraine and rising prices, which, according to UN estimates, could cause famine in many countries of the world. In particular, Ukraine traditionally exports about 30-35% of grain to the countries of North Africa and the Middle East, 30-35% to the countries of South and Southeast Asia, and about 35-40% to European countries,” the UGA concluded in its forecast.

As reported, before the Russian military invasion, Ukraine monthly exported up to 5 million tons of agricultural products through the ports of Odessa and Nikolaev, however, due to the blockade of these ports by the aggressor country of the Russian Federation, the country can transport no more than 0.5 million tons of grain monthly, which leads to a monthly shortage $1.5 billion in export earnings.

Ukraine in 2021, according to the State Statistics Service, harvested a record harvest of 85.7 million tons of grain and leguminous crops, which is 32% higher than in 2020, including 32.07 million tons of wheat (+28.9%), 41.87 million tons of corn (+38.2%) and 9.42 million tons of barley (+23.3%).

In addition, 593.9 thousand tons of rye were harvested in Ukraine (+30% by 2020), 471 thousand tons of oats (-7.3%), 204.2 thousand tons of millet (-20.2%) , 173.9 thousand tons of sorghum (+63.2%), 106.0 thousand tons of buckwheat (+8.5%), 48.6 thousand tons of rice (-20%), 32.3 thousand tons triticale (-7.8%), as well as 681 thousand tons of other leguminous crops.

Among other crops in the country last year, 16.38 million tons of sunflower were harvested (+25% compared to 2020), 10.8 million tons of sugar beet (+18.1%), 3.5 million tons of soybeans (+24. 4%), 2.92 million tons of rapeseed and 42 thousand tons of oilseed flax (an increase of 3.7 times).

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GREEN CARD PREMIUMS IN UKRAINE GROW BY 45% – EXPERTS

Accrued insurance premiums under Green Card international insurance policies signed by member companies of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) grew by 45.4% in January-February 2022 compared to the same period in 2020, to UAH 422.7 million.
As reported on the MTIBU website, the number of Green Card policies concluded over this period rose by 90.2%, to 186,300.
At the same time, the amount of compensation paid on claims decreased 0.72%, to EUR 1.836 million, while the number of paid claims fell by 0.24%, to 823.
MTIBU is the only association of insurers that provides compulsory insurance of civil liability of owners of ground vehicles for damage caused to third parties.
Green Card is a system of insurance coverage for victims of a road traffic accident, regardless of their country of residence and the country of registration of the vehicle. The Green Card covers the territory of 47 countries in Europe, Asia and Africa.
According to the decision adopted by the General Assembly of the Council of the Bureaux of the Green Card international auto insurance system in Luxembourg in May 2004, Ukraine since January 1, 2005 has been a full member of this system.

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UKRAINIAN DIGITAL TRANSFORMATION MINISTRY RECEIVES MORE THAN 66,000 APPLICATIONS ON DAMAGED PROPERTY

The Ministry of Digital Transformation of Ukraine has already received more than 66,000 applications for damaged property of Ukrainians through the Diia application after February 24, Deputy Prime Minister of Digital Transformation Mykhailo Fedorov said on his Telegram channel on Monday.
To apply to the Diia it is necessary to: update the application to the latest version, select “Damaged property” in the “Services” section and fill out the form, specifying all the necessary information.
“It is important: one need to enter data only on your own housing. One person cannot apply for the whole house, but only for his apartment. After registering the message, expect information about the beginning of the assessment procedure and compensation determined by the government,” Fedorov said.
Earlier, adviser to head of the President’s Office Oleksiy Arestovych reported that the Cabinet of Ministers of Ukraine would compensate for the cost of the destroyed housing stock with an area of up to 150 sq. m.

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INTERNATIONAL DEVELOPMENT COMPANY CASPIAN SERVICE RESUMED ITS ACTIVITIES IN UKRAINE

The international development company Caspian Service has resumed its activities in Ukraine.
As the press service of the company reported, the activities of the Azerbaijani developer have been suspended since the beginning of the Russian invasion on February 24, 2022.
Already in early April, the Caspian Service team resumed work on the design of the second stage of construction of the BASA City residential complex and is actively studying the possibility of building the first and second stages of this complex in the suburbs of the capital.
Currently, the construction site of the project is under guard, the CEO and management of the company continue to stay and work in Kyiv, and the team members temporarily evacuated plan to return to their workplaces in the coming weeks.
The release notes that since the outbreak of hostilities, the company has suspended claims for regular installment payments for a period of three months.
Founded in 2001, the construction company Caspian Service is one of the leaders in the construction industry in Azerbaijan. Over the years of work, more than 1 million square meters have been built and put into operation in Azerbaijan. real estate (housing, offices, shopping centers, sports complexes, medical clinics, etc.). Develops projects in Ukraine, Kazakhstan, Georgia and other countries.