Business news from Ukraine

Business news from Ukraine

UKRAINES COKE PRODUCTION GOES DOWN BY 1%

In January-November of this year, Ukrainian coke and chemical plants reduced production of metallurgical coke with 6% moisture content by 1% compared to the same period last year, to 8.731 million tonnes.
As the Ukrkoks association of coke and chemical enterprises (Dnipro) told Interfax-Ukraine, in November 727,000 tonnes of coke were produced.
Director General of Ukrkoks Anatoliy Starovoit told Interfax-Ukraine that in November and December the country’s coke and chemical enterprises operate at approximately the same load.
“There are slight fluctuations in production, when one battery is removed, the other is introduced, but in general these are minor changes,” the agency’s interlocutor stated.
According to him, the share of import coking coal supplies to coke and chemical plants amounted to 71.9% over 11 months of 2021, while over 11 months of 2020 – 72.7%.
“In total, in January-November of this year, 11.834 million tonnes of coal and concentrate were supplied to coke and chemical plants, including coal of Ukrainian production – 3.32 million tonnes, and 8.5 million tonnes of imported coal. In particular, 5.4 million tonnes of coal and concentrate were imported from the Russian Federation, 2.3 million tonnes from the USA and Canada, 711,000 tonnes from Kazakhstan, and the rest in small volumes – from Poland, the Czech Republic and other countries,” Starovoit said.
At the same time, the CEO reported updated data for 2022, according to which 14.2 million tonnes of coking coal will be required to smelt 21.5 million tonnes of cast iron. “On average, 460 kg of coke per tonne of cast iron,” the agency’s interlocutor said.
Earlier it was predicted that for the smelting of 21.5 million tonnes of cast iron in 2022, some 9.9 million tonnes of metallurgical coke, or 11.5 million tonnes of gross coke, would be required, for which 15.7 million tonnes of coking coals would be needed, including 12 million tonnes of imported coal.
“We have adjusted the demand for coke to 460 kg per tonne of cast iron, whereas earlier we used about 500 kg per tonne of cast iron,” Starovoit said.
According to recent data, over 11 months, in particular, Avdiyivka Coke and Chemical Plant reduced coke output by 9.7% compared to January-November 2020, to 2.417 million tonnes (224,000 tonnes were produced in November), Azovstal – by 9.8%, to 1.111 million tonnes (97,000 tonnes), Dniprovsky Coke and Chemical Plant – by 6.3%, to 505,000 tonnes (43,000 tonnes), Dniprokoks increased production by 10.7%, to 526,000 tonnes (51,000 tonnes), and Zaporizhkoks decreased production by 0.8%, to 887,000 tonnes (75,000 tonnes). Kharkiv Coke and Chemical Plant is idle. Coke production at ArcelorMittal Kryvyi Rih increased by 10%, to 2.640 million tonnes (188,000 tonnes), and at Pivdenkoks – by 7.7%, to 645,000 tonnes (50,000 tonnes).

ANTIMONOPOLY COMMITTEE OF UKRAINE FINES SEVERAL POROSHENKO’S COMPANIES

The Antimonopoly Committee of Ukraine (AMCU) on Tuesday fined a total of UAH 283.62 million a group of companies (Interstarch Ukraine LLC, PrJSC Dniprovsky starch-molasses plant, PrJSC Intercorn) related to the Roshen confectionery corporation, the beneficial owner of Oleksiy Poroshenko (son of the fifth President of Ukraine Petro Poroshenko).
“The fine was imposed for two violations of the legislation on the protection of economic competition through abuse of monopoly position in the national market for the primary sale of corn syrup and glucose syrups,” the committee said in a press release.
The committee claimed that the specified group unreasonably increased prices for molasses and syrups in April-June 2018, February-March 2019 and October 2020, and also set different conditions for equivalent agreements with buyers of this product during 2018-2020 without justified reasons.
During the investigation, which lasted a year and a half, the committee established that in 2018-2020 the group was the only producer of molasses in Ukraine and the largest and most powerful market participant with shares of 65.49% (in 2018), 93.86% (in 2019) and 79.75% (in 2020), with importers being the only competitors.
It was also found that the group is the only producer of corn starch in Ukraine with shares of 74.26% (in 2018) and 96.79% (in 2019).
“By analyzing the price behavior of the group, it was found that during 2018-2020, the price for the molasses and syrup increased and decreased by it haphazardly. The group carried out price exemptions for certain business entities (confectionery factories),” the committee said.
In particular, according to the committee, one of the buyers of molasses was offered low prices in an attempt to prevent the transfer to a competitor (importer) – Amylco LLC (Rostov region of the Russian Federation), as well as to prevent other buyers of molasses, which capacities located in the eastern part of Ukraine.
“At the same time, the committee established that at present, the Ukrkondprom association has begun to receive initiatives to impose a ban on the import of molasses from the Russian Federation. And on January 8, 2019, by government resolution No. 1154, the ban was introduced,” the committee said.
In addition, the committee revealed that the group applied various conditions in contracts for the supply of molasses with buyers without objectively justified reasons: the procedure for ordering and agreeing on the supply of goods, terms of payment for goods, sanctions, etc.
According to the committee, the group’s participation in vertical integration – from growing corn to producing confectionery products – could give Roshen a significant competitive advantage by purchasing molasses at lower prices than other confectioners.
As a result, the committee fined UAH 210.19 million Interstarch Ukraine LLC, UAH 47.46 million PrJSC Dniprovsky starch-molasses plant and UAH 25.98 million PrJSC Intercorn, and also ordered them to terminate violations.

POLL: 35% OF UKRAINIANS WOULD NOT SUPPORT EITHER MAIDAN OR ANTIMAIDAN

After eight years have passed since the Euromaidan events, more than a third of Ukrainians would not support either supporters or opponents of protest actions today – this is 34.8%.
According to a poll conducted by the Social Monitoring Center, today 22.1% of Ukrainian citizens surveyed remain Maidan supporters, 19.2% consider themselves Maidan supporters, but with certain conditions (or under certain circumstances).
Some 8.4% of the respondents identified themselves as opponents of the Maidan and supporters of Antimaidan, and 6.8% consider themselves to be opponents of the Maidan, however, with certain conditions (or under certain circumstances).
Some 8.8% of respondents found it difficult to answer the question of sociologists.
Some 40.8% of respondents in the West of Ukraine called themselves unequivocal supporters of the Maidan, in the center – 29.4%, in the east – 7.8%, in Donbas – 5.3%, in the south of the country – 10.5%, in the city of Kyiv – 25.7%.
Some 0.7% of respondents in the West of Ukraine, 4% in the center, 17.4% in the east, 11% in Donbas, 15.1% in the south and 7.2% in Kyiv consider themselves to be unequivocal opponents of the Maidan – supporters of Antimaidan.
The poll was conducted from November 28 to December 10 using a face-to-face interview method. Some 10,000 respondents were interviewed. The standard deviation is 0.6 – 1%.

,

UKRAINE TO DEVELOP COOPERATION WITH JAPAN

Prime Minister Denys Shmyhal has said that Ukraine expects to further develop cooperation with Japan in the spheres of economy, IT and culture, the press service of the government reported.
“I am sure that Japan, as one of the world’s largest investors, can also become one of the leaders in foreign direct investment in the Ukrainian economy,” Shmyhal said following a meeting with Japanese Ambassador to Ukraine Kuninori Matsuda.
According to the prime minister, the conclusion of a new intergovernmental convention on the avoidance of double taxation can contribute to attracting investments.
“The Prime Minister stressed the importance of effective implementation of joint projects, in particular, the reconstruction of the Bortnychi wastewater treatment plant, which was also noted by the Japanese Ambassador to Ukraine Kuninori Matsuda,” the press service said.

,

MYROSLAVA GONGADZE TO RETURN TO UKRAINE AS HEAD OF VOICE OF AMERICA IN EASTERN EUROPE

The U.S. international radio company “The Voice of America” (VOA) has appointed journalist Myroslava Gongadze as Eastern Europe Chief, due to which she will move to Kyiv in 2022, the Voice of America press service said.

As explained in the broadcaster, as a Russian troop buildup intensifies along the Ukrainian border and in Russian-occupied Crimea, Gongadze will be covering for a global audience the Kremlin’s aggressive posture in Eastern Europe as well as the impact of Russia’s and China’s influence throughout the region.

Voice of America expects in this new role, she will lead “expanded coverage of a region threatened by hybrid war and disinformation,” the broadcaster said.

Thus, Gongadze, who has been working for the Voice of America in the United States since 2004, will move to Kyiv in 2022.

In turn, Gongadze said she is honored to build on my seventeen-year career at Voice of America in my new role as Eastern Europe Chief.

,