Business news from Ukraine

Business news from Ukraine

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tel./fax: +38(067)970-52-59

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SERBIA AND HUNGARY COMPLETE PIPELINE BYPASSING UKRAINE

Serbian company Srbijagas and Hungary’s FGSZ have finished building the linear section of a gas pipeline connector between the two countries through which Hungary will be able to receive Russian gas transported through a Black Sea pipeline instead of through Ukraine.
Serbia’s national TV channel reported the welding of the “golden” joint of the pipeline on the border between the two countries.
Gas supplies along the new route are supposed to start on October 1, the beginning of the new gas year.
The TurkStream pipeline, which carries Russian gas across the Black Sea to Turkey and onward to Southern Europe, went into operation in January 2020. Turkey, Bulgaria, Greece, Macedonia and Romania were the first to receive gas through the pipeline. Serbia, as well as Bosnia and Herzegovina began receiving gas along the new route at the start of 2021. In future, TurkStream gas is also supposed to reach Austria through Hungary.
The first phase of the connector between Serbia and Hungary, with capacity of 6 billion cubic meters per year, involved building a 15-km linear pipeline section.
The expansion of the connector to 8.5 bcm per year has been postponed from October 2022 to October 2023. Hungarian gas companies and officials lost time in the middle of 2020 due to concerns that they might be hit by U.S. sanctions.
The U.S. State Department issued a new clarification on section 232 of the Countering America’s Adversaries Through Sanctions Act (CAATSA) on July 15, 2020, stating that sanctions could be imposed against investors in Russian export energy pipeline projects. The new clarification extended the possibility of imposing sanctions against persons investing, or providing goods and services, directly and that significantly facilitate the construction of the Nord Stream 2 gas pipeline and the second string of the TurkStream pipeline.
Hungary imported 8.637 bcm of Russian gas in 2020.

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PRESIDENT OF UKRAINE ANNOUNCES INTENTION TO INCREASE PRESTIGE OF UKRAINIAN CITIZENSHIP

President of Ukraine Volodymyr Zelensky announced his desire to increase the prestige of Ukrainian citizenship in the international arena.
He made the corresponding statement during his speech at the forum “Ukraine 30. International Politics” on Monday.
“My position as the President of Ukraine is very simple: every citizen of Ukraine who is outside our state should feel support and feel protected. Our common ambitious goal is the high prestige of Ukrainian citizenship and Ukrainian passport in the world. The prestige of a Ukrainian passport is confidence in your state when you find yourself in a difficult situation abroad,” Zelensky said.
He also said that in the event of such a situation, the state apparatus must act quickly and clearly, in order to promptly provide assistance to its citizens in other countries.
“The prestige of a Ukrainian passport is also an opportunity to travel freely around the world,” Zelensky said.
In addition, the president pointed out the need to maintain and develop ties between the state apparatus in Ukraine and the Ukrainian diasporas in different countries.
“The Ukrainian community in the world is always visible, heard, and this is wonderful,” Zelensky said.

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SCATEC LAUNCHES MOST POWERFUL SOLAR POWER PLANT IN UKRAINE

Norway’s Scatec started commercial operation of its largest solar power plant in Ukraine Progressovka (Mykolaiv region) with a capacity of 148 MW from July 2.
“We are pleased to complete our fourth project in Ukraine, supporting the country’s transition to green energy,” Scatec CEO Raymond Carlsen is quoted as saying in a post on the company’s website.
The Progressovka project envisages the production of 184 GWh of electricity per year, which will provide 76,000 households with power and will lead to a decrease in greenhouse gas emissions by over 70,000 tonnes, the company said.
The service life of the plant is over 30 years.

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EXPORT OF FISH FROM UKRAINE INCREASES BY 28% IN JAN-APRIL

Export of fish and other aquatic biological resources by Ukraine in January-April amounted to 3,650 tonnes, revenue from their sales abroad increased by 28% compared to the same period in 2020, to $13.9 million, the State Agency for Land Reclamation and Fisheries reported on its website on Friday.
According to the ministry, in the first four months of this year, the largest buyers of Ukrainian fish products in monetary terms were Germany, which exported products worth $4.18 million (603 tonnes), Moldova – $1.99 million (876 tonnes) and Denmark – $1.98 million (420 tonnes). Significant deliveries were made to Lithuania – $1.01 million (377 tonnes), Israel – $0.83 million (100 tonnes), the Netherlands – $0.54 million (91 tonnes), Azerbaijan – $0.54 million (215 tonnes) and the United States – $0.51 million (130 tonnes).
The State Fisheries Agency said that since the beginning of the year Ukraine had exported most of the finished or canned fish – 1,180 tonnes, fillets of fish and other fish meat (including minced meat) – 1,020 tonnes, live fish – 320 tonnes and molluscs – 290 tonnes.

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UKRAINE BOOSTS GAS IMPORT

Since July 1, Ukraine has significantly increased the import of natural gas into the country, which made it possible to increase the volume of its injection into underground gas storage (UGS) facilities, Head of Gas Transmission System Operator of Ukraine LLC (OGTSU) Serhiy Makogon has said on his Facebook page.

“Since the beginning of July, gas imports to Ukraine have significantly increased. Now it amounts to 15.8 million cubic meters per day. 91% comes from Hungary, 7% from Slovakia, and 2% from Poland. Additional receipts will allow increasing gas injection into UGS facilities to ensure the passage of the next heating season,” he wrote.

At the beginning of the second decade of June, Makogon said that the average daily gas import to Ukraine reached 3 million cubic meters, which is five times less than the current July import (15.8 million cubic meters).

According to the calculations of Interfax-Ukraine based on the data of JSC Ukrtransgaz, the average daily injection into the UGS facility during June amounted to 19.1 million cubic meters, while on July 1, it increased 1.8 times (by 15.1 million cubic meters), to 34.2 million cubic meters.

Maintaining such rates of injection throughout the current month will allow replenishing storage facilities by more than 1 billion cubic meters of gas and enter in August with reserves of about 17.3 billion cubic meters.

From the end of the season of gas withdrawal from storage facilities on April 29 to July 1, 2021, reserves in Ukrainian UGS facilities expanded by 6.3% (by 958.6 million cubic meters), to 16.249 billion cubic meters.