The regional department of the State Property Fund in Kiev sold at auction a single property complex of SE “Elektronmash” (Ring Road, 4) for nearly 121 million UAH, while the two previous failed auctions for its sale could bring the budget 970 million UAH and 430 million UAH.
“Despite the air raid and rocket attacks, the auction to privatize the Electronmash plant took place. Another advantage of electronic bidding on the platform “Prozorro. Sales” platform – entrepreneurs can compete for assets while in hiding,” the press service of the State Property Fund said.
According to the press release, a single property complex was put up for privatization, totaling 110.7 thousand square meters. m of real estate and more than 200 thousand square meters. m of land. In the capital, Electronmash has 36 pieces of property, including shops and administration buildings. The company has 31 vehicles and a recreation base in the village of Sokolovka, Chernigov region.
In the auction was attended by 6 entrepreneurs. The final bid at the auction almost doubled.
The winner was LLC “Incom Rent” with a bid of 120.81 million UAH. As reported in the release, in addition to the winning bid the winner must pay the VAT – 24.2 million UAH and more than 23 million UAH of the debt to employees and the state budget.
The winner has 20 working days to pay the cost of the lot.
According to Youcontrol, LLC “Incom Rent” was founded in 2018, the authorized capital is 1 thousand UAH. The founders of the company are AMC Arivo Asset Management LLC in the interests of PVNZIF Arivo Corporate (60%) and Plates-1 LLC (40%). Lyudmila Yakovleva and Oleg Magalyas are named as beneficiaries.
The second highest bidder at the auction was BSK GROUP LLC – UAH 120.777 million. According to Youcontrol, the company was founded in 2013 with a share capital of 1 thousand UAH. The ultimate beneficiary is indicated as Oleksandr Sokor.
As reported, this is the third attempt to privatize Elektronmash. The previous two auctions for its sale could bring significant investments into the budget – UAH 970 million and UAH 430 million, but unscrupulous investors did not complete the purchase within the prescribed period.
Electronmash” SE (previously – State Scientific Production Enterprise “Electronmash”) was created on the basis of the plant of electronic computing and control machines, which since 1965 provided the Soviet Union with the computing equipment.
In recent years it showed significant damage. In 2022, Elektronmash suffered 8.2 million hryvnias in damages, in 2021 it suffered 24 million hryvnias and in 2020 it suffered 10.9 million hryvnias. The number of employees at the plant is decreasing: if in 2020 there were 175 employees, in 2021 there will be already 149, and in 2022 there will be 127.
At present, the main specialization of the plant is the production of electric motors, generators and transformers, as well as metalwork turning services.
In recent years, it has produced, in particular, automatic gas metering systems, commercial metering and payment systems for energy resources and utilities.
Turkish lira exchange rate on Monday once again updated its historic low against the U.S. dollar on the results of the presidential election.
The national currency is trading at 20.1004 lira/$1 from 19.9731 lira/$1 at the close of the previous session. Over the past twelve months, the lira has fallen in value by about 23 percent.
Analysts at Morgan Stanley predict that the Turkish currency rate could drop another 29% by the end of this year – to about 28 lira/$1 if the country’s current policies persist. The experts at Wells Fargo & Co. expect a decline to 23 liras/$1 by the end of the current quarter.
Meanwhile, the BIST 100 stock index jumped 4.1 percent in trading Monday to a two-week high. It has nearly doubled over the year (up 88.2%).
Leaders of the rise include companies that earn a significant portion of their revenues from abroad, including glass maker Sise ve Cam Fabrikalari (+6.2%) and Turkish Airlines (+3.3%).
The yield on Turkey’s ten-year government bonds is around 9% annually, the lowest level since January.
Current Turkish President Recep Tayyip Erdogan won the second round of presidential elections. In a speech after the announcement of his victory, he called on his fellow citizens to unite and work together for the good of the country, and promised to address urgent problems, in particular to deal with the effects of inflation.
The war in Ukraine and its economic consequences have caused significant damage to the production and income of small farmers, which exceeded USD3.85 billion, according to a report by the UN Food and Agriculture Organization (FAO) published Monday.
“The data from this assessment will help FAO, the Ukrainian government and its partners to identify the urgent needs and geographic areas for investment and support to smallholder farmers, so that they can meet the challenges of the current situation and resume their activities quickly,” said Pierre Vauthier, Head of FAO’s office in Ukraine.
In a nationwide survey 1927 smallholders, who specialize in crop and livestock production, have a land area of up to 250 hectares and are located in 23 regions, including parts of Donetsk, Kharkiv, Kherson and Zaporizhzhia regions under the control of Ukraine, participated in the FAO survey.
Among the key factors that led to the suspension and/or reduction of farms, the FAO cited temporary cessation of activities, loss of control over farmland, death of owners and land sales caused by or related to the escalation of war.
According to the survey, the number of small producers in Ukraine has decreased by almost 80%, of which 1% are livestock producers who stopped producing small amounts of crops, and almost 7% are crop producers who stopped their production completely.
The FAO estimated the total amount of losses and losses for smallholders at USD 3.85 billion in the crop and livestock sectors.
According to the FAO, about 12% of small farms reported that some of their land was potentially contaminated by unexploded ordnance. Frontline areas were most affected, with 32% of respondents confirming this information.
Almost 90% of small crop producers reported a decrease in income, with more than 70% of them recording significant and 25% sharp declines. Small livestock producers were less affected, but more than 60% of them reported a decrease in income, with 46% citing it as significant or drastic.
According to the survey, small farmers have increased their debts compared to the same period before the war, from 6% in 2021 to 9% in 2022.
The FAO noted increased problems due to disruptions in agri-food value chains. On average, 9% of respondents reported that resellers had stopped their operations or were unable to procure more produce.
Most producers surveyed cited difficulty accessing agricultural inputs due to high prices, lack of workers, lack of fuel or electricity to power farm machinery, or even lack of access to electricity. In addition, there is a collapse of markets for agricultural resources (fertilizers and seeds), particularly in frontline areas.
According to the FAO, the greatest needs reported by respondents for continued production are provision of fertilizer, fuel and seeds, access to feed or forage, restocking of livestock and access to markets.
The FAO used an adapted methodology for assessing agricultural losses and damages. The survey was assisted by the Kyiv School of Economics, the All-Ukrainian Association of Rural, Village Councils and United Communities, the East Ukraine Agricultural Advisory Service for the survey in Donetsk Oblast, and the Office of Prospective Development for the survey in Zaporizhzhia Oblast.
Oil prices are rising Monday morning amid optimism about an increase in the U.S. national debt ceiling.
July Brent futures on London’s ICE Futures exchange stood at $77.53 a barrel by 8:14 a.m., up $0.58 (0.75%) from the previous session’s close. Last Friday those contracts rose $0.69 (0.9%) to $76.95 a barrel.
July WTI futures traded on NYMEX rose by $0.65, to $73.32 per barrel. The contract value grew by $0.84 (1.2%) to $72.68 per barrel at the end of previous session.
Brent contract grew 1.8% and WTI gained 1.4% at the end of the previous week.
Over the weekend, US President Joe Biden said he had reached a budget agreement with House Speaker Kevin McCarthy. According to him, this prevents “the worst possible crisis,” that is, the possibility of a default on U.S. government debt.
Negotiators are finalizing the text of the bill, which will then go to the House and Senate.
It is expected that trading volume on Monday may be lower than usual due to the fact that the USA and UK stock exchanges are closed in connection with the public holidays.
Meanwhile, the number of active oil rigs in the United States fell by five last week to 570, oilfield services company Baker Hughes said. That’s the lowest since March 2022.
Canada will deliver nearly five thousand assault rifles and ammunition to Ukraine in the coming weeks, according to the Canadian Ministry of Defence.
“The delivery of the small arms and ammunition aid package announced in April is on schedule. Machine guns, assault rifles, cleaning kits and magazines have already been delivered to Ukraine, and one million rounds of 5.56 mm ammunition and 4,800 assault rifles should arrive in the coming weeks,” the report said.
According to the Canadian Ministry of Defence, all 21,000 small arms and 2.4 million rounds of ammunition planned for delivery are expected to be in Ukraine by summer.
“Canada’s support for Ukraine is unwavering. When I travel across Canada, I see Ukrainian flags on homes, small businesses and cars – because Canadians understand that Ukraine’s fight for self-defence is also a fight for sovereignty, freedom and independence,” said Canadian National Defence Minister Anita Anand, quoted by the ministry’s press office
Turkish President Recep Tayyip Erdogan said on Sunday that he had won the presidential election.
“Our nation has made a choice and once again empowered us to lead the country for another five years,” Erdogan said, addressing his supporters at a rally.
He thanked all Turkish citizens who voted for him.
The presidential election in Turkey is already being called the main election of 2023 in the world. The pre-election economic and political situation in Turkey was analyzed by the Club of Experts research center, watch the video with the Club’s experts here:
The presidential election in Turkey is already being called the main election of 2023 in the world. The pre-election economic and political situation in Turkey was analyzed by the research center of the Club of Experts, watch the video with the Club’s experts here:
