Business news from Ukraine

Business news from Ukraine

Ukrainian agrarians opposed possible abolition of Ministry of Agrarian Policy

Representatives of Ukrainian agrarian business are asking President Volodymyr Zelenskyy and Prime Minister Denys Shmyhal not to allow the merger of the Ministry of Agrarian Policy and Food, the Ministry of Economy and the Ministry for Strategic Industries into a single executive body – the Ministry of Economic Development of Ukraine.
According to the web-site of the Ukrainian Agribusiness Club (UCAB), agricultural sector is vital for the country’s economy, and therefore it is logical and necessary for business and society to have a specialized central authority responsible for the development of agricultural policy, restoration of the agricultural sector after the war, ensuring the volume of agricultural production and supply of agricultural products to the world markets.
According to her data, besides UCAB, the appeal was also signed by the All-Ukrainian Agrarian Forum, the Agrarian Union of Ukraine, the All-Ukrainian Agrarian Rada, the Union of Poultry Farmers of Ukraine and the Ukrainian Agrarian Confederation.
“Ukraine is a state with a multiform economy, and agriculture and agribusiness are vital for ensuring economic recovery, food security, stability of the national currency and social protection of the population. The weight of Ukraine’s agricultural sector has increased significantly since the beginning of the full-scale invasion of the Russian Federation. The role of Ukraine as an agricultural state is noted by the world leaders and organizations”, – stresses the appeal.
It is noted that agribusiness supports the creation of a government center, which will report to the prime minister and will coordinate strategies and programs to restore the Ukrainian economy.
“The abolition of the Ministry of Agrarian Policy will lead to negative consequences both in the agri-food sector and in the state economy as a whole, and will also cause concern of foreign partners and threaten the establishment of export supplies of Ukrainian food to countries in need,” the statement says.
UCAB also refers to international experience, according to which most countries with a developed agricultural sector have a separate central executive body responsible solely for shaping their agricultural policies. These include, in particular, the U.S., Canada, Turkey, almost all EU member countries (except Austria), which have authorities responsible solely for agriculture and food.
“Taking into account the above mentioned, the leading public associations of agroindustrial complex urge to take into account the opinion of the agrarian sector when optimizing the number of central executive authorities, ensuring the existence of one separate specialized body of state power of national level, which will be responsible for provision of food security and ensuring effective functioning of agrarian sector, especially in postwar period”, – points out the statement of agribusiness representatives.
As reported the day before Ukrainian media reported on the possible merger of Ministry of Agrarian Policy with Ministry of Economy and Ministry of Agrarian Policy to Ministry of Economic Development.
Thus, it was reported that at a meeting of President Zelenskyy with members of the government on November 8, a relevant concept of consolidation of ministries in Ukraine from 20 to 14.
Earlier, in June 2022, the media reported plans to merge the Ministry of Agrarian Policy with the Ministry of Economy into the new Ministry of Economic Development and Innovation by the end of 2022. It was also planned to generally reduce the number of ministries in the country from the existing 20 to 12.
In August 2019, the Verkhovna Rada merged the Ministry of Agrarian Policy and the Ministry of Economy into the Ministry of Economic Development, Trade and Agriculture. However, in 2020, the Cabinet of Ministers reconstituted the Ministry of Agrarian Policy by canceling its merger with the Ministry of Economic Development, Trade and Agriculture and set the number of employees at 203, after which the Ministry again began to operate as a separate structure.

Well-known architectural company involved in creation of new master plan of Nikolaev

International architectural firm One Works and Norman Forster are involved in the creation of a promising master plan for Nikolaev, according to the press service of Mykolaiv City Council.
UN Economic Commission for Europe (UNECE) in early fall invited international architects to help Nikolaev to develop a perspective master plan. Coordinates the work of a global design and architectural firm One Works (Italy).
According to the website of the architectural company, One Works created a special team on a pro bono basis.
“We want to contribute, using the best of our skills and knowledge, in defining a master plan that looks at the architectural and infrastructure reconstruction of the city on which to base an equally robust social reconstruction…During a series of online meetings with Nikolaev Mayor Alexander Senkevich and Deputy Mayor Vitaly Lukov, we were able to discuss the first steps to be taken to address the most urgent needs and support recovery efforts for a better tomorrow, envisioning z
One Works is working closely with the UNECE task force, the Norman Foster Foundation and the Nicholas authorities on five thematic macro areas that form the basis for analysis and identification of strategies that will guide the development of a new master plan for the city: transportation and infrastructure, green and water systems, social housing, industrial/manufacturing development.
“This is a project that will be all the more successful the more professionals know how they can get involved. I work daily with our One Works directors to help bring in professionals who showcase the best of Italian design, craftsmanship, in addition to an intense dialogue and exchange with local Nikolaev professionals and architects. Together with an in-depth analysis of the city’s needs, we can make the Mykolaiv Master Plan an unprecedented model of inclusive design for people,” explained De Carli.
For example, the Department of Urban Planning of the Polytechnic University of Milan, experts on digital transformation of cities Municipia, ExSUF – Center of Excellence of the Geneva UN Charter, Liuc – Libera Università di Castellanza have already been involved in the development of the perspective Mykolaiv master plan.
According to the press service of the Mykolaiv City Council, in parallel, a sociological study of the opinions of citizens on the creation of a master plan is carried out.
It was previously reported that British experts, headed by Norman Forster, were brought in to help create a master plan for the reconstruction of Kharkiv. In order to ensure openness and transparency of the interested representatives of communities, UNECE plans to launch a common site for Kharkiv and Mykolaiv, which will inform citizens about all stages of development as much as possible.

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Oil prices rise, Brent at $96.19 a barrel

Oil prices rose for the third session in a row thanks to expectations of growth in demand in China as a result of changes in the authorities’ policy to combat COVID-19, as well as new measures to support the economy.
Last week Beijing announced a cut in mass testing of people for the coronavirus as well as the dissolution of “quarantine camps”. On Saturday, authorities said they were planning further gradual changes that would make the covid restrictions more focused, but not softer.
“China’s adjustment of its ‘zero tolerance’ coronavirus policy sends a strong signal to the oil market,” notes SPI Asset Management analyst Stephen Innes.
The value of January futures for Brent crude oil on London’s ICE Futures exchange is $96.19 a barrel by 7:15 PM on Monday, up $0.2 (0.21%) from the previous session’s closing price. Those contracts rose $2.32 (2.5%) to $95.99 a barrel at the close of trading on Friday.
The price of WTI futures for December at electronic trades of NYMEX grew by that time by $0.14 (0.16%) to $89.1 per barrel. By closing of previous trades the cost of those contracts grew by $2.49 (2.9%) to $88.96 per barrel.
Brent had fallen by 2.6% and WTI by 3.9% at the end of previous week.
The increase in oil consumption in China may coincide with a reduction in supply in the market in connection with the forthcoming entry into force of the European embargo on imports of Russian oil and reduce OPEC production +, notes Bloomberg.
U.S. Treasury Secretary Janet Yellen said over the weekend that a European embargo on oil purchases from Russia that enters into force Dec. 5 will “very likely” force Moscow to sell some oil at a price no higher than the ceiling set by the United States and its allies, if Russia wants to avoid a significant reduction in oil exports.

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Full list of energy equipment for preferential imports into Ukraine published

The list of import goods that will be imported to Ukraine without payment of import duty and VAT for winter included: electric generating sets, transformers, electric batteries, equipment for switching or protection of electric circuits or for connection to electric circuits for voltage over 1000 V, consoles, panels, distribution boards, equipment and devices for water filtration or treatment.
The Economy Ministry said Friday that the relevant Cabinet of Ministers decree No. 1260 to expand the list of preferential imports in connection with the Covid epidemic was made public on the government website on Friday.
The Ministry of Economy clarified that the relevant tax changes were initiated on the instructions of Ukrainian President Vladimir Zelensky.
According to the Ministry, the abolition of VAT and import duties will reduce prices and saturate the Ukrainian market with goods that will help citizens and businesses to survive periodic power outages this winter season.
At the same time, according to deputy head of the Verkhovna Rada Committee on Economic Development Dmitriy Kisilevskyy, even before the abolition of import duties and VAT on such goods, the government should have gathered domestic producers of this equipment and provided them with priority access to credit 5-7-9%, canceled the duties on components and raw materials and formed a reserve fund of equipment and materials.
“The government is implementing the abolition of import restrictions solely on finished products – without components and raw materials, not to mention other steps. As a result, a generator produced in Ukraine will, by definition, be 20-30% more expensive than an imported one,” the MP wrote in a column in NV.
According to him, in the absence of such steps, the adopted import privileges are an unbalanced policy.
As the MP specified to the Interfax-Ukraine news agency, among Ukrainian producers of such products are, in particular, Power Generation LLC, Geko-Center, Compressors International, Hyatt Ukraine, Darex-Energo and Equiwes.

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US to announce next military aid package to Ukraine in coming weeks – Biden’s advisor

The United States continues to help Ukraine and will announce another military aid package in the coming weeks, U.S. Presidential National Security Adviser Jake Sullivan told reporters Sunday.
“We remain stable in providing security assistance. You know about the one aid package that we just announced, there will be another (aid package) in the next few weeks, about a similar time frame and the same amount that we’ve been sticking to over the last few weeks and months,” Sullivan told reporters aboard a flight from Vietnam to the G20 summit in Bali.
“We are also consulting with Congress about additional resources for next year,” the Biden adviser added.
Sullivan is accompanying President Joe Biden on visits to Cambodia and Indonesia, where he has attended U.S.-ASEAN and East Asian summits, and where he will attend the G20 summit in Bali.
Earlier this week, U.S. Secretary of State Anthony Blinken said he had authorized a $400 million new shipment of weapons to Ukraine at the president’s behest.
The Pentagon informed that the delivery would include Hawk air defense missiles, four Avenger surface-to-air missile systems equipped with Stinger missiles, additional ammunition for HIMARS multiple-launch rocket systems, 21,000 155 mm artillery shells, 500 high-precision 155 mm artillery shells, cold weather gear and other military equipment.
A U.S. Department of Defense press release noted that the new U.S. aid package to Ukraine was the 25th since August 2021. In total, since the beginning of President Joe Biden’s administration, the United States has provided Kiev with military assistance worth over $19.3bn.

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By November 11 Ukraine has already harvested 58 million tons of major crops

Ukrainian agrarians harvested 58.11 million tons of major crops from the total area of 16.08 million hectares by November 11, with 5 million tons harvested from 0.94 million hectares during the 4-11 November period, the website of the Ministry of Agrarian Policy and Food Products said on Friday.
The report specifies that during the week the total area of agricultural land, from which the crops were harvested, increased by 4 percentage points (p.p.) – up to 76% of the previously planned areas.
In terms of crops harvesting of wheat, barley, peas and rapeseed is completed. Millet was harvested at 95% (no change within a week), buckwheat – 95% (no change), sunflower – 93% (+6 p.p.), soybeans – 91% (+6 p.p.), sugar beet – 83% (+10 p.p.), corn – 39% (+9 p.p.).
According to Ministry of Agricultural Policy, the final yield of wheat in the current season amounted to 19.2 million tons from 4.7 million hectares, barley – 5.5 million tons from 1.6 million hectares, rape – 3.1 million tons from 1.96 million hectares, pea – 261 tons from 111.5 thousand hectares.
In addition, by November 11, a total of 9.5 million tons of sunflower (+0.5 million tons per week) from 4.4 million hectares (+0.3 million ha), 9.6 million tons of corn (+3.3 million tons) from 1.6 million hectares (+0.5 million ha), 7.3 million tons of sugar beets (+0.9 million tons) from 149 thousand hectares (+44 thousand hectares), 1 million hectares of rape from 1.6 million hectares (+0.5 million ha) and 2 million hectares of peas (+0.5 million ha) were yielded. ha (+44 thousand ha), 3.4 million tons of soybeans (+0.3 million tons) from 1.4 million ha (+0.1 million ha), 153 thousand tons of buckwheat (+2 thousand tons) from 112 thousand ha (+1 thousand ha), and 98 thousand tons of millet (no change) from 42.6 thousand ha (no change).
According to the Ministry, the average yield of all crops in the current season was 42.4 c/ha, including corn – 58.3 c/ha, wheat – 41.2 c/ha, barley – 35.1 kg/ha, rape – 28.9 kg/ha, soybeans – 24 kg/ha, peas – 23.4 kg/ha, millet – 23.1 kg/ha, sunflower – 21.9 kg/ha, buckwheat – 13.6 kg/ha, sugar beets – 489 kg/ha.
As reported, Ukraine in 2021 harvested a record crop of cereals, legumes and oilseeds in the amount of 106 million tons: cereals and legumes – 84 million UAH, oilseeds – 22.6 million tons.
Last year a total of 32.4 million tons of wheat, 40 million tons of corn, 10 million tons of barley, 581.5 thousand tons of peas, 191 thousand tons of millet and 110 tons of buckwheat were harvested. Sunflower harvest amounted to 16.3 million tons, soybeans – 3.4 million tons and rapeseed – 2.9 million tons.

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