Business news from Ukraine

Business news from Ukraine

Ukraine’s seaports handle 159 mln tonnes of cargo in 2020

The seaports of Ukraine in 2020 handled 158.86 million tonnes of cargo, which is almost equal to the figure for 2019, the press service of the Ministry of Infrastructure reported, citing Minister Vladyslav Krykliy.

“Despite the pandemic and the crisis in 2020, the seaports of Ukraine continued to operate and made great efforts to maintain a sufficient level of transshipment. The result of this work is almost 160 million tonnes of cargo handled per year, which practically reaches the pre-crisis level last year. 2020 was the year of signing first concession agreements in the maritime industry in the ports of Olvia and Kherson with an investment of UAH 3.7 billion for their further modernization and development. And we continue to work on new concessions in the region in 2021,” he said.

The ministry notes that over the year, the transshipment of exported cargo increased to 122.84 million tonnes (1.5% more), cabotage cargo to 2.37 million tonnes (10.7% more). At the same time, negative dynamics of import and transit cargo was recorded.

Most of all the ports handled grain and ore with 48 million tonnes and 44.22 million tonnes, respectively. At the same time, the transshipment of ore over the year increased by 18.5%, ferrous metals by 8.6%, and oil by 2.2 times. Transshipment of containers reached 1.05 million TEU and exceeded the previous year’s figure by 4.1%.

As reported, the seaports of Ukraine handled 160 million tonnes of cargo in 2019, which is 18.4% more compared to 2018.

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VOLUMES OF CARGO TRANSPORTATION IN JAN- OCT OF 2020, MLN TONS

Volumes of cargo transportation in Jan-Oct of 2020, MLN tons.

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Gas transit through Ukraine down by 38% in 2020

Transit of natural gas through the gas transmission system (GTS) of Ukraine in 2020 amounted to 55.8 billion cubic meters, which is 37.7% less than in 2019 (89.6 billion cubic meters).

According to the report of Gas Transmission System Operator of Ukraine (GTSOU), 51.9 billion cubic meters of gas have been supplied in the western direction (Slovakia – 38.5 billion cubic meters, Hungary – 9.6 billion cubic meters, Poland – 3.8 billion cubic meters), which is 32% less than in 2019, in the south direction – 3.9 billion cubic meters (Moldova – 3 billion cubic meters, Romania – 900 million cubic meters), which is 70% less than last year in this direction.

“The key factors in reducing transit volumes to Europe are the launch of new gas pipelines bypassing Ukraine [the Turkish Stream], as well as a decrease in gas demand in the EU and significant gas reserves in European UGS facilities,” the statement says.

The company said that the agreement with Gazprom provides for booking 65 billion cubic meters in 2020. Thus, last year’s transit was 14% less (by 9.2 billion cubic meters) than provided for in the contract. At the same time, Gazprom paid in full for the booked 65 billion cubic meters of transit capacity.

The average daily transit volume for the year was 153 million cubic meters with the booked 178 million cubic meters. At the same time, in December, due to additional transit capacities ordered by Gazprom, it amounted to 183 million cubic meters.

In addition, gas transportation from Europe to Ukraine in 2020 amounted to 15.9 billion cubic meters, which is 12% more than in 2019 (14.2 billion cubic meters). In particular, Slovakia last year delivered 10.2 billion cubic meters of gas (up by 11% from 2019), Hungary – 4.2 billion cubic meters (14% more), Poland – 1.5 billion cubic meters (3% more).

Zaporizhstal cuts output of rolled products in 2020

In 2020, Zaporizhstal metallurgical plant reduced the output of rolled products by 4.3%, to 3.204 million tonnes compared to the previous year.

According to the company’s press release, steel production last year decreased by 5.5%, to 3.784 million tonnes, while pig iron production increased by 2.5% to 4.471 million tonnes.

In December, 397,500 tonnes of pig iron, 345,600 tonnes of steel, and 287,600 tonnes of rolled products were produced, in November 387,600 tonnes of pig iron, 329,200 tonnes of steel, and 275,100 tonnes of rolled products.

“Zaporizhstal has strengthened its position in the markets due to the transformation of work with consumers: high discipline of order fulfillment and customization are on the same level as the quality of supplied products. Therefore, we finished 2020 with decent results and plans for 2021,” Zaporizhstal Director General Oleksandr Myronenko said.

Zaporizhstal is one of the largest industrial enterprises in Ukraine, the products of which are in a great demand among consumers in the internal market and in many countries of the world. The plant specializes in high quality hot-rolled steel, hot-rolled sheet, cold-rolled sheet, cold-rolled coil of carbon and low-alloy steels, as well as steel tape, black sheet, and a bent profile.

The main consumers of the products are manufacturers of welded pipes, automobile, transport, agricultural engineering enterprises,and household appliances.

Zaporizhstal is in the process of integration into Metinvest Group, the main shareholders of which are PJSC System Capital Management (71.24%) and Smart-Holding group of companies (23.76%).

Metinvest Holding LLC is the managing company of Metinvest Group.

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PRESIDENT OF UKRAINE DECLARES UAH 4.6 MLN IN ROYALTIES

President of Ukraine Volodymyr Zelensky has declared UAH 4.59 million of royalties from Kvartal 95 LLC and Kinostolytsia LLC.
Such data are contained in report about a significant change in property status published in the unified public register of declarations.
In particular, Zelensky on December 30, 2020 received two royalty payments from Kvartal 95 LLC in the amount of UAH 1.048 million and UAH 3.307 million.
Another report indicates that the president received UAH 235,000 in royalties from Kinostolytsia LLC.

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DYNAMICS OF BALANCE OF PAYMENTS OF UKRAINE (USD MLN)

Dynamics of balance of payments of Гkraine (USD MLN).