The volume of remittances of labor migrants to Ukraine in June 2020 amounted to $856 million, which is 8.5% less than in June 2019, and 13.9% less than in the pre-quarantine February 2020, according to data on the website of the National Bank of Ukraine (NBU).
According to the report, in the first half of 2020, the volume of private money transfers to the country decreased by 3.8%, to $5.36 billion against the same period last year ($5.58 billion).
According to the NBU, in general, in the first six months of 2020, some $2.16 billion (40.2% of the total number of transfers) was transferred to Ukraine through correspondent accounts of banks, $2.02 billion (37.6%) through informal channels and $1.19 billion (22.1%) through international payment systems.
As reported, the volume of remittances of labor migrants to Ukraine in January amounted to $991 million, in February $994 million, in March $925 million, in April $794 million and in May $805 million.
In general, in 2019, labor migrants transferred $12 billion to Ukraine, according to data from the central bank.
JSC Ukrzaliznytsia (Kyiv) will cooperate with German logistics company Hamburger Hafen und Logistik AG (HHLA) on the development of intermodal railway transportation in Ukraine, and in future in the Baltics and Eastern Europe.
Infrastructure Minister of Ukraine Vladyslav Krykliy said on his Facebook page on Thursday that the companies have signed a memorandum of understanding on Thursday.
According to the minister, in the near future the German and Ukrainian carriers will have to agree on an action plan to determine and implement measures aimed at the improvement of services quality within the parties’ obligations, carry out regular monitoring, as well as eliminate problems.
The companies will also determine measures for improvement of the working capacity of the Odesa-Port rail station and the railway infrastructure with the aim of increasing cargo turnover in the port, take measures to improve effectiveness of commercialization of intermodal trains and agree on tariffs in line with international practices.
“In the long-term perspective they will have to decide on demand for rolling stock to provide intermodal transport services, reasonability of the use of light multisystem locomotives and determine the main requirements for location, financing and operation of terminals based on their growth,” Krykliy said.
The main shareholder of PrJSC Ukraina Department Store, the manager of the shopping and entertainment center of the same name located at 3, Peremohy Square in Kyiv, Sweden’s Quinn Holdings Sweden AB, seeks to conduct a squeeze-out among minority shareholders of the company.
PrJSC Ukraina Department Store reported in the information disclosure system of the National Securities and Stock Market Commission of Ukraine, the company received the irrevocable proposal on July 27.
According to the report, Quinn Holdings Sweden AB, together with affiliated persons, owns 122.985 million common registered shares of the PrJSC, which is 98.372% of the total number of its shares. The ultimate beneficiary is the Irish state bank IBRC.
As reported, in connection with the bankruptcy of the owner of the Quinn group, control over its foreign assets, including Ukraina Department Store, passed to the managers appointed at the request of the Irish bank IBRC.
National bank of Ukraine’s official rates as of 03/08/20
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of August 03
One troy ounce=31.10 grams
The current account of the balance of payments in April-June posted a record-hitting surplus of $4.3 billion, according to the inflation report of the National Bank of Ukraine (NBU), posted on its website last week. “In H1 2020, exports showed greater resilience to the effects of the crisis than imports, among other things due to relatively more stable external demand for foods. In contrast, imports of goods and services plunged as domestic demand narrowed, energy prices fell further, and tourism halted,” the NBU said.
According to NBU estimates, the consolidated balance of payments of Ukraine in the second quarter showed a deficit of $100 million, while in the April forecast the regulator expected a surplus at the level of $200 million.
According to the report, the export of goods and services in the second quarter decreased by 12.1% compared to the same period last year (year-over-year), to $13.2 billion, including due to weakening global economic activity, depletion of stocks of certain grains and low global prices for metals and corn.
In general, the export of food products in the second quarter of 2020 decreased due to the rapid depletion of corn and soybeans, high competition in the grain market and a decrease in demand from biofuel producers, as well as, despite an increase in the supply of fertilizers and plastics, exports of chemical products decreased amid deteriorating external pricing environment.
In addition, the decline in exports of metallurgical products plunged due to a further contraction of external demand and a decrease in global prices and exports of engineering products, including due to a decrease in external orders for the supply of railway cars.
According to the document, by the end of April-June 2020, imports of goods and services fell sharply (by 27.7% year-over-year) due to a significant narrowing of domestic demand and the closure of borders, to $12.3 billion. In particular, imports of products engineering decreased significantly, and the decline in imports of components for alternative energy has increased due to uncertainty regarding the legal framework for this type of activity.
Imports of industrial products also decreased amid weakening consumer demand, while imports of food products continued to grow. In addition, imports of chemical products decreased as a result of an increase in domestic production of fertilizers, which was lower than the volume of purchases of household chemicals, as well as amid lower prices for energy. According to the NBU, the decline in energy imports has also deepened due to the decline in prices (by almost 50% year-over-year).
Despite the expected decline in the volume of transfers, their fall was less than forecast (up to 60% year-over-year) – it was 15.3%. “This was facilitated by the active return of Ukrainian workers to work abroad and a more stable demand for labor migrants in recipient countries (in particular Poland),” the NBU said.
According to the forecasts of the central bank, the current account of the balance of payments in Q3 2020 will be with a surplus of $400 million, in Q4 – with a deficit of $600 million, and by the end of the year the surplus will amount to $6.5 billion.
According to NBU estimates, the consolidated balance of payments of Ukraine at the end of Q3 will be reduced to zero, at the end of Q4, the surplus will amount to $400 million, and in 2020 – $1.5 billion.
