The Ukrainian Grain Association (UGA) in its September report lowered the forecast for the gross harvest of grains and oilseeds this season from 96.7 to 95.6 million tonnes, exports from 58.4 to 56.3 million tonnes due to unfavorable weather conditions for the harvest of late crops in some regions of Ukraine.
“Even after lowering the forecast for the harvest, its figure may be the second in terms of gross harvest after last year’s record – 98 million tonnes, the same can be said about the possible export volumes,” the association said in a press release posted on its website on Wednesday.
So, this year, according to UGA, farmers harvested 26.6 million tonnes of wheat (UGA forecast was at 26.8 million tonnes) and 8.3 million tonnes of barley (UGA predicted 8.2 million tonnes). According to the association’s forecasts, wheat exports this season may reach 17.5 million tonnes (in accordance with the signed memorandum), and barley may reach 4.5 million tonnes.
In addition, UGA slightly lowered its forecast for the corn harvest this season in the September report compared to the previous forecast in August from 36.4 million tonnes to 35.3 million tonnes due to unfavorable dry weather conditions in the southern and partly central regions of Ukraine.
According to UGA experts, farmers will not harvest corn for grain on an area of 205,000 hectares, which is 3.8% of the total area under corn. In other regions, which are the main corn producers, the harvest situation is satisfactory and good, and they are not experiencing critical losses.
Ukraine’s FX reserves in August 2020 tentatively expanded by 1%, to $29.049 billion, according to a Monday posting on the website of the National Bank of Ukraine (NBU).
“As of September 1, 2020, Ukraine’s FX reserves amounted to $29.049 billion (equivalent), according to preliminary data. In August, they increased by 1%, primarily due to the favorable situation in the FX market,” the NBU said in the statement.
According to the central bank, the dynamics of reserves was influenced by its operations in the interbank FX market. In August the regulator bought $460.5 million and did not carry out operations to sell foreign currency. “In August, the supply of foreign currency exceeded demand and the NBU could replenish FX reserves,” the central bank said.
According to the report, the dynamics of reserves in August was also affected by FX earnings in favor of the government in the amount of $250.5 million from the sale of government domestic loan bonds denominated in foreign currency.
At the same time, the government allocated $645.2 million to repay the state debt in foreign currency, including $496.5 million on government bonds denominated in foreign currency, and the rest of the funds were provided for obligations to foreign creditors.
In August the government and the NBU paid $204.5 million to the International Monetary Fund (IMF).
In addition, the dynamics of the indicator in August was influenced by the revaluation of financial instruments (changes in the market value and the exchange rate of the hryvnia versus foreign currencies). Last month their value grew by $385 million in equivalent, according to the National Bank.
The regulator said that as of September 1, 2020, the volume of FX reserves covers 4.8 months of Current External Payments (CXP). This is enough to fulfill the obligations of Ukraine and the current operations of the government and the NBU.
According to the data posted on the website of the National Bank, its net FX reserves, which are calculated as the excess of gold and FX reserves over the central bank’s liabilities in foreign currency, increased by $339.31 million in August, to $17.813 billion after a decrease in July by $21.27 million.
In general, in January-August 2020, the NBU’s net FX reserves grew by 12.9%, or by $2.029 billion.
Head of Zhytomyr Regional Administration Vitaliy Bunechko reported on the ongoing work with a private investor who is seriously considering the issue of building an international airport in Zhytomyr as a public-private partnership.
“In order for the airport to work within the framework of the international airport, it is necessary to complete the construction of the runway. To complete it, we need UAH 360 million. What are we doing in this direction? A certain land plot has been transferred to the city. We are now very actively working with the private investor who is seriously considering the construction of the international airport within a public-private partnership. The idea is even to make a cargo hub here to unload Kyiv, the Zhuliany and Boryspil airports, to make a hub here to fly here and send cargo across Ukraine,” he said in an exclusive interview with Interfax-Ukraine.
Speaking about road construction, Bunechko said that since the beginning of his work as head of the regional administration in August 2019, he was skeptical about whether the Chinese contractors would be in due time with the construction of a ring road around Zhytomyr, since they violated all the deadlines.
“But the pace with which they are now making the road, and the kilometers of the road that are already there, all this gives hope and optimism,” he said.
Bunechko said that the region now has a new approach to regional roads, and not “patching up” roads.
“When I reported to the president about my first 100 days of work, I said that there would be 90 km of roads, he asked: “Are you going to build roads in 10 years?” We have a network of 7,000 km. He said that we need to look for opportunities. I want to say today it is 140 km of regional roads, which are already being repaired, despite all the obstacles that were in the antimonopoly committee. We have overcome them, we have completely tendered all our 53 highway points, all roads are being repaired. There are some roads that have already been completed, now they will be put into operation, it remains to obtain permits,” he said.
The governor said that the most critical sections of roads were selected throughout Zhytomyr region, and soon everyone will feel that the roads are being built.
The ninth container train from the Chinese city of Nanchang arrived at the Kyiv-Lisky station, the press service of Ukrzaliznytsia said on Saturday.
Three more trains from China are expected throughout September, according to the company.
Ukrzaliznytsia notes that the arriving train includes 41 containers with mineral fertilizers, light industry goods, lamps, bulbs, chemical components for water filtration and less-than-car load. In addition, the train delivered medical supplies to Ukraine, in particular, masks and other protective equipment.
The distance of transportation, which is more than 9,000 km along the territories of four countries, are covered by China trains during 15 days on average.
As reported, direct container shipments from China to Ukraine began on June 8, 2020.
The electoral process of local elections, scheduled for October 25, 2020, started in Ukraine on September 5.
Previously the Central Election Commission (CEC) of Ukraine said the start date of the campaign was adopted at a meeting of the CEC on August 30 in compliance with the requirements of the Electoral Code of Ukraine.
“At the same time, the commission took into consideration the resolution of the Verkhovna Rada of Ukraine of July 15, 2020 on appointment of the next local elections in 2020, resolution No. 160 of the CEC of August 8, 2020 on the first elections of deputies of rural, town, city councils of territorial communities and the corresponding rural, town, city heads on October 25, 2020, resolution No. 161 on the impossibility of holding the first elections of deputies of individual rural, town, city councils of Donetsk and Luhansk regions and the corresponding rural, town, city heads on October 25, 2020 and resolution No. 176 of August 14, 2020 on the appointment of the first elections of deputies of district councils for October 25, 2020,” the report says.
Prime Minister of Ukraine Denys Shmyhal has announced the inclusion of irrigation systems in the southern regions of Ukraine in the Big Construction national program in 2021.
“Next year, we have planned the construction of irrigation systems in the southern regions of Ukraine under the Big Construction program being implemented under the auspices of the President. This will be a strategic project that will dramatically expand the quality areas under crops, guarantee yields in dry months, and protect farmers from adverse weather conditions,” the prime minister said during a government meeting on Wednesday.
According to him, today begins the unification of the regulatory framework for environmentally friendly irrigation and drainage.
“This year in Ukraine, the grain harvest is predicted to be 7 million tonnes less than last year, according to forecasts of the Ministry of Economy and experts. The main reason is the negative impact of weather conditions, including drought,” Shmyhal said
