Business news from Ukraine

Business news from Ukraine

EU countries have not yet been able to agree on the upper limit of duty-free imports of Ukrainian grain

The EU countries have not yet been able to agree on the upper limit of duty-free imports of Ukrainian grain, as well as the need to extend restrictions to other products from Ukraine, the German edition of n-tv reported. “In the debate on the upper limit of duty-free imports of Ukrainian grain, the 27 EU countries continue to disagree,” the publication said.

The German media cite information from European diplomats who say that there is also no clear majority among member states on the European Parliament’s proposal to extend the restrictions on poultry meat, eggs and sugar from Ukraine proposed by the European Commission in January.

Polish Radio’s correspondent in Brussels, Beata Plomecka, also confirmed that the European Parliament, influenced by farmers’ protests across Europe, last week backed an amendment to the regulation on Autonomous Trade Measures submitted by Polish MEP Andrzej Galicki.

MEPs agreed to impose import restrictions on sensitive goods, notably honey, a range of cereals, poultry meat, chicken eggs and sugar.

Poland is also lobbying to tighten import quota requirements for Ukrainian sensitive agri-commodities by using data on Ukrainian imports not only for the years 2022-2023, but also 2021, before Russia’s full-scale invasion, when there were no massive shipments of agricultural products from Ukraine.

“However, this support is absent among member states. Only Poland and the ‘frontline’ countries are demanding that the demands of the European Parliament be taken into account. At best, most countries want to reduce from three weeks to two the Commission’s mandate to impose a ban on EU imports of products whose imports destabilize the market situation,” Polish Radio stressed.” Negotiations on a possible restriction of imports of Ukrainian agricultural products in the European Council are scheduled for Tuesday evening.

As reported, in many EU countries since January 2024 there have been mass protests of farmers, who express dissatisfaction with the “green” course of the European Commission and the rise in the price of material and technical resources. One of their demands is to strengthen control over alleged unfair competition from Ukraine. Farmers claim that Ukrainian products that were once destined for Africa or the Middle East now remain in Europe, undermining the position of local producers. They also point out that Ukrainian producers are not subject to the EU’s higher environmental and social standards.

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2023 has become hottest year on record

Last year was the hottest year on record for UN observations, according to a report released Tuesday by the World Meteorological Organization (WMO).

“The WMO report confirms that 2023 was the warmest year on record,” the press release reads.

UN Secretary General António Guterres, commenting on the report, pointed out that “some indicators are not just the highest, they are too high, climate change is happening at an ever faster rate.”

He said the consequences of global warming are “abrupt, violent and increasing with deadly force.”

According to the WMO report, records for carbon dioxide emissions, Earth’s surface temperature, global ocean temperature rise and glacier melting will be broken in 2023.

The WMO added that heatwaves, floods, drought, uncontrolled wildfires and intensifying tropical cyclones are “wreaking misery and havoc”, affecting the lives of millions of people and causing billions of dollars in economic damage.

That said, the UN secretary-general said, “the worst of climate chaos can still be avoided.” To do so, he called for, among other things, accelerating the process of fossil fuel divestment and developing national plans to combat climate change, which will affect the entire economic system of countries and prevent the target of 1.5 degrees Celsius from being exceeded.

Ukrainian company Avtomagistral-Pivden to build airport in Romania

Romania has signed an agreement with a consortium of concessionaires Avant Airports and Avtomagistral-Pivden to build a new airport near Bucharest, the company’s press service told Interfax-Ukraine.

The new airport may be built on the site of a decommissioned military airfield in the town of Alexene, 66 km from Bucharest, and will be an alternative to the airport in Otopeni. It will be able to handle all categories of cargo, accept wide-body, long-haul aircraft such as Boeing 777 or Airbus A330, create conditions for attracting low-cost airlines, and specialize in aircraft maintenance.

“We see Aleksene Airport as a state-of-the-art aviation hub and a driver of economic growth both for the Ialomita region and Romania as a whole. In Ukraine, our company has participated in the reconstruction of airports in Mykolaiv, Kherson, and Odesa. In Romania, we are completing the reconstruction of the Satu Mare airport runway, and now we have the opportunity to participate in what is probably the largest and most ambitious infrastructure project in Romania. Our victory in the tender is evidence of the trust in the company on the part of Romanian partners. If we manage to attract investment and implement the project, it will help us open the EU market,” said Mykola Tymofeev, CEO of Avtomagistral-Pivden.

The concept of the future airport will include a passenger terminal with an area of 30 thousand square meters, capable of handling 6.5 million passengers annually, as well as a cargo terminal of 20 thousand square meters to handle more than 10 thousand tons of cargo per year. The project’s facilities also include a 30,000-square-meter aircraft repair and maintenance facility, an aviation academy, fuel stations, customs, and a photovoltaic park designed to ensure the airport’s energy independence.

The project developer, Avant Airports, notes that it has attracted a team of the best civil aviation experts from more than 15 countries to develop the project. “Avtomagistral-Pivden will be responsible for the execution of the work.

During the signing of the concession agreement with the local community, the Jalomica region, Avant Airports co-founder Mircea Tudor noted that the company plans to build the world’s first passive airport and certify it according to BREEAM.

Alexene Airport will be Romania’s first private airport. Only the first stage has been completed, with a concession agreement signed with the local community. Now the developer can begin the process of attracting investments, which are estimated at EUR 400 million. The project will take four years to complete.

Avtomagistral-Pivden LLC has been on the market since 2004. It designs and builds highways, bridges, interchanges, airfield complexes, and hydraulic structures. The company’s owner is listed in Opendatabot as Oleksandr Boyko. According to the financial results for 2023, the company’s net profit amounted to UAH 624.9 million, and revenue was UAH 8.215 billion.

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Number of new buildings in United States jumped by almost 11%

The number of housing starts in the United States in February increased by 10.7% compared to the previous month and amounted to 1.521 million at an annualized rate, according to a press release from the country’s Commerce Department. This is the most significant increase in the last nine months.

According to the revised data, in January the number of new buildings was 1.374 million (down 12.3%), not 1.331 million (down 14.8%), as previously reported.

Analysts on average had forecast a 7.1% decline from the previously announced January level, according to Trading Economics.

Construction of single-family homes jumped 11.6% last month to 1.129 million. The number of new apartment buildings (including apartments and condominiums), a more volatile segment of the market, increased by 8.6% to 377 thousand.

Meanwhile, the number of building permits for new homes in February increased by 1.9% to 1.518 million in annualized terms. This is the highest figure since August last year. Analysts had expected a rise of only 0.4%.

At the same time, the number of permits for the construction of single-family houses increased by 1%, and apartment buildings – by 4.1%.

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Ukrainian Prime Minister is on visit to Luxembourg

Prime Minister of Ukraine Denis Shmygal is on a working visit to Luxembourg.

“We start our visit to Luxembourg with a meeting with Prime Minister Luc Frieden. We will discuss the continuation of support for our state and focus on the issue of confiscation of Russian assets,” Shmygal wrote in his Telegram channel.

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Kamianske distillery in Cherkasy region is up for auction for UAH 6.6 mln

The State Property Fund (SPF) of Ukraine has put up for privatization the Kamianske distillery in Cherkasy region, the press service of the agency reports.

It is specified that the starting price of the enterprise is UAH 6.6 million. The auction will be held in the Prozorro.Sale system on March 22, with bids accepted until March 21.

The facility includes 49 units of real estate and infrastructure (production, administrative, warehouse buildings and structures). The production area is 25,719.4 square meters.

According to the Charter, the main activity is distillation, rectification and mixing of alcoholic beverages. The average number of employees as of September 30, 2023 was seven. The company ceased operations in 2010 and does not carry out production activities. Property, plant and equipment are excessively worn out.

Accounts receivable as of September 30, 2023 amounted to UAH 3143 thousand; accounts payable amounted to UAH 9766 thousand, in particular: for goods, works, services – UAH 5803 thousand, for settlements with the budget – UAH 1487 thousand, for payroll settlements – UAH 1190 thousand, for insurance – UAH 510 thousand, other debts – UAH 786 thousand.

Kamianske Coke provides water supply, sewerage and electricity services to residential buildings, which are accounted for on the company’s balance sheet and are not subject to privatization.

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