Business news from Ukraine

In Ukraine, 44 cases of African swine fever were recorded in six months

In 2024, 44 cases of African swine fever (ASF) were recorded in Ukraine, the press service of the State Service of Ukraine for Food Safety and Protection (SSUFSCP) reported.

The agency reminded that in Ukraine, since 2008, individuals have been compensated for losses from ASF. Payments in the amount of the cost of live pigs removed from the epizootic focus and protection zone during the outbreak of African swine fever are made by the decision of the State Emergency Anti-Epizootic Commission under the Cabinet of Ministers (Commission) or local state emergency anti-epizootic commissions on the basis of an application and an act of animal removal for the purpose of their destruction during the elimination of especially dangerous (quarantine) diseases.

The Commission or local state emergency antiepizootic commissions send to the territorial body of the State Service of Ukraine on Food Safety and Consumer Protection decisions on compensation for property damage (losses), acts of seizure of farm animals, lists of individuals to receive compensation for animals, information on the average market value of 1 kg of purchased live weight of animals of different age and weight groups provided by the relevant structural unit of the regional state administration.

Based on the information received from the territorial bodies of the State Service of Ukraine for Food Safety and Consumer Protection, funds are transferred to the Treasury for further payment to individuals.

A similar compensation mechanism is in place to compensate poultry owners for damage caused by bird flu. In this case, information on the average market value of 1 head of poultry of different species is taken into account.

The State Service of Ukraine on Food Safety and Consumer Protection urges animal owners to comply with biosafety requirements and to contact its territorial body at the place of residence (business) or state veterinary institutions in a timely manner in case of detection of the disease or suspicion of it.

“The main thing is to prevent the spread of these diseases,” the agency emphasized.

Traffic on Kyiv-Odesa highway is temporarily blocked

A bridge has collapsed on the Kyiv-Odesa highway near Uman, blocking traffic in the direction of the capital, according to the Telegram channel of the Advisor to the Minister of Internal Affairs Anton Gerashchenko.

According to the Cherkasy region police, a truck “demolished” a pedestrian bridge, which collapsed onto the roadway. Information about the victims is being clarified, the statement said.

It is specified that the traffic in the direction of Kyiv is temporarily blocked. Patrol policemen organized traffic in the reverse mode.

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Heat map of risks for financial sector of Ukraine

Heat map of risks for financial sector of Ukraine

Source: Open4Business.com.ua

Naftogaz enterprises increased gas production by 7%

In January-July 2024, JSC Ukrgasvydobuvannya and PJSC Ukrnafta increased commercial gas production by 7% compared to the same period last year, to 8.6 bcm, the press service of Naftogaz Group reports.

According to the press service, these figures also exceed the group’s production plan by 2%.

“The Group’s companies are increasing gas production by launching new high-performance wells, introducing new technologies and working effectively with the old stock. We exceeded our targets by 2%. The work continues not only in the central and western regions, but also in the eastern ones, despite all the military challenges,” said Oleksiy Chernyshev, CEO of Naftogaz.

As reported, in January-June 2024, UGV and Ukrnafta increased commercial gas production by 8% compared to the first half of last year – up to 7.3 bcm.

Naftogaz’s consolidated quarterly report says that the group’s forecasted commercial gas production for 2024 is expected to reach 14.6 bcm. In February, Chernyshov emphasized that the group’s goal for this year is to get closer to 15 billion cubic meters.

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Ostchem plants reduced fertilizer production by 4.3%

The plants of the nitrogen holding Ostchem produced 918.5 thousand tons of mineral fertilizers in the first half of 2024, which is 4.3% less than in the same period last year, the holding said in a statement on Monday.
“Uncontrolled imports cause the greatest damage to the chemical industry. Due to the dominance of cheap fertilizers from countries friendly to Russia, production volumes fell by 4.3%,” the release quoted Sergiy Pavlyuchuk, production director of Ostchem’s nitrogen business, as saying.
It also notes that the impact was caused by energy supply restrictions and a shortage of personnel.
“In addition to power outages due to the destruction of the energy infrastructure, there is also a shortage of staff: since the beginning of the full-scale war, almost 20% of employees have been mobilized at the plants, there is a staff shortage of about 15%, and we are forced to retrain staff who are learning new specialties,” Pavlyuchuk said.
According to the release, Cherkasy Azot produced 717.8 thousand tons of fertilizer in the first half of the year and remained Ukraine’s largest producer of mineral fertilizers, while Rivne Azot maintained its production at the same level as last year – 200.7 thousand tons.
High levels of dumped imports resulted in a decline in domestic production of the most popular fertilizers in Ukraine – ammonium nitrate and urea. In particular, the volume of ammonium nitrate production by Ostchem plants decreased by 9% compared to the same period last year – from 398.7 thousand tons to 362.9 thousand tons, the holding noted.
Ostchem also noted uncontrolled imports, which provoked a 10.8% decline in urea production: production fell from 205.9 thousand tons to 183.6 thousand tons.
At the same time, the holding was able to strengthen its position in the urea-ammonia mixture (UAN) market. In the first half of the year, UAN production at Ostchem’s plants increased by 11.4%, from 277.7 thousand tons to 309.2 thousand tons. The holding explains this by the high popularity of this fertilizer and the logistical advantages of Ukrainian producers. To meet the growing demand, new UAN production sites are being set up at Cherkasy Azot (capacity of 1 million tons per year) and Rivne Azot (capacity of 300 thousand tons per year).
According to the holding, the total volume of nitrogen fertilizer imports to Ukraine in 1H2024 amounted to 1.298 million tons. At the same time, imports of ammonium nitrate amounted to 176.6 thousand tons, urea – 311.3 thousand tons, NPK – 108.5 thousand tons, sulfate – 159.8 thousand tons, NP – 77.71 thousand tons, and UAN – 50.8 thousand tons.
Ostchem is the nitrogen holding of Dmitry Firtash’s Group DF, which unites the largest mineral fertilizer producers in Ukraine. Since 2011, it has included Rivne Azot and Cherkasy Azot, as well as Severodonetsk Azot and Stirol, which are out of operation and located in the occupied territories.
Cherkasy Azot PrJSC (Cherkasy, Ukraine) is one of the largest Ukrainian chemical companies. The design production capacity is 962.7 thousand tons per year of ammonia, 970 thousand tons per year of ammonium nitrate, 891.6 thousand tons of urea, and 1 million tons per year of UAN.
Rivne Azot is one of the largest Ukrainian chemical companies in Western Ukraine. On April 12, 2024, Group DF and South Korean Hyundai Engineering signed an agreement to build a chemical hub in Rivne. The project envisages the construction of green ammonia and hydrogen plants based on renewable energy sources; new enterprises and production sites for nitrogen fertilizers and chemical derivatives.

“Ukrposhta” selected “Euroins Ukraine” for CMTPL insurance

On August 5, the Ukrainian State Postal Service Enterprise Ukrposhta (Kiev) announced its intention to conclude a contract of compulsory insurance of civil liability of owners of motor vehicles (MTPL) with Euroins Ukraine (Kiev).

According to the electronic public procurement system “Prozorro”, the company’s price offer amounted to UAH 24.41 thousand against UAH 68.107 thousand of the expected cost of purchasing services.

The tender was attended by insurance companies Inter-Policy with a price offer of UAH 27.2 thousand, Krajina – UAH 32.2 thousand, Guardian – UAH 32.3 thousand, ESA – UAH 43.9 thousand.

IC “Euroins Ukraine” in 2023 increased premiums by 20,4% compared to 2022 – up to UAH 565 mln and concluded 17% more insurance contracts – more than 662 thousand.

 

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