After raising the official hryvnia exchange rate by 4 kopecks on Thursday, the National Bank of Ukraine (NBU) strengthened it by another 5 kopecks on Friday to 41.6070 UAH/$1, according to the regulator’s website.
“The foreign exchange market of Ukraine is experiencing an increase in the currency deficit caused by high demand in both cash and non-cash segments. The National Bank of Ukraine stabilizes the market with interventions that are not able to fully satisfy the demand for currency, but at the same time achieve the goal of stabilizing the market, which prevents abrupt dynamics and allows to maintain a smooth devaluation trend,” analysts of KIT Group state in the review and forecast of the foreign exchange market.
According to them, the increase in demand for foreign currency in both segments of the foreign exchange market is typical for the beginning of the month and the end of the year.
The analysts also note that the spread between the buying and selling rates of the euro and the US dollar has increased in recent weeks.
“This indicates the desire of currency market operators to capitalize on the increased demand for cash currency among the population, and the widening of the difference between the purchase and sale rates allows them to compensate for their own risks amid a poorly predictable exchange rate situation,” they explain.
At the same time, KIT Group believes that statements by Ukraine’s international partners regarding further funding from frozen natural resources, infrastructure support and economic stimulus projects do not give rise to pessimistic exchange rate forecasts.
According to their expectations, in the short term, the hryvnia exchange rate against the dollar will remain in the range of 41.7-42 UAH/$1, with a tendency to gravitate towards 42.5 UAH/$1. “Quotations close to 42 UAH/$1 were already recorded in early December, which is in line with our exchange rate expectations for the end of this year. At the same time, seasonal factors, such as increased demand for foreign currency at the end of the year, may cause a slight short-term surge to 42.5 UAH/$1,”KIT Group” forecasts.
However, at the same time, recent changes in tax policy may increase the tax burden on deposit income, which could stimulate additional demand for foreign currency and the flow of foreign currency savings from the banking system into cash, thereby putting pressure on the hryvnia exchange rate.
The NBU set the reference rate at 12:00 on Friday at 41.5778 UAH/$1, compared to 41.6915 UAH/$1 a day earlier.
The US dollar on the cash market on Friday rose by 4 kopecks to 41.84 UAH/$1 when buying, and by 5 kopecks to 41.90 UAH/$1 when selling.
Overall, since the beginning of 2024, the dollar has risen by 9.5%, or UAH 3.60, at the official exchange rate, and by 13.8%, or UAH 5.03, since the National Bank switched to a managed flexibility regime on October 3, 2023.
The average annual exchange rate is set at 40.7 UAH/$1 in the budget for 2024, and 42.1 UAH/$1 at the end of this year.
As reported, the official hryvnia exchange rate fell by 0.9%, or 37 kopecks, over the past month.
At the same time, Ukraine’s international reserves in November increased by $3.344 billion, or 9.1%, and as of December 1, 2024, according to preliminary data from the central bank, amounted to $39.925 billion, while net international reserves (NIR) increased by $3.5 billion, or 15.6%, to $25 billion 939 million.
The NBU’s net sale of foreign currency on the interbank market last week increased to $785.4 million, compared to $708.5 million a week earlier.
Source: https://ru.interfax.com.ua/news/projects/1033645.html
Slovakia will hold a series of talks starting next week to secure gas supplies from Russia after its current transit contract, which involves Ukraine, expires at the end of this year, Reuters reported on Friday, citing government officials.
“In the coming days, in particular during the Christmas holidays, you can witness extremely intense negotiations at different levels and in different countries, which will begin next week,” Slovak Prime Minister Robert Fico said at a press conference.
Denisa Sakova, Deputy Prime Minister and Minister of Economy of Slovakia, said that the talks would involve the European Commission, Ukraine and EU member states.
Fico said that he sought to ensure the continuation of supplies from the east to avoid additional fees for gas transit from other directions. “We see no reason to pay more for gas than necessary for geopolitical reasons… I believe that even if there is a short-term interruption of supplies from the east, we have enough reserves to find a common solution for several EU countries, and we will keep gas transit through Slovakia, as well as gas transit through Ukraine,” he said.
Reuters notes that Slovak officials have been looking for alternative gas transit schemes through Ukraine that would not require a direct agreement between Ukraine and Russia, but have not reached any agreement.
Slovakia reportedly has a long-term contract with Russia’s Gazprom and would like to keep importing Russian gas through Ukraine, but it will end at the end of 2024, as Ukraine does not plan to extend the transit contract with Gazprom.
Earlier, Hungarian Foreign Minister Péter Szijjártó said that Hungary and Bulgaria had found a legal and financial solution acceptable to the parties to continue the transit of Russian gas through their countries in the face of US sanctions against Gazprombank.
Hungary receives Russian gas through the Turkish Stream pipeline from Russia to Turkey and then transits through Bulgaria to Hungary. Hungary has received the bulk of its gas consumption through this route – this year, more than 7 billion cubic meters.
At the same time, Bloomberg, citing the Bulgarian Ministry of Energy, reports that “only a ‘solution’ to the problem was discussed, which would include Hungary and allow Bulgaria to continue receiving transit fees after the arrival of Russian gas.” Bulgaria has previously warned that it may stop transiting Russian gas to Central Europe if Gazprom does not find a payment solution, the agency reminds.
In 2024, commercial dairy farms will increase milk supplies for food processing by 6% compared to last year, said Anna Lavreniou, CEO of the Association of Milk Producers (AMP), at the international conference “Opportunities and Challenges of European Integration of Livestock in Moldova and Ukraine” at the EuroTier-2024 exhibition in Germany.
“The war brought terrible losses. Today, more than 100 dairy farms in Ukraine have been either destroyed or destroyed due to Russia’s terror tactics. Restoration of these facilities is critical to ensure stable milk production. At the same time, despite the active phase of the war, industrial dairy farms continue to invest in productivity, compliance with European standards, and safety,” she said.
Lavreniuk emphasized that in 2024, Ukrainian dairy farms will increase milk supplies for food processing by 6%.
In addition, the head of the industry association noted the accelerated pace of innovation in practice, which was catalyzed by the war.
“Our Ukrainian producers are investing in biogas plants at a frantic pace to provide themselves and their communities with electricity. This is a new challenge that requires technical expertise and financial support,” noted Lavreniuk.
According to her, Ukraine is currently experiencing not a staff shortage, but a staff famine.
“The huge turnover of personnel in the agricultural sector requires express training and professional development courses and their adaptation to European requirements. This is the number one challenge, because we don’t have time,” stated the head of the AUFM.
Lavreniuk also asked her European colleagues not to get tired of providing financial assistance to Ukrainian farmers who need support for recovery and development, which involves investing in new technologies and modernizing production processes.
Imports of tractors to Ukraine in January-November this year amounted to $722.53 million, which is almost 7% less than in the same period in 2023, according to statistics from the State Customs Service.
According to the statistics released by the agency, tractors were mainly imported from Germany (15.2% of total imports of this equipment, or $110 million), China (13.9%, or $100 million) and the United States (13.5%, or $97.3 million), while a year earlier it was Germany (17%), Poland (almost 16%) and the Netherlands (13%).
At the same time, in November, Ukraine imported tractors worth $61.9 million, up 33.6% compared to the same month last year.
According to the statistics, in January-November, tractors worth almost $5 million were exported, compared to $5.47 a year earlier, mainly to Moldova (25.8%), Kazakhstan (14.8%) and the Czech Republic (11.8%).
Import changes in % to previous period in 2023-2024
Open4Business.com.ua
The agro-industrial group of companies NOVAAGRO UKRAINE (Kharkiv) has purchased the first 20 hopper cars with an increased body volume of 124.5 m³ from Karpaty, the company’s press service reports on Facebook.
“This is an important step towards the realization of our plans to invest in the development of operational efficiency, namely to reduce logistics costs and ensure the stability of the supply chain of sunflower meal to European countries,” the statement said.
The purchased hoppers will be used to minimize logistics costs for sunflower meal exports.
NOVAAGRO Group has been operating in the Ukrainian and international markets since 2009. It comprises four operating companies specializing in trading, exporting grains and oilseeds, growing, warehousing, as well as production and sale of mixed fodder, wheat flour, granulated bran and chicken meat.
“NOVAAGRO owns five elevators with a total storage capacity of over 310 thousand tons. It has a feed mill in Chkalovske (Kharkiv region) that produces 200-300 tons of products per day.
According to the Unified State Register of Legal Entities and Individual Entrepreneurs, the ultimate beneficiary of Novaagro Limited is Sergiy Polumysnyi.
As reported, in October, NOVAAGRO Group completed the purchase of a 56.9% stake in AgroGeneration S.A.
Karpaty DMZ has been producing chemical and mining equipment, tanks and reservoirs for gas stations for the storage and transportation of petroleum products, hydraulic lifts, and spare parts for chemical and mining equipment for over 40 years. The plant switched to railcar production in 2012. It is one of the top three freight car builders in the grain carrier segment.
The company owns a 20-hectare land plot with 24 buildings and structures. The plant operates its own 35 kW power substation and a 5.7 km network of access railways. Production facilities process about 2.5 thousand tons of rolled metal products, castings and components per month. The company employs 800 people. The company’s beneficiaries are Yevhen Pogrebnyak (80% of shares) and Anatoliy Oleksiyenko (20%).
