Business news from Ukraine

Business news from Ukraine

Rates on hryvnia deposits of individuals remained at 12.25% in September

The average rate of new hryvnia deposits for the corporate sector decreased by 0.9 pp (percentage points) for the second month in a row to 12.5% in September, while for households it remained at around 12.25% per annum after the first decline of 0.5 pp in August for 14 months.

According to the NBU on its website, the yield on foreign currency deposits for individuals also remained unchanged in September at around 1.15% p.a., while the yield on corporate deposits decreased by an average of 0.15 percentage points to 0.58% p.a.

Interbank lending rates, as indicated by the National Bank, fell by 1 percentage point to 17.2% per annum in September, including overnight rates by 0.3 percentage points to 16.4% per annum.

As for the volume of deposits, the gap between corporate and retail deposits continued to narrow in September: while corporate deposits decreased by UAH 12.1 billion, or 1.1%, to UAH 1 trillion 116.3 billion, retail deposits increased by UAH 22.9 billion, or 2.4%, to UAH 999.4 billion.

Households increased their deposits both in hryvnia by 2.5% to UAH 663.7 billion and in foreign currency by 2% to the equivalent of UAH 335.7 billion, while in September, corporate deposits in foreign currency decreased by 5.4% to UAH 340.2 billion, while in hryvnia they increased by 0.8% to UAH 776.1 billion.

The total loan portfolio, which returned to slow growth in July, added another UAH 4.9 billion in September to reach UAH 975.0 billion.

The growth was driven by hryvnia loans to the corporate sector, which increased by 1.9% to UAH 509.6 billion, while foreign currency loans decreased by 1.4% to the equivalent of UAH 230.8 billion.

In September, consumer loans decreased both in national currency by 0.3% to UAH 202.4 billion and in foreign currency by 0.4% to the equivalent of UAH 12.5 billion.

As reported, on September 15, the NBU cut the discount rate from 22% to 20% per annum, while reducing the rate on three-month deposit certificates from 22% to 20%, while the rate on overnight deposit certificates decreased from 18% to 16%.

Inflation in Ukraine in annual terms slowed to 7.1% in September from 8.6% in August and 11.3% in July.

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Israel postpones start of ground military operation in Gaza Strip for several days due to weather

Israel has postponed the start of a ground military operation in the Gaza Strip for several days, partly due to the weather, The New York Times (NYT) reports, citing sources in the Israeli Defense Forces.

“The invasion was originally planned for the weekend, the officers said, but was postponed for several days, at least in part because of weather conditions that would make it difficult for Israeli pilots and drone operators to provide air cover for ground troops,” the publication says.

The NYT writes that the military confirmed that reconnaissance teams briefly entered the Gaza Strip on Friday and that Israeli troops are increasing their “readiness” for a ground war.

It is believed that tens of thousands of Hamas militants are holed up in hundreds of kilometers of underground tunnels and bunkers under Gaza City and adjacent areas of the northern part. Israeli military leaders expect Hamas to try to impede their advance by blowing up some of these tunnels as the Israelis advance over them, as well as by detonating roadside bombs and mining buildings.

The NYT quoted three Israeli officers who provided some details about Israeli military preparations. In particular, “to facilitate the actions of Israeli soldiers, rules of engagement have been relaxed, allowing soldiers to conduct fewer checks before firing at perceived enemies.”

Also, the NYT writes, due to the widespread destruction in the Gaza Strip caused by recent Israeli air strikes, Israeli soldiers have received additional training in recent days to help them fight in the devastated urban environment.

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In Kyiv, rain on Monday, no precipitation on Tuesday

In Ukraine on Monday, October 16, rains, at night in the central and some northern regions, during the day in some places in Poltava, Sumy and Kharkiv regions heavy rains, only in the southeastern regions at night without precipitation, the Ukrhydrometcenter reported.

Northwest wind (southern in the southeastern part), 7-12 m / s, gusts of 15-20 m / s in the morning and afternoon in Ukraine (in the northern part in some places).

The temperature in the southern, eastern and Dnipropetrovska regions will be 6-11° at night, 11-16° during the day, up to 18° in Donetsk and Luhansk regions; in the rest of the country it will be 3-8° at night, 7-12° during the day.

In the Carpathians, rain, sleet; temperature at night from 2° C to 3° C, during the day 0-5° C.

In Kyiv, moderate rain on Monday night, light rain during the day. Northwest wind, 7-12 m/s. The temperature at night will be 6-8°, during the day around 10°.

According to the data of the Borys Sreznevsky Central Geophysical Observatory. On October 16, the highest daytime temperature was 23.4 in 2018, and the lowest nighttime temperature was -4.9 in 1976, according to the Borys Sreznevsky Central Geophysical Observatory in Kyiv.

On Tuesday, October 17, there was no precipitation in Ukraine.

Northwest wind with a shift to southwest, 5-10 m/s.

Temperature at night from 4 ° C to 1 ° C, during the day 7-12 ° C; in the southern part at night 1-6 ° C, during the day 10-15 °, in the south of Odesa region 16-18 °.

No precipitation in Kyiv on Tuesday, October 17. Northwest wind with a shift to southwest, 5-10 m/s. The temperature at night will be 2-4° Celsius, during the day about 10°.

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Ukraine’s rolled steel market almost doubled in January-September

In January-September of this year, Ukrainian enterprises increased their consumption of rolled metal products by 92.96% compared to the same period last year, up to 2 million 604.9 thousand tons.

According to a press release issued by Ukrmetallurgprom, 818.9 thousand tons, or 31.44% of the domestic rolled metal consumption market, were imported during this period.

According to Ukrmetallurgprom, in January-September 2023, Ukrainian steelmakers produced 3.93 million tons of rolled steel (83% compared to the same period in 2022), of which, according to the Expert and Scientific Council of UAVtormet, about 2.14 million tons, or 54.4%, were exported. In the same period of 2022, the share of exports amounted to 79.9% (3.78 million tons with a total production of 4.73 million tons of rolled metal products).

The share of semi-finished products in export deliveries for 9M2023 amounted to 43.16%, which is comparable to the same period in 2022 (44.05%). The share of flat products in exports in 9M2023 is slightly lower than in January-September 2022 (36.58% and 37.84%, respectively). The share of long products in export deliveries for 9M2023 is significantly higher than in the same period of 2023 (20.25% in 2023 vs. 18.11% in 2022).

“In January-September 2023, the domestic market capacity amounted to 2604.9 thousand tons of rolled steel, of which 818.9 thousand tons, or 31.44%, were imported. In the same period of 2022, the domestic market capacity amounted to 1350 thousand tons, of which 401 thousand tons, or 29.7%, were imported. Thus, for 9 months of 2023, there was an increase in the domestic market capacity by 92.96% compared to January-September 2022, with a simultaneous increase in the share of the import component by 1.73%,” the press release states.

The structure of imports in January-September 2023 is characterized by a significant dominance of flat products over long products (75.48% and 24.45%, respectively); in the same period of 2022, the dominance of flat products over long products was also significant (62.57% and 36.06%, respectively).

According to UAVtormet, the main export markets for Ukrainian steel products in January-September 2023 were the European Union (84.0%) and the rest of Europe (6.8%).

Among metallurgical importers in 9 months of 2023, the first place is occupied by other European countries (38.9%), the second – by the EU-27 (38.5%), and the third – by Asian countries (20.3%).

Poland holds parliamentary elections today

On Sunday, October 15, Poland holds elections to the Sejm, Senate, as well as a national referendum, voting began at 7.00 and will last until 21.00, reports Polskie Radio.

It is noted that citizens have been created conditions for voting in Poland, abroad and even on ships. According to the chairman of the National Election Commission Sylwester Marciniak, more than 31 thousand electoral districts have been created.

“There are 29 thousand 292 stationary constituencies, 1,701 separate constituencies, and in addition, 417 constituencies abroad have been created, however, one was eliminated in Israel, and 8 constituencies for voting on ships have been created,” Marciniak emphasized

According to Polskie Radio, 29 million Polish citizens have the right to vote in elections and referendums. More than 391 thousand voting certificates have been issued, which allow voting not at the place of residence.

It is noted that Poles will elect 460 deputies and 100 senators. And the referendum should answer four questions: whether they support the removal of the fence on the border with Belarus, support for the privatization of state-owned enterprises, raising the retirement age to 60 years for women and 65 years for men, as well as whether they agree to accept thousands of illegal migrants from the Middle East and Africa, in accordance with the mechanism of forced relocation, which operates in the EU.

As DW reports, according to the latest opinion polls, the ruling national-conservative Law and Justice (PiS) party of Deputy Prime Minister Jaroslaw Kaczynski with 34% of the vote is only slightly ahead of the opposition liberal-conservative Civic Platform (CP) party of former Polish Prime Minister and former President of the European Council Donald Tusk, for which 32% of voters are ready to vote.

It is emphasized that in case of victory each of the contenders will have to look for partners to create a government coalition.

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FC Shakhtar increased its revenues by almost 2.8 times

In the 2022/2023 season, the total revenue of FC Shakhtar (including VAT) amounted to UAH 5 billion 992 million including VAT, which is almost 2.8 times higher than the previous season (UAH 2 billion 178 million), according to the annual report published on the club’s official website.

According to the report, the club’s total revenue from the sale and lease of players last season increased to UAH 4 billion 29 million from UAH 622 million a season earlier, while revenues from UEFA and FIFA for participation in the Champions League group stage and for reaching the last 16 of the Europa League increased to UAH 1 billion 606 million from UAH 1 billion 164 million.

The club clarified that last season it made 14 incoming transfers, of which 11 were purchases, 2 were rentals and 1 was a free agent. There were the same number of outgoing transfers, including 5 sales and 9 rentals. The most high-profile transfer was that of midfielder Mykhailo Mudryk to Chelsea London for a record-breaking sum in the history of Ukrainian football: EUR 70 million and another EUR 30 million in bonuses. In addition, Serhiy Kryvtsov joined MLS side Inter Miami.

Shakhtar’s revenues from commercial activities in the 2022/2023 season decreased to UAH 357 million from UAH 392 million in the previous season.

Last season, FC Shakhtar increased its payments to the budgets of all levels by 34.4% compared to the 2021/22 season, up to UAH 566.9 million.

Among the events in the report is the extension of cooperation with the BRSM-Nafta network for 2023 and the termination of cooperation with the club’s title partner Parimatch due to its inclusion in the sanctions lists.

It is specified that the number of subscriptions to the club’s social media pages has increased by almost 5% to 3.15 million. The most popular are Facebook (1.41 million) and Instagram (544.4 thousand, +5.2%), while the largest influx was recorded on TikTok – 61 thousand, or 75%, and on Twitter – 24.5 thousand, or 24.7%.

Shakhtar’s website is available in four languages: Ukrainian, English, Polish and German. Last season, it was visited by 1.07 million unique users.

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