Forecast of changes in discount rate of National bank of Ukraine, %
Source: Open4Business.com.ua
Since the beginning of the year, Uglepromtrans LLC, a member of Metinvest Group, has transported 2 million tons of coking coal and coal concentrate within the framework of Metinvest Pokrovskugol, which manages the enterprises of Pokrovsk Coal Group (Pokrovskoye).
According to the company, Vuglepromtrans trains are responsible for delivering premium concentrate to customers. Despite the war, the railroaders are working in a stable mode, increasing their speed and shunting operations.
In addition, it is reported that locomotive crews at Shakhtnaya station are providing railcars for loading coal concentrate to their main customers, Pokrovskoye Mine Administration and Svyato-Varvarinskaya Concentrator.
Currently, the rolling stock service employs 63 people, and one in four of them is a diesel locomotive driver.
As reported, in 2023, Vuhlepromtrans railroaders built 68 meters of track and three turnouts. The plans for this year are to lay another turnout and 60 meters of track, which will facilitate access to the diesel locomotive garage.
Nikolay Vishnevsky, Director of Vuglepromtrans, noted that in the face of a full-scale invasion, Metinvest transformed its business in a timely manner and set up logistics to maintain key production facilities and, most importantly, retained its staff.
“Metinvest created Metinvest Pokrovskugol, which manages the Pokrovske Coal Group’s enterprises. It includes, among others, Pokrovske Mine Administration and Svyato-Varvarinskaya Concentrator.
Svyato-Varvarinskaya Enrichment Plant is a premium coal concentrate producer in Ukraine. Its production capacity is about 8 million tons of raw coking coal per year with the ability to enrich five different classes of coal.
Pokrovskoye (formerly Chervonoarmeyskaya-Zapadnaya No. 1) is Ukraine’s largest coking coal producer.
The major shareholders of Metinvest B.V. are SCM Group (71.24%) and Smart Holding Group (23.76%), which jointly manage the company. Metinvest Holding LLC is the management company of Metinvest Group.
On July 23, 2024, Ambassador Extraordinary and Plenipotentiary of the Arab Republic of Egypt to Ukraine Ayman Elgammal held a diplomatic reception on the occasion of the 72nd anniversary of the Revolution of July 23, 1952.
On July 23, Egypt celebrates a public holiday – the Day of the Revolution of 1952, which resulted in the overthrow of the feudal monarchical regime of King Farouk and the establishment of a republic.
In 1953, Egypt was proclaimed a republic. Since 1971, the official name of the country is the Arab Republic of Egypt.
The solemn event on the occasion of the holiday was attended by honored guests: heads of diplomatic missions of foreign countries accredited in Ukraine, representatives of the leadership of state authorities, including Special Representative of Ukraine for the Middle East and Africa Maksym Subkh, Islamic religious figures, members of the Egyptian diaspora, educators and cultural figures.
At the beginning of his speech, Ambassador of Egypt to Ukraine Ayman Elgammal congratulated all those present on an important date in the history of the Arab Republic of Egypt, highlighted the main stages of Egypt’s formation as a sovereign country and economic achievements over the past 10 years – during the revolution that took place on June 30, 2013 and the establishment of the third Egyptian Republic in 2014.
In his speech, Mr. Ambassador emphasized that our countries have established close friendly relations in political, economic, commercial and investment spheres.
“The trade balance between Egypt and Ukraine before the coronavirus pandemic and the current war was $2.1 billion, and in 2023 it amounted to about $1.3 billion. Egypt is still the main trading partner for Ukraine in Africa and the Middle East and the seventh trading partner in the world, and the beginning of this year shows progress in returning the trade balance to pre-war levels,” the diplomat said.
He also emphasized that Egypt and Ukraine have a long history of cooperation in the space sector, and the first Egyptian satellite was designed and built in Ukraine with the participation of Egyptian experts.
In his speech, the Head of the Diplomatic Mission elaborated on the recent history of Egypt after the 1952 revolution, when his country witnessed the wars of 1956, 1967 and 1973, where more than 30% of the country, namely the Sinai Peninsula, was occupied for 6 years and, like Ukraine, underwent severe trials.
However, Egypt managed to liberate all of its lands not only through military force, but mainly through diplomacy, applying to the International Court of Justice to return the last disputed territory, the Egyptian city of Taba, even 16 years after the end of hostilities in 1973.
Drawing on this page of history, the Ambassador emphasized his country’s unwavering position in support of Ukraine’s territorial integrity and sovereignty, as these principles have defined Egypt’s position on all conflicts, including Ukraine, since 2014.
“In addition, Egypt believes that no conflict can be resolved by military means alone, as diplomacy plays a primary role in resolving any conflict, so we participated in the Arab Ministerial Liaison Committee on the Ukrainian Crisis, which was established by the Arab League and at the initiative of African presidents after the outbreak of full-scale armed aggression against Ukraine. During the OAS Summit27 , President Al-Sisi called on world leaders to work toward a peaceful resolution of the war in Ukraine. In addition, Egypt supports all efforts of the parties to resolve the conflict peacefully,” the diplomat said.
On behalf of the Ukrainian government, the Special Representative of Ukraine for the Middle East and Africa, Ukrainian diplomat and historian Maksym Subkh expressed congratulations on the occasion.
Ukraine has issued the first two licenses for the production of alcohol distillates and spirits to small producers from Odessa and Kiev regions, the press service of the Ministry of Agrarian Policy and Food has reported.
The Ministry reminded that small entrepreneurs were given the opportunity to license production after the government adopted a resolution simplifying the obtaining of production licenses. For example, small producers have received the right to submit, instead of a production certificate, a declaration of compliance of the material and technical base of small distillate production with the requirements of the legislation, registered by the State Service of Ukraine on food safety and protection (Gospotrebsluzhba).
“Prior to the adoption of regulations, the craft spirits segment in Ukraine was absent or operated in the shadows due to the complex regulatory framework. Now producers have the opportunity to create their own business and process agricultural products into value-added products that will be in demand in domestic and foreign markets,” the report says.
In addition, the current legislation provides grounds for the development of drinks with special qualities and characteristics, which can be registered as geographical indications and become a visiting card of Ukraine, to stimulate the development of gastrotourism.
Continuation of small business development in the sphere of alcoholic beverages production is the Law “On State Regulation of Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Bioethanol, Alcoholic Beverages, Tobacco Products, Tobacco Raw Materials, Liquids Used in Electronic Systems” recently signed by the President of Ukraine. The document, in particular, provides for simplification of regulation of the activities of small wineries, small producers of distillates and small producers of beer, drew attention in the Ministry of Agrarian Policy.
The Laws of Ukraine No. 3853-IX and No. 3854-IX of 16.07.2024, from 00:00 hrs. July 27, which provide for the introduction of exemption from duty and VAT on imports into Ukraine: power generating equipment, equipment for wind and solar generation, batteries (except for low capacity batteries), reports the State Customs Service of Ukraine on Friday.
The Service separately draws attention to the fact that such important goods for the population as: electric generators, inverters, lithium-ion batteries and charging stations on their basis, as well as solar panels for repair and/or replacement from damage and expansion of the capacity of existing solar power plants fall under preferential import to Ukraine.
Also in the department emphasize that the list of goods that are exempt from customs duties on imports includes equipment for the manufacture of means of countering technical intelligence and/or repair of mechanized demining machines, and such defense equipment as means of radio-electronic means of detection and countering unmanned aerial vehicles.
“The amendments provide for the period of martial law in Ukraine exemption from customs duties for goods imported for energy security, including those transported (forwarded) to the customs territory of Ukraine in international mail and express shipments, for free circulation and classified under the following codes according to the UKT FEA: 8406 (except 8406 10 00 00), 8410 (only hydraulic turbines and their parts), 8483 40 21 00, 8502 20 40 90, 8502 20 60 90, 8502 20 80 90, 8411 (except turboprop and turbojet engines and their parts), 8501 64 00 00 00 00, 8504 40 84 00 (except inverter welding machines), 8504 40 88 00 00 (except inverter welding machines), 8504 40 90 00 00 (except inverter welding machines), 8507 60 00 00 (except energy storage units of less than 300 watts AC and/or DC and individual lithium-ion cells of less than 200 Ah capacity), 8541 43 00 00 00, 8537 (except for 8537 10 98 10), 8503 00 99 00 (only for wind power electric generator sets), components for the organization of own production and repair in Ukraine of mechanized demining machines, classified in commodity positions 8427, 8430, 8479 under the UKT FEA, as well as for the manufacture by enterprises of Ukraine active means of countering technical intelligence, classified in commodity positions 8517, 8525, 8543 under the UKT FEA“, – specified in the State Customs Service”, – specified in the State Customs Service.
The Antimonopoly Committee of Ukraine (AMCU) has set the transfer of 25-28% of shares in PrJSC Dickergoff Cement Ukraine to an independent investor as a condition for CRH to buy two Buzzi cement plants, the committee’s website reports.
As reported, in June 2023, the Italian cement producer Buzzi, listed by the National Agency for the Prevention of Corruption as an international war sponsor, through its subsidiary Dyckerhoff GmbH, reached an agreement to sell part of its Eastern European business to the Irish CRH group, including Ukrainian assets in the form of two cement plants – Volyn Cement (Zdolbuniv, Rivne region) and Pivden Cement (Vilshanske, Mykolaiv region).
The AMC has been considering CRH’s application for concentration since September 2023.
According to the published terms, CRH must, within nine months from the date of the announced concentration, sell or otherwise transfer shares (stakes) in the amount of 25% to 28% of the authorized capital to a third party not related to CRH UKRAINE B.V. with veto rights (to ensure blocking of key management decisions of the supreme management body of the holding company). It is expected that the European Bank for Reconstruction and Development will become such an investor, as in December 2023 CRH signed a mandate letter with the EBRD on the joint acquisition of the assets of the Italian company Buzzi in Ukraine.
In addition, CRH will also be obliged to report regularly to the AMCU for five years, in particular, on production volumes and selling prices in the domestic market.
It is expected that CRH will invest in the acquired plants, expanding and modernizing their production facilities, preserving jobs and improving working conditions for employees.
As reported, in 2023, the total volume of cement produced in Ukraine increased by 37% year-on-year to 7.4 million tons. In January-March 2024, the companies that are members of the Ukrcement association increased their cement production by 46.3% compared to the same period in 2023, up to 1 million 477.9 thousand tons of cement.
According to the Ukrcement Association, Ukraine’s cement production potential is currently 13.6 million tons of cement, while current financial and human resources suggest consumption of 12.5 million tons. He believes that despite the ability of Ukrainian enterprises to fully cover the market’s needs, it makes sense to plan to expand production.
According to Valeriy Korbut, director of Khmelnitskzalizobeton, one of Ukraine’s largest reinforced concrete plants, investments and modernization of enterprises always increase competition in the market. This, in turn, makes the product better and more affordable. That is why it is important to attract investments in the cement industry today to be ready for recovery.
Viktor Hushel, Commercial Director of Budindustriya-1, a concrete producer, states that, with a focus on recovery projects, it is necessary to invest in cement production right now.
CRH has been operating in Ukraine since 1999. Since November 2021, its cement enterprises in Ukraine have been operating under the Cemark brand: Podilskyi Cement JSC (Khmelnytskyi region), Cement LLC (Odesa), and Mykolaivcement PrJSC (Lviv region).
CRH’s separate business in Ukraine is the production of concrete and reinforced concrete products. PoliBeton Energo’s Bila Tserkva concrete goods plant is a specialized enterprise that produces power transmission towers. PoliBeton’s concrete hub in the north of Odesa was included in the CRH 2020.
Since 1999, the company has invested about $500 million in Ukraine. In particular, since the beginning of the full-scale invasion, CRH has invested $80 million, including $34 million in the construction of a cement terminal in Kyiv region.
CRH is the world’s leading manufacturer of building materials. The company employs about 71,000 people at its 3,200 facilities in 28 countries. It is the largest building materials producer in North America and Europe. The company is also represented in Asia. CRH American depositary shares are listed on the New York Stock Exchange.
