Ukrainian Foreign Minister Dmytro Kuleba is making the first visit by a Ukrainian official to China since the beginning of Russia’s full-scale aggression against Ukraine.
“Hello to all from China. Following up on the contacts between the leaders of Ukraine Volodymyr Zelensky and China’s Xi Jinping, I am carrying out the first visit of a Ukrainian official to China since the beginning of Russia’s full-scale aggression against Ukraine. This is also the first bilateral visit of the Ukrainian foreign minister to China since 2012,” he said on his Instagram.
He informed that ahead – detailed, substantive talks with his Chinese counterpart Wang Yi on ways to a just peace.
“Must avoid competition of peace plans. It is very important that Kiev and Beijing have a direct dialog and exchange of positions. We will also discuss bilateral relations. I am convinced: after Ukraine started negotiations on accession to the European Union, China should look at relations with our state through the prism of its strategic relations with Europe,” – said Kuleba.
As reported, July 23-25, Kuleba will pay a visit to China at the invitation of Chinese Foreign Minister Wang Yi.
The European Business Association (EBA), the American Chamber of Commerce in Ukraine (AmCham) and the Association of Tobacco Manufacturers “Ukrtobacco” have appealed to the Verkhovna Rada to support in the second reading the draft law No. 11090 on increasing the excise tax on tobacco products as proposed by the Cabinet of Ministers.
“It is necessary to provide for the EU’s approach to determining a single euro to hryvnia exchange rate throughout the year (as of October 1 of the previous year for the entire next year) in order to ensure business planning for enterprises that are the largest taxpayers in Ukraine, which, according to the official opinion to the draft law and relevant letters, is insisted on by both the Rada Committee on Ukraine’s Integration into the EU and the Government Office for Coordination of European and Euro-Atlantic Integration of the Cabinet of Ministers,” the second version of the draft law reads on the EBA website.
The associations are confident that the initiatives of some Ukrainian MPs to introduce conceptual changes to the decision already adopted in the first reading to change the excise tax rates on tobacco products pose significant risks to the State Budget of Ukraine. These proposals could provoke a galloping growth of the illegal cigarette market, which has been reduced with extraordinary efforts for several months, taking into account the recommendations of the G7 countries and the leadership of the Chairman of the Parliamentary Financial Committee Danylo Hetmantsev.
The most critical and risky initiatives, according to the member companies, are the proposals to establish an ad valorem excise tax on tobacco products at 25% and to compare the tax rate for cigarettes and electrically heated tobacco products (EHT).
It is emphasized that such an initiative does not comply with the European approach and the practice of EU member states.
“Please take into account the position of the united business community when making the final decision on the revision of excise tax rates on tobacco products as part of the further consideration and adoption of Draft Law 11090,” the association summarized.
Earlier, the Union of Ukrainian Entrepreneurs (UUE) and the U.S.-Ukraine Business Council (USUBC) called for the adoption of the draft law on tobacco excise taxes in the version of the Cabinet of Ministers.
As reported, on June 4, the Verkhovna Rada supported in the first reading and adopted as a basis the draft law No. 11090 on increasing the excise tax on tobacco products.
The draft law provides for the conversion of excise tax rates on tobacco products from hryvnia to euros, reaching the EU minimum excise tax level on cigarettes (EUR90 per 1000 cigarettes) through a gradual increase in specific excise tax rates by 2028, returning to the differentiation of excise tax on HTPs and cigarettes, and introducing a special mechanism for calculating excise tax on tobacco products based on the exchange rate.
According to the estimates of the Ministry of Finance described in the draft Budget Declaration, this will increase state budget revenues by UAH 0.6 billion in 2025, by UAH 5 billion in 2026, by UAH 9.4 billion in 2027 and by UAH 13.9 billion in 2028.
The Cabinet of Ministers of Ukraine has set Tuesday, September 2, as the start of the new 2024/2025 school year in general secondary schools, Prime Minister Denys Shmyhal said.
“Today, by a separate resolution, we are determining the start of the new school year in general secondary schools on Monday, September 2. And its completion on June 30, 2025,” Shmyhal said at a government meeting on Tuesday.
In this regard, regional administrations have been instructed to ensure the organization of the process depending on the security situation in a particular territory.
At the same time, the Ministry of Education and Science of Ukraine reminded that within the limits of the school year approved by the government, the pedagogical council of the educational institution determines the structure and duration of the school year, school week, school day, classes, rest between them, and forms of organization of the educational process. “In determining this, it takes into account the time provided for by the educational program, the amount of academic workload in the curriculum and age-related features, physical, mental and intellectual development of children, and the peculiarities of the region,” the statement says.
It is noted that the duration of vacations in educational institutions cannot be less than 30 calendar days.
“Therefore, an educational institution can independently determine the structure of the school year and the forms of organization of the educational process. In particular, taking into account the extent to which studying in wartime affected the mental state and intellectual development of students, whether they have educational losses, what is the security and energy situation,” the ministry said.
In June this year, Ukrainian steelmakers increased steel production to 735 thousand tons, up 68.4% year-on-year (436 thousand tons), but down 0.4% from the previous month, when they produced 738 thousand tons.
At the same time, Ukraine took 20th place in the ranking of 71 countries that are global producers of this product, compiled by the World Steel Association (Worldsteel).
The top ten steel-producing countries in June are as follows: China (91.610 million tons, up 0.2% by June 2023), India (12.258 million tons, up 6%), Japan (7.022 million tons, down 4.2%), USA (6.659 million tons, minus 1.5%), Russian Federation (6.030 million tons, down 4.1%), South Korea (5.132 million tons, down 7.2%), Germany (3.187 million tons, up 8.9%), Turkey (3.071 million tons, up 4.3%), Brazil (2.874 million tons, up 11.8%) and Iran (2.612 million tons, down 8.5%).
In total, in June 2024, steel production increased by 0.5% compared to the same period in 2023 to 161.399 million tons.
In January-June 2014, the top ten steel producing countries were as follows: China (530.570 million tons, down 1.1% compared to January-June 2023), India (74.184 million tons, up 7.4%), Japan (42.696 million tons, down 2.6%), the United States (39.960 million tons, down 2.4%), and the Russian Federation (36.815 million tons, down 3%), South Korea (31.526 million tons, down 6.4%), Germany (19.360 million tons, up 4.5%), Turkey (18.615 million tons, up 16.9%), Iran (16.647 million tons, up 5.9%) and Brazil (16.433 million tons, up 2.4%).
Active launch of rehabilitation programs in Ukraine has led to an increase in the share of project sales of Sweetondale roofing and insulation products from 10% in 2023 to 38% in 2024, the company’s press service told Interfax-Ukraine.
According to Sweetondale sales directorate head Oleksandr Manuylo, the structure of demand has changed significantly compared to last year, when the main areas of sales were retail (42%) and sales to cottage low-rise construction projects (47%), as well as compared to the pre-war period.
“In late 2022 and early 2023, the main drivers of support for the construction sector were completions by large developers and commercial projects. In the second half of 2023, rehabilitation programs and some municipal programs began to take hold. According to our sales statistics, the share of project sales has gradually increased from 25% in 2021 to 38% year-to-date,” Manuilo said.
He added that due to the additional mobilization measures, the end-user flow in the retail and DIY channel has significantly decreased.
“It can be stated that investment uncertainty on the part of new commercial projects, limited funding of budget programs and lack of end-consumer activity lead to stagnation of classic sales channels. A significant shift of construction market volumes has begun, first from commercial construction to the public sector and then to military infrastructure development,” Manuilo said.
He noted that now it is extremely difficult to keep production costs at the pre-war level. The issues of supplying enterprises with electricity during blackouts, risks of missile attacks on production and storage infrastructure, border blocking by Poland, instability of supplies of raw materials and components, mobilization of certain categories of specialists have been added to the risk factors.
“We try to keep a competitive price level for our products, but forced price adjustments have occurred up to +15% depending on the direction of production,” Manuilo said.
According to him, despite the full-scale war, the company’s production units not only do not stop, but also actively develop. “Sweetondale’s team of experts and technologists have conducted research and improved products and systems. New insulation and waterproofing products have been developed taking into account all modern building regulations and European standards, which is confirmed by the relevant certificates. Updating the range of Sweetondale products is a strategic step that will improve competitiveness in the market by optimizing the range and focusing on the most effective technical solutions,” said Manuilo.
In particular, for industrial and civil construction the company presented professional lines: mineral insulation THERMOWOOL, polymer insulation CARBOLEX and bitumen insulation HYDROBASE. For private cottage and low-rise construction, ULTRAWOOL mineral insulation, STYROPLIT polymer insulation and WATERBIT bitumen insulation are recommended.
“Our internal analysis and some independent agencies state that we hold between 40 and 50% market share in our product lines. Right now, the mineral and polymer insulation product lines are operating at their potential maximum in line with seasonality,” Manuilo said.
Until 2022 Sweetondale sold 80% of its products in Ukraine. After two years of full-scale war, the export share dropped to a minimal 10% due to logistical problems as well as seasonal fluctuations in demand in European markets.
“The geography of our presence is Romania, Poland, Norway, Finland and the Baltic States. We have increased the number of foreign trading partners to utilize our production capacities. We plan to increase the volume of exports in future periods, but the share of exports will remain unchanged,” he said
According to Opendatabot, the authorized capital of Zavod “Sweetondale” LTD (“Zavod ‘Sweetondale’ LTD, USREOU Code 32944149) is UAH 13.5 million, for 2023 the company received revenue of UAH 1 billion 633.461 million, which is 73.7% higher than the results of 2022, net profit amounted to UAH 333.088 million, which is three times higher than the results of 2022.
Sweetondale was founded in 2012 by Gary Alan Stern. Initially specialized in industrial equipment engineering and leasing. Negotiations to acquire the plants owned by Russia’s Technonikol began in 2015 and were finalized in February 2018. Today, the company includes three plants for the production of roofing and insulation materials: a plant for the production of mineral insulation in Cherkassy, a plant for the production of polymer insulation and a plant for the production of bitumen-polymer roll materials in Kamenskoye.
The European Investment Bank (EIB) Group is planning new loans totaling EUR450 million for Ukrainian energy investments, including the reconstruction of hydroelectric power plants and power grid infrastructure damaged by Russian attacks, as well as the restoration of district heating networks in Ukrainian cities.
According to a press release on the bank’s website, another EUR 86 million will go to Ukraine’s national power grid operator, NPC Ukrenergo, to build drone shelters for power plants.
“We are stepping up our support to help protect and repair Ukraine’s infrastructure before winter,” the release quotes EIB President Nadezhda Calvigno as saying, “On July 22, she briefed EU foreign ministers on these measures and held a regular video conference with Ukrainian Finance Minister Sergii Marchenko to discuss progress on ongoing projects, especially in energy infrastructure.
According to her, the bank will also expand its support for Ukraine’s economy by facilitating access to finance for businesses and promoting trade with the EU.
In the business finance component of the latest support package, the EIB Group approved three partial portfolio guarantees, which are expected to lead to more than EUR 110 million in new lending to Ukrainian micro, small and medium-sized enterprises through three Ukrainian banks. It is specified that the guarantees are to be signed in the second half of 2024 with the respective banks and will support 550 Ukrainian companies, preserving about 8,250 jobs.
In addition, the EIB Group intends to provide partial portfolio guarantees to five more banks in Ukraine by the end of the year under the EU4Business Guarantee Facility, the release said.
According to the release, this week the EIB is also joining forces with Ukrsibbank, the Ukrainian subsidiary of BNP Paribas Group and one of Ukraine’s largest banks, to launch a revolving credit line of at least EUR150 million in Ukrainian hryvnia to support businesses affected by the war. The local currency facility is expected to be operational by the end of 2024. This is the EIB’s second initiative to stimulate local currency lending in Ukraine, following a partnership with Citibank Ukraine for between $50 million and $100 million in Ukrainian hryvnia.
In addition, the release notes, by the end of this month and following the signing of an agreement with the European Commission in June, the European Investment Fund (EIF) will start accepting applications under a EUR300 million export credit guarantee facility to support EU companies trading with Ukraine. The initiative will offer guarantees to export credit agencies in EU member states, as well as Norway and Iceland, that want to help export to Ukraine.
Following a videoconference on July 22, the Ministry of Finance of Ukraine announced that it expects the EIB to approve a EUR250 million package of support for Ukraine’s energy sector in the near future.
In general, according to the Ukrainian side, the volume of EIB initiatives in the public sector is 26 projects worth EUR 5.3 billion, and the volume of the portfolio of joint projects in the public and private sectors is the largest for all years of cooperation and exceeds EUR 7 billion, including about EUR 2 billion of EIB investments in all areas since the beginning of the full-scale war.
Regarding current initiatives, the parties also discussed preparations for the signing of a financial agreement between Ukraine and the EIB on the project “Implementation of the Emergency Assistance System for the Population by a Single Number 112”, as well as potential joint projects, in particular, aimed at providing housing for Ukrainian citizens.
As reported, in 2024, Ukraine and the EIB signed a Memorandum of Understanding on cooperation in the public and private sectors of Ukraine’s economy. The Memorandum identifies priority areas of cooperation for the next 10 years.
