Ukraine’s real gross domestic product (GDP) year-on-year growth in March 2024 was 4.9%, compared to 5.0% in February and 5.2% in January, according to the Institute for Economic Research and Policy Consulting (IEPC) Monthly Economic Monitor.
“Businesses faced restrictions on electricity supply as a result of Russian shelling of energy facilities. This has held back GDP growth. In April, we also expect GDP growth to slow down due to problems with access to electricity due to massive generation destruction,” said Alexandra Betlij, a leading researcher at the IEI.
The institute estimates that real gross value added (GVA) growth in the processing industry, slowed to almost 11% in March, down from 17% in January, while real GVA in electricity generation declined by 2% and is expected to fall further in April.
It is pointed out that real GVA in transportation continued to grow by more than 20%. Growth was also maintained in construction, particularly due to the construction of budget-financed fortifications, while growth in trade slowed to 4.6%.
Among the main macroeconomic trends last month, IED experts additionally highlighted the increase in transportation by Ukrzaliznytsia and through the Ukrainian Sea Corridor, which contributes to the development of a number of sectors of the economy, record external financing in the amount of $9 bln, a decrease in inflation to 3.2% and the discount rate to 14.5%, as well as the weakening of the hryvnia to 39 UAH/$1 on the background of restrained interventions by the NBU
It is also noted that the value of merchandise exports fell sharply in March this year compared to March last year amid continued decline in grain and iron ore prices.
As reported, after Ukraine’s GDP growth of 5.3% in 2023, the National Bank expects it to slow down this year to 3.6%, while the government – to 4.6%. According to the Ministry of Economy, GDP growth for January-February this year amounted to 3.6%, while the NBU in January forecast it in the first quarter at 7.1%.
German MC-Bauchemie intends to invest EUR 1.5 mln in the expansion of dry construction mixtures production in Berezan (Kiev region), MC-Bauchemie Ukraine director Artem Priymachenko told Interfax-Ukraine agency.
“We intend to build a new line for special construction materials, such as a variety of polymer-cement mixes for structural repair of concrete, toppings for industrial floors, waterproofing materials, highly functional adhesives for tiles. The approximate volume of investments is EUR 1.5 mln,” he said.
According to Priymachenko, the investments will be made at the expense of MC-Bauchemie’s own funds. The discussion of war risk insurance is underway now.
“We are now in the procedure of obtaining a guarantee from international organizations for military risks. We are considering options – the German government or MIGA from the World Bank,” he said.
According to the company’s plans, the new line in Berezan could be launched at the end of 2025.
Founded in 1961, MC-Bauchemie Group is one of the leading international producers of construction chemicals and technologies. With more than 2,500 employees, it is represented in more than 50 countries.
According to the data of opendatabot, LLC “MC-Bauchemie” (33482370) was founded in 2005, authorized capital 333,8 thousand UAH. Revenue in 2023 356 million 836 thousand UAH, which is 2.6 times higher than the results of 2022 and 9% higher than pre-war 2021. Net profit for 2023 UAH 55 million 618 thousand, in 2022 there was a net loss of UAH 18 million 625 thousand.
construction mixtures, INVESTMENTS, KYIV REGION, MC-Bauchemie
Production and design association “MAANS” (Rivne region), one of the largest manufacturers of equipment and spare parts, has increased production of agricultural machinery despite the war, reported the press service of Rivne regional military administration.
“Despite the war, the company has increased the production of its products by 2 times. Last year “MAANS” paid more than 31 million UAH of taxes to the budgets of all levels and ended the year with a profit. The wages of employees are gradually increasing. Today 140 workplaces have been created here”, – said the deputy head of the OBA Alexander Kohan.
“MAANS” has modern production facilities with an area of 9 thousand square meters. meters. There is equipment for cutting, bending, stamping, heat treatment, milling, welding and grinding of metal. There is a full cycle of production of cutterbars, carts for them, spare parts and consumables for them, noted in OBA.
The enterprise exports one-third of its production abroad. “MAANS” also joined the state platform “Made in Ukraine”: 27 units of equipment are in the list of the state program of compensation for the cost of agricultural machinery.
PE “VKO “MAANS” was registered in 2010 in Zdolbuniv, Rivne region. The authorized capital of the enterprise is 100 thousand UAH. Its beneficiaries are Stanislav Seredyuk (70%) and Igor Seredyuk (30%).
The Steering Board of the Ukraine Investment Framework, set up by the EU on April 17 under the Ukraine Facility instrument, has allocated more than EUR1bn of funding to de-risk investments, mainly of small and medium-sized enterprises in Ukraine, through International Financial Institutions (IFIs) and banks, Ukraine’s Deputy Economy Minister Oleksiy Sobolev said.
“That is, this year, financing for SME development will be enough,” he said at Ukraine’s Future Summit in Brussels on April 18.
Sobolev called for more active trade and joint ventures with Ukrainian companies, because the above mechanism will provide leverage and additional guarantees.
“Thanks to the Ukraine Plan and Ukraine Facility, you will have available financing for business expansion in Ukraine, and what we need right now will be available. This year it will be available through Ukrainian banks and through MFIs: EBRD, EIB, IFC, KfW”, – said the Deputy Minister of Economy.
He specified that about 20 Ukrainian banks participate in these programs.
“So, in fact, you can apply to your Ukrainian bank, and he will provide additional financing to your companies,” – explained Sobolev.
Olesya Olenytska has been appointed Director of Corporate Communications at Kyivstar, a Ukrainian telecommunications operator. She will be responsible for the entire range of internal and external corporate communications, media relations, and corporate social responsibility.
“Kyivstar is not only a successful and responsible business, but also a part of the critical infrastructure that provides vital communications to millions of Ukrainians at the front and in the rear, implements large-scale projects to support the Armed Forces, is a major taxpayer and a significant investor in the Ukrainian economy. The speed, resilience, and energy independence of telecommunications networks, along with data protection, are the main challenges for the industry during the war. At the same time, communications in a period of permanent crisis are of utmost importance. It is not just about information and technology. It is about people. After all, people are the backbone of every business. Therefore, one of the main tasks of our team will be not only to ensure effective reputation management, but also to unite people around common values, inspire new achievements, provide emotional support, and engage in community projects to help society and Ukraine,” Olesya Olenytska comments.
Olesya has extensive experience in retail, tobacco, public sector and journalism. She started her career in the media, worked in the press service of the Presidential Administration of Ukraine and as a press secretary of a parliamentary group in the Verkhovna Rada. She holds the rank of civil servant.
For about ten years, Olesya Olenytska worked at Philip Morris Ukraine, where she rose from a specialist to head of communications and charity. In 2014, Olesia became the Head of Corporate Communications and Social Responsibility at METRO Ukraine, a German retailer, where she became the Director of Government Relations and Public Affairs in 2016.
Olesia graduated from Taras Shevchenko National University of Kyiv with a Master’s degree in Journalism with honors. She studied in graduate school and taught journalism at her alma mater. She also graduated from the Law Faculty of the National Academy of Management of Ukraine and the Lee Kuan Yew School of Public Policy at the National University of Singapore.
About Kyivstar:
Kyivstar is Ukraine’s largest electronic communications operator, which as of December 2023 served about 24 million mobile subscribers and more than 1.1 million Home Internet subscribers. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, cybersecurity services, digital TV, etc. Kyivstar is developing new telecom technologies in Ukraine and plans to invest USD 600 million in this area over the next three years. The company is helping the country overcome the challenges of wartime and has allocated over UAH 1.8 billion over the past two years to support the Armed Forces, subscribers, local communities, and charitable initiatives. The sole shareholder of Kyivstar is the international VEON Group, headquartered in the Netherlands. The Group’s shares are listed on the NASDAQ (New York) and Euronext (Amsterdam) stock exchanges. Kyivstar has been operating in Ukraine for over 25 years and is recognized as the largest taxpayer in the telecom market, the best employer and a socially responsible company.
For more information: pr@kyivstar.net, www.kyivstar.ua
In 2023, Astarta agricultural holding increased the number of cattle at its three dairy farms by 10% year-on-year to 26 thousand heads, of which 47% were dairy herds, the company said in its annual report on Wednesday evening.
According to the document, cattle milk yields increased by 9% compared to the same period last year and reached 25.8 kg/day. This, together with a 3% increase in the number of cows in the herd compared to last year, led to a 12% increase in milk production compared to the same period last year and amounted to 115 thousand tons.
In addition, in 2023, the agricultural holding increased sales of raw milk by 13% year-on-year to 111 thousand tons, of which 96% was of high quality (94% a year earlier).
Astarta sold all of its milk domestically. The agricultural holding supplies top quality raw milk to Ukraine’s leading large dairy processors, including Lustdorf, Yagotynsky Butter Plant and others.
The average selling price of raw milk increased by 10% year-on-year to UAH 14 thousand. In euros, the selling price decreased by 4% year-on-year to 352 EUR/t in 2023 amid inflation and exchange rate changes.
According to the report, Astarta operates 33 dairy farms in three regions of Ukraine and specializes in the production of raw milk for further sale to processing companies.
The agricultural holding has a calf breeding complex to meet its own needs, which was opened in 2012 and produces about 5,000 heads of highly productive calves annually.
As reported, in 2023, Astarta reduced its net profit by 5.0% to EUR 61.9 million, and its EBITDA decreased by 6.1% to EUR 145.77 million. Last year, the agricultural holding’s revenue increased by 21.3% to EUR 618.93 million, gross profit by 7.8% to EUR 223.59 million, while operating profit decreased by 12.2% to EUR 95.78 million.
