The devaluation of the Turkish lira in the near future will not lead to sharp price fluctuations in export and import transactions between Ukraine and Turkey, but there are fears of a decrease in the revenues of Ukrainian exporters that supply goods to the Turkish market, the Ukrsadprom association has reported. “The main export goods for each country are largely tied to a stable foreign currency and depend more on the situation on the global market rather than on changes in the domestic market. Therefore, in the short term, at least until the end of this year, it’s not worth expecting sharp price fluctuations in export and import operations with Turkey,” the association’s press service told Interfax-Ukraine.
At the same time, according to Ukrsadprom experts, there are some concerns about the possible transition of Turkey in payments on foreign economic transactions with its main partners, including Ukraine, from the U.S. dollar to the national currency.
“We are currently considering the possibility of Turkey’s transition to settlements in foreign economic transactions with its main partners … This could cause inconvenience both in the settlement mechanism itself, and in setting prices and the appropriate exchange rate, because, according to most expectations, the Turkish lira will continue depreciating. As a consequence, there is a possibility of lower revenues for Ukrainian exporters,” Ukrsadprom indicates. However, in addition, there are grounds for a certain reduction in import prices for Ukraine when making purchases in Turkey, the association noted.
Ukrsadprom said Turkey is one of the largest importers of domestic agro-food products. For the first six months of this year, Ukraine exported agricultural products to Turkey for $458 million.
One troy ounce=31.10 grams
Rostok-Holding agro-industrial group has completed harvesting early grain crops, threshing 69,400 tonnes against 71,100 tonnes in 2017. According to the group’s press release, winter wheat was harvested on an area of 6,700 hectares (in 2017 some 7,700 hectares). The gross yield totaled 40,900 tonnes (51,100 tonnes), the yield was 6.1 tonnes/ha (6.7 tonnes/ha). On some fields the yield reached 8.7 tonnes/ha.
The group increased the gross harvest of spring barley by almost 1.5 times, to 25,100 tonnes (in 2017 some 17,500 tonnes) from 5,100 hectares (3,300 ha). The average yield was 4.9 tonnes/ha (in 2017 some 5.3 tonnes/ha). On some fields the yield reached 6.7 tonnes/ha.
Peas were harvested on an area of 1,100 hectares (in 2017 some 1,000 hectares). The group harvested 3,400 tonnes (2,500 tonnes). The average yield was 3 tonnes/ha (in 2017 some 2.6 tonnes/ha).
In 2018 the share of winter wheat in the structure of the company’s areas under crops stood at 12%, spring barley at 9%, and peas at about 2%.
Rostok-Holding, established in 2010, is a vertically integrated agro-industrial group. It specializes in the cultivation and sale of grain crops, production, processing and sale of dairy goods, grain trading.
AS Silvano Fashion Group (SFG, Tallinn), engaged in sewing and selling women’s underwear under the trademarks Milavitsa, Alisee, Lauma and Laumelle, in January-June 2018 increased sales in Ukraine by 18% compared to the first half of 2017, to UAH 52.22 million. According to a company report on the Warsaw Stock Exchange, due to the strengthening of the euro to U.S. dollar exchange rate, its Ukrainian revenue in euros increased by 9.5%, to EUR 1.67 million.
According to the report, the network of franchise stores of the company in Ukraine for the reporting period expanded by more than 1.5 times, from 50 to 76 points.
In 2017, SFG reported about the growth of sales in Ukraine by 58.8%, to UAH 75.2 million, and in the euros by 52.5%, to EUR 2.53 million. In the first quarter of 2018, the growth in sales in the hryvnia amounted to 26.3%, to UAH 25.54 million, in euros by 9%, to EUR7 60,000.
Ukraine’s share in total revenue for the first half of the year increased to 5% from 4.7% in the first quarter, 4.1% in the past year and 2.9% in 2016.
In general, the revenue of SFG for the period rose by 2.2%, to EUR 33.53 million, EBITDA by 45.9%, to EUR 11.81 million, and net profit by 47.6%, to EUR 8.42 million.
The production facilities of the group unite Milavitsa factory in Minsk (Belarus) and Lauma Lingerie factory (Latvia).
The share of payment systems created by banking and non-bank resident institutions in Ukraine in the amount of money transfers to the country in the first half of 2018 was 15.6% compared to 4.8% in 2017, the National Bank of Ukraine (NBU) has said. According to data on its website, if over the past year $113.7 million was transferred to the country through Ukrainian payment systems, then for the six months of this year some $189 million.
The statistics of the National Bank contains no data on the turnover of specific Ukrainian systems in this market, it gives only their share in the market of transfers within Ukraine, the total volume of which amounted to UAH 69.34 billion (almost $2.6 billion compared with $4.45 billion for the entire year of 2017).
Here the leader was the TYME payment system, whose registration the National Bank canceled on June 22 this year, with 42.78%, followed by Postal Transfer from Ukrposhta with 27.98%. They are followed by Financial World (Finansovy Svit) with 7.2%, City24 with 6.73%, InterPayService with 5.34%, Flashplay with 4.43%, while each of the following 22 systems has a share less than 1%. The National Bank specifies that according to the number of participants the leaders in the first half of the year were Post Finance LLC with 44.34% and Ukrposhta with 27.97%.
Regarding the systems created by non-residents, the leader among them remains Western Union, which increased the gap from MoneyGram: if in 2017 their share in transfers to Ukraine among non-residents was 54.5% and 23.8% respectively, then in the first half of 2018 some 56% and 23% respectively. The share of IntelExpress ranking third fell from 12.7% to 9%.
