In January 2024, PJSC Ukrnafta increased oil and condensate production by 0.2% (by 0.27 ktonnes) compared to January last year to 121.08 ktonnes, and gas production by 8.3% (by 7.77 mcm) to 100.91 mcm.
According to the company’s press release, the total production in oil equivalent of hydrocarbons amounted to 207.87 ktonnes, which is 3.5% more than in January 2023 (200.92 ktonnes).
“I am grateful to the company’s specialists who continue to increase the production of Ukrainian resources for the second year in a row. We continue to drill new wells, implement production stimulation measures and upgrade old equipment to API standards,” Ukrnafta CEO Serhiy Koretsky said in a statement.
As reported, in 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022 – up to 1 million 409.9 thousand tons, gas production – by 5.8% (by 60.4 million cubic meters), up to 1 billion 97.4 million cubic meters.
“Ukrnafta’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense, to the state.
condensate, GAS, OIL, UKRNAFTA
The Mostiska container terminal, which began operations in mid-2022, handled more than 72.4 thousand TEU of cargo in containers in 2023, the press service of the Lemtrans logistics company reports.
The total volume of cargo handled by the container terminal in 2023 amounted to 286 thousand tons. About half of it, 122 thousand tons, was grain cargo, 62 thousand tons – liquid bulk, 35 thousand tons – general cargo, 37 thousand tons – beam cargo, the report said.
In addition, the terminal received electric vehicles in 2023 – 36 containers with 108 cars were unloaded.
“The availability of modern infrastructure and equipment, optimal utilization of production capacities and the professional approach of our employees allowed us to successfully transship all the declared cargo through the terminal in 2023 and set personal records. We expect deeper integration and an increase in cargo traffic from the EU, as well as an increase in containerization,” the press service quoted Dmytro Kobzar, CEO of Mostyska Drive Port, as saying.
According to him, the second half of 2023 saw a dynamic growth in transshipment volumes, which had a positive impact on the terminal’s performance.
“The reason for the growth of cargo transshipment volumes was primarily the reorientation of sea lines and the establishment of work through the ports of Poland. Another factor behind the increase in volumes was the development of production capacities, the provision of new services and a high level of service,” he said.
The export flow of cargo was directed mainly to Asian countries, through European ports, as well as to Poland, Italy and Germany.
Mostyska Dry Port clarified that capital investments in the development of the container terminal’s capacities did not stop in 2023 and amounted to UAH 100 million.
“Despite the war, we do not stop and continue to invest in the Ukrainian economy. In 2024, we plan to increase the terminal’s production capacity by expanding the operating areas for handling and storing containers, as well as actively develop container transportation between the terminal and EU countries as an alternative to road transportation,” Kobzar emphasized.
In 2023, the terminal transferred UAH 27.66 million to the budgets of all levels. UAH 15.49 million was transferred to the state budget alone, including UAH 4.65 million in VAT. Local budgets were replenished by more than UAH 12 million. The single social contribution amounted to UAH 11.13 million.
The Mostyska Container Terminal dry port is a partnership project of Lemtrans and Rail Trans Investment. It is located in the immediate vicinity of the Shehyni-Medica checkpoint on the Ukrainian-Polish border. The total area of the terminal is 36 hectares. The logistical advantage is the availability of 1435 mm and 1520 mm railways, which allows unloading and loading trains bound for the EU countries.
Forecast of changes in discount rate of National Bank of Ukraine, % 
Source: Open4Business.com.ua and experts.news
A number of leading agrarian associations have appealed to the Prime Minister of Ukraine with a request to influence the resolution of the situation on the possible deterioration of trade conditions with the European Union in agro-food products, the press service of the Ukrainian Club of Agrarian Business (UCAB) reported.
The association was reminded that on June 6, 2024, the EU’s additional trade preferences for Ukraine, under which the existing customs tariffs and tariff quotas for all categories of goods were canceled for Ukrainian exports, will expire. On January 31, the European Commission officially published a draft EU Regulation on the extension of autonomous trade preferences for Ukraine for the next calendar year (from June 6, 2024 to June 5, 2025).
It is stated that the draft regulation introduces restrictions on imports to the EU of certain groups of goods (chicken, sugar and eggs) “sensitive” for European agricultural producers. In particular, it is proposed to renew the tariff quotas agreed within the framework of the Full and Comprehensive Free Trade Area between Ukraine and the EU for these commodity groups if from January 1, 2024 the volumes of their imports from Ukraine exceed the arithmetic average of import volumes for 2022-2023. According to EU legislation, the draft regulation still has to be considered in the European Parliament and the EU Council of Ministers.
“For the agri-food sector of Ukraine, these preferences were particularly important, canceling a number of tariff quotas on imports to the EU market for key export goods – from cereals and oilseeds to sugar, poultry meat, eggs, fruit and vegetable products – and providing an opportunity for Ukrainian exporters to maintain production, jobs and ensure the receipt of foreign currency earnings during 2022-2023,” the associations noted in their appeal.
At the same time, they cited data from the State Customs Service, according to which agro-exports of Ukraine for 2023 amounted to 61% of total exports of goods from Ukraine and were equivalent to $21.9 billion, compared to 53% and $23.4 billion respectively a year earlier.
At the same time, the EU’s share in total agri-food exports from Ukraine in 2023 amounted to 56.6% (55.1% in 2022), or $12.4 billion ($12.9 billion respectively).
“The issue of maintaining maximum open access for Ukrainian agri-food products to the EU market will be vital for Ukraine’s trade balance in the coming years and the survival of Ukraine’s agricultural sector. If trade restrictions are implemented, Ukraine will face a significant reduction in foreign currency earnings from exports of major agri-food products,” the business community predicts.
Agrarian associations called on the government to facilitate access of Ukrainian agro-products to the EU market and the establishment of a direct dialog with European partners. In particular, they ask to include in the agenda of the next Ukraine-EU Summit the issues of continuation of autonomous trade preferences for Ukrainian agro-food products with minimum restrictions and preservation of the activity of the Ukraine-EU Trade Coordination Platform as the main platform for exchange of information on current issues in trade.
The appeal was signed by the All-Ukrainian Agrarian Forum, the Ukrainian Agrarian Business Club, the Agrarian Union of Ukraine, the All-Ukrainian Agrarian Rada, the Union of Poultry Farmers of Ukraine, and the Ukrainian Agrarian Confederation.
leading agrarian associations, trade conditions with the European Union, Ukrainian Club of Agrarian Business
VEON Group, the parent company of Ukraine’s largest telecom operator Kyivstar, has started implementing $600 million in investment commitments to rebuild Ukraine, the VEON press service said on Monday.
“VEON, a global converged communications and online services provider, and its subsidiary Kyivstar, are pleased to announce that they have officially started implementing the $600 million investment commitment to rebuild Ukraine announced in June 2023,” the statement said.
The investment will be utilized over three years, from 2024 to 2026.
It is reported that Kyivstar’s capital investments in 2023 amounted to $174 million. At the same time, the volume of future investment commitments from $600 million in the three-year period can be increased to $1 billion in the five-year perspective, if market conditions allow, VEON assured.
It is noted that VEON’s investment commitments were the subject of a visit to Kyiv by a high-level delegation, including former US Secretary of State Mike Pompeo, who was recently elected as an independent member of Kyivstar’s supervisory board, for the first time since his appointment.
According to a press release, he, along with VEON co-founder Auggie Fabella and VEON Group CEO and Chairman of the Supervisory Board of Kyivstar Kaan Terzioglu, met with the Head of the Office of the President of Ukraine Andriy Yermak, US Ambassador to Ukraine Bridget Brink, and Deputy Head of Mission of the Kingdom of the Netherlands Esselien van Erten.
“I am very pleased to be back in Kyiv, now as a member of the VEON family and a member of the Supervisory Board of Kyivstar. Ukraine must win this war, both on the battlefield and economically. The private sector, especially international investors, has a crucial role to play in ensuring this victory, and I believe that all stakeholders understand and appreciate this. I am inspired by the incredible commitment of VEON and Kyivstar, as well as other private sector companies, who continue to serve Ukrainians with dedication and tenacity,” Mike Pompeo said in a statement.
For his part, Terzioğlu thanked for the support during the process of international investors’ withdrawal from Russia, which ended in October 2023, as well as for the focus on investments in Ukraine, including $600 million in commitments this year.
Kyivstar’s President Oleksandr Komarov noted that with the start of the implementation of these investment commitments, this year marks the beginning of an ambitious journey for Kyivstar.
“Thanks to the support of our parent company VEON, the leadership of the Board of Directors of Kyivstar, which has become stronger than ever thanks to Secretary Pompeo, the unwavering commitment of our team of 4,000 people and the unwavering gratitude of our 24 million customers, Kyivstar is an example of a company that is taking on the challenge of rebuilding Ukraine today, overcoming all difficulties and never losing focus,” the company’s press service quoted him as saying.
Earlier it was reported that Pompeo met with Kyivstar’s staff in Kyiv last Thursday at the invitation of the company’s management and the CEO of VEON Group.
VEON, a telecommunications holding company headquartered in Amsterdam (the Netherlands), owns 100% of Kyivstar, the largest telecommunications operator in Ukraine, which serves 24 million customers with mobile and fixed-line communications and digital services. The VEON Group operators serve 160 million customers in Pakistan, Ukraine, Bangladesh, Kazakhstan, Uzbekistan and Kyrgyzstan – six markets with more than 510 million users. VEON shares are listed on Nasdaq and Euronext Amsterdam.
Ukraine in January 2024 exported the largest volume of goods since the start of the full-scale invasion – 12 million tons of products, including 8.7 million tons exported by sea, the Economy Ministry said on Monday.
“We are very close to reaching pre-war physical export volumes. In January 2024, Ukraine exported 12 million tons of products. This is only 2 million tons less than in pre-war January 2022,” First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko was quoted as saying in the release.
Earlier, Taras Kachka, Deputy Minister of Economy and Trade Representative of Ukraine, told Interfax-Ukraine that in December 2023, Ukraine reached the 10 million tons export figure, which was last reached in March 2023, followed by a decline in exports to less than $3 billion a month due to Russia’s disruption of the grain corridor.
Svyrydenko added that in January, the first vessel insured against military risks under the UNITY insurance was loaded in the ports of Greater Odesa. The cost of insurance for this vessel was 0.75% of the vessel’s value, which is much cheaper than during the Black Sea Grain Initiative.
The head of the Ministry of Economy believes that the normalization of the insurance market in trade is a cornerstone element of the resumption of exports of value-added products, and the goal is to reach not only pre-war export volumes but also higher revenues, which will be facilitated by the free shipment of Ukrainian containers by sea.
“This will only be possible when the insurance market for maritime transportation recovers. That is why it is so important for us that insurance becomes more affordable and is actually used to export Ukrainian products,” the First Deputy Prime Minister said.
The Unity ship insurance program, which the Ukrainian government is implementing jointly with Marsh McLennan and a pool of insurance companies led by ASCOT, is designed to reduce the cost of insurance for the maritime transportation of grain and other important food products in Ukraine’s territorial waters, which will help, among other things, increase the volume of Ukrainian exports. The total coverage under the program is $50 million. It is estimated that the proposed insurance mechanism will reduce the cost of grain insurance by about 2.5 percentage points of the insurance rate on average, which, in turn, will allow grain traders to save about UAH 100-140 per ton of cargo, and will bring an additional UAH 4 billion to agricultural producers.
The Ministry of Economy said that Ukraine expects to expand insurance instruments to other types of exports in the future.
