Business news from Ukraine

Business news from Ukraine

“Dnieper Gardens” increases its apple orchards

A large apple producer LLC “Gardens of Dnipro” (Podgorodne, Dnipropetrovsk region), which grows products under TM UApple, will plant apples on additional 20 hectares in the coming weeks and is preparing to expand its pear orchard by another 10 hectares in the future.
Vadim Yermolaev, owner of the business and head of the Alef Corporation Board, said on Facebook on Friday that apples of the Gala RKD variety, which bears fruit three weeks earlier than the usual Gala, will soon be planted.
“Right now the orchard is being planted. We have already brought 83,000 seedlings from France to be among the first in Ukraine to start growing this innovation. At the moment we have started installing the poles, fixing the optimal distance between the future trees. Actually, the seedlings will be planted in April. The first harvest from these trees we will collect this year. But the first full-fledged harvest, by our standards it’s 50-60 tons/hectare – five years later”, – wrote Yermolaev in social network.
He clarified that further development of the orchard is planned for the future, in particular, the planting of pears on additional 10 hectares.
According to the company’s website, “Gardens of Dnipro” was founded in 2016 and is one of the largest apple producers in Ukraine. The producer sells products in Ukrainian retail chains and also exports to the EU, Asia and the Middle East. Six varieties of apples are grown under the trademark UApple: Gala Schniga, Golden Delicious, Granny Smith, Pinova, Fuji, Red Delicious.
Alef Corporation unites 10 diversified businesses, working in the segment of real estate development, production of building materials and agricultural sphere. Vadim Yermolaev, Chairman of the Alef Corporation Board, is also the founder of Miroplast, UDK, ABM Technology, Oscar, Dnepropress Steel, Alef-Vinal, Gardens of Dnepr, Lunapak, Agroalliance.

,

Beer production in Ukraine in January-February decreased by 9%

Beer production in Ukraine (except non-alcoholic with alcohol content up to 0.5% vol.) in January-February 2023 decreased by 8.9% compared to the first two months of 2022 – up to 16.2 million dal, according to the website of the brewers’ organization Ukrpivo on Friday.
At that it is specified that in January this year the lag in the production of this drink compared to January 2022 was 15.2%.
In turn, in January-February 2023, Ukraine produced 28.9 thousand tons of malt, which is 5.7% less than the first two months of last year.
As it was reported, beer production in Ukraine in 2022 dropped by 27.9% compared to 2021 – up to 122.8 million dal.
By the end of 2022 the brewing industry has partially recovered after a 50% drop in production of this drink in the first quarter due to the Russian invasion and the shutdown of some breweries. Thus, in the first four months of 2022 the decline was 42.8% compared to the same period of 2021, January-May – 36.4%, January-June – 32%, January-July and January-August – 31.6% each, January-September – 30.5%, January-October – 28.6%, January-November – 28.1%, the year before – 27.9%.

,

Lifecell increased its profit by 71.8% in fourth quarter of 2022

Ukrainian mobile operator lifecell in the fourth quarter of 2022 increased net profit by 71.8% compared to the same period last year – up to 408.8 million UAH, while in general it increased by 59.2% – to 972.3 million UAH.
According to the report of the parent company Turkcell on its website, the revenue of lifecell in the fourth quarter of 2022 increased by 8.3% – to 2.607 billion UAH, and for the whole of 2022 – by 11%, to 9.41 billion UAH.
EBITDA in the fourth quarter increased by 14.1% to UAH 1.505 bln, and for the year as a whole by 14.6%, to UAH 5.45 bln.
At the same time, the capital expenditures of the company in the fourth quarter decreased by 24.4% – to UAH 997.4 million, and for the year as a whole by 16.3%, to UAH 3 billion.
Base of active subscribers of lifecell in the fourth quarter increased from 8.2 million to 8.5 million, but this is less than a year ago, when there were 9.2 million people. At that ARPU (average revenue per user) among active users in 2022 increased by 10% – up to 91.5 UAH. At that if in the first half of the year ARPU was slightly decreasing then in the second half rose quickly enough – from 82.8 UAH to 95.4 UAH in the third quarter and to 104.5 UAH in the fourth quarter thanks to price adjustments and growth in data usage.
Due to the war, as of December 31, 2022, 23% or about 9 thousand of the company’s mobile communication stations in Ukraine were out of operation. The state of the stations in the occupied territories is unknown, the report said. At the same time, 92% of the company’s stores were working and returned to prewar levels in the fourth quarter. It is noted that the company’s operating systems worked steadily, as well as the banking system, including payments.
It is specified that as of December 31, 2022, the amount of write-downs of assets in the Russian-occupied territories recognized in the consolidated financial statements is 214.2 million Turkish liras (about $11.3 million).
As the risks that may affect the company’s activities, the ongoing military operations and changes in the hryvnia’s exchange rate due to the economic situation in the country are noted. The risk of loss of control or expropriation of the company’s assets in Ukraine due to the actions of the Russian Federation is also singled out.
The company plans to focus on ensuring the safety of its employees and providing quality service to Ukrainian consumers.
The activities of the parent company turkcell were seriously affected by the earthquake in Turkey, due to which the company had to adjust its financial results for 2023. The negative impact on income is estimated at about 1.5 billion Turkish liras (about $79 million). It is reported that on the first day of the disaster almost 3.3 thousand base stations in the region stopped working due to power outages and destruction. One mobile tower and 150 base stations were destroyed. 1,200 employees were sent to the affected regions to carry out repair work. 250 mobile communication stations were deployed and 1.4 thousand power generators were installed.
Lifecell is the third largest mobile operator in Ukraine. The company Turkcell (Turkey) is the owner of 100% of shares of Lifecell. The share of Ukraine, where its subsidiaries UkrTower, Global LLC and Paycell LLC also operate, accounts for 8.9% of Turkcell’s total revenue and 14% of its non-current assets.

,

Ukraine plans to sow spring crops on 5.7 mln hectares

The forecasted areas of sowing main spring crops for the harvest of 2023 on the territory controlled by Ukraine as of March 9, 2023, is 5.7 million hectares, which is 206.5 thousand hectares, or 3.4% less than last year.
As reported on the website of the Ministry of Agrarian Policy and Food on Friday, in Ukraine spring grain and leguminous crops have already been sown 16.1 thousand hectares, or 0.2% of the planned volume.
The Ministry specified that by March 9, only Odesa region started sowing spring crops, while on the same date last year in Ukraine has not yet started sowing. Thus, all categories of farms in the region sowed 16.1 thousand hectares of cereals and leguminous crops, including 6.7 thousand hectares of spring wheat, 5.9 thousand hectares of spring barley and 3.5 thousand hectares of peas.
As reported, during sowing season 2022, Ukraine sowed 14.16 million hectares of major crops, which is 83.7% of the 2021 level of 16.92 million hectares. Overall, 95% of the planned areas were sown in conditions of full-scale Russian invasion.

Maersk launched cargo delivery from Constanta port to Reni port

One of the world leaders Danish transport and logistics company A.P. Moeller-Maersk AS, which stopped its ship calls to Ukraine since February last year after a full-scale Russian invasion, has resumed delivery of clients’ cargoes to the Ukrainian port of Reni from Constanta (Romania) by barge, the company’s official website says.
“Development in Ukraine remains in focus, as well as the implementation of solutions for our customers in terms of security,” it said.
According to it, Maersk is launching a new weekly barge service from Constanta port to Reni port on two routes – via Constanta/Danube Canal and the Black Sea with a transit time of approximately 1.5 days.
It is reported that the company’s system is updated and accepts reservations from customers with delivery to the port of Reni. Their implementation will be subject to the working capacities, subject to the proper documentation, including the legal adoption of the provision of Ukraine on the risks in the region.
The company advised to contact its local representatives for more detailed information about deliveries to the port of Reni.
In the fourth quarter of 2022, A.P. Moeller-Maersk AS decreased its net profit by 18.8% and revenue by 3.7%, which was worse than experts’ forecasts. Net income in October-December was $4.95 billion compared to $6.094 billion in the same period of the previous year. Revenue fell to $17.82 billion compared to $18.506 billion.
The average freight rate was down 3.5% for the fourth quarter of 2021, and freight volume fell 14%.
Maersk also stopped operations in the Russian market. All services in Russia ceased operations in the first quarter, and in the third quarter the deal to sell a 30.75% stake in Global Ports Investments was closed. The process of selling the remaining assets – two warehouses and four tugboats – continued.
Maersk generated EBITDA of $36.81 billion and EBIT of $30.86 billion in 2022.

, , ,

Ambassador of Saudi Arabia on relations and projects with Ukraine – interview

An exclusive interview of Interfax-Ukraine and Ukraine in Arabic with Ambassador of the Kingdom of Saudi Arabia to Ukraine Mohammed bin Suleiman al-Mashar

Text by:

Mohammad Farajallah (editor-in-chief of the agency Ukraine in Arabic)

Maksim Urakin (Interfax-Ukraine)

Saudi Foreign Minister Prince Faisal bin Farhan arrived in Kyiv on a surprise visit, met with Ukrainian President Volodymyr Zelenskyy and other officials, and agreed on a previously announced aid package. Are there any changes in Riyadh’s position on the war in Ukraine, especially since the Kingdom has been criticized for siding with Russia in the war against Ukraine?

Under the guidance of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud – God bless him – and under the guidance of His Royal Highness Crown Prince and Prime Minister Prince Mohammed bin Salman bin Abdulaziz – God bless him – the Kingdom is eager to provide humanitarian and emergency assistance to countries affected by natural or humanitarian disasters, and to provide support to all countries and peoples without discrimination or any other motives, based on the awareness of Saudi Arabia of the importance of its humanitarian role at the international level.

His Highness the Crown Prince pays great attention to the implementation of humanitarian efforts along with political efforts with various countries to achieve a peaceful solution to end the Russian-Ukrainian war as part of His Highness’s desire to achieve regional and global security, peace and stability.

Your Excellency, is a position of neutrality considered positive in such crises? What role can neutral states play?

The neutral and balanced position of Saudi Arabia in the Russian-Ukrainian war contributed to the success of the mediation led by His Highness the Crown Prince on purely humanitarian principles, which led to the release of ten foreign captives – citizens of the Kingdom of Morocco, the United States, the United Kingdom, the Kingdom of Saudi Arabia, Sweden and the Republic of Croatia, who were held captive by the armed forces of Russia.

In October 2022, the Kingdom announced a humanitarian aid package for Ukraine, which is in line with Saudi Arabia’s position in supporting countries and peoples that are prone to various crises. What role does Saudi Arabia play in the world in humanitarian matters?

The Kingdom’s $400 million humanitarian aid initiative for Ukraine, including power generators and medical supplies, is significant in light of the humanitarian conditions facing the Ukrainian people, especially during the harsh winter.

Previously, the Kingdom provided through the King Salman Humanitarian Aid and Relief Centre, the World Health Organization and the UN High Commissioner for Refugees $10 million worth of medical assistance and shelter materials intended for Ukrainian refugees in Poland.

In recent years, Saudi Arabia has provided over $96 billion worth of humanitarian aid to 156 countries.

The Kingdom of Saudi Arabia has always been among the top ten countries in the world for aid, and in 2021, the Kingdom ranked third in the world for humanitarian aid.

Your Excellency, may I ask what the Kingdom provided to the citizens of Ukraine who were on its territory during the war?

After the start of the Russian-Ukrainian war, the competent authorities in the Kingdom, by royal decrees and for humanitarian reasons, took the initiative to extend the visas of Ukrainian tourists, businessmen and families in the Kingdom for a period of three months with the possibility of extending them without charging any fees or fines.

His Highness the Crown Prince, Prime Minister Mohammed bin Salman held a telephone conversation with President of Ukraine Volodymyr Zelenskyy in October 2022 and reaffirmed the Kingdom’s position in support of everything that contributes to de-escalation and the country’s readiness to continue mediation efforts. Can we rely on foreign mediation to end the war in Ukraine?

Since the beginning of the war, the Kingdom has taken a balanced position regarding the Russian-Ukrainian crisis. It was welcomed by both countries, which have strong relations with Saudi Arabia in several areas. The Crown Prince seeks to use this relationship to reach a peaceful solution to the war.

Since the beginning of the crisis, His Highness has been mediating efforts between the two countries to reach a political solution to end the war as his contribution to maintaining international security and stability. Saudi Arabia supports international efforts to reduce tensions and escalation between Russia and Ukraine, as well as to initiate measures to ensure the restoration of stability and create conditions for negotiations leading to a peaceful and political solution to the crisis based on the Charter of the United Nations and the principles of international law.

Saudi Arabia was among 141 countries that voted in favor of a UN resolution to withdraw Russian troops from Ukraine. Can this position affect relations between Riyadh and Moscow?

The position of the Kingdom and its vote in support of the United Nations resolutions adopted regarding the Ukrainian crisis stems from the commitment to the need for all countries to comply with the Charter of the United Nations and the principles of international law and our complete rejection of any violation of the sovereignty of all countries. The Kingdom declared a clear position on the Russian-Ukrainian crisis, based on the principles of international law. It reaffirmed its support for all efforts aimed at resolving the Ukrainian crisis through dialogue and diplomacy, as well as continuing to work on the implementation of the agreements concluded between the parties concerned and approved by the Security Council in Resolution 2202 on regional security and conflict settlement in eastern Ukraine.

The visit to Kyiv of His Highness the Minister of Foreign Affairs was called historical. Do you agree with this characterization?

The visit of His Highness Foreign Minister Prince Faisal bin Farhan Al Saud to Kyiv and his meeting with Ukrainian President Volodymyr Zelenskyy is considered historic. On the one hand, this is the first visit of an Arab foreign minister to Ukraine since the Russian invasion of Ukraine, and on the other hand, the first visit of a Saudi Arabian foreign minister to Ukraine since the beginning of diplomatic relations between the two countries over thirty years ago.

His Excellency the President of Ukraine justifiably called it historic. In fact, we are very grateful to His Excellency for all his friendly statements about Saudi Arabia. I also hope that this visit will give a new impetus to intensify our mutual dialogue in order to develop bilateral relations.

Can you tell us the details of communication and negotiation?

Support by the Kingdom of everything that contributes to de-escalation, protection of civilians, a serious search for political solutions through negotiations, support for all international efforts aimed at resolving the political crisis, as well as opportunities for expanding cooperation between the two friendly countries and ways to support and develop them in many areas. In addition, we discussed the development of the situation in the regional and international arenas.

Can you tell us about the content of the agreements signed during the visit?

During the visit of His Highness Foreign Minister Prince Faisal bin Farhan Al Saud, two documents were signed in the President’s Office of Ukraine as documentation of the package of Saudi Arabian assistance to Ukraine in the humanitarian sphere, the decision to allocate a separate support package in the amount of $400 million.

Supervisor General of the King Salman Humanitarian Aid and Relief Centre Abdullah Al Rabeeah and Deputy Prime Minister for Reconstruction of Ukraine and Minister of Communities, Regions and Infrastructure Development Oleksandr Kubrakov signed a joint program of cooperation between the Ministry of Communities, Regions and Infrastructure Development the King Salman Humanitarian Aid and Relief Centre in the amount of $100 million. CEO of the Saudi Fund for Development Sultan Abdulrahman Al-Marshad and Ukrainian Energy Minister Herman Haluschenko signed a Memorandum of Understanding regarding a $300 million Saudi grant to finance oil derivatives.

, , , ,