“Kernel, one of Ukraine’s largest agricultural holdings, has been using its Aeneid and Mavka vessels to export agricultural products for the second year in a row and intends to further expand its fleet, the agricultural holding reported on Facebook.
“For the second year, we have been operating our own vessels and transporting Ukrainian products in the difficult conditions of the termination of the grain deal. (…) Two Kernel vessels, Aeneid and Mavka, are currently exporting Ukrainian products. The deadweight (maximum loading) of the bulk carrier Aeneid is 47,335 tons, and the Mavka tanker is 13,500 tons. We have no plans to stop and are already working on expanding the fleet,” the statement said.
The agricultural holding noted that the use of its own fleet is economically beneficial, especially during the period of inflated freight rates during martial law. The development of its own shipping gives impetus to the entire market and strengthens the country’s export capabilities, Kernel believes.
“The Black Sea remains the only alternative for Ukrainian exports. The deep-water ports are able to accumulate and ship large-tonnage consignments of more than 60 thousand tons. This makes it possible to optimize logistics processes and significantly reduce costs. All alternative routes have extremely high logistics costs,” the agricultural holding explained and promised to continue to strengthen Ukraine’s exports and contribute to food stability in Europe and the world.
As reported, before the war, Kernel was the world’s largest producer of sunflower oil (about 7% of global production) and its exports (about 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in the cultivation and sale of agricultural products.
In the first quarter of FY2024, the company posted a net loss of $30.9 million, while the previous year ended with a net profit of $162 million, with a 17% decrease in revenue to $564 million.
According to the report, the book value per share for the year decreased from $20.7 to $6 (or PLN26.22), in particular due to an increase in the number of shares from 77.429 million to 147.864 million.
Passenger flow through western border of Ukraine in September 2023, thousand
Source: Open4Business.com.ua and experts.news
Freight transportation by rail, mln tons
Source: Open4Business.com.ua and experts.news
The European Investment Bank (EIB) has allocated EUR 3 million to improve the energy efficiency of 18 public buildings in Zaporizhzhia, Kamianske and Lutsk.
“The allocated funds will be used to modernize five kindergartens and three schools in Zaporizhzhia, four kindergartens and three schools in Kamianske, and in Lutsk to modernize three hospitals intended for the treatment of civilians and rehabilitation of military personnel injured during the war,” the EU Delegation to Ukraine reported on its website on Thursday.
It is noted that these funds will help the Ukrainian authorities to continue implementing the EIB’s Municipal Infrastructure Development Program (MIP), which aims to improve public infrastructure in various municipalities.
“After today’s tranche of EUR 3 million, the total amount of funds allocated for the UMIP in 2023 will amount to EUR 11.74 million,” the release states.
It clarified that EUR8.74 million of these funds were previously used to support key municipal projects such as the reclamation of the Hrybovychi landfill and solid waste management in Lviv, the implementation of energy efficiency measures in kindergartens in Sumy, and the improvement of water supply and sewage systems in Lutsk.
According to EIB Vice President Teresa Czerwinska, responsible for the bank’s operations in Ukraine, energy efficiency measures should be prioritized during Ukraine’s current and future large-scale recovery, as they play an important role in strengthening the country’s energy security and independence.
“The EIB is fully committed to supporting the Ukrainian government and cities in these efforts by transferring best practices in reconstruction and modernization to rebuild the Ukrainian economy, reduce energy costs and improve energy efficiency in all sectors,” she assured.
In addition, it is indicated that UMIP is a EUR 400 million multi-sectoral investment initiative aimed at supporting public infrastructure projects in medium and large municipalities. UMIP’s objectives include investments in district heating rehabilitation, energy efficiency improvements in buildings, modernization of street lighting, and water, sewerage and solid waste management, among others. The program is implemented by the Ministry of Communities, Territories and Infrastructure Development in cooperation with the Ministry of Finance of Ukraine. The UMIP is complemented by technical assistance provided through the Eastern Partnership Technical Assistance Trust Fund (EPTATF), managed by the EIB, and the Neighborhood Investment Platform (NIP).
The release specifies that the EIB’s support to Ukraine since the beginning of Russia’s full-scale invasion of Ukraine has reached EUR 1.7 billion in financing for urgent repairs to destroyed infrastructure. The EU bank has also provided a EUR4 billion credit line to support the integration of refugees from Ukraine in EU countries.
In 2023, Ukraine became the third largest supplier of agricultural products to the EU and increased its share of agricultural imports by 11% in January-September compared to 2022, the Polish publication farmer.pl reported, citing a report by the European Commission.
“Ukraine remains one of the three largest suppliers of agricultural products to the EU, according to the European Commission’s report on international trade. In the period from January to September this year, the European Union increased imports of agricultural products from Ukraine by 11% compared to 2022,” the publication wrote.
According to the report, the value of Ukrainian exports of agricultural products to the EU in the period from January to September 2023 reached EUR8.75 billion.
“Imports from Ukraine showed the largest increase in the period from January to September compared to 2022 (+891 million euros, or +11%), mainly due to an increase in grain imports,” the European Commission report says.
The biggest jump in these imports was recorded between January and June this year. Since June, imports have remained below the level of 2022, and in September they almost returned to the level of 2021, the EC said.
According to the results of the reporting period, Ukraine became the third largest exporter of agricultural products to the EU – after Brazil and the UK.
At the same time, Ukraine ranks 14th among the recipients of agricultural products from the European Union. From January to September of this year, Ukraine imported products from the EU for EUR 2.5 billion, which is 19% more than in the same period last year, farmer.pl noted.
Metinvest Mining and Metallurgical Group has allocated UAH 4.8 billion to help Ukraine and its citizens since the start of the full-scale war, including more than UAH 2.5 billion for the army as part of Rinat Akhmetov’s Steel Front military initiative.
According to the company’s press release on Thursday, the group remains a reliable support for the country in the fight against the enemy.
At the same time, Metinvest CEO Yuriy Ryzhenkov noted that “the war made us feel what it is like to lose the most valuable things. But it did not make us give up.”
“We have managed to rebuild our business to meet the difficult realities of today. We have established supplies of equipment and ammunition to the frontline. We organized systematic assistance to the affected civilians. And we are already making plans to rebuild Ukraine after the victory. Metinvest’s team has been, is and will remain a reliable support for the country and its people. We are ready to overcome any challenges, because we know who we are protecting and what we are fighting for,” the company’s CEO said, as quoted by the press service.
The press release states that Metinvest’s enterprises in Ukraine are under constant threat of enemy shelling. The group’s assets in Mariupol and Avdiivka have been damaged by hostilities, while Mariupol is temporarily occupied. Despite all this, the company’s enterprises operate at different levels of utilization due to security, logistics, energy, economic and other factors.
Thus, since the beginning of 2023, following the stabilization of energy supply, Metinvest has managed to gradually increase the utilization of its iron ore assets in Kryvyi Rih to at least 30% of the pre-war level and maintain its focus on the production of pellets and products with a high iron content. In the second half of 2023, GOKs’ utilization was positively affected by the reopening of the sea corridor in Ukraine.
Electricity imports since January 2023 have also ensured more stable operations and product mix flexibility at Kametstal.
In 2023, Zaporizhstal started production of hot-rolled steel products that meet the requirements of EN 10025-1 from S235-275 J0-J2 and S355 J0-J2 steel grades, which were produced at Ilyich Iron and Steel Works of Mariupol before the full-scale invasion. To this end, the company underwent a production process inspection and technical capability analysis and, as a result, received a certificate of conformity for its production control system from the international certification body Dedal.
In 2023, Metinvest’s steelmaking companies, including the joint venture, launched production of 25 new products.
Pokrovskoye Coal Group’s enterprises operate at high utilization rates, and construction of the 11th coal mining unit is underway, which is scheduled to be commissioned in 2025.
Metinvest’s priority is to take care of its employees: all of its enterprises have bomb shelters, and on June 1, 2023, the company introduced an additional bonus in Ukraine.
In the first nine months of 2023, Metinvest, including its associates and joint ventures, paid more than UAH 11 billion in taxes and fees to the budgets of all levels in Ukraine.
It is also reported that Metinvest continues to fight theft by the Russian Federation, which illegally exported more than 234,000 tons of the company’s steel products from Mariupol. In particular, 27 of the company’s enterprises have filed lawsuits with the European Court of Human Rights against Russia for damage to the group’s property in Mariupol and other territories of Ukraine since February 24, 2022.
To strengthen the defense capabilities of the Ukrainian Armed Forces, the company has established systematic supplies of machinery and equipment to the frontline.
Despite the war, Metinvest plans to implement its green transformation strategy. This includes expanding the production of DR pellets, the main raw material for more environmentally friendly steelmaking using electric arc furnaces. “Metinvest aims to build a new business format where the EU market will open its borders to Ukrainian products. To make this possible in times of war, business and the government must join forces and go this way together, the press release summarizes.
“Metinvest is a vertically integrated group of steel and mining companies. The group’s enterprises are located mainly in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions. The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it. Metinvest Holding LLC is the management company of Metinvest Group.
