Business news from Ukraine

Donetsk region is extremely important: representatives of the CO “Volunteer Coordination Headquarters” visited Pokrovsk

Since the full-scale invasion, the Pokrovske community has become a real humanitarian hub, receiving various types of assistance from representatives of both Ukrainian organizations and international foundations on a daily basis. All of them are united by a common goal – to help civilians in confronting the enemy.

An equally important component of this cooperation is the openness to interaction of the Pokrovske MCA leaders, who work daily to “cover” all the needs of the community.

Recently, the town was visited by representatives of the Volunteer Coordination Headquarters (Kyiv), a charity organization that works closely with European countries on humanitarian aid.

“The winner is the one who destroys the enemy’s strategic plan. Therefore, all attention is focused on Donetsk region, because it is the “most important” region. Since 2022, we have been actively helping our defenders and the frontline communities of Donetsk Oblast, whose residents suffer from shelling every day,” said Oleksandr Kuzniak, the foundation’s chairman.

During the visit to Pokrovsk, the volunteer philanthropists met with the heads of the military administration, including Natalia Ivanio, deputy head of the Pokrovsk MVA, and discussed the needs of the community.

They brought power tools that will be useful for the city’s utility workers.

“We come to Donetsk region at least once a month. We form a truck with humanitarian cargo according to the needs that the military and community leaders send us. This is not the first time we have been in Pokrovsk, and we are working closely with Sergey Dobryak, who is always open to cooperation, especially in humanitarian issues. We plan to continue to support the Pokrovsk community, which is located in close proximity to the front line. It is extremely important today,” added Mr. Kuzniak.

In her turn, Natalia Ivanio, Deputy Head of the Pokrovske MVA, thanked the benefactors for their help and active social position.

Ukrainian agrarians have completed spring sowing season, sown grain crops 22.6% above forecasts

Ukrainian agrarians have completed the spring sowing season, during which 7.2 million hectares were sown with oilseeds, and about 5.6 million hectares with cereals and legumes, which is 22.6% above the forecast, the press service of the Ministry of Agrarian Policy and Food reported.

According to the report, agrarians have sown more than 99% of the projected areas of spring cereals and legumes. They allocated 3.93 million hectares for corn, which amounted to 100.4% of the projected area, barley – 783 thousand hectares (95.7%), wheat – 252.7 thousand hectares (102.6%), oats – 163.7 thousand hectares (100.7%), peas – 162.5 thousand hectares (101.6%), buckwheat – 100.8 thousand hectares (80.7%), millet – 69.7 thousand hectares (81.8%).

5.19 million hectares (98%) have been allocated for sunflowers, 2.03 million hectares (102%) for soybeans.

Sugar beet is sown on 250.1 thousand hectares (97%).

As reported, the Ministry of Agrarian Policy in April forecasted the sown area of grain and leguminous crops in 2024 at the level of 10.6 million hectares, which is 395 thousand hectares lower than in 2023.

The Ministry of Agrarian Policy expects gross production of grain and oilseeds in 2024 at the level of 74 million tons, of which about 52.4 million tons – grains, 21.7 million tons – oilseeds.

Agrarians in 2024 will be able to harvest 19.2 million tons of wheat (22.2 million tons were harvested in 2023), 4.9 million tons of barley (5.7 million tons), 26.7 million tons of corn (30.5 million tons), 5.2 million tons of soybeans (4.7 million tons), 12.4 million tons of sunflower (12.9 million tons), 4.1 million tons of rapeseed (4.7 million tons).

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Peace summit could be turning point – US media

This summer, more than ever since Russian troops crossed the border in February 2022, Ukraine is in dire need of the strongest possible reaffirmation of Western diplomatic, economic, and security support.

Military aid from the United States and European allies is increasing again, but wars are not won on the battlefield alone. Political and diplomatic support for Ukraine also needs to be strengthened. The twin events of this summer Ukraine Peace Summit in Switzerland in June and the NATO 75th Anniversary Summit in Washington, DC, in July provide an unprecedented opportunity to do so.

The summit on June 15-16, organized by the Swiss government, may be the last opportunity this year to draw the attention of the broader international community to the global implications of the conflict in Ukraine. As it did before and after the war broke out, the Biden administration could provide momentum both for more urgent diplomatic work to achieve peace and for consolidating military support for Ukraine by allies a few weeks later at the NATO summit.

The situation in Switzerland has been complicated. In recent months, the main goal of Washington and European capitals has been to provide financial and military support for Ukraine’s military operations. It took the White House seven months to overcome a blocking House of Representatives proposal to provide $60 billion in military aid to Ukraine. In Europe, Hungary withheld a €50 billion aid package for almost two months before agreeing to release it.

The lost time affected the course of the conflict. Russia used the winter months to prepare for a new offensive while the West debated and Ukraine’s weapons stockpile was depleted. There are now more than 400,000 troops on the ground in Ukraine, and Ukraine’s energy infrastructure and second largest city, Kharkiv, are under serious threat. On the international level, the diplomatic agenda has become overloaded, with the crisis in Israel and Gaza consuming the attention of the White House and other governments. The presidential and parliamentary elections in the US and Europe may lead to an atmosphere less favorable to providing assistance to Ukraine.

But it is at times like these that diplomacy and symbolism are essential and can remind us of what is at stake – and not just for Ukraine.

The conference in Switzerland is the most ambitious attempt to date to engage the world – not just Ukraine’s Western allies – in supporting an end to a conflict that has disrupted global energy and food supplies, threatened nuclear conflict, led to the world’s second largest refugee flow and resulted in hundreds of thousands of casualties.

To date, according to some reports, more than 100 countries and international organizations have committed to attend the conference, although Russia has not been invited to participate. Many countries may have different views on how this conflict can be resolved; many countries are eager to maintain ties with both Russia and Ukraine, despite the fact that they voted at the UN General Assembly to condemn the initial invasion. Ukraine, however, is aware of all the nuances.

In his June 2 speech at the Shangri-La Dialogue in Singapore, which brings together defense and other officials from the Asia-Pacific region, President Zelenskyy made it clear that Ukraine is “ready to listen to various proposals and opinions that will lead us…to ending the war and establishing a sustainable and just peace.” The Ukrainian government, together with Switzerland, has been working diligently on an agenda that can unite rather than divide international opinion.

This did not prevent Russia and its allies from perceiving the summit as a threat. At a meeting with the leaders of Indonesia, Singapore, the Philippines, and other Asian states, Zelenskyy in Singapore drew special attention to China’s efforts to dissuade countries from participating in the summit. China, along with Brazil, also proposed holding an alternative conference at a later date. Therefore, a strong position of Washington and key European allies is needed to strengthen international resolve at the summit.

Now we can draw parallels with February 2022. At the beginning of the war, visits to Kyiv by the president and cabinet of ministers, as well as President Zelenskyy to Washington played a crucial role in strengthening the US commitment to Ukraine in the popular imagination and in the eyes of allies and adversaries alike. They also sent an unequivocal message of political and diplomatic support for Ukrainians as they confronted and defeated an all-out Russian invasion to overthrow their government.

In June 2024, Ukraine will need that reaffirmation again, as Russia is once again confident in its goals. The stakes are still high: Ukraine, at least for the rules-based order that has endured for 70 years since World War II and the end of the Cold War, is the defining conflict of our era. A Russian victory would undermine all calculations by the United States and Europe about their own future security and prosperity and destroy the limits to violence between states around the world.

We have not yet reached that point, but Russia, China, and other countries that question the resilience of the United States are seeking to undermine international commitments to Ukraine. Ukrainians will regret that President Biden will not attend the summit in Switzerland, but he will meet with Zelenskiy in France on the sidelines of the 80th anniversary of D-Day in France. In addition, Vice President Kamala Harris, who will represent the administration, can work with German Chancellor Olaf Scholz, French President Emmanuel Macron, Canadian Prime Minister Justin Trudeau, and other world leaders in attendance to rally participants and send an unmistakable message at this critical moment: Ukraine is not alone.

P. Michael McKinley is a non-resident Senior Advisor at CSIS and former U.S. Ambassador to Afghanistan, Brazil, Colombia and Peru.

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Presentation of “Budynok Mamy” resource center took place in Kyiv

Ambassador Darkhan Kaletaev participated in the presentation of the Budinok Mami Resource Center in Kyiv.

The presentation was attended by representatives of the Secretariat of the First Lady, Ministry of Foreign Affairs of Ukraine, UNICEF, Office of the Ombudsman of Ukraine, Kyiv State City Administration, National Children’s Specialized Clinic “OCHMATDIT”, Chamber of Commerce and Industry of Ukraine, Ambassadors Extraordinary and Plenipotentiary and diplomats of European states and CIS countries accredited in Ukraine, Ukrainian businessmen, media representatives, etc. The project is implemented by the Public Foundation “Anaүi” with the support of the Ambassador of Kazakhstan.

The project is realized by the Public Foundation “Ana Uyi” with the support of the Embassy of the Republic of Kazakhstan in Ukraine.

Executive Director of the Public Foundation “Ana Uyi” Azharkul Klyshbaeva during the presentation informed about the first year of work of the resource center “Budinok Mami”. From July 2023 until now 18 women have received the necessary assistance, as a result of which 24 children have avoided institutionalization. The Foundation plans to open similar institutions in other regions of Ukraine.

The project is being implemented in Uzbekistan, Kyrgyzstan, Turkey, Malaysia and Azerbaijan.

Ukrainians imported 21% more cars in 2024 What cars are most popular?

More than 160 thousand vehicles were imported to Ukraine in 5 months of 2024, according to the Ministry of Internal Affairs (MIA). Only 28% of imported cars in 2024 were new.

160,750 vehicles were imported to Ukraine in 5 months of 2024. This is 21% more than in the same period in 2023.

The most popular brand among all imported cars this year was VOLKSWAGEN – 18,771 cars or 11.7% of the total. RENAULT was in second place with 13,187 vehicles (8.2%), and AUDI took third place with 9,137 cars (5.7%). The most popular models among imported cars were SKODA OCTAVIA, VOLKSWAGEN GOLF and PASSAT.

Gasoline cars remain the most popular – almost every second imported car. Diesel cars accounted for 29% of cars imported this year. Electric cars accounted for 12.9%.

72% of all imported cars this year were used. Currently, the average age of imported cars is 10 years.

The largest number of newly imported cars was registered in Kyiv – 13.9%. Lviv (10.2%) and Odesa (7.5%) regions are also in the top 3.

https://opendatabot.ua/analytics/autoimport-2024-5

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“Metinvest” allocated UAH 23 bln to modernize Kametstal and Zaporizhstal steel plants

In 2022-2023, Metinvest Mining and Metallurgical Group invested UAH 23 billion in the modernization of Kametstal and Zaporizhstal steel plants and the green transformation of the enterprises.

Metinvest’s Chief Operating Officer (COO), Oleksandr Myronenko, said during the discussion “The largest wartime investors: a look into the future” at the Forbes Ukraine forum “Money for Victory” that the company’s priority areas for investment in 2024-2025 are employees, equipment and assistance to the Ukrainian Armed Forces.

“We have three key priorities. The first is our employees. The second is equipment and production sites. And the third is to support the Armed Forces. Especially in the cities where our enterprises are located. These are Zaporizhzhia and Pokrovsk, located 40 kilometers from the front line. We must support the units that defend these cities,” said Mr. Myronenko.

He added that the company’s employees are paid an increased bonus, which reaches 20-50% of their salary, and that starting May 1, salaries were increased by up to 20% depending on their specialty.

Metinvest’s COO noted that in 2024, the company plans to invest $320 million in capital and about $350 million in operating investments in equipment and work sites.

“These are investments aimed at maintaining our equipment: repairs of blast furnaces and sintering machines, maintenance of equipment at mining and processing plants and development of mine management in Pokrovsk,” explained the top manager.

According to him, the company is currently operating at 65%-70% of its capacity. “And we clearly understand that when the hostilities end and the infrastructure is fully restored, we will need to accelerate – at the expense of people and equipment,” he said.

Mironenko added that the company has already allocated more than UAH 6 billion for humanitarian and military support to Ukraine since the start of the full-scale war. And now Metinvest is allocating about UAH 200 million a month to build fortifications and support brigades from Dnipro to Donetsk.

“We have a clear strategy for the development of Ukrainian and foreign enterprises. Now it is very difficult to persuade banks to finance any projects in Ukraine. We estimate the full transition of Ukrainian enterprises to green metallurgy within 10 years after the end of the war at about $9 billion,” the COO said.

He also said that the company would not be able to implement such a project on its own and would need to attract external financing. Since this option is currently not possible, Metinvest is considering a joint project with Danieli to build a steel plant in Italy, with an estimated investment of about $2 billion.

“The Ukrainian economy will benefit from the implementation of such a project. We will be producing energy-efficient green steel at a very low cost because we have our own resource – iron ore in Kryvyi Rih. From this point of view, we believe that the Ukrainian-Italian joint venture will be much more efficient than a European-only production facility and will be able to compete with European producers,” said Mr. Myronenko.

Metinvest’s COO also noted that the company’s operations are currently being negatively affected by the mobilization of personnel, as one in six employees is serving in the Armed Forces. “This is a big challenge in relations with the government. And it has a bigger impact on our operations than any commercial disputes,” the top manager stated.

He also emphasized that Metinvest buys equipment, drones, electronic warfare devices, etc. for the Armed Forces of Ukraine. There are also two proprietary developments that the group has already codified and certified with the Ministry of Defense and will now begin official deliveries. These are corrugated steel shelters and mine trawls that are installed on tanks.

The SSO clarified that the shelters produced by Metinvest are half the price of those currently purchased by the country, and the situation with mine trawls is about the same.

“The second thing we do is to make anti-submarine shelters for equipment. For example, Abrams, which are now fighting in the Donetsk sector, will be completely covered with our anti-water nets, and this will enhance their protection. We are also developing and already installing such shelters on Soviet-made T-64 and T-72 tanks. And there are many other things we are doing to make our soldiers feel protected,” summarized Mr. Myronenko.

“Metinvest is a vertically integrated group of steel and mining companies. Its enterprises are located in Ukraine – in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions, as well as in Europe.

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.

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