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UKRAINE RECEIVED ADDITIONAL $500 MILLION LOAN FROM JAPAN

Ukraine has received an additional 65 billion Japanese yen (approximately $500 million) in a soft loan under a loan agreement signed by Finance Minister Sergei Marchenko and Japan International Cooperation Agency JICA President Akihiko Tanako.
The loan was granted on preferential terms: the loan repayment period is 30 years, including a grace period of 10 years; the interest rate is 1% per annum, the Ministry of Finance said on Monday.
The funds were sent to the state budget to finance priority social and humanitarian expenditures, health care, the ministry specified.
The Ministry of Finance recalled that on June 7, the governments of Ukraine and Japan signed an additional agreement on a JICA loan for a development policy in the field of emergency economic recovery. The agreement increased the loan amount by 65 billion Japanese yen, bringing the loan amount to 78 billion Japanese yen (about US$600 million).
Ukraine received the first 13 billion Japanese yen (about $100 million) under the said agreement on May 24.
The Ministry of Finance expected that in June the volume of external financing will increase to $4.8 billion compared to $1.5 billion in May, but before this Japanese loan since the beginning of the month it has so far amounted to only about $1.5 billion.

JAPAN, LOAN

DOMESTIC PRICES FOR GRAIN IN UKRAINE REACHED MINIMUM

The price of wheat in Ukraine on EXW terms (self-delivery) has reached its minimum values for the month, having decreased by 31.1% over the period from May 23 to June 27 – to UAH 4,500/ton from UAH 5,900/ton, according to an infographic on the website of the consulting agency “Ukragroconsult” on Monday.
Over the same period, the cost of EXW corn decreased by 17.4% – to 4750 UAH/ton from 5750 UAH/ton, and barley – by 29.7% – to 4500 UAH/ton from 6400 UAH/ton.
At the same time, the main drop in prices for grain within the country occurred over the past week: for the period June 20-27, wheat fell in price by 24.4% (from 5600 UAH/ton on June 20), corn – by 15.1% (from 5600 UAH/ton ), barley – by 30.7% (from 6500 UAH / ton).
As reported with reference to the data of the electronic grain exchange GrainTrade, the purchase prices for wheat in Ukraine fell to 5500-6500 UAH / ton with delivery to the mill against the backdrop of blocking the country’s seaports by Russian warships. Additionally, the price reduction was influenced by the introduction of export licensing in March, the abolition of which in July 2022 was announced the day before by First Deputy Minister of Agrarian Policy Taras Vysotsky.
According to the exchange, in anticipation of the harvest of the new crop, agricultural producers are trying to free up granaries, so they are activating wheat sales, thereby increasing pressure on prices for it. Thus, the abolition of licenses will revive exports and stabilize wheat prices.

DOMESTIC PRICES, GRAIN

ZAPORIZHSTAL CONTINUES TO WORK AT 50% OF ITS CAPACITY, EXPERIENCES DIFFICULTIES WITH LOGISTICS – CEO

Zaporizhstal metallurgical plant, part of Metinvest, after a partial resumption of production, continues to operate at 50% of its capacity, Oleksandr Myronenko, general director of Zaporizhstal, said in an interview with the Segodnya newspaper.
According to him, there are currently problems with logistics – the supply of raw materials and the shipment of finished products.
At the same time, it is noted that due to significant problems with logistics and overstocking of railway crossings, Zaporizhia metal enterprises are forced to consider options for reducing production.
“Problems with logistics have not been resolved. We have significant problems with the shipment of our products to customers in the EU. Before the war, all our routes passed through ports, but they are not yet available. Now we have significant overstocking at border crossings in western Ukraine. All this forces us to consider the option of reducing production, because our products simply cannot be transported across the border,” Myronenko explained.
He noted that the leaders of the enterprise are doing everything possible to maintain the volume of exports and the inflow of foreign currency into the country, in particular, they provide additional equipment for reloading products at the border with the European Union. In addition, together with the Cabinet of Ministers, they are looking for ways to solve problems with logistics.
Earlier, other enterprises of the country announced problems with logistics.
Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries of the world.

DIFFICULTIES, LOGISTICS, ZAPORIZHSTAL

CANCELLATION OF LICENSING OF WHEAT EXPORT FROM UKRAINE TO INCREASE PURCHASE PRICES FOR NEW CROP – GRAINTRADE

Licensing of wheat exports from Ukraine, introduced on March 6 amid Russian aggression, has created additional pressure on domestic wheat purchase prices, and the abolition of this state regulation will revive exports and stabilize prices for this exchange commodity.

This is how experts of the electronic grain exchange GrainTrade commented on the statement made recently by First Deputy Minister of Agrarian Policy Taras Vysotsky about the abolition of licensing for wheat exports in July, according to the website of the grain trading platform on Monday.

“Amid blocked ports, the purchase prices for grain in Ukraine fell sharply, but the introduction of licenses for the export of wheat further increased pressure on prices, which dropped to UAH 5,500-6,500/tonne with delivery to the mill… In anticipation of the harvesting of the new crop, agricultural producers have to vacate warehouse space, therefore, they are activating wheat sales, which increase pressure on prices. Therefore, the cancellation of licenses will revive exports and stabilize wheat prices,” GrainTrade said in a statement.

According to it, licensing complicates the export of wheat bran for processing enterprises, which are forced to spend additional funds on their storage or disposal, which also pushes down the price of wheat in Ukraine.

As reported, last week, Deputy Minister Vysotsky, at a meeting with representatives of the European Business Association, said that Ukraine planned to cancel the licensing of wheat exports in July and recalled active cooperation with Baltic and Polish partners to create alternative routes for the export of Ukrainian agricultural products.

The Ministry of Agrarian Policy is also working to continue the abolition of quotas and duties for the entire period of Ukraine’s candidacy for the EU, as well as the harmonization of legislation with the European one.

EXPORT, GRAINTRADE, LICENSING, NEW CROP, WHEAT

UKRAINIANS RECEIVE $100 MLN IN FISCAL AID REMITTANCES FROM INTL ORGANIZATIONS THROUGH PRIVATBANK

Ukrainians have received 800,000 aid remittances totaling $100 million from international organizations, the bank’s press service reported on Monday.

According to the report, most of the payments came from the UN World Food Program, the UN Refugee Agency in Ukraine and the International Committee of the Red Cross.

According to the statistics of the National Bank of Ukraine, as of April 1, 2022, PrivatBank ranked first (UAH 592.38 billion) among 69 banks operating in the country in terms of total assets.

FISCAL AID, INTL, PRIVATBANK, REMITTANCES

MORE THAN 200 THOUSAND CARS WERE IMPORTED TO UKRAINE FROM EUROPE ON PREFERENTIAL TERMS

Ukrainians imported 211,000 cars from Europe on preferential terms, and the number of imported cars increased by 48,000 in two weeks, Yaroslav Zheleznyak, deputy head of the Verkhovna Rada committee on finance, tax and customs policy, said.
“As of June 27, 211,000 cars entered Ukraine under preferential customs clearance. Over the past 2 weeks, an additional 48,000 cars have been brought in,” he said on the Telegram channel on Monday.
The total amount of the benefits provided amounted to UAH 23.5 billion, he added.
After the news about the abolition of benefits from July 1, as envisaged by the legislative changes adopted by the Parliament, the pace of car imports has increased significantly. On weekdays in June, an average of 4.7 thousand cars are imported per day compared to 3.2 thousand in May, the People’s Deputy specified.
“In fact, it would probably be many times more, the throughput capacity of foreign and our customs limits. To understand, there are now a line of 1000 cars and 9.5 km at the same Budomez-Grushev, the Polish side passes very slowly. At the checkpoint” Yagodin “The queue is generally 40 km,” Zheleznyak pointed out.
“It is also significant that four times more than usual was imported over the weekend. This Saturday, 2,400 cars drove in, although this figure was usually less than 650 cars on weekends,” he added.

CARS, EUROPE, IMPORTED, UKRAINE

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