Business news from Ukraine

Business news from Ukraine

UKRAINE STARTED EXPORTING ELECTRICITY TO ROMANIA

From June 30, Ukraine began exporting electricity to Romania at a capacity of 100 MW, Prime Minister of Ukraine Denys Shmygal announced.
“Today, from 1 a.m., such exports went towards Romania. The initial volume is 100 MW,” he wrote on his telegram channel on Thursday.
He noted that in the first day alone, the state-owned company Ukrenergo earned UAH 10 million by selling access to the interstate section for export, and potentially Ukraine could earn more than UAH 70 billion a year from this.
“The potential for the export of Ukrainian electricity to Europe is up to 2.5 GW. Under this scenario, the state will be able to receive more than UAH 70 billion a year,” Shmyhal said.
The prime minister stressed that the energy visa-free regime with the EU, which began in March this year, gives its very visible and practical result, and the energy sector will become one of the drivers for the recovery of the Ukrainian economy, as it has already become a driver for integration into the EU.
According to the data on the ENTSO-E website, physical exports from Ukraine to Romania are made on June 30 with a flat schedule of 100 MWh.
As reported, Ukrenergo earned more than UAH 10 million at the first auction for the sale of a section to Romania on June 30, and almost UAH 14 million at the second auction, on July 1. The section was divided respectively by 5 and 6 companies. A total of 8 and 10 companies participated in the auction, respectively.
Ukrainian and European energy systems have been operating synchronously since March 16. On June 27, Europe opened electricity exports from Ukraine, which was supposed to start on June 30.

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SHORTAGE OF SALT IN UKRAINE WAS TEMPORARY, UKRAINIAN PRODUCT HAS ALREADY BEEN REPLACED BY IMPORTED ONE – CLUB OF EXPERTS

The excitement that was observed around the shortage of table salt in early June has generally declined, today the market does not experience an acute shortage of this product, according to the Expert Club analytical center. In a new video, released on the YouTube channel of the same name, the ball analyzes the current situation with the availability of various types of salt, as well as its benefits and harms in terms of a healthy diet.

According to the candidate of biological sciences Svyatoslav Morozov, in Ukraine today there are several explored deposits of rock salt, in particular in the Kalush region of the Ivano-Frankivsk region, as well as Solotvino in the Transcarpathian region, which will replace the production facilities temporarily stopped due to the war in the Bakhmut region.

The founder of the Club of Experts, Candidate of Economic Sciences Maksim Urakin emphasized that today salt is produced in the world by more than 110 countries, among which China, India and the USA are the leaders. “Ukraine occupied a worthy place in the world salt market. In particular, Artyomsol provided exports to more than 50 countries of the world,” the expert noted.

According to him, the main importers of Ukrainian salt were Poland, Hungary, Moldova and a number of other countries.

Recall that in April 2022, the Artemsol enterprise, located in Soledar, Donetsk region, stopped its work due to hostilities in order to ensure the safety of employees.

For more details, see the video on the Expert Club channel:

You can subscribe to the channel using the link:

https://www.youtube.com/c/Клубэкспертов

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FOREIGN TRADE TURNOVER BY THE MOST IMPORTANT POSITIONS IN JAN-APR 2022 (EXPORT)

Foreign trade turnover by the most important positions in Jan-Apr 2022 (export)

SSC of Ukraine

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INTERPIPE REDUCED EBITDA FOR FIRST THREE MONTHS OF 2022 BY 63%

The international vertically integrated pipe and wheel company (TKK) “Interpipe” in January-March of this year reduced EBITDA by 63% compared to the same period last year – to $ 15.139 million, but increased revenue from product sales by 19% – up to $239.185 million
According to the company’s press release for the first quarter, steel production decreased by 16% – to 163 thousand tons, pipes – by 12%, to 97 thousand tons, railway products – by 43%, to 23 thousand tons. At the same time, sales of products decreased by 10%, to 140 thousand tons.
The press release notes that the first two months of 2022, the global market conditions were positive for Interpipe. However, after February 24, when Russia invaded Ukraine and launched its first missile strikes, the company’s management decided to completely suspend production. The main task was to ensure the safety of employees and maintain all production facilities. This led to a decrease in pipe production in the first three months of 2022 by 12%, and railway products by 43%.
Despite the decline in operating performance, Interpipe increased its sales revenue by 19% in the first three months, mainly due to a 47% increase in sales revenue from the pipe division, to $181 million.
At the same time, EBITDA fell by 63%. In addition to the loss of sales volumes and additional logistics and transportation costs due to the intrusion on financial results, an additional negative impact was made by the rise in prices for the main raw materials: scrap metal, electricity and natural gas. For example, in the first quarter of 2022, the price of natural gas in Ukraine on average increased more than six times compared to last year, the press release states.
And about. Andrey Korotkov, General Director of Interpipe, explained that at the end of March the company began to cautiously resume shipments, and from April it began a phased launch of production. In May, Interpipe Steel’s electric steel-smelting complex started operating, and the company began to gradually increase the volume of production and shipment of finished products.
“However, unfortunately, Interpipe cannot yet return to pre-war production volumes, since the war broke the usual supply chains, as the Black Sea seaports of Ukraine are blocked, the country has a large shortage of fuel, transport infrastructure is constantly being destroyed as a result of missile strikes. New chains supply and logistics are in the process of restructuring and formation,” Korotkov said, quoted by the press service.
According to him, since the beginning of the full-scale invasion, Interpipe has been steadily paying salaries to all employees, including those who are idle. At the same time, the company, with the support of the Victor and Elena Pinchuk Foundations, joined the large-scale assistance to the Armed Forces of Ukraine, doctors and civilians, allocating more than $35 million for these purposes during the 126 days of the war.
As reported, Interpipe received $91.316 million in net profit in 2021, while in 2020 this figure was $195.116 million (a decrease of 53.2%). Revenue increased to $1 billion 132.9 million from $865.131 million.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2021, Interpipe sold 602 thousand tons of pipe products and 174 thousand tons of railway products. Railway products are sold under the KLW brand.
Interpipe employs 10,000 people. In 2021, the company transferred almost UAH 3 billion to the budgets of all levels.
There are five industrial assets in the company’s structure: Interpipe Nizhnedneprovsk Pipe Rolling Plant (NTZ), Interpipe Novomoskovsky Pipe Plant (NMTZ), Interpipe Niko-Tube, Dnepropetrovsk Vtormet and the Dneprostal electric steel-smelting complex under the Interpipe Steel brand .

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NUMBER OF PEOPLE ARRIVING IN UKRAINE FOR 4TH DAY IN ROW SIGNIFICANTLY EXCEEDS NUMBER OF PEOPLE LEAVING – STATISTICS

For the fourth day in a row, the number of people entering Ukraine through its western border significantly exceeds the number of those leaving, the net inflow for these days amounted to 26,000 people and completely blocked the net outflow of 11,000 over the past working week, according to data from the State Border Service on Facebook.

According to them, on Tuesday, June 28, almost 36 thousand people left the country compared to 33 thousand the day before, while 41 thousand arrived in Ukraine against more than 43 thousand on Monday.

Such data is confirmed by the Polish border service. According to her information on Twitter, on June 28, 24.5 thousand entered Ukraine from Poland compared to 32.2 thousand the day before, while in the opposite direction the flow amounted to 21.4 thousand against 20 thousand the day before.

In general, since the beginning of the war, the flow to enter Poland from Ukraine amounted to 4.408 million, and in the opposite direction – 2.452 million.

The State Border Service of Ukraine clarified that the number of registered vehicles with humanitarian cargo has grown to 100-120 per day, while at the same time the number of cars passing through the border on the eve of the cancellation on July 1 of privileges for their import into Ukraine remains fairly stable at 19-20 thousand.

As reported, the flow to enter Ukraine through its western border after May 9 exceeded the flow to exit for 30 days. The total net inflow to Ukraine over these days amounted to about 188 thousand people, which returned the net outflow since the beginning of the war to the level of the end of March.

After that, for almost three weeks, the days when the entry flow exceeded the exit flow alternated with days when, on the contrary, the exit flow was greater than the entry flow, and in total both flows were approximately equal. However, in recent days the number of entrants has again become noticeably larger.

According to UNHCR data, as of June 21, a total of 8.007 million people have left Ukraine since the beginning of the war (excluding the entry flow), of which 4.146 million went to Poland, 1.305 million to Russia, 814.6 thousand to Hungary, and 691 to Romania. .4 thousand, Moldova – 507.6 thousand, Slovakia – 525.6 thousand, Belarus – 16.7 thousand.

At the same time, according to the UN, from February 28 to June 21, 2.837 million people entered Ukraine (excluding data from Hungary, the Russian Federation and Belarus).

Passenger traffic across the western border of Ukraine, thous.

Date from Ukraine incl. to Poland to Ukraine incl. Ukrainians number of humanitarian trucks, pcs.
Jun 28 36 20 41 38 20 120
Jun 27 33 19 43 40 19 100
Jun 26 38 23 46 42 20 96
Jun 25 43 23 46 40 21 94
Jun 24 45 26 44 40 21 90
Jun 23 45 25 40 37 20 90
Jun 22 45 25 40 37 20 103
Jun 21 38 22 36 32 19 117
Jun 20 37 21 39 37 18 100
Jun 19 40 24 40 37 18 101
Jun 18 44 25 43 39 20 153
Jun 17 41 25 40 36 20 110
Jun 16 36 21 38 34 19 125
Jun 15 40 24 37 34 19 151

Data: State Border Service

CABINET OF MINISTERS PROPOSED TO IMPOSE SANCTIONS AGAINST HOST OF KVN MASLYAKOV, ALL MEMBERS OF JURY OF KVN AND LEADING PARTICIPANTS OF KVN

The Cabinet of Ministers proposes to the National Security and Defense Council to impose five-year sanctions against KVN host Oleksandr Maslyakov, 6 KVN jury members, 19 KVN participants and 7 athletes.
According to Decree No. 535 of June 24, in connection with actions that create real and potential threats to national interests, national security, sovereignty and territorial integrity of Ukraine, in particular, deliberate violation of the established procedure for entering the temporarily occupied territory of Crimea, participation in concerts and other public events in this territory, the government proposes to impose sanctions against 33 Russian cultural, television and sports figures.
In particular, in relation to: presenter Alexander Maslyakov, showman Valdis Pelsh, singer Pelageya Telegina (stage name “Pelageya”), Belarusian humorist Vadim Galygin, athlete Nikita Nagorny, head of cultural projects Sergei Pershin, deputy of the State Duma of Russia (former player in KVN) Sangadzhi Tarbaev, members of various KVN teams Alexey Kriven, Maxim Konyukhov, Denis Shurenko, Konstantin Butusov, Svetlana Malyutkina, Sultan Nugaibekov, Roman Safonov, Aidar Suleymanov, Denis Bondarev, Pavel Korenevsky, Elena Fedotova, Alina Omelyanchuk, Sergey Zharikov, Mikhail Matyukh, Alexey Zhirnov, Alexander Vysotsky, Irina Devochkina, Alexei Murashov, Vladimir Shnitko, as well as a participant in the International Strength Sports Festival took part in the Eurasian Games 2021, athletes Mikhail Shivlyakov, Vyacheslav Maksyuta, Nazar Dolitsky, Yuri Kolmakov, Petr Martinenko, Oksana Kosheleva , Sergei Kharlamov.
In addition, it is proposed to impose sanctions against two Russian companies that provided travel services and organized events in the occupied Crimea.
In particular, we are talking about Kanon Ru LLC and AMIK Television Creative Association LLC.

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