Philip Morris International (PMI) tobacco concern in the second quarter of 2023 increased shipments of cigarettes and tobacco sticks in the Ukrainian market by 50.3% compared to the same period last year, while in the first quarter there was a decline of 26.7%, according to the quarterly report of PMI.
According to it, the market in Ukraine as a whole grew by 13.4% in the second quarter of this year, thus the company managed to increase its share in the Ukrainian market after a slump last year.
More detailed information on sales in Ukraine is not available in the document, but it is indicated that PMI in July began preparatory work on a new facility in Lviv region in western Ukraine, which will be invested $30 million and production is scheduled to start in the first quarter of 2024.
It is specified that the Kharkiv plant, which was shut down at the end of February 2022, remains in the same condition due to existing threats, while products are supplied to the Ukrainian market from production centers outside Ukraine, as well as through contract manufacturing.
In the first half of the year PMI additionally did not adjust the value of its long-term assets in Ukraine, unlike last year.
It is stated that as of June 30, 2023, total assets of PMI’s Ukrainian operations were approximately $497 million, compared to $485 million a quarter earlier. These assets included receivables, inventories, and fixed assets of $75 million ($69 million), $305 million ($324 million), and $29 million ($30 million), respectively.
In addition, Lviv Regional Military Administration reported a July 27 meeting between its chief, Maksym Kozitsky, and PMI’s vice president for Northeast Europe, Michal Mierzejewski, where future production was discussed.
“The company has received a license to produce tobacco products in Lvivshchyna for five years with the possibility of extending it in the future. I hope that the plant, having created jobs, will provide the residents of our region with work,” – said the head of Lviv OVA.
In turn, Mierzejewski confirmed plans to launch production in the first quarter of 2024 and create more than 250 jobs at the new factory.
“First of all, we will employ employees of our Kharkiv factory, but we will also hire local specialists, which will create new jobs for residents of the region who have experience or would like to get it to work in this field,” – said the vice-president of PMI.
As reported, Philip Morris International in 2022 reduced shipments in the Ukrainian market by 30.1% – to 11.07 billion cigarettes and tobacco sticks. In particular, sales of cigarettes decreased by 38.1% to 6.6 billion, tobacco sticks for tobacco heating systems – by 13.5% to 4.47 billion.
In the first half of 2023, Ukraine’s total public debt increased by 15.6% to a new all-time high: by $17.4 billion to $128.81 billion in dollar terms, and by UAH 635.0 billion to UAH 4 trillion 710.4 billion in hryvnia terms, according to the website of the Ministry of Finance.
According to the data, the direct public debt increased by 17.8% to $119.68 billion, or UAH 4 trillion 376.48 billion, and accounted for 92.9% of the total public and publicly guaranteed debt.
It is reported that the external direct debt in the first half of the year increased by 25.6%, or $16.30 billion, to $79.89 billion, while the internal direct debt increased by only 4.7%, or UAH 65.3 billion, to UAH 1 trillion 454.95 billion (equivalent to $39.79 billion).
Ukraine’s total external public debt increased by 21.8%, or by $15.61 billion, to $87.08 billion in January-June 2023, while the total internal public debt increased by 4.4%, or by UAH 64.3 billion, to UAH 1 trillion 526.2 billion.
As a result, the share of total external debt increased from 64.1% to 67.6%.
It is specified that in June, the total public debt of Ukraine increased by 2.5%: by $3.20 billion or UAH 116.93 billion, including the total external debt by 3.7%, or $3.09 billion.
According to the Ministry of Finance, the share of liabilities in euros rose to 27.70% at the end of June, in Canadian dollars to 2.55%, and in SDRs to 13.17%, while the share in US dollars fell to 26.44%, in hryvnia to 29.41%, in yen to 0.72%, and in British pounds remained at 0.02%.
The agency also clarified that 65.13% of the public debt has a fixed interest rate, while 13.17% is tied to the IMF rate, 6.95% to SOFR, 0.72% to TORF, and 3.87% to EURIBOR.
The rate for another 3.08% of the government debt is tied to the consumer price index, and 6.73% to the NBU discount rate. These are government bonds from the NBU’s portfolio. The most recent of these were securities linked to the key policy rate, which the NBU bought back as part of the budget’s emission financing.
Finally, 0.32% of the state debt has a rate linked to the Ukrainian index of rates on retail deposits, which is used in portfolio guarantee programs.
As reported, Ukraine’s public and publicly guaranteed debt in 2022 increased by $13.4 billion.
As part of the recent first review of the EFF program with Ukraine, the IMF significantly improved its forecast for public debt growth this year – from 98.3% of GDP to 88.1% of GDP, in particular by revising its estimate at the end of last year from 81.7% of GDP to 78.5% of GDP.
The insurance company “VUSO” has launched an updated version of the mobile application, with access to medical policies, adding the possibility for customers to make an independent appointment with a doctor and confirm the appointment independently, according to the insurer’s press release.
In addition, the company’s clients will now be able to quickly find detailed information about their insurance contract, as well as call an ambulance through the app.
In the future, VUSO plans to expand the app’s functionality and add other options. The application development team is already working on remote request for reimbursement, reflection and management of policies of relatives and friends, display of the whole history of applications to the insurance company.
IC “VUSO” was founded in 2001. The company holds 50 licenses: 34 – for voluntary and 16 – for compulsory types of insurance. It is represented in all regions of Ukraine. It is a member of ITSBU and UFS, a participant of Direct Loss Settlement Agreement and a member of Nuclear Insurance Pool.
On September 15, Kyiv will host the business forum “Grain. Pigs. Meat – 2023”. This is an unprecedented event that will bring together the grain business, pig farming and meat industry to overcome the consequences of the war. This is an event where the possibility of increasing the profitability of crop production will be substantiated, where real tools for obtaining added value will be presented, where an alternative to grain exports will be justified and why pig production will save the grain market of Ukraine!
The main goal of the forum “Grain. Pigs. Meat – 2023” forum is to prevent losses in crop production due to the blocking of grain exports and to create added value of more than 200% from the implementation of the intersectoral program “New Pig Production 2025”.
Also, within the framework of the business forum “Grain. Pigs. Meat – 2023” business forum, a specialized exhibition Meat Industry Expo-2023 will be held, where you will be able to present and get acquainted with modern solutions from feed production, pig keeping and breeding to meat processing and trade. The exhibition will be open throughout the day of the forum.
So, if you don’t want to miss this unique opportunity to communicate with leading experts, manufacturers and suppliers of advanced equipment, pig genetics, producers and meat processors, as well as learn about current trends, financial and technical opportunities to start a new business or scale an existing one in pig production, you should visit the business forum “Grain. Pigs. Meat – 2023”.
The forum will be held on September 15, 2023 in Kyiv, Golf Center Kyiv (20 Obolonska embankment).
The forum is organized by the Meat Industry Association, the Center for Efficiency Improvement in Livestock Production and Agro Marketing Agency.
Forum partners: Cofarming Ukraine, Eurofeed, Topigs Norsvin.
The forum is for you if you:
– Aiming to jump out of raw material production
– A grain producer who does NOT want to give grain at cost price
– You are engaged or want to engage in pig production, but do not know how
– You want to process meat or already process it, but dream of your own pig farm
– Want to scale up your existing pig business
– Looking for or providing financing
– You can share your experience and present equipment
– A bioethanol producer who wants to double profits on production waste
– Decided to expand the range of products and markets
– A supplier who wants to expand its customer base
– Planning to diversify your business
– Aiming to create added value
The main topics of the forum
– Prospects of Ukraine in the world pork market
– State and prospects of development of pig breeding and meat industry of Ukraine
– Analysis of grain market development through the prism of pig production
– Presentation of a model for replacing grain exports with exports of meat and value-added meat products
– Prevention of ASF as an incentive for the development of pig farms
– Real benefits in the “grain and meat products” chain from the implementation of the intersectoral program “New Pig Production 2025”
– Biofuels and animal husbandry: smart synergy – big profits
– Financing of pig production: available loans, grants, investments
– Investment opportunities of the New Pig Production 2025: benefits for grain producers and future pig producers
– The lowest cost of Ukrainian pigs in the world now and forever
– Feed production: an underestimated area of grain processing
– Effective technologies in pig and meat industry
– Quality, safety and certification of meat products
– Modern technologies for producers and processors of meat products
– Modern pig genetics and feeding
The conference will also include a specialized exhibition “Meat Industry Expo”
Preliminary program*.
9:00-9:30 Registration. Welcome coffee.
Permanent exhibition “Meat Industry Expo”
9:30-10:00 Opening of the conference. Greetings of the organizers and partners
10:00-12:00 Session 1: Development of the pig industry in the conditions of war. The role of the government and business efforts
12:00-12:30 Coffee break
12:30-14:00 Panel discussion “How grain producers can earn 200% on pig production”
14:00-15:00 Lunch
15:00-16:00 Round table discussion “Bioethanol and livestock or how to get 400% profit from the right synergy”
16:00-16:30 Coffee break
16:30-17:30 Discussion “New pig production = Precision pig production. Cost, profitability, profit, investments”
17:30-18:00 Summarizing the results. Closing of the conference
18:00 – 20:00 Friendly dinner, free communication, golf game
* The program is subject to change, please follow the announcements and updates on the conference website – https://meatindustry.com.ua
Registration is required at the link – https://forms.gle/ksfdAwGFnptzP3wv7
*Accommodation is not included in the participation fee and is to be provided by the participants themselves.
For participation, sponsorship, advertising, presentation, please contact the conference coordinators:
Sponsorship and participation
Agro Marketing Agency
Svyatoslav Tkachenko
+38(063)357 73 59
market@agromarketing.com.ua
Participation in the exhibition and partnership
Association of “Meat Industry”
Vladyslav Kachmar
+38(068)500 30 04
2023@meatindustry.com.ua
Interfax-Ukraine is a media partner
Net profit of OTP Bank for January-June 2023 amounted to UAH 2 billion 854.46 million compared to net loss of UAH 783.06 million in January-June 2022, according to the unconsolidated semi-annual report of the bank.
According to it, in particular, net profit in the second quarter of this year reached UAH 1 billion 395.28 million, which is 27.1 times higher than the net profit for the same period last year.
It is indicated that net interest income for the first half of the year increased by 46.3% to UAH 4 billion 306.59 million, including in the second quarter the growth amounted to 42.5% to UAH 2 billion 154.61 million.
Meanwhile, net commission income in January-June this year increased by 35.4% to UAH 612.064 million, including in the second quarter – by 55.7% to UAH 290.32 million.
A significant contribution to the improvement of the financial result was made by the reduction of the loss from the reduction of utility in the first half of this year to UAH 314.08 million, while for the same period last year this figure amounted to UAH 3 billion 573.13 million.
Specifically, for the second quarter of 2023, the loss from utility curtailment narrowed to UAH 170.81m compared to UAH 1 billion 364.51m in the second quarter of 2022.
The bank points out that its total profit for the first half of this year reached UAH 3 billion 247.74 million against a loss of UAH 872.35 million for the first half of last year, including a total profit of UAH 1 billion 772.90 million in the second quarter-2023 against a loss of UAH 162.81 million in the second quarter-2022.
According to the report, in January-June this year, the bank’s assets grew by UAH 1.92 billion, reaching UAH 92.93 billion as of June 30.
Such growth is explained by the increase in cash and funds with the NBU from UAH 4.75 billion to UAH 9.67 billion and investments in securities – from UAH 32.85 billion to UAH 37.37 billion, while loans and advances to clients decreased from UAH 29.92 billion to UAH 23.91 billion, and debts of other banks – by UAH 1.2 billion to UAH 20.51 billion.
Customer funds of OTP Bank decreased for the first half of 2023 from UAH 77.73 billion to UAH 76.19 billion, meanwhile the bank’s capital increased from UAH 11.63 billion to UAH 14.87 billion, including retained earnings – from UAH 3.77 billion to UAH 6.62 billion.
OTP Bank, a 100% subsidiary of the Hungarian OTR Bank Plc, was the eighth among 65 Ukrainian banks in terms of total assets (UAH 103.327 billion) at the beginning of June this year. The bank has a network of 72 branches in Ukraine.
Another $1.25 billion grant from the United States arrived in Ukraine on Monday through the multi-donor World Bank Trust Fund, the Finance Ministry said.
“Irrevocable financial assistance from the United States is an extremely important element in supporting Ukraine’s state budget while it resists Russia’s full-scale aggression. The next grant will help the Ukrainian government to reimburse priority expenditures in the social and humanitarian sphere,” Finance Minister Serhiy Marchenko was quoted as saying in the release.
The Finance Ministry specified that in 2023 Ukraine has already received $8.45 billion in grants of direct budgetary support from the United States, and in total, $20.4 billion in grants from the United States have been received in the state budget since the beginning of the full-scale war.
As previously stated by the Ministry of Finance, as of July 21 this year, the state budget of Ukraine received funding from international partners in the amount of $23.6 billion, compared to $32.1 billion last year, while the need for this year is about $42 billion.
Since then, the budget has also received EUR1.5bn of the sixth tranche of EU macrofinancial assistance and $1.5bn through the World Bank’s Trust Fund mechanism under the guarantees of the Japanese government.
