Business news from Ukraine

Business news from Ukraine

Exports of dairy products in Ukraine in February increased by 25%, imports – lowest in six months

In February 2025, Ukraine increased the total volume of foreign trade in dairy products to $45.6 million, which is 8.5% more than in January 2025 ($42.0 million), but 16.4% lower than in December 2024 ($54.5 million), the Union of Dairy Enterprises of Ukraine reported.

According to the report, dairy exports in February 2025 amounted to $24.2 million and increased by 25% compared to January 2025 ($19.3 million) and by 51% compared to December 2024 ($16.0 million). The growth occurred in all commodity items, especially in milk and condensed cream (+0.91 thousand tons) and butter and milk fats (+0.25 thousand tons).

At the same time, 36% of the export structure was accounted for by milk and condensed cream, 30% by butter, and 20% by cheese.
Experts emphasized that such significant export volumes have not been recorded since October 2022.

Instead, import volumes continued to decline and became the lowest in the last six months: in February 2025, they amounted to $21.4 million and decreased by 6% compared to January 2025 ($22.7 million) and by 44% compared to December 2024 ($38.5 million). Moreover, the volume of cheese imports was standard, while the volume of fermented dairy products imports decreased by 14.5% compared to January.

The export-import balance in February 2025 was positive: ($2.8 million) – against $(-3.4) million in January 2025 and $(-22.6) million in December 2024.
Exports in value terms exceeded imports by 13% in February 2025 (0.85 times in January 2025, 0.41 times in December 2024).

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Chernihivoblenergo’s losses from falling trees in 2024 amounted to UAH 5.1 mln

Last year, Chernihivoblenergo JSC’s losses as a result of accidents caused by trees and branches falling on power lines amounted to UAH 5.1 million, compared to UAH 2.6 million in 2023.

“Having calculated the losses incurred by the company due to improper maintenance of trees and bushes in 2024, we see that the situation with this issue has not only not improved, but has become much worse,” the company said on its website.

According to the company, last year, Chernihivoblenergo employees recorded 968 interruptions in power supply due to trees or branches falling on power lines (in 2023, 618 interruptions). In addition, 240.7 thousand consumers were without electricity for some time (195.7 thousand) and 8691 hours had no electricity (6156 hours).

It is noted that the authorities, organizations, institutions, enterprises and owners of private households in the areas of their territorial responsibility are responsible for the preservation of green spaces and proper care of them.

At the same time, Chernihivoblenergo emphasized that it is actively involved in clearing the routes of power line protection zones. In particular, the company annually develops its own clearing schedules, coordinates them with the relevant authorities and carefully adheres to them.

“We are also always ready to facilitate the safe performance of work on bringing green spaces into proper condition by the relevant persons by de-energizing power lines or their individual elements, subject to prior approval of the date of such work,” the statement said.

Ukraine has chance to strengthen its position as leading player in global agricultural market – opinion

Russia’s military aggression against Ukraine has a profound negative impact on global food security. Ukraine still remains an important link in the global food chain, and restoring its full agricultural production and export capabilities is critical to stabilizing global food markets and preventing a large-scale food crisis, SEEDSwrites .

Denys Vasylenko, co-founder of the logistics company NIDERA AGRO, an expert in grain exports and logistics, and industry leader of the NGO Svit.UA, wrote about this in a blog post on the website of the public platform Svit.UA .

“Due to the war, Ukraine has lost a significant part of its traditional export routes. The blockade of the Black Sea ports, the destruction of transport infrastructure and constant security threats have created significant barriers to agricultural exports. Disruptions in the supply of food from Ukraine have led to an increase in global agricultural prices. This hit poor countries that are critically dependent on imports particularly hard.

At the same time, new opportunities for Ukrainian farmers have emerged, including the abolition of customs duties in the EU, which has made it easier to enter the European market,” Denys Vasylenko said .

Key export destinations and new opportunities

Agriculture accounts for a significant portion of the country’s GDP and is a key factor in economic sustainability. The full-scale invasion has shown how important it is for Ukraine to maintain logistics, especially the operation of sea routes and ports, to ensure a stable supply of products to global markets.

“The main goal of our work is to integrate Ukrainian grain into the European market. Ukraine’s export potential for 2025 is highly dependent on many factors, the main one being the end of the war and the establishment of peace. In the case of a positive scenario, Ukraine has a significant potential to restore and grow exports, using the opportunities of European integration, international support and domestic reforms. In a negative scenario, our export opportunities will be critically limited,” emphasizes the grain export and logistics expert.

We managed to knock Russian companies out of the Italian market

Nevertheless, the EU remains Ukraine’s main trading partner, emphasized Denys Vasylenko.

“In January 2025, the volume of exports to the EU reached $1.8 billion. 57% of our food exports cross the EU border, of which 52% remain in the EU countries. We managed to knock Russian companies out of the Italian market. Although it is still very difficult to compete with them on prices. Now the Italian and Spanish markets are open to us, but we need to gain a foothold there. Not only with the products we sell there. We need to have a good reputation and work efficiently for the long term.

As for global markets, we also need to work hard and look for opportunities. After we almost lost China, Egypt and Turkey, African countries are very important for our wheat. Now exports to these countries have increased from 3% to 13%. This is a good trend,” said the co-founder of the logistics company NIDERA AGRO.

According to him, the blocking of ports, destruction of infrastructure, disruption of transportation routes, security risks – all this creates extraordinary challenges for farmers.

“The war has dramatically changed the logistics routes of Ukrainian agricultural exports and led to the search for alternative export routes (by rail, river, through the western borders). To stabilize exports, it is important to have an effective logistics strategy that includes route optimization, coordination with European partners, and the use of new technological solutions in grain transportation.

One of the key areas of work of the NGO Svit.UA is advocacy of Ukrainian producers before European governments and the business community.

The organization is actively working to ensure stable access of Ukrainian agricultural products to the EU markets and to support the competitiveness of our farmers. In addition, the NGO Svit.UA helps producers adapt their logistics processes, looks for new export opportunities and participates in the creation of effective solutions to improve agro-logistics,” adds Denys Vasylenko.

Ukrainian agricultural exports are facing unprecedented challenges, but at the same time, they are getting new opportunities, the grain export and logistics expert believes.

“Gaining a foothold in the European market, developing the African direction, searching for new logistics solutions and an effective product promotion strategy are the key areas that will determine the future of Ukrainian agricultural exports.

Ukraine has every chance to not only maintain but also strengthen its position as one of the leading players in the global food market. To do this, we need not only to effectively solve logistical issues, but also to build long-term strategic partnerships with importing countries despite any challenges,” Denys Vasylenko is convinced.

SEEDS

 

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Demand for electric vehicles in Ukraine increased by 14% in February, share of new ones decreased

Initial registrations of electric vehicles (new and used) in Ukraine in February 2025 increased by 14% compared to February 2024 – up to 4,488 thousand units, UkrAutoprom reported on its Telegram channel.

Compared to January of this year, when 3,637 thousand electric vehicles were registered, the demand for them increased by 23%.

At the same time, according to the Association, the bulk of registered electric vehicles last month were passenger cars – 4,360 thousand units, of which 632 units were new (31.7% less than in February 2014), and 3,728 thousand were used (26% more).

Among the 128 commercial electric vehicles, 9 were new (in February 2014, two out of 43 units were new).

Thus, the share of new cars in the total registration of electric vehicles in February decreased to 14.3% compared to 24% in February 2024 and 18.8% in January this year.

The top five new electric vehicles on the market in February were BYD Song Plus EV – 115 units; Zeekr 001 – 65 units; Zeekr 7X – 41 units; Volkswagen ID.4 – 56 units, ZEEKR 001 – 46 units and Volkswagen ID.Unyx – 45 units.

The top five newly registered used electric vehicles were Tesla Model Y – 430 units; Tesla Model 3 – 429 units; Nissan Leaf – 407 units; Hyundai Kona Electric – 245 units; and KIA Niro EV – 231 units.

A significant decline in sales of new electric vehicles is also noted by the AUTO-Consulting information and analytical group – according to its data, in February, a decrease of 37% was recorded (with an overall drop in the new passenger car market by 20%), and their share decreased to 15.6% from 20% in February 2024.

As reported, according to UkrAvtoprom, in February 2024, the demand for electric vehicles in Ukraine increased 2.3 times compared to the same month in 2023 – to 3,924 thousand units, with the share of new vehicles remaining at 24%.

Last year, according to UkrAutoprom, registrations of electric vehicles (new and used) increased by 38% compared to 2023 to 51.7 thousand units, including 37% of passenger cars to 50.458 thousand, 64% of commercial vehicles to 1.264 thousand, and two electric buses were registered. The share of new vehicles was 20%.

Ukraine increases steel production despite loss of coking coal mine

Ukraine still maintains steel production growth in the first two months of 2025 despite the loss of the sector’s key coking coal mine in Pokrovsk in the eastern part of the country, data from the Ukrainian steel producers’ union showed on Saturday.

Ukrainian steelmaker Metinvest has suspended operations at Ukraine’s only coking coal mine, citing a deteriorating security situation as Russian forces advanced.

The raw steel output rose by 9.9% in January-February 2025 to 1.18 million metric tons, the data showed.

Steel production has suffered since Russia’s invasion on February 24, 2022, which has led to the destruction of leading steel plants.

Ukraine, formerly a major steel producer and exporter, reported a 70.7% drop in output in 2022 to 6.3 million tons. It fell to 6 million tons in 2023 but increased to 7.58 million in 2024.

The steelmakers’ union said in October the potential closure of the Pokrovsk mine could cause steel output to slump to 2-3 million metric tons in 2025.

Producers have said they hope to find coking coal, an ingredient in steel production, from elsewhere in Ukraine should the mine be seized by Russian troops, but imports would be needed, raising costs.

Source: https://www.reuters.com/markets/commodities/ukraine-increases-steel-production-despite-loss-coking-coal-mine-2025-03-08/

Kyiv Metro announces new tender for purchase of 50 railcars

The Kyiv Metro has re-announced a tender for the purchase of 50 railcars as part of the Kyiv Urban Transport Modernization II project, funded by a loan from the European Bank for Reconstruction and Development (EBRD), the subway reported.

According to the report, the tender involves the purchase of 10 five-car trains with a free passage between cars (a “tube”), including the supply of spare parts, consumables, equipment and tools for rolling stock maintenance and repair.

The procurement will be conducted in the format of an open tender with prequalification. The deadline for submitting proposals for the first stage is May 2025.

As reported, the first similar tender in August 2023 was won by Kryukiv Carriage Works (KVSZ), which offered 10 trains for EUR79.2 million (including VAT), which was 37% cheaper than the offer of the second participant, Czech Skoda.

KVSZ proposed a 97-meter-long metro train with an asynchronous traction drive with three motorized and two trailed non-motorized cars, with domestic-made bogies, with a total passenger capacity of 1,650 people.

However, in November of the same year, Kyiv Metro canceled its decision to award the contract to KVSZ, and the carriage plant, in turn, tried to appeal the decision in the Kyiv Commercial Court, but to no avail.

The court’s decision dismissing KVSZ’s claim came into force in November 2024.

According to the court materials, Kyiv justified the decision to cancel the award of the contract by the fact that KVSZ tried to replace the supplier of the main equipment (in particular, control systems, traction power and equipment, traction gearboxes, subway control system) from the Spanish CAF (which was agreed with the EBRD) to a Polish or Japanese company.

At the same time, KVSZ pointed out that the change of supplier was due to the fact that CAF refused to supply the plant with equipment due to the workload of production lines. However, Metro refused to replace the supplier because it contradicted the terms of the tender.

As reported, in February 2021, the EBRD and Kyiv Metro signed a EUR 50 million loan agreement for the purchase of 50 new subway cars.

The subway trains are to be purchased for the Syretsko-Pecherska subway line towards the Vynohradar residential area, which will be resumed in 2024.

According to the Kyiv Metro, its inventory fleet currently includes more than 830 cars. At the same time, about 100 railcars will soon reach the end of their service life.

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