Business news from Ukraine

Business news from Ukraine

LOSSES OF WINTER CROPS IN UKRAINE DUE TO DROUGHT REACH 2.6%

The losses of winter crops due to drought in Ukraine in the entire country are estimated at 234,000 ha, which is 2.6% of all areas with winter crops, the Ministry for Economic Development, Trade and Agriculture has told Interfax-Ukraine. According to the ministry, the most affected by the drought are winter rape crops – 103,000 ha, wheat – 74,000 ha, barley – 53,000 ha, and peas – 1,300 0 ha.
Potential crop losses in 2020/2021 agri-year for winter wheat are 216,650 tonnes, winter rape – 211,890 tonnes, winter barley – 150,820 tonnes, sugar beets – 50,030 tonnes, peas – 3,050 tonnes, winter rye – 539 tonnes.
At the same time, the Economy Ministry estimates the possible loss of revenue for winter rape at UAH 2.14 billion (19% of the possible income from crops), winter wheat – UAH 0.99 billion (3%), winter barley – UAH 0.63 billion (12%), and sugar beets – UAH 0.03 billion (2%).
“In March-April this year, there was rainfall deficit throughout Ukraine. As a result, spring air drought developed and deepened, which combined with soil drought in many areas of the southern regions,” the ministry said.

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AFTER QUARANTINE UKRAINE AND ITALY TO HOLD COMMON BUSINESS FORUM

Ukraine’s Prime Minister Denys Shmyhal expects in 2020, after the quarantine is over, a meeting of the Ukrainian-Italian Council on Economic Cooperation and the holding of a common business forum.
“After the quarantine is over, we expect to hold a meeting of the Ukrainian-Italian Council for Economic Cooperation and organize a joint business forum as part of the visit of Prime Minister of Italy Giuseppe Conte to Ukraine this year,” the government’s press service quoted Shmyhal as saying following a meeting with Ambassador Extraordinary and Plenipotentiary of the Italian Republic to Ukraine Davide La Cecilia and a delegation of representatives of Italian companies operating in Ukraine.
The Ambassador of the Italian Republic to Ukraine Mr. Davide La Cecilia, in turn, added that Ukraine is of interest for investors.
“Italy is one of Ukraine’s first commercial partners at the global and European level, and we have set a goal of increasing investment and deepening economic cooperation,” said Cecilia.
The parties agreed to intensify cooperation in various areas of the economy, in particular, in the development of energy, agribusiness and infrastructure.

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MAYOR OF KYIV VITALI KLITSCHKO TALKS ABOUT EASING QUARANTINE IN KYIV FROM MAY 12

The capital is planning to introduce the first phase of easing restrictive quarantine measures from May 12, Mayor of Kyiv Vitali Klitschko said.
“We are approaching May 12, the day from which we plan to introduce the first stage of easing restrictions in the capital. We plan to open in Kyiv: non-food stores (with a total area of up to 300 square meters), hairdresser and beauty salons (by appointment and not more than one client for each service at the same time), parks and squares, walks in groups with a limited number of people, small architectural forms, with the prohibition of the consumption of food and drinks on the spot, small-sized production facilities of non-food goods and consumer services (atelier, domestic services, etc.),” Klitschko said at a briefing on Friday.
According to him, lawyers and notaries, auditors, as well as drive-in theaters, open-air museums, and libraries will be able to work (so far only lending books service, without reading rooms).
The mayor said that compliance with safety rules by employees and visitors of institutions is required.
“Thermometry of employees and visitors is mandatory. Following safety rules is required. If a client has no mask, he either does not enter the room, or it is the responsibility of the service provider who must provide a client with a mask,” Klitschko said.
The mayor said that at the first stage of easing, large shopping and entertainment centers, as well as schools, kindergartens, playgrounds, coastal recreation areas will remain closed.
He said that ground-based public transport will work at the first stage of easing.
“That is for sure until May 22. However, we will increase the number of routes to those areas that are not currently covered. The increase in routes will concern electric vehicles, namely, trolleybuses and trams,” Klitschko said.
According to him, businesses that will begin work should solve the issue of bringing its employees to workplaces.
“Metro, as I have repeatedly said, will be opened by decision of the government. It will not be right away,” the mayor said.
According to him, at the first stage of easing restrictive measures, the government allowed the summer areas of cafes and restaurants to work. The capital’s emergency committee approved the conditions for their work on Friday.

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UKRAINE INCREASES CHEESE IMPORT BY 2.4 TIMES IN JAN-APR

Ukraine exported 1,650 tonnes of cheese in January-April 2020, which is 31.7% less than in the same period in 2019.
According to the State Customs Service, in monetary terms exports decreased by 26.4% and amounted to $6.38 million.
The import of cheese grew 2.4 times, to 13,110 tonnes, in money terms 2.2 times, to $57.86 million for the first four months of 2020.
The export of Ukrainian butter decreased by 44.5%, to 4,130 tonnes, in money terms by 37.5%, to $19.18 million. The import of this product amounted to 4,120 tonnes ($16.89 million) in the reporting period against 377 tonnes ($2.33 million) in January-April 2019.
According to the service, the export of milk and cream (condensed) decreased by 34.2%, to 6,490 tonnes for the first four months of 2020. Ukraine supplied condensed milk and cream totaling $13.9 million, which is 29.5% lower than in January-April 2019. The import of this group of goods grew 2.2 times, to 1,410 tonnes, in money terms by 2.5 times, to $3.3 million.

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PIVDENNY PORT SEES NET PROFIT RISE BY 21 TIMES IN Q1

Pivdenny seaport in January-March 2020 increased its net profit to UAH 221.316 million, which is 21.3 times more (UAH 210.949 million) compared to the same period in 2019.
According to a company press release, 90% of the company’s net profit was transferred to the state.
In total, in the first quarter of 2020, the state stevedore paid taxes of UAH 234.704 million, which is UAH 110.538 million more (89% more) compared with the first quarter of 2019.
“The situation in the world and Ukraine is difficult, and seaports are the key elements of the state’s economy. Pivdenny state stevedore rationally organizes its work and maintains the country’s budget. The record monthly and quarterly performance, the increased daily rate of unloading high-sided wagons and an increased number of processed vessels of the Capesize type – all this was achieved thanks to effective planning and competent coordination of cargo operations,” acting director of Pivdenny port Oleksandr Oliynyk said.
According to the release, in the first quarter of 2020 the port handled almost 4.6 million tonnes of cargo, which is the historic maximum of quarterly transshipment of the state stevedore. The record monthly transshipment was fixed in March at 1.777 million tonnes of cargo. The cargo range includes ore, coal, cast iron, grain and cereals, mineral fertilizers. The bulk was ore (83% of the total volume).
In January-March of this year, almost 3.4 million tonnes of exported cargo passed through the port (52% more from the volume for the same period last year), 3.8 million tonnes of ore were processed (up by 66%).
Positive dynamics is also observed in processing imported goods: the port accepted 688,200 tonnes of cargo (a two-fold increase).

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UKRAINIAN GRAIN ASSOCIATION: DOUBLING OF IMPORT DUTIES BY EC NOT TO AFFECT MAIZE EXPORT

The decision of the European Commission to increase import duties for maize from EUR 5.27 to EUR 10.40 per tonne is not a threat to export of Ukrainian maize, Prse of the Ukrainian Grain Association (UGA) Mykola Horbachev has said.
“Changing the duties for maize is exclusively the market mechanism for protecting the domestic market, and not an administrative one. So, when the price for maize on the exchange grows, the duty is leveled, and when it falls, the duty increases. This practice works automatically and is not something new for the market, after all, at least it have existed for the past 20 years, or even more,” he told Interfax-Ukraine.
The president of the UGA said that in Ukraine the potential for the export of maize has actually been exhausted in the current agricultural year.
“Today, about 26 million tonnes out of the expected 29-30 million tonnes have been exported. Thus, Ukraine has already managed to supply most of maize to the EU,” Horbachev said.
This decision will also not have an impact on maize exports in the next season, as crop prices may increase with a new crop. The association said that share of the total Ukrainian maize exports to the EU is about 45%. To date, Ukraine has already supplied about 10.5 million tonnes of maize to the EU.
The European Commission from April 27, 2020 fixed the import duties in the cereals sector. The import duties for maize, sorghum and rye are now fixed at EUR 5.27 per tonne and the automatic calculation lead to a new figure of EUR 10.40 per tonne on May 6.

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