Ukraine in January-March 2021 imported 1.812 million tonnes of petroleum products (according to foreign economic activity code 2710: petrol, diesel fuel, fuel oil, jet fuel, etc.), which is 10.4% more year-over-year (1.642 million tonnes). According to the State Customs Service, petroleum products were imported to the tune of $894.99 million, which is 8.2% less than in January-March 2020 ($ 975.061 million).
Fuel was imported from Belarus for $416.163 million (the share is 46.5%), Russia for $283.626 million (31.69%), Lithuania for $85.767 million (9.58%), other countries for $109.434 million (12.23%).
In addition, Ukraine exported 113,426 tonnes (49.4% compared to January-March 2020) of petroleum products for a total of $53.49 million (17.4%). The cost of fuel delivered to counterparties from Turkey amounted to $12.338 million, the Czech Republic some $11.778 million, Latvia some $10.936 million and other countries to $18.438 million.
Ukraine in January-March 2021 increased the import of oil and petroleum raw materials (according to foreign economic activity code 2709) by 1.7 times (by 124,640 tonnes) compared to the same period in 2020, to 305,313 tonnes.
According to the State Customs Service, raw materials for $110.084 million were imported over three months, which is 10.4% more than in January-March 2020 ($99.746 million).
The entire volume of oil came from Azerbaijan.
Ukraine did not export oil in January-March 2020 and 2021.
The Ministry of Agrarian Policy and Food of Ukraine is obliged to begin restoring the irrigation system of agricultural lands in the south of the country by the end of this year, Prime Minister Denys Shmyhal said during a meeting devoted to irrigation held on Thursday.
According to the press service of the Cabinet, in addition to Shmyhal, Minister of Agrarian Policy and Food Roman Leshchenko, representatives of the Ministry of Ecology and Natural Resources, the Ministry of Finance, Head of the Mykolaiv Regional State Administration Vitaliy Kim, Head of the Odesa Regional State Administration Serhiy Hrynevetsky and acting Head of the Kherson Regional State Administration Serhiy Kozyr attended the meeting.
As the Prime Minister said, the President of Ukraine set the Cabinet of Ministers the task to begin the restoration of irrigation systems this year, which means that the government must ensure the prompt transfer of the property complexes of the Ministry of Ecology to the Ministry of Agrarian Policy.
“Today, most of the land reclamation and irrigation infrastructure is managed by the State Water Resources Agency. Accordingly, the Ministry of Agrarian Policy and Food, which is responsible for the restoration of irrigation systems, cannot yet begin practical work in this direction. A quick solution to this issue will allow the Ministry of Agrarian Policy to begin implementation of pilot projects to restore irrigation systems this year, and will help farmers to significantly increase their harvest,” Shmyhal said.
As Leshchenko said, irrigation reform is among the main priorities of the ministry.
“This year is defining for us. We understand how to form an institutional and legislative framework, and according to this plan we are ready to move,” the minister said.
Deputy Minister of Ecology and Natural Resources Mykhailo Khorev reported that on behalf of the Prime Minister, a meeting had been held, following which a roadmap for transferring property to the Ministry of Agrarian Policy was drawn up.
AGRARIAN POLICY, AGRICULTURAL, AGRICULTURAL LAND, IRRIGATION SYSTEMS
Metallurgical enterprises of Ukraine in January-March 2021 increased receipts from exports of ferrous metals by 29.7% compared to the same period last year, to $2.670 billion.
According to updated statistics released by the State Customs Service on Friday, ferrous metals accounted for 19.44% of total receipts from the export of goods during this period versus 16.79% in the first three months of 2020.
In March, revenues from exports of ferrous metals amounted to $1.160 billion.
At the same time, Ukraine in January-March 2021 reduced imports of similar products by 3.9%, to $214.215 million. In March, this figure was $92.685 million.
In addition, Ukraine in January-March 2021 increased the export of metal products by 10.4%, to $236.069 million. In March, metal products for $ 95.530 million were delivered.
During this period, the import of metal products increased by 6.5%, to $209.229 million. In March, metal products for $83.853 million were imported.
Avangard agricultural holding, the largest egg producer in Ukraine, cut monthly production by 50% over the past year due to pressure from law enforcement officers, largely due to the impossibility of organizing the export of its products in such conditions, owner of the agricultural holding Oleh Bakhmatiuk has said. “We now produce 170 million eggs a month, and we produced about 300 million, and in May – 350 million! Of which 170 million were exported in May, and this month we will send for export, maybe 20 million,” he said is in an interview with the Interfax-Ukraine agency.
Bakhmatiuk explained that the company used credit lines for $ 60-70 million for export, since delivery, for example, to Singapore takes 45 days and the supplier needs to be granted a delay.
“But thanks to the valiant actions of the NABU (the National Anti-corruption Bureau of Ukraine), all credit lines were closed to us, we were forced to almost completely close the export direction,” the Avangard owner said, adding that the coronavirus pandemic complicated logistics by making it longer and 30% more expensive.
According to him, out of seven trading houses – in Hong Kong, Singapore, Malaysia, Iraq, Liberia, Saudi Arabia and Dubai, the opening of which took six years and about $ 25-30 million, Avangard retained only one – in Dubai.
Talking about other reasons for the reduction in production, Bakhmatiuk named a painful rise in the price of raw materials, in particular, fat and oil, bagasse and cereals, common for the entire sector.
“This reputational war has been added to the general problems of the sector. In fact, 12 poultry farms have been closed, now the 13th will be closed,” he said, adding that there are 13 operating factories left.
As the businessman noted, such a reduction in production, taking into account fixed costs, led to an increase in the cost of an egg by about 20 kopecks.
Commenting on the rise in egg prices in Ukraine, he called it forced.
“We go to zero profitability and even with a small minus. Because feed prices are growing faster than the demand and the price of eggs are growing,” the businessman explained.
Ukrainian furniture manufacturers in January-March of this year increased their furniture exports by 50% compared to the same period in 2019, to $247.4 million, while in the past five years (2015-2020) there was an annual increase of 13.5%, a member of the Ukrainian Association of Furniture Manufacturers (UAFM) Oksana Donska has said. “Due to COVID-19, the global supply chains have changed a lot. Ukrainian furniture is becoming more and more interesting for the international community of professional buyers,” she said at a press conference on the problems of timber market legislation organized by the RivneInvest agency in Kyiv.
According to her, today a transparent timber market is very necessary for Ukrainian furniture manufacturers.
“The furniture and woodworking industries of Ukraine create a product with high added value. Each hryvnia of wood value turns into UAH 30-50 of the cost of furniture supplied both to the domestic market and for export,” she said.
Donska said that today more than 100,000 people work in the furniture industry for more than 9,000 enterprises, and the export of Ukrainian furniture for the past five years has been growing by 13.5% annually. Furniture is exported to 119 countries, including Poland (more than 35% export), Germany (16%), Denmark, Austria, Romania, and France. Poland and Germany use Ukrainian furniture for further sale in the world.
“But compared to the same Poland, which has approximately the same forest resources, we export 20 times less – if Poland in 2020 exported furniture worth $14.8 billion (the third largest exporter in the world), then Ukraine for only $750 million (39th place),” Donska said.
She said that on June 15 through June 17 2021, Ukraine expects about 2,000 guests from 53 countries who will come to visit the Furniture of Ukraine Business Expo (FUBE-2021) organized by the UAFM with the support of the Ministry of Foreign Affairs and the Ministry for Development of Economy, trade and Agriculture.
“However, today the Association receives appeals from our members who complain about serious problems in their work due to the stagnation of the timber market. As a result, furniture makers do not receive furniture components on time, and contracts for the supply of finished furniture with retailers from Ukraine are broken. Ukraine’s reputation is on the line if it fails to implement contracts for the supply of furniture to the countries of Europe, Asia and America. If this situation continues for several more months, then Ukrainian enterprises will have to think not about development, but about survival,” Donska said.
