Business news from Ukraine

Business news from Ukraine

“Ukrzaliznytsia” simplifies tenders by reducing inspection control

Ukrzaliznytsia (UZ) is simplifying the requirements for the company’s tender purchases by reducing the list of goods that required inspection by almost half – from 92 to 47 nomenclature items.

“The company’s board has decided to no longer apply the requirements for railway use of products in procurement and has significantly limited the list of goods subject to inspection control,” the company’s press service said in a statement on Telegram on Monday.

The list of products requiring inspection control – procedures for checking the quality and compliance of products with established standards at the stage of production – will be reduced to 47 items. Currently, the list of products approved by Ukrzaliznytsia’s order No. 44 of February 1, 2016, includes 92 items. In particular, the list includes locomotives, electric trains, passenger cars, freight cars, traction motors, auto-braking equipment, tanks, refrigerated cars, wheelsets, railroad rails, and turnouts.

The new list of products subject to production and inspection control will be published on the website of Ukrzaliznytsia. The company also said that in the coming weeks, changes will be made to the standard tender documentation and announcements with amended requirements for specific procurement items will be made.

The company noted that about a quarter of the product range purchased by Ukrzaliznytsia is labeled “railway products”, which requires it to undergo a special procedure for putting into production.

The rule made it difficult for most manufacturers and suppliers to participate in tenders and created significant corruption risks, the company emphasized, noting that reducing the requirements for participants and strengthening incoming control by Ukrzaliznytsia will simplify participation in tender procedures, increase competition in bidding and ensure the required quality, the company said.

“As promised in December at the Supplier’s Day: Railway Partnership conference, we have excluded from the list all products that are not specific to railways and do not directly affect traffic safety. This makes it much easier for many suppliers to participate in our tender procedures. In fact, for the vast majority of items, we have moved the quality control stage from the qualification of participants to the delivery stage, as we are primarily interested in the quality of the products supplied to us, not the certificates that artificially restricted competition,” the press service quoted Oleksandr Nakhod, director of Ukrzaliznytsia, as saying.

The next step will be a significant reduction in the list of products requiring a conditional number (a unique identifier assigned to railway products subject to mandatory inspection control – IF-U), Ukrzaliznytsia said.

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Quotes of interbank currency market of Ukraine (UAH for 1 pln, in 01.10.2024-31.10.2024)

Quotes of interbank currency market of Ukraine (UAH for 1 pln, in 01.10.2024-31.10.2024)

Source: Open4Business.com.ua

Austrian Kreisel builds building materials plant in Lviv region

Kreisel, a member of the Fixit Group, has completed the construction of a building materials and systems plant in the village of Pisky (Lviv region), with investments in the project amounting to almost EUR 14 million, the press service of the Lviv Regional State Administration reports.

“First of all, we thank you for supporting our project, as it is of great importance not only for our company but also for Europe. One of our main tasks is to create conditions for the development of the local economy, attract investment and create new jobs,” Michael Kraus, Director of the Eastern Europe region of the Fixit Group, was quoted in the press release.

According to him, the company is currently in the process of commissioning and preparing documents to obtain a certificate of commissioning.

The concern pays special attention to local staffing and training. Thus, specialists were certified and trained to maintain the equipment, which made it possible to ensure commissioning without the involvement of foreign installation teams.

According to the press release, Rava-Rus Lyceum will also become the company’s partner in training professional staff. In addition, it is planned to launch an academy in Lviv region that will specialize in training specialists for the construction industry.

Representatives of Kreisel and the Lviv Regional State Administration also discussed the possibility of setting up wind farms to power socially important facilities.

As reported, construction work at the Kreisel plant in Lviv region began in August 2021.

Founded in 2004, Kreisel Building Materials LLC is a subsidiary of Austrian Roefix AG and is part of the international concern Fixit Gruppe, one of the leading suppliers of building materials. The concern unites five brands: Fixit, Greutol, Hasit, Kreisel and Röfix.

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What are Ukraine’s critical minerals – and why does Trump want them?

Zelenskyy has rebuffed US’s initial attempt to take control of minerals as downpayment for its aid in war with Russia

Ukraine’s president, Volodymyr Zelenskyy, has rebuffed an initial attempt by the US to corner his country’s critical minerals as a downpayment for continued military and economic aid for its war with Russia.

Three sources told the Reuters news agency that the US had proposed taking ownership of 50% of Ukraine’s critical minerals. Zelenskyy did not dismiss the offer out of hand, but said it did not yet contain the security provisions Kyiv needed.

What are critical minerals?

Critical minerals are the metals and other raw materials needed for the production of hi-tech products, particularly those associated with the green energy transition, but also consumer electronics, artificial intelligence infrastructure and weapons.

The rush to tackle climate breakdown and move away from fossil fuels has triggered a rush for energy transition minerals such as cobalt, copper, lithium and nickel, which are useful for electrification of transport and the construction of wind turbines. The same minerals and others are also used for the manufacture of mobile phones, AI datacentres and arms such as F-35 fighter aircraft, placing them in high demand.

As the world’s economy and technology transforms, the value of critical minerals has soared and geopolitical competition for access to them is rising. In 2023, the International Energy Agency (IEA) estimated that the market for energy transition minerals had reached £320bn in 2022, double its value five years earlier. And if countries fully implement their clean energy and climate pledges, demand is expected to more than double by 2030 and triple by 2040, the agency says.

Which minerals are regarded as critical?

The term critical minerals is not a scientific term so much as a political term, and different countries have different lists of critical minerals depending on their domestic and geopolitical objectives.

In 2022, the US Geological Survey (USGS) published a list of 50 minerals, from aluminium to zirconium, that it regarded as “play[ing] a significant role in our national security, economy, renewable energy development and infrastructure”. Notable inclusions were arsenic, for semiconductors; beryllium, used as an alloying agent in aerospace and defence industries; cobalt, lithium and graphite, crucial for manufacturing batteries; indium, which makes screens respond to a finger touch; and tellurium, which is used for solar power generation.

The US’s Energy Act stipulates that the list must be updated every three years, which means this year it will be up for review, and it will be interesting to see which minerals appear or disappear given the new political environment in the country.

What are rare earth elements?

Rare earth elements (REEs) are a subset of 17 critical minerals that are variously indispensable for mobile phones, electric vehicles, missile guidance systems and other electronics, industrial and energy applications.

Despite their name, most of the rare earth elements are not particularly rare, but their extraction and refining is fiendishly difficult – and environmentally highly destructive – meaning production is concentrated in very few places, mainly China.

REEs include europium, used in nuclear power station control rods; dysprosium, gandolinium and praseodymium, used in the magnets in your mobile phone; and gadolinium, holmium and ytterbium, used in lasers among other things.

What critical minerals does Ukraine have?

A 2022 article by the chair of Ukraine’s Association of Geologists, Hanna Liventseva, claimed her country contained about 5% of the world’s mineral resources, despite covering only 0.4% of the globe’s surface, thanks to a complex geology that takes in all three of the main components of the earth’s crust.

According to Ukraine’s own data, cited by Reuters, the country has deposits of 22 of the 34 minerals identified as critical by the EU, including rare earths such as lanthanum, cerium, neodymium, erbium and yttrium.

Before the outbreak of war with Russia, Ukraine was a key supplier of titanium, producing about 7% of global output in 2019, according to European Commission research. It also claimed 500,000 tons of lithium reserves, and one-fifth of the world’s graphite, a crucial component of nuclear power stations.

However, with Russia controlling about one-fifth of Ukraine’s territory, much of these reserves have been lost. According to estimates by Ukrainian thinktanks cited by Reuters, up to 40% of Ukraine’s metal resources are under occupation. Russian troops also occupy at least two of Ukraine’s lithium deposits, one in Donetsk and another in Zaporizhzhia.

Why does Donald Trump want Ukraine’s critical minerals so much?

There is one big reason Trump is so keen to get his hands on Ukraine’s critical minerals: China. More than ever, the Asian superpower is the world’s factory and that means, wherever in the world critical minerals are torn from the ground, it remains a crucial staging point on the supply chain.

Most of the world’s processing capacity for critical minerals is in China. According to the IEA, China’s share of refining is about 35% for nickel, 50-70% for lithium and cobalt, and nearly 90% for REEs. Its dominance in the latter, especially, is overwhelming. According to USGS data, in 2024 China accounted for almost half the world’s REE reserves.

With Trump effectively instigating a trade war with China with his imposition of steep tariffs on Chinese goods, US access to critical minerals is potentially under threat. As mentioned earlier, the world is being gripped by an unseemly scramble for mineral wealth. They are the building blocks of the economy of the future, and if the US doesn’t get its hands on them, someone else will.

Source: https://www.theguardian.com/world/2025/feb/17/what-are-ukraines-critical-minerals-and-why-does-trump-want-them

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Imports of dairy products to Ukraine increased by 55%, dominated by Polish milk

In January, Ukraine increased imports of dairy products by 55% compared to the same period last year, Infagro news agency reported.

“The market of fresh dairy products began to revive in February. Sales growth is rather slow, there is no positive dynamics that was observed in the same period of previous years. In February, prices began to stabilize, but unfortunately, by this time they had already reached a very high level,” analysts said.

Experts suggested that in order to stimulate sales, it would be right to reduce prices, especially for sour cream and cottage cheese. Therefore, the major players will try to resort to promotional sales with significant price reductions more often in the near future. In any case, there should definitely be no further price increases, they believe.

“Domestic producers should already be concerned about a significant increase in imports of fresh dairy products. In January, they were imported by 55% more than in the same period last year. And if earlier Ukraine mainly imported yogurt and various cheese products, in January several hundred tons of cheap Polish milk were imported. Polish imports of fresh dairy products accounted for 60% of the total volume,” the industry publication emphasized.

Exports of fresh dairy products are also growing, but not at the same rate as imports. The main export market for Ukrainian fresh dairy products remains Moldova, 88%, Infagro summarized.

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Centravis to introduce new super-duplex steel pipes in 2025

Centravis Production Ukraine, a part of Centravis Ltd. holding, is completing the development of a line of pipes made of duplex and super-duplex steel with increased corrosion resistance as part of its research and development division Centravis R&D and plans to offer them to the market in the third quarter of 2025.

“Centravis R&D is finalizing the development of a line of duplex and super duplex steel (Duplex and Super Duplex) designed for superior corrosion resistance and performance characteristics that exceed industry standards. After specialized internal processing, these advanced alloys will offer unparalleled durability for demanding applications,” the first issue of Centravis Seamless Continuity 2025, which highlights the company’s achievements, said.

It is reported that despite the challenging market environment, Centravis achieved double-digit sales growth, exceeding 14 thousand tons in total sales. The company continues to strengthen its leadership in key areas, in particular in the segments of automotive and tool pipes, nuclear energy pipes, and hollow bars. At the same time, Centravis is expanding its product portfolio with solutions for hydrogen and high-pressure applications, developing new nickel alloys for harsh environments, and introducing Balev® steel, an innovative alternative to standard grades.

During the year, Centravis expanded its global presence to 40 countries, including Bosnia and Herzegovina, Denmark, Lithuania, Luxembourg, Sweden, Kuwait and Singapore among the new export destinations.

It is noted that the company prioritizes markets with high growth potential, in particular in North America, Asia Pacific and the Middle East.

It is also reported that Centravis, together with a neighboring production facility, has created an additional power supply line to increase the energy resilience of the enterprise.

“In addition, we have invested in protective structures for electrical transformers, ensuring that they can withstand potential attacks on energy infrastructure,” the company reports on the measures taken to ensure continuous production.

It is also stated that in December 2024, the company received 926 tons of billets from seven suppliers from Ukraine, Europe and Asia as part of the supply of billets and material support. An order has also been placed for additional pipe billets to replenish stocks of alloy 625.

In terms of logistics, the company notes that transit time for deliveries to Europe remains stable. Thus, deliveries to unloading points in Germany usually take up to one week, the maximum delivery time to the final unloading point remains at 10 days, and the same timeframe applies to most destinations in Western Europe.

In addition, the company cooperates with specialized carriers for oversized pipes up to 25 m in length, which allows it to offer more competitive prices and customized logistics solutions.

At the same time, Centravis uses sea freight transportation, continuing to use various European ports.

“In urgent situations, we can use air transportation to any European airport. We also continue our special initiative “Germany and Italy”. The Fast Lane program is designed to ensure that customers receive the steel products they need faster than ever before. This service optimizes production and delivery schedules, providing faster turnaround times for urgent projects in Germany and Italy,” the statement said.

As reported, Centravis increased its production of seamless stainless steel pipes by 12.6% in 2024 compared to 2023, up to 13.7 thousand tons. Centravis exported almost all of its products.

The company plans to increase production to 15 thousand tons in 2025.

“Founded in 2000, Centravis is one of the ten largest producers of seamless stainless steel pipes in the world. Its main production facilities are located in Nikopol (Dnipropetrovska oblast). In 2023, the company opened a branch in Uzhhorod.

Centravis Holding Ltd. was established on the basis of Nikopol Stainless Pipe Plant CJSC, service and trading companies of Production and Commercial Enterprise YUVIS LLC. Its shareholders are members of the Atanasov family. Centravis Ltd. owns 100% of the shares in Centravis Production Ukraine.

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