Business news from Ukraine

Business news from Ukraine

EU AND UKRAINE HAVE ENOUGH GAS STOCKS

Vice-President for Energy Union Maroš Šefčovič has said that underground storage filling levels in the European Union (EU) and Ukraine are good.

“A few words on preparations ahead of this winter. I am glad to say that EU underground storage filling levels are very good – currently standing at 96% of full capacity,” Šefčovič said at a press conference in Brussels after the EU-Ukraine-Russia trilateral gas talks.

“Ukraine’s underground storage filling levels are also good – currently at around 19.6 billion cubic meters, almost 4 billion cubic meters above levels in September last year,” he said.

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PRESIDENT OF UKRAINE APPOINTS NEW HEAD OF FOREIGN INTELLIGENCE SERVICE

President of Ukraine Volodymyr Zelensky has dismissed Valeriy Yevdokymov from the post of Deputy Head of the Foreign Intelligence Service (SVR) and appointed him the head of this department. The relevant decrees of September 20 are published on the website of the head of state. Sides in trilateral gas talks agree that future contract to be based on EU law – Šefčovič

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UKRAINE INCREASES IMPORTS OF COKING COAL BY 7%

Coke plants of Ukraine imported 7.19 million tonnes of coking coal and coal concentrate for coking in January-August 2019, which is 7% less than in January-August 2018. According to the Ukrmetallurgprom association, in February 2019, 760,000 tonnes was imported (780,000 tonnes in July 2019).

Ukrainian coal in the amount of 2.26 million was shipped to the plants in January-August 2019, which is 32% more compared with January-August 2018. In August, 430 tonnes were delivered (110% compared with July).

In January-August 2019, Ukrainian coke plants received 9.45 million tonnes of coking coal, which is the same as in January-August 2018. The share of imported coal was 76.1%. In August 2019, 1.19 million tonnes of coking coal was shipped (103% compared with July 2019).

Steel enterprises in Ukraine received 6.16 million tonnes of coke in January-August 2019 (97% compared with January-August 2018), including 5.8 million tonnes of Ukrainian coke and 0.36 million imported coke. The share of imported coke of total supplies was 5.8%.

In August 2019, steel enterprises received 753,000 tonnes of coke (106% compared with July), including 733,000 tonnes of Ukrainian coke and 20,000 tonnes of imported coke.

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EBRD AND EIB READY TO PROVIDE EUR 900 MLN LOAN TO UKRAINE FOR ROADS IN 2020

The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are ready to provide a targeted loan in the amount of EUR 900 million to Ukraine to develop the road sector, acting Head of the State Automobile Roads Agency of Ukraine (Ukravtodor) Slawomir Nowak has said. “I have already held negotiations with the EBRD and the EIB. A new credit line will be opened for Ukraine in the amount of EUR 900 million,” he said.

According to Nowak, the negotiations were very difficult, but trust in the state and its managers ultimately allowed for a positive solution.

“Within the framework of this new credit line, we will also offer to finance the Weight-in-Motion system at the next stage,” the acting chief of Ukravtodor said.

Nowak also said that he recommended that Minister of Infrastructure Vladyslav Krykliy eararks funds from the Road Fund allocated for road safety to the installation of the Weight-in-Motion (WiM) system.

As reported, Ukravtodor launched in test mode the first two WiM points on the Kyiv-Chop highway.

On September 11, the Rada adopted at second reading a bill allowing automatic recording of violations during weight monitoring on roads.

Weight-in-Motion (WiM) systems will fulfill a function of pre-selection for inspectors of the State Service of Ukraine for Transport Safety until a law allowing automatic weight and weight control on roads is passed.

Ukravtodor previously planned in October to launch the first six WiM points at the entrances to Kyiv. In general, it is planned to install up to 100 WiM points.

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METAL COMPANIES OF UKRAINE PLAN TO BOOST PRODUCTION BY 306%

Metal companies of Ukraine plan in October 2019 to boost steel smelting by 5.4% compared with the forecast for September, to 1.95 million tonnes from 1.85 million tonnes. According to the Ukrmetallurgprom association, the plan for October foresees growth in production of pig iron by 5.7%, to 1.85 million tonnes from 1.75 million tonnes, and growth in production of rolled steel by 3% compared with the forecast for September, to 1.7 million tonnes from 1.65 million tonnes.

The association said that 42.44 million tonnes of iron ore concentrate were produced in January-August (106% compared to the same period in 2018), 21.11 million tonnes of sinter (102%), 14.76 million tonnes of pellets (103%), 6.87 million tonnes of gross coke (96%), 13.73 million tonnes of pig iron (101%), 14.66 million tonnes of steel (105%), 12.52 million tonnes of rolled products (102%), 740,000 tonnes of pipe products (101%).

In August, 1.83 million tonnes of pig iron were produced (111% compared to July 2019), 1.94 million tonnes of steel (109%), 1.54 million tonnes of rolled metal (102%).

As of September 10, 2019, of the main existing production facilities in operation are: 18 of 21 blast furnaces, eight of nine open-hearth furnaces, 14 of 16 converters, 5 of 15 electric furnaces and 15 of 15 continuous casting machines (CCM).

In August 2019, about 2.4 million tonnes of iron ore raw materials were delivered to metal enterprises (100% compared to July 2019). There was no import of iron ore in August.

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INTERPIPE TUBE AND WHEEL COMPANY PLANS TO ENTER BAHRAIN MARKET

Interpipe tube and wheel company has been prequalified by Tatweer Petroleum and has been included in the list of approved linear pipe suppliers for the Bahrain market.

“We have been prequalified by Tatweer Petroleum due to our experience in the region. Earlier, Interpipe completed a number of orders for the largest Middle East shipbuilding company ASRY (Arab Shipbuilding & Repair Yard). Now we plan to increase our presence in the pipe market for the oil and gas industry in Bahrain,” the director of the pipe division of the group, Vera Smal, said.

At the same time, the report does not specify the volume of pipe deliveries within the framework of completed orders, as well as the expected volumes of product sales to this region.

Interpipe is a Ukrainian industrial company, a manufacturer of steel pipes and railway wheels. In 2018, Interpipe sold 857,000 tonnes of finished products, including 189,000 tonnes of railway products.

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