Business news from Ukraine

Business news from Ukraine

STATE-RUN UKRAVTODOR INSTALLS NORWEGIAN SENSORS AT WIM COMPLEX

The State Automobile Roads Agency of Ukraine (Ukravtodor) installed high-precision sensors of the Q-Free Norwegian company at the site of the Weigh-in-Motion (WiM) complex on the M-02 Kipti-Hlukhiv-Bachivsk road in Chernihiv region.
The Ukravtodor press service told Interfax-Ukraine that the equipment of the IRD company (Canada) was used on the previously installed WiM complexes.
“This is the first experience of Ukrainian specialists working with Norwegian equipment, so the installation took place under surveillance of European supervisors. Sensor systems from the same manufacturer will also be installed at the Weigh-in-Motion facility in Mykolaiv region, on the N-24 Blahovischenske-Mykolaiv road,” Ukravtodor said. In 2020, the State Automobile Roads Agency is scaling a network of WiM sites in all regions of the country: in November, a facility was put into operation in Poltava region on the M-22 Poltava-Oleksandria road. At the second object in Poltava region on the N-31 Dnipro-Tsarychanka-Kobeliaky-Reshetylivka road, the installation of the frame has already been finished, and the hanging of cameras and scanners is starting.
On the M-25 Solomonove-Velyka Dobron-Yanoshi checkpoint in Zakarpattia region is also preparing for the installation of all elements of the WiM system. At the end of 2019, within Ukraine’s cooperation with the International Bank for Reconstruction and Development (the road sector development project), Ukravtodor launched six WiM complexes at the entrances to Kyiv.
The Weigh-in-Motion information collection and analysis system works in real time, recording the weight, dimensions, license plates and speed of vehicles.
Ukrtransbezpeka can use data of WiM sites for setting fines in the “preselection” mode. For automatic processing of fines, it is necessary to improve legislation.
By the end of 2020, the number of WiM sites is planned to be increased to 20 ones throughout Ukraine, and in 2021, according to the plans of Ukravtodor, their number should triple.

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UKRAINE RAISES POULTRY EXPORT BY 5%

Ukraine in January-November 2020 increased export of poultry by 5.1% compared to the same period in 2019, to 394,240 tonnes, the State Customs Service has said.
According to its data, in monetary terms, export of these products decreased by 3.6%, to $512.33 million.
At the same time, import of poultry for the 11 months of this year decreased by 17.4%, to 100,030 tonnes, in monetary terms by 13.1%, to $41.88 million.
Export of pork, according to the State Customs Service, rose by 30.2%, to 2,670 tonnes. These products were delivered for $5.8 million, which is 23.9% more than in January-November 2019. Pork import for the 11 months of 2020 increased by 22.6%, to 26,880 tonnes, in monetary terms by 25.6%, to $52.54 million.
In addition, during the specified period, Ukraine reduced export of eggs by 20.8%, to 102,130 tonnes, in monetary terms by 11.7%, to $92.09 million. Egg imports fell by 1.9 times, to 2,670 tonnes, in money terms by 2 times, to $9.58 million.

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EUR 100 MLN LOAN FROM EIB TO BE USED TO REPAIR THREE ROADS IN LUHANSK REGION

A loan from the European Investment Bank (EIB) in the amount of EUR 100 million will be directed to overhaul of 183 km of roads in Luhansk region, the State Agency for Highways of Ukraine (Ukravtodor) reported.
Funds are provided for capital and current average repairs of the sections:
– route N-26 Chuhuiv – Milove: it covers more than a hundred kilometers, which are planned to be repaired for borrowed funds, because this road connects Luhansk and Kharkiv regions;
– the road P-66 checkpoint “Demyno-Oleksandrivka” – Svatove – Lysychansk – Luhansk, which starts from the border with Russia, a 35 km section has already been repaired, the road is planned to be fully restored;
– road T-13-02 checkpoint “Taniushivka” – Starobilsk – Bakhmut, where work will begin at once on two sections, with a total length of 42 km.
“In 2020, Ukravtodor completed a record amount of road work in Luhansk region: almost 200 km were restored at the beginning of December, and work continues for another 100 km. For comparison, over the past 10 years, only 130 km of roads were renewed. This is one of the most low indicators in the country,” said head of Ukravtodor Oleksandr Kubrakov.
According to him, in 2021, thanks to the funds of international partners, Ukravtodor will restore the transport “triangle” along the Severodonetsk-Starobilsk-Svatove route with access to Troyitske in the north of the region, and in general, thanks to the Big Construction program, a modern road network in the region.
Earlier, the World Bank for Reconstruction and Development has already provided co-financing for this project in the amount of $65 million.

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UKRAINE REDUCES COKE OUTPUT BY 5%

Ukrainian coke plants (CCP) in January-November of this year reduced the production of metallurgical coke with 6% moisture content by 5.1% compared to the same period last year – to 8.817 million tonnes.
Some 811,000 tonnes of coke were produced in November, the association of coke-chemical enterprises Ukrkoks (Dnipro) told Interfax-Ukraine.
Director General of Ukrkoks Anatoliy Starovoit noted that in November coke production was approximately at the level of the previous three months. “Enterprises operate at the level of orders, the lag from last year’s indicators remains,” the agency’s interlocutor stated.
Answering the question about the supply of coal to the coke plant, he stated that over 11 months of 2020, 27% of domestically produced coal and 73% of imports were supplied to the enterprises.
“About 4.6 million tonnes were imported from the Russian Federation, from the USA-Canada and other countries – 3.3 million tonnes, Ukrainian coal was supplied in the amount of 3.25 million tonnes,” Starovoit said.
According to the results of 11 months of 2020, according to operational data, in particular, the Avdiyivsky Coke and Chemical Plant reduced coke output by 10.4% compared to the same period in 2019 – to 2.676 million tonnes (229,000 tonnes were produced in November), Azovstal reduced by 0.6% – up to 1.232 million tonnes (113,000 tonnes), Dniprovsky Coke Chemical Plant increased by 5.1%, up to 539,000 tonnes (49,000 tonnes), Dniprokoks reduced by 4.2% – to 475,000 tonnes (48,000 tonnes), Zaporizhkoks increased by 3.5% – to 475,000 tonnes (78,000 tonnes), Kharkiv Coke Plant reduced production by 88.6% – to 4,000 tonnes and is idle. Coke production at ArcelorMittal Kryvyi Rih fell 7.3% to 2.399 million tonnes (237,000 tonnes), while at Yuzhkoks (Pivdenkoks) it increased by 5.8% to 599,000 tonnes (58,000 tonnes).

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF DECEMBER 11

Official rates of banking metals from national bank as of December 11

One troy ounce=31.10 grams

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NATIONAL BANK OF UKRAINE RETAINS REFINANCING RATE

The Board of the National Bank of Ukraine has decided to keep its key policy rate at 6% per annum.
The NBU expects inflation, which increased to 3.8% in November, into the target corridor of 5% +/- 1 pp at the end of the year and further growth in consumer prices in the following months, the central bank said on its website on Thursday.
According to the NBU estimates, the quarantine restrictions announced by the government for January 2021 will not have much influence on economic activity, consumer demand, and thus on inflation.
At the same time, balanced monetary and fiscal policies will not only contribute to the resumption of economic growth, but also will maintain inflation at moderate levels.
“Cooperation with the IMF remains fundamental for the recovery of Ukraine’s economy. Financing provided by the IMF and other international partners is crucial for the planned budgetary spending. Without this support, the fiscal impulse required to revive the economy will be much smaller, and the recovery will take longer,” the message reads.
Ukraine’s fulfillment of its obligations under agreements with international lenders will unblock next tranches of official financing. This will reduce interest rates on state borrowing on the domestic and foreign markets.
The NBU added that a rise in coronavirus cases and the imposition of stricter quarantine measures to overcome the pandemic remain the key risks to macrofinancial stability. This could result in gloomier consumer sentiment and subdued domestic demand, which would depress economic activity and restrain inflation.
It is indicated that if a negative pandemic scenario is implemented, which will restrain consumer demand and slow down economic growth in general, the National Bank will be able to provide the economy with an additional monetary impulse.
“Conversely, the materialization of the adverse scenario will restrain consumer demand, slowing overall economic growth. Under such conditions, inflationary pressures will be weaker, enabling the NBU to give the economy additional monetary impetus for growth,” the release says.
A summary of the discussion by Monetary Policy Committee members that preceded the approval of this decision will be published on 21 December 2020. The next monetary policy meeting of the NBU Board will be held on 21 January 2021, according to the confirmed and published schedule, the regulator reminds.

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