The Verkhovna Rada adopted bill No. 4416-1 on re-launch of the mechanism of industrial parks, which provides incentives for residents of such parks. As the agency’s correspondent reports, 260 MPs voted for the bill at the first reading with the required 226 votes.
The bill provides for such incentives for residents in industrial parks as compensation for the share of investments from 15% to 70% of capital expenditures in the first three years depending on the volume of the company’s exports, compensation for the share of interest payments on a loan from 30% to 70% depending on the volume of exports, as well as compensation in the amount of 50% of the cost of connecting to the power grids.
In addition, the bill defines the objects that can be located in the industrial park. For example, in the industrial park it is proposed to permit the placement of offices of a management company, financial institutions, marketing and advertising objects, institutions of higher and vocational education, business campuses, accelerators, foundations, resident companies, and laboratories for the development of innovative technologies. The document also proposes to allow the deployment of fire departments, production and engineering structures and other facilities there.
The Cabinet of Ministers of Ukraine has allocated an additional UAH 6.5 billion for the purchase of vaccines against COVID-19, the Ministry of Finance said.
“On April 14, a government resolution was adopted on an additional direction from the state budget of funds in the amount of UAH 6.5 billion for the purchase of vaccines against acute respiratory disease COVID-19. This decision was agreed on the same day by the Verkhovna Rada budget committee,” the statement said.
As the ministry noted, taking into account the corresponding expenses in the past year, the total amount of state budget expenditures for the purchase of vaccines is UAH 11.4 billion.
The Ministry of Finance also indicated that it is planned to vaccinate 24 million people, or 70% of the adult population, by the end of 2021. However, this requires almost 6 million vaccinations every month from May to the end of the year (on average, over 250,000 vaccinations per day), which the Ministry of Finance considers a challenge for the Ministry of Health in the context of timely procurement and delivery to Ukraine, as well as organization of vaccination.
“For this, it is necessary to ensure the receipt of almost 48 million doses of vaccines, taking into account 8 million doses that should be received free of charge under the COVAX mechanism,” the ministry said.
The first batch of Pfizer/BioNTech vaccine in the amount of 117,000 doses has arrived in Ukraine on Friday as part of the global COVAX initiative, according to a COVAX press release.
According to the report, the Pfizer/BioNTech vaccine will be used primarily to vaccinate personnel and residents of nursing homes, employees of the State Emergency Service and border guards
Global steel demand in 2021 will increase by 5.8% compared to the previous year, to 1.874 billion tonnes after a decrease by 0.2% in 2020, to 1.772 billion tonnes, according to the World Steel Association (Worldsteel).
According to the association’s short range outlook released on Thursday, steel demand will see further growth of 2.7% in 2022 compared to 2021 and reach 1.925 billion tonnes.
The current forecast assumes that the ongoing second or third waves of infections will stabilise in the second quarter and that steady progress on vaccinations will be made, allowing a gradual return to normality in major steel-using countries.
Commenting on the outlook, Mr Al Remeithi, the Chairman of the Worldsteel Economics Committee, said, despite the disastrous impact of the pandemic on lives and livelihoods, the global steel industry was fortunate enough to end 2020 with only a minor contraction in steel demand.
“This was due to a surprisingly robust recovery in China, with growth of 9.1%. In the rest of the world steel demand contracted by 10%. In the coming years, steel demand will recover firmly, both in the developed and developing economies, supported by pent-up demand and governments’ recovery programmes. However, for most developed economies a return to the pre-pandemic levels of steel demand will take a few years,” the Worldsteel’s press release said.
According to the association, in China, steel demand is expected to grow by 3% in 2021, to 1.025 billion tonnes, and in 2022 by another 1%, to 1.035 billion tonnes.
Steel demand in the CIS countries in 2021 will increase by 3.4%, to 60.2 million tonnes, and in 2022 it will increase by 3.2%, to 62.1 million tonnes.
Steel demand in the EU (27) and the United Kingdom this year will increase by 10.2%, to 154.9 million tonnes, and in 2022 it will increase by 4.8%, to 162.4 million tonnes.
The USMCA countries will increase consumption this year by 7.6%, to 122.6 million tonnes, and in 2022 by another 4.6%, to 128.3 million tonnes. Central and South America will see 10.6% growth this year and 4.2% growth next year, to 42.7 million tonnes and 44.5 million tonnes, respectively.
Africa will increase demand by 8.3%, to 38.6 million tonnes this year, and will see an increase of 5.9%, to 40.9 million tonnes in 2022, the Middle East in 2021 is expected to increase consumption by 5.4%, to 48.5 million tonnes, and in 2022 by 3.3%, to 50.1 million tonnes.
The countries of Asia and Oceania in 2021 will increase demand by 4.7%, to 1.364 billion tonnes, and in 2022 by 2%, to 1.392 billion tonnes.
In the outlook for countries, in particular, it is reported that India in 2021 is expected to increase steel consumption by 19.8% compared to 2020, to 106.1 million tonnes, in 2022 by 5.9%, to 112.3 million tonnes, the United States will increase demand by 8.1%, to 86.5 million tonnes, and in 2022 by 4.3%, to 90.2 million tonnes. Japan this year will increase demand by 6.5%, to 56 million tonnes, and in 2022 by another 5%, to 58.8 million tonnes.
South Korea in 2021 will increase steel consumption by 5.2%, to 51.5 million tonnes, and in 2022 by 2.5%, to 52.8 million tonnes. The Russian Federation will increase demand by 3% in 2021 and also by 3% in 2022, to 43.8 million tonnes and 45.1 million tonnes, respectively. Germany this year will increase demand by 9.3%, and next year by 5.3%, to 34 million tonnes and 35.8 million tonnes, respectively. Turkey in 2021 will increase demand by 18.7%, in 2022 by 5.7%, to 35 million tonnes and 37 million tonnes, and Vietnam will demonstrate growth by 5% and by 7.6%, to 24.5 million tonnes and 26.3 million tonnes, respectively. Mexico will increase demand in 2021 by 7.5%, to 23.4 million tonnes, and in 2022 by 5.5%, to 24.6 million tonnes.
Ukrainian business has improved expectations of a slowdown in inflation over the next 12 months to 7.7% from 7.9% and the weakening of the hryvnia exchange rate to UAH 29.15/$1 from UAH 29.68/$1.
According to the results of a regular quarterly survey of business expectations of the country’s enterprises, posted on the NBU website, the business activity expectations index of enterprises increased compared to the previous quarter to 108.4% from 99.6%, returning to positive values.
According to the central bank, the improvement was mainly due to high estimates of the total sales of domestic products, the financial and economic condition of enterprises, investment costs for machinery, equipment and inventory, as well as investment costs for construction.
The survey shows that the respondents of all types of economic activity expect an improvement in their financial condition, with the exception of energy and water supply companies, which believe that their condition will not change in the next 12 months.
According to the report, the business expects an increase in product sales, including on the foreign market. Optimistic sentiments prevail in all sectors of the economy, except for energy and water supply.
For the sixth quarter in a row, the business is set to cut its employees, according to the survey. At the same time, respondents from trade and mining enterprises expect an increase in the number of their employees.
At the same time, the majority of companies (62.9%) plan to raise salaries for their employees over the next 12 months, and only 2% of companies are ready to cut salaries.
The survey shows that the share of companies planning to raise loans in Ukraine over the next 12 months dropped to 39.3% (in the previous quarter – 41.7%). The overwhelming majority of borrowers (78.7%) prefer to raise funds in the national currency. At the same time, the share of companies planning to take out loans abroad increased to 8.7% from 6.9%. It is indicated that high rates (55.9% of respondents) and excessive requirements for collateral (40.9%) were named the main obstacles to attracting new loans.
Some 687 enterprises from 22 regions of the country took part in the survey of business expectations. Among the respondents, 18.3% are processing industry companies, 16% – from wholesale trade, 15% – agriculture, 13.2% – transport and communications, 6.8% – mining industry, 4.8% – electricity and water supply, 4.5% – retail trade, 3.1% – construction, 18.2% – enterprises of other industries.
The Foreign Ministry of Ukraine and the State Service on Food Safety and Consumer Protection have agreed with the relevant authority in Argentina on the form of an export veterinary certificate for the supply of milk and dairy products to this country, the service said in a press release.
“We are making every effort to provide Ukrainian companies with new opportunities for doing business and exporting their goods. Thanks to this work, Ukrainian producers have gained additional access to the large Argentinean market, where more than 40 million people live,” Ukrainian Foreign Minister Dmytro Kuleba said.
According to the service, in order to export to Argentina, Ukrainian dairy producers must be accredited by the National Service of Agri-Food Health and Quality of Argentina (SENASA). The Argentine side allowed, in connection with the COVID-19 pandemic, to conduct accreditation of production facilities of Ukrainian enterprises remotely, followed by a physical inspection of production facilities after the normalization of the epidemic situation and the restoration of international air traffic.
The head of the agency, Vladyslava Mahaletska, specified that the opening of the Argentinean market for Ukrainian dairy products is an important step towards strengthening trade ties between the countries. She recalled that the form of veterinary certificates for the export of collagen and gelatin has already been agreed with Argentina, while Argentine poultry, fish and seafood, fresh beef will be imported to Ukraine.
“Opening the market for the export of dairy products will expand our cooperation and create new opportunities for Ukrainian producers,” she said.
