Vitagro Group of Companies intends to reach the planned capacity of biomethane plant of 3 million cubic meters of biomethane per year in 2025 and in case of successful export is ready to build two more plants to increase production and export, the company’s development and investment director Sergiy Savchuk told Forbes Ukraina.
“We have several projects in the pipeline. Construction of one plant in Khmelnitsky region and another in Rivne region. However, we have not started construction yet, we have to evaluate the results of exports. If we are satisfied, we will quickly build new projects. The total capacity of the two new plants is about 8 million cubic meters of biomethane per year,” he said.
According to his information, the group of companies is considering the option of attracting foreign investors in capital.
He added that now 20 tons of cattle manure or 70-80 tons of slurry are used to produce 1000 cubic meters of biomethane at the plant in Khmelnitsky region.
Vitagro Group has its own cows and bulls – 5700 heads, pigs – 106 thousand heads, manure from which is the raw material for biomethane production. The plant has 20 employees, and 50 specialists were involved in the construction of the plant.
Savchuk suggested that EUR6 mln invested in the construction of the plant in Khmelnitsky region will pay off in five years, but everything will depend on the gas price. If the market continues to grow, EUR6 mln will be recouped faster. Now the cost of biomethane in the company is more than EUR500 per 1000 cubic meters. At the same time, the EU natural gas price is around EUR600 per 1,000 cubic meters as of mid-February 2025.
“Due to the high gas prices in the EU, biomethane is a premium market. We have seen the prospects. Another reason is risk diversification. Our own generation allows us to ensure the group’s energy independence, given the Russian Federation’s energy strikes,” emphasized the company’s development and investment director.
Preparing for the first export delivery of biomethane took the company’s team 5 months of work. Vitagro noted that the whole process of exporting biomethane was a challenge for them: from connecting to the grid, which took several months, injecting the biomethane, quality control to customs clearance and delivery to the border.
Ukrainian enterprises have worsened production indicators and their plans for the long term have slightly deteriorated, but in January 87.8% of respondents expected that the end of the war would improve business, these are the results of a monthly survey of enterprises by the Institute for Economic Research and Policy Advice (IEI).
“This proves that the war is the main factor that affects businesses, although they have adapted,” IEI quoted IEI executive director Oksana Kuzyakiv in a statement.
It is noted that the second factor that can help business to develop is the stability or even reduction of taxes (47%). “And if we add to them 21.7% of those who want taxes at least not to increase, we see that this is such a reaction of business to the increase in taxes, in particular military levy on employees and FLP,” – said Oksana Kuzyakiv.
On the third place of “wishes” is the reservation of workers (23.9%). Although fewer businesses expect the solution to this issue than during the previous survey in August (31.9%). Among the leaders of expectations are deregulation and affordable credit.
At the same time, de-occupation of Ukraine’s territories is almost not mentioned by businesses (14.7%) as a factor that can improve their performance.
The Business Activity Recovery Index (BARI) deteriorated significantly in January to 0.09 from 0.16 in December. The IED believes that this decline occurred in all four business groups, including large companies that were still showing optimism back in December.
The level of business uncertainty did not change significantly over the month. At the same time, the majority of businesses – 81.5% – do not expect significant changes in their activities in the 2-year perspective.
The utilization of production capacities increased in January. The share of enterprises operating at almost full capacity (from 75% to 99%) increased from 42% in December to 54% in January. This was mainly due to a decrease in the share of those operating at 50-74% of capacity – from 26% to 17%.
It is noted that production activity has slightly deteriorated: the share of entrepreneurs who increased the volume of production decreased from 25.2% to 21.3%. In the perspective of the next three months, the share of those who plan to increase production increased from 29.6% to 32.8%. Similar trends were observed in exports. The share of those who will increase exports rose from 35% to 39.4%, while those who plan to decrease fell from 4.9% to 3.6%.
Worries about the difficulty of finding skilled workers continue to diminish – 49.9% of businesses complained of this in January after 51.6% in December, while 34.2% of respondents had problems hiring unskilled staff.
Labor shortages as a result of the draft and/or employee departures remain a major obstacle to doing business during wartime. At the same time, however, a record 65% of businesses were concerned about this problem in January. This surpassed the previous high of 64% reached in November.
In second place remains “dangerous to work” (52%), but the number of businessmen who complained about interruptions in water, electricity and heat supply has decreased (51%).
In the January stage of the survey 478 enterprises from 21 regions of Ukraine took part.
Budshlyakhmash Group of Companies has officially become the exclusive distributor of JAC commercial vehicles in Ukraine, the company announced on its Facebook page.
“The sales policy of JAC is similar to European manufacturers, when there is a single representative in the region responsible for promotion, brand development and high level of technical and service support for customers,” Yuriy Basyuk, head of marketing department, is quoted in the message.
He emphasized that all JAC products supplied to Ukraine are certified in the EU, which significantly distinguishes the JAC brand from most other manufacturers from the PRC
“Our cooperation with JAC began two years ago, and we are pleased that the results of joint work allowed both parties from 2025 to move to a new format of cooperation, distribution of development of new models for the Ukrainian market, service support and activation. In addition, for the first time in many years of work in the Ukrainian market, JAC has granted exclusive rights for product distribution,” he added.
According to the group of companies, for Ukrainian business this means guaranteed deliveries directly from the JAC Motors factory, official warranty and post-warranty service, original spare parts without delays and unnecessary markups and an expanded dealer network in Ukraine.
“Budshlyakhmash” also informs that representatives of the company visited the production facilities of Chinese engineering giants – JAC and Zoomlion plants.
“An important part of the negotiations was the issue of localization of medium and especially heavy class of JAC vehicles in Ukraine,” the report says.
Budshlyakhmash Group of Companies is the official representative in Ukraine of domestic and foreign manufacturers of special, road and municipal equipment (brands JAC, Scania, Renault, MAN, Pronar, Daewoo, Spetsbudmash).
JAC Motors is one of the world’s largest manufacturers of commercial vehicles. In 2020, a joint venture between JAC and Volkswagen was established.
The Ukrainian government delegation to Saudi Arabia is preparing for President Volodymyr Zelenskyy’s visit to the country, particularly in the economic sphere, with large-scale public-private partnership projects and “attractive privatization opportunities worth half a billion dollars” already presented, First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko said.
“We started the working visit of the Ukrainian government delegation to Saudi Arabia with a meeting with almost a hundred local entrepreneurs (…) We presented projects in energy, agriculture, and infrastructure. As well as large-scale public-private partnership projects and attractive privatization opportunities totaling half a billion dollars in investment,” she wrote on her Facebook page on Sunday.
According to her, “dozens of meetings will be held in the coming days to prepare President Volodymyr Zelenskyy’s visit to Saudi Arabia.” In particular, important economic agreements with the countries of the region are being prepared for signing.
According to her, “dozens of meetings will be held in the coming days to prepare President Volodymyr Zelenskyy’s visit to Saudi Arabia.” In particular, important economic agreements with the countries of the region are being prepared for signing.
Svyrydenko noted that Saudi Arabia is now actively supporting Ukraine. They have allocated $500 million to support Ukraine’s recovery. “Now we can illustrate the call to invest in Ukraine without waiting for the end of the war with very specific businesses from Saudi Arabia. For example, FAS Energy, which invested in renewable energy in Ukraine. Or SALIC, which last year in September became a co-owner of one of the largest Ukrainian agricultural holdings, MHP, acquiring a 12.6% stake in the company. I am immensely grateful to all those companies that show leadership and that it is possible and necessary to invest in Ukraine now,” Svyrydenko said.
“I am convinced that we have prospects for even more active attraction of investments from the Middle East. Today, we have seen significant interest primarily in infrastructure projects, energy projects, proposals in the field of innovation, agribusiness, especially fertilizer production, where Saudi Arabia has expertise,” the Deputy Prime Minister added.
According to her, exports to Saudi Arabia increased from $291 million in 2023 to $368 million in 2024. “And we expect growth this year as well. We have not yet reached pre-war levels, but I hope we can achieve this, and such business forums will be worth it,” she emphasized.
PU “UKRSADVINPROM” together with its members traditionally took part in the international exhibition FRUIT LOGISTICA, which takes place in Berlin. This is one of the most important events for the global fruit and vegetable market, which brings together producers, suppliers, processors, logistics companies and retailers from all over the world.
The exhibition covers the key areas of the agricultural sector:
Fresh Fruit and Vegetable Production – advanced technologies for growing, maintaining quality and marketing products.
Innovations and digital technologies – process automation, modern monitoring and management systems.
Logistics and transportation – efficient solutions to optimize the supply of products.
Sustainable development – ecological farming, economical use of resources.
This year’s stand, organized in cooperation with ITC and UKRSADVINPROM, was presented by six leading Ukrainian companies:
Eco Berry Farm – growing, processing and freezing berries and forest products.
Sady Dnipra LLC (UApple) is a producer of premium apples exported to Europe, Asia and the Middle East.
Gadz Farm is a large-scale producer of apples, pears, and plums with strong export capabilities.
USPA is an association representing the interests of Ukrainian agricultural producers at the international level.
VITAGRO Agro Holding is one of the TOP-5 largest orchards in Ukraine, producing up to 15,000 tons of apples annually.
BERRY HUB LLC is a producer and marketer of fresh and frozen berries.
Why is participation in FRUIT LOGISTICA important for Ukraine?
Expansion of sales markets – establishing partnerships with international distributors and retailers.
Attracting investors – meetings with leading players in the agricultural sector and investors.
Promotion of Ukrainian products – strengthening the image of Ukraine as a reliable exporter of quality agricultural products.
By participating in FRUIT LOGISTICA, Ukrainian companies get new opportunities for development and integration into global trade networks, which further strengthens Ukraine’s position in the global agricultural market.
February 2025 was a month that reflected the current challenges and prospects for the Ukrainian and global economies. Geopolitical tensions, inflationary pressures, and global changes in trade flows continue to affect economic development. Maksim Urakin, Founder of the Experts Club Information and Analytical Center, PhD in Economics, noted that Ukraine is showing signs of gradual economic recovery despite the difficult internal and external conditions.
Ukraine’s economy in February 2025
According to the National Bank, real GDP growth in January 2025 was 3.4% compared to the same period in 2024. The main drivers of growth were:
– Agriculture: the recovery in exports and the expansion of sales markets provided an increase of 6.5%.
– IT sector: IT services remained a key source of foreign exchange earnings, showing an increase of 10.4%.
– Construction: thanks to large-scale investments in infrastructure and international support, the sector grew by 4.2%.
“Amid the ongoing war and global turmoil, Ukraine’s economy is showing both signs of recovery and certain problems that need attention,” said Maksym Urakin, founder of Experts Club.
In January 2025, annual inflation was 12.9%, which is higher than in 2024 (12%). This is due to rising food and energy prices. At the same time, the hryvnia exchange rate remains relatively stable, fluctuating between UAH 39-40 per dollar, thanks to the support of international partners and export earnings.
“The decline in inflation is a positive signal for the economy, but an important task remains to increase the level of household incomes to compensate for the impact of past inflationary shocks,” Urakin emphasized.
In January 2025, Ukraine’s exports increased to $3.1 billion, driven by shipments of products and metals. However, imports also increased, mainly due to energy and equipment. The negative balance of foreign trade remains.
“Export dynamics show that Ukrainian companies are actively looking for new markets. Strengthening competitiveness and improving logistics could be the key to reducing the trade deficit,” Urakin said.
In January 2025, the state budget revenues of Ukraine amounted to UAH 282.8 billion, including UAH 128.2 billion for the general fund, which is 83.4% and 10.5% more than in January 2024, respectively. The main role in this was played by revenues from VAT and excise taxes, as well as international assistance. Ukraine’s international reserves increased to $40.1 billion, one of the highest levels in recent years.
“Financial support from international partners remains an important factor in macroeconomic stability. However, it is important to lay the foundation for independent economic growth now,” Urakin emphasized.
Global economic situation in February 2025
According to the IMF, global GDP is expected to grow by 2.9% in 2025, slightly lower than in 2024 (3%). The main reasons for the slowdown are the high cost of borrowing, uncertainty in the financial markets and a decline in global demand.
THE UNITED STATES: The economy is showing moderate growth at 2.3%, driven by robust domestic demand and investment in innovative industries.
European Union: The growth rate remains low at 1.1% due to the ongoing energy crisis and problems in the industry.
China: Growth slowed to 4.5%, due to the real estate crisis and a decline in exports.
India: Stable growth of 6.8%, remaining one of the fastest growing economies.
“The global economy is in a state of fragile balance. The main risks are related to geopolitical instability and high interest rates. However, countries with diversified economies are better able to cope with these challenges,” – Mr. Urakin said.
Oil: Oil prices in February 2025 are around $83 per barrel, having stabilized after the spikes of late 2024.
Gas: The European market continues to be under pressure, with an average gas price of €67 per MWh, due to persistent supply shortages.
Metals: Demand for steel and aluminum has declined, putting pressure on the export capacity of developing countries.
Central banks in major economies are keeping interest rates high to fight inflation. For example, the US Federal Reserve keeps its interest rate at 5.5%, which limits access to cheap capital but helps to reduce inflation.
Ukraine’s economy in February 2025 shows signs of stability and growth, but risks associated with inflation, foreign trade deficit, and dependence on international aid remain. The global economy is slowing down, which creates additional challenges for emerging market countries.
“It is important for Ukraine to continue attracting foreign investment, developing its export potential and strengthening its domestic market. Only systemic reforms and integration into the global economy will allow us to overcome the current difficulties and create the basis for long-term growth,” summarized Maksim Urakin.
You can learn more about current trends in the global economy in the video on the Experts Club YouTube channel: https://www.youtube.com/watch?v=LT0sE3ymMnQ
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