Business news from Ukraine

Business news from Ukraine

MYRONIVSKY HLIBOPRODUCT STOPS EXPORTS OF POULTRY TO EU

Myronivsky Hliboproduct (MHP), certified in the EU, has stopped exports of poultry to these countries as of January 23, the group has said.
“All MHP production facilities continue to operate as normal and have begun to take all necessary steps according to the export sales diversification strategy approved by the group’s management. MHP continues to adhere to existing quality and biosafety standards and sells its products both on the local market and in the countries, where there is no export ban,” MHP said.
The group said that now the production team of specialists and veterinarians at the MHP facilities is following a clear plan to counteract bird flu and is taking all necessary measures to prevent potential outbreaks at all MHP production sites.
According to the group, at present the state veterinary authorities of Ukraine are in close cooperation with the EU authorities in order to coordinate and take all necessary steps to resolve the issue of opening the market and come to a final agreement on the implementation of detailed regionalization, which has not yet been officially ratified.
MHP said that in 2019 about 30% of the group’s total exports were sent to the EU. In January-September 2019, MHP increased poultry exports by 26%, to 269,670 tonnes. In 2018, exports grew by 30%, to 286,800 tonnes.

, , ,

SCRAP METAL EXPORTS FROM UKRAINE DECREASES BY 87% IN 2019

Ukrainian enterprises in 2019 decreased exports of ferrous scrap metal by 87.2% compared to 2018, to 42,182 tonnes.
According to customs statistics released by the State Fiscal Service of Ukraine, exports of scrap metal in monetary terms fell by 88.9%, to $11.781 million.
In 2019, the country increased imports of scrap metal in kind by 17.2% compared to 2018, to 49,934 tonnes. Imports in monetary terms decreased 6.4%, to $34.254 million.
Imports of scrap metal for the mentioned period arrived mainly from Turkey (62.55% of deliveries in monetary terms), Russia (28.45%), and the Netherlands (2.23%); and major exports were shipped to Turkey (85.88%), the Netherlands (6.27%) and Germany (5.37%).
Ukrainian metal companies in 2019 imported 2,502 tonnes of ferrous products obtained by direct reduction of iron ore (HS code 7203) – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal for $811,000. The HBI was imported from Russia for a total value of $810,000 and China for $1,000.

,

UKRAINE REDUCES COKE EXPORTS IN 2019

Ukraine reduced coke and semi-coke exports by 43.6% year-over-year to 14,421 tonnes in 2019.
According to customs statistics, published by the State Fiscal Service of Ukraine, coke and semi-coke exports were down 59.8% in monetary terms, to $2.715 million.
The majority of deliveries were made to Belarus (23.78% in monetary terms), Moldova (19.48%) and Romania (17.67%).
Imports of coke and semi-coke rose by 4.4%, to 876,938 tonnes in 2019, worth $263.429 million (4.6% up).
The goods were mainly imported from Russia (77% in monetary terms), Poland (12.28%) and the Columbia (4.46%).

,

TOP MANAGERS OF KYIVMETROBUD READY TO COOPERATE WITH LAW ENFORCERS TO BUILD SUBWAY LINE TO VYNOHRADAR

Top managers of PJSC Kyivmetrobud, acting as a contractor general in the project to extend the Syretsko-Pecherska subway line in Kyiv’s subway, is ready to cooperate with law enforcement authorities in order to continue construction works, Director General of PJSC Kyivmetrobud Kostiantyn Saliy said at a press conference at Interfax-Ukraine on Wednesday.
“The owners of Kyivmetrobud unanimously appointed me as director general, so that the previous director, Mr. Metelytsia, could deal with what he is directly doing – the construction of the subway. Political, media and team reorganization issues will be led by the director general,” Saliy said.
According to him, the enterprise will conduct an inventory of material and technical assets, as well as turn to law enforcement authorities regarding the likely embezzlement of funds.
“At the moment, the Prosecutor General’s Office has decided to seize accounts. They are also developing a “recipe” on how to control the distribution of these funds transparently. We believe that it’s good that the Prosecutor General’s Office will be present and observe how the work is being done. The Prosecutor General’s Office will also have access to documents, [will see] where the funds went, what work was done, who signed papers with margins, and will identify the whole range of interested parties,” Saliy added, noting that resolving the situation around the enterprise depends on law enforcement authorities.
As reported with reference to the press service of the Prosecutor General’s Office, the investigating judge of Kyiv’s Pechersky district court seized money in the bank accounts of PJSC Kyivmetrobud and its branches.
“In the future, the Prosecutor General’s Office will appeal to court with a motion to transfer these funds to the ARMA [Asset Recovery and Management Agency] with the possibility of making payments to build the subway under control of the state,” the press service said.
Oleh Tokarev, the head of the Kyivmetrobud’s supervisory board, said at the press conference at Interfax-Ukraine that the reason for the change in the company’s management is the unsatisfactory pace of subway construction towards the Vynohradar area, due to which the launch of the subway line is postponed for a year.
“The amount of the tender is UAH 6 billion. At the end of the year, an advance payment of UAH 2.6 billion was received. During the year that we lived with Director General Vasyl Kobil, UAH 1 billion was spent and work for UAH 150 million was completed but not signed by the customer. “This is only 2.5% of the contract amount. Therefore, on December 17, the supervisory board decided to dismiss Kobil and appoint Oleksandr Metelytsia to the post of director general,” he said.
In turn, Managing Partner of the Ilyashev & Partners law firm Mykhailo Ilyashev said that a “series of myths” about the seizure of the enterprise are being spread and suggested that “the problem was inspired by the former head.”
He also commented on the statement of the Justice Ministry on the reinstatement of the director of PJSC Kyivmetrobud and making appropriate changes to the public register.
“The minister did not annul anything. He did not cancel any decisions of the supervisory board and could not cancel, because this is outside the competence of the Justice Ministry. Most likely, this was about the conclusions made by the commission under the Justice Ministry that the notary who made changes to the register made a technical error. Today, these documents will be submitted to the notary so that the relevant changes are introduced again,” Ilyashev said, emphasizing that the statement of the ministry does not cast doubt on the lawfulness of the decisions of the supervisory board.
As reported, in 2018, Kyiv Metropoliten entered into an agreement on construction work to extend the Syretsko-Pecherska subway line with Kyivmetrobud, which won the tender held on the ProZorro platform.
As part of the first phase of work, it is planned to build two stations, Mostytska and Prospekt Pravdy, at a section of almost 4 km, and branches to the Vynohradar station to extend the line.
It was planned that the work will last until 2021, and its cost will be UAH 5.993 billion.

, , ,

UKRAINE ANNOUNCES ISSUE OF 10-YEAR EUROBONDS

Ukraine has announced the issue of new 10 year eurobonds pegged to euros, the Finance Ministry has reported on its website.
“The new EUR-denominated Reg S/144A senior unsecured notes are offered with a bullet maturity of 10 years,” the ministry said on Wednesday.
FCA/ICMA stabilization applies, the ministry added.
In the middle of June 2019, Ukraine placed seven-year EUR 1 billion eurobonds at 6.75% per annum on the foreign loan market. This was the first sovereign issue of Ukrainian eurobonds in euros over the past 15 years. Demand for it exceeded supply six times.
The Finance Ministry previously announced plans to issue first 2020 eurobonds at the beginning of the year.

UKRAINE INCREASES IMPORTS OF COPPER BY 18%

Ukrainian enterprises increased imports of copper and copper products in terms of money by 17.9% in 2019 compared with similar period of 2018, to $124.36 million.
Exports of copper and copper products decreased 42.9% over the year to $79.668 million, according to customs statistics released by the State Fiscal Service of Ukraine.
In December, copper and copper products were imported to the tune of $9.995 million, and copper exports were estimated at $6.831 million.
In addition, in 2019, Ukraine decreased imports of nickel and products made of it by 11.5%, to $83.27 million (imports in December were estimated at $5.429 million), while imports of aluminum and products made of it increased 9%, to $401.814 million ($32.729 million). Imports of lead and products made of it decreased by 4.6%, to $15.484 million ($1.07 million) and imports of tin and products made of it decreased 18%, to $3.928 million ($0.353 million). Imports of zinc and zinc goods decreased 8.5%, to $75.631 million ($6.805 million).
Exports of aluminum and products made of it decreased 23.8% in 2019, to $100.554 million ($7.422 million in December alone), while shipments of lead abroad decreased 20%, to $27.075 million ($1.98 million). Exports of nickel fell by 44.6%, to $4.505 million ($0.272 million in December).
Zinc exports in 2019 amounted to $0.467 million ($0.001 million in December) compared to $0.363 in 2018. Exports of tin and products made of it in 2019 were estimated at $0.045 million ($0.008 million in December) compared to $0.313 million in 2018.

,