Ukrainian enterprises increased imports of copper and copper products in terms of money by 51.8% in January 2019 compared with January 2018, to $8.22 million. Exports of copper and copper products decreased 57.5% over the year to $6.278 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 $10,327 million, and copper exports were estimated at $7.130 million.
In addition, Ukraine in January 2019 boosted imports of nickel and products made of it by 55.9%, to $9.235 million (imports in December were estimated at $4.566 million), while imports of aluminum and products made of it fell by 2.8%, to $23.378 million ($33.745 million). Imports of, lead and products made of it rose by 5.1-fold, to $1.074 million ($1.195 million) and imports of zinc and zinc goods decreased 67.8%, to $112,000 ($378,000). At the same time, imports of tin and products made of it decreased 46.3%, to $3.674 million ($4.302 million).
Exports of aluminum and products made of it decreased 34.1% in January 2019, to $6.623 million ($7.902 million in December alone), while shipments of lead abroad decreased 62.4%, to $1.395 million ($1.773 million). Exports of nickel fell by 4.4%, to $175,000 ($541,000 in December).
Zinc exports in January 2019 amounted to $39,000 (some $28,000 in December 2018) compared to $7,000 in January 2018.
Exports of tin and products made of it in January 2019 were estimated at $3,000 (some $1,000 in December) compared to no exports in January 2018.
Production of vehicles in Ukraine in January 2019 grew by 56.7% compared with January 2018, to 893 vehicles, and the growth pace is linked to the assembly of Skoda passenger cars by Eurocar Plant, which grew by 73%, to 828 cars, the Ukrautoprom association has reported.
Eurocar improved its production 4.2-fold compared with December 2018.
The association said that today Eurocar is the only enterprise in Ukraine where the production of passenger cars continues.
At the same time, the production of commercial vehicles fell by more than 63%: only five vehicles were manufactured in a month (excluding AvtoKrAZ, which has stopped disclosing production information since August 2016), including four by Cherkasy Bus (two in January 2018), and one by Zaporizhia Automobile Plant (ZAZ, 30 vehicles)
The production of buses practically did not change: 60 buses were produced, against 59 vehicles a year earlier. The Cherkasy Bus (40 buses in January 2019 compared with 12 in January 2018) remained the leader of their production, the Chernihiv Automobile Plant (14 compared with 20 the previous year) was the second, the ZAZ and the Chasiv Yar Bus Plant made three buses each (compared with seven buses and 17 buses, respectively). Not a single bus was produced by Bogdan Corporation (three buses in January 2018).
Compared with December 2018, the output of buses in January decreased by 21%.
As reported, in 2018, the Ukrainian automakers produced only 6,616 vehicles. This was 23% less than a year earlier, and production capacity was loaded less than 1.5%.
At the same time, passenger car assembly decreased by 22%, to 5,660 cars (including Eurocar produced 5,659 cars, 7.9% less), commercial vehicles (excluding products of AvtoKrAZ) – by 73%, to 132 units. A slight positive trend was seen only in the production of buses – an increase of 2.5%, to 824 units.
Ukraine in January 2019 exported 455 tonnes of cheese, which was 23.5% up on January 2018. According to customs statistics released by Ukraine’s State Fiscal Service (SFS), cheese exports in monetary terms amounted to $1.5 million, which was 20% higher than the figure for the first month of 2018.
At the same time, imports of cheese in January 2019 totaled 1,180 tonnes, which was 35.7% more than in January last year. The imports in monetary terms increased by 30%, to $5.6 million.
Exports of Ukrainian creamery butter in January 2019 decreased by 28.5%, to 1,750 tonnes. The exports in monetary terms decreased by 37%, to $7.1 million. Imports of creamery butter, according to the SFS, decreased by 21%, to 90 tonnes ($585,000).
In January 2019, exports of condensed milk and cream decreased by 9%, to 2,150 tonnes. Ukraine supplied condensed milk and cream to the tune of $3.67 million, which was 3% less than in January 2018. Their imports decreased by 21%, to 167 tonnes ($325,000).
As was reported, Ukraine in 2018 imported 13,720 tonnes of cheese (37.1% up from 2017) and exported 8,340 tonnes of cheese (7.8% down from 2017).
Last year, exports of butter remained at the level of 2017, imports increased slightly, to 1,100 tonnes.
Exports of condensed milk and cream totaled 35,550 tonnes (24.1% down from 2017), imports were 2,360 tonnes (38.6% up from 2017).
Cygnet Agrocompany invested $2.3 million in upgrading its agricultural machinery and tractor fleet and equipment at the sugar plant in 2018, according to a report on the company’s corporate social responsibility for 2018. In particular, investment in agricultural machinery and tractor fleet amounted to $1.46 million, while $871,000 was spent on upgrading the equipment of the sugar factory in Zhytomyr region, the report said. This allowed the company to reduce natural gas consumption at the enterprise by 10%.
As reported, investment in the modernization of the sugar refinery in 2017 amounted to $2.7 million. Investment in upgrading the company’s agricultural machinery and tractor fleet amounted to UAH 78.9 million, or $2.8 million.
Cygnet’s sugar refinery completed the production season in early December 2018, reducing production to 28,700 tonnes of sugar (13.8% down from the previous season). The company’s grain facility received 292,000 tonnes of grain (29% up from 2017).
Cygnet processes about 29,000 hectares in Zhytomyr and Vinnytsia regions, where it grows maize, soybeans, winter wheat, sugar beets. Its storage facility is able to store 60,000 tonnes of grain simultaneously. Its sugar refinery is able to process up to 2,800 tonnes of sugar beets per 24 hours. Both facilities are located in Zhytomyr region.
The company is also engaged in milk production, has 605 cows. It sells milk to local processing companies.
The resumption of the interest of foreign investors to the hryvnia-pegged government domestic loan bonds is not yet brining risks for the country’s economy, according to members of the monetary policy committee of the National Bank of Ukraine (NBU).
“Usually, the risks associated with the inflow of short-term debt capital arise from its entry into the private sector with subsequent overheating of consumer demand. As for the capital inflows mainly in government loan tools, the risks of economic vulnerability are minimized. In addition, the inflow occurs in hryvnia-pegged loan tools that shifts currency risks to foreign investors,” the committee members said at a meeting, which minutes are dated January 30, 2019.
The committee members also draw attention to the fact that nonresident investment in government bonds remains insignificant relative to the total amount of government bonds on the market, and does not exceed the figures of the previous year. Moreover, thanks to the inflow of capital from nonresidents, the NBU has the opportunity of increasing international reserves, that is, creating a “safety cushion” in case of a possible outflow of capital.
As reported, nonresidents in January 2019, after six months of absence, resumed investments in government bonds. According to the NBU, since the beginning of the year as of February 11, the portfolio of government bonds owned by nonresidents more than doubled, to UAH 13.418 billion. At the same time, the total amount of government bonds issued by this date was UAH 758.182 billion, including the NBU owning securities for the amount of UAH 340.724 billion, banks – UAH 372.805 billion, legal entities – UAH 24.433 billion, and individuals – UAH 6.802 billion.
National Energy Company Ukrenergo has signed a contract with Lalive S.A. (Switzerland) to present the interests of the company in a case on compensation of losses due to annexation of Crimea by Russia. According to a company report in the ProZorro e-procurement system, the contract on the provision of legal services worth EUR 1.537 million (or UAH 49.9 million without VAT) was signed on February 6, 2019.
Covington & Burling, Hughes Hubbard & Reed, and Quinn Emanuel Urquhart & Sullivan UK also took part in the tender.
Lalive will provide Ukrenergo with the services of preparing and sending a notice of arbitration to the dispute, determining the nomination of arbitrators and shaping the composition of international arbitration, drafting a claim and applying to arbitration, representing the interests of the company in arbitration tribunal and obtaining the award.
As reported, Lalive represented the interests of the following companies in disputes against the Russian Federation regarding lost investments: Ukrnafta, Stabil, and Yukos Capital.
In April 2018 Ukrenergo officially notified the Russian Federation about the start of an investment dispute over the company’s assets seized in Crimea. According to estimates by Ukrenergo, only the cost of the company’s power grids in the peninsula is about $1 billion.
Ukrenergo operates trunk and interstate transmission lines, as well as centralized dispatching of the country’s integrated power grids. It is a state-owned enterprise, which was managed by Ukraine’s Energy and Coal Industry Ministry.
