The Verkhovna Rada has supported the proposal of the president of Ukraine to appoint Yakiv Smolii head of the National Bank of Ukraine (NBU). Yakiv Smolii is currently acting head of the central bank. 247 people’s deputies supported the corresponding decision on the appointment of Smolii at a plenary session on March 15. Yakiv Smolii until now has held the post of first deputy head of the NBU, since May 11, 2017 he had been acting head of the central bank.
The European Bank for Reconstruction and Development (EBRD) seeks to organize financing for 10 or 20 bio-energy projects in Ukraine in coming four years, EBRD Associate Director for Energy Efficiency and Climate Change in Ukraine, Poland and Caucasus Sergiy Maslichenko has told Interfax-Ukraine.
“We are taking part in financing of projects on construction of wind farms and solar power plants. These projects will be financed in the future. Now we want to focus more on bio-energy projects – biogas, bio-mass, production of next generation bio-ethanol [from waste]. We seek to finance 10 or 20 these projects in coming three or four years,” he said.
Maslichenko recalled that studies show that a potential of bio-energy in Ukraine (husk, straw and other agricultural waste) equals to 30 million tonnes of oil equivalent.
Earlier the EBRD organized financing for eight projects in this sphere in Ukraine. Now the bank is mulling three or four more projects.
“At the same time, practice shows that market participants do not have enough knowledge and competence in this area. We intend to prepare a special program by the end of the year. It will provide, among other things, experts and technical assistance. Possibly, a SEO-club for bioenergy will be organized,” the associate director of the EBRD said.
As reported, in December the EBRD decided to provide a loan of EUR 25 million to the agricultural holding Myronivsky Hliboproduct for the construction of a 10 MW biogas plant in Vinnytsia region.
The Cabinet of Ministers of Ukraine has sent UAH 400 million for the implementation of the Ukraine residential energy efficiency financing program in 2018, and 48% of which will be sent to homeowner associations. “The effectiveness of using 1 USD of state budget expenditures in one- and two-apartment houses is 10 times higher than in individual apartments in multi-apartment houses,” the explanatory note to the resolution says.
According to the document, out of UAH 400 million provided by the energy efficiency program for 2018-2020, the government allocated UAH 190 million for residential energy efficiency loans for homeowner associations and housing construction cooperatives. Another UAH 202 million will be used to “stimulate the population to introduce energy efficient measures,” and the remaining UAH 7.7 million will be used to recover part of the funds used to purchase boilers (except for gas and electric boilers).
In addition, the resolution provides for state support for the introduction of electric heating in high-rise buildings in cities where this is provided for by heat supply schemes.
Deputy Prime Minister, Regional Development, Construction, Housing and Utilities Economy Minister Hennadiy Zubko reminded that UAH 1.6 billion is provided for financing energy efficiency of homeowner associations this year within the framework of the Energy Efficiency Fund, the press service of the government said.
Exports of grain crops and flour since early 2017/18 agricultural year (July-June) as of March 14, 2018 reached 28.36 million tonnes, which is 2.83 million less than a year ago, the Agricultural Policy and Food Ministry of Ukraine has reported.
According to the report, a total of 28 million tonnes of grain was exported, including 13.44 million tonnes of wheat (530,000 tonnes less than a year ago), 10.33 million tonnes of corn (1.7 million tonnes less) and 4.04 million tonnes of barley (664,000 tonnes less).
Exports of rye accounted for 18,200 tonnes (18,100 tonnes more) and flour – 320,800 tonnes (54,000 tonnes more).
Canada’s Black Iron with assets in Ukraine has pointed out the increase in the attractiveness of the Shymanivske Iron Ore Project. The company said in a press release that since publishing the re-scoped Preliminary Economic Assessment, benchmark iron ore prices have rallied from $62 per tonne to $70 per tonne as of March 9, 2018.
The company said that based on prevailing iron ore prices and adjustments for product quality mainly related to iron content, Black Iron’s construction capital is estimated to have an estimated $1.4 billion Net Present Value (NPV), assuming 60% debt financing, 10% discount rate and an initial capital cost of $436 million. “Even under highly pessimistic long-term iron ore prices of $50 per tonne, the project generates Internal Rate of Return (IRR) in excess of 20%,” the press service said.
The company said that since releasing the revised project economics, the company has accelerated its efforts to secure the necessary land surface rights for the mine and plant. The leases related to three parcels of land that are required to begin construction are currently held within two Ukrainian government groups. The first parcel of land is held by the Kryvy Rih City Council who have been very supportive. Black Iron’s team and specialist consultants have completed more than 50% of the land allotment study to date.
The final parcel of land is held by Ukraine’s State Forestry, who have submitted the required documents for this land to be re-zoned and transferred to the Kryvy Rih City Council, who will in turn, lease the property to the company. The acquisition of these land packages will represent a significant milestone in beginning construction of the project and the company expects this process to be completed prior to year end. The company continues to pursue various financing options for construction of the project and has received significant interest from multiple groups which are currently conducting due diligence. The potential financiers include several multi billion-dollar steel mills, global trading houses and other mining companies.
Finance Minister of Ukraine Oleksandr Danyliuk expects that the European Commission (EC) would approve macrofinancial assistance to Ukraine early autumn of this year. “The European Commission initiated the new program on February 28 and on March 9 the legislative proposal on the new program was finally approved. Now the proposal is in the European Parliament and the Council of the European Union… We are waiting for the final approval [of the program] early autumn. We will do our best to have it approved as soon as possible,” the finance minister said at a press conference in Kyiv.
He said that this concern the provision of EUR 1 billion. Danyliuk said that due to the non-implementation of the previous program the Finance Ministry had to replace insufficient payments in the budget at the end of 2017.
Earlier Danyliuk said that the key condition for the fourth macrofinancial assistance of the European Union to Ukraine is the launch of automated verification of e-declarations. “Meetings were held at the level of the Minister of Finance and the Prime Minister. The task to introduce this system before May 1 is clearly set,” the minister said.
The finance minister said that the program may contain additional conditions, but its key focus is the fight against corruption. “Now there is a dialogue with the EC. Sometime before May 1, they should coordinate all the issues and sign a memorandum,” he said.
