The fertilizer market in Ukraine will change dramatically in 2024 due to the introduction of customs checks on the origin of imported goods and the forced transition to the use of domestic products, which will not reduce farmers’ costs, Infoindustry news agency reported.
“November and December were actually a failure for imports. We imported as much fertilizer in two months as in October 2023. Fertilizer consumption is skewed towards nitrogen fertilizers. (…) In 2023, the consumption of nitrogen fertilizers to all other types of fertilizers was an unprecedented 3:1. In total, Ukraine used 4.35 million tons of fertilizers in 2023,” the analysts stated.
They pointed to a drop in imports of complex fertilizers through ports in the second half of 2023. In November-December, imports of complex and individual types of nitrogen fertilizers almost stopped after the euro’s surge and difficulties at the border, the industry agency explained.
Commenting on the situation at the border during the import of fertilizers, the experts reminded that on January 4, 2024, all border customs began checking all types of cargo with fertilizers to analyze and determine their country of origin. The reason for such measures, analysts say, is the oversaturation of the markets of all countries around Ukraine with Russian fertilizers.
“Unfortunately, the Ukrainian farmer will now have to wait 10-14 days for the results of fertilizer analysis in addition to buying expensive imported fertilizers, which include all types of NPK (imports). Imports become even less affordable at the beginning of the year. There is less than a month left before the start of the season,” InfoIndustry noted.
At the same time, analysts emphasized that there is good news on the domestic market: fertilizer stocks of traders and producers reached 80-85% of the market needs at the beginning of the season, taking into account current demand.
In addition, according to the agency, the state-owned Sumykhimprom changed its board in early 2024, which gives us hope for a change in policy and possibly the range of fertilizers the plant will be able to offer to the market in the spring.
“In any case, farmers will not have to expect a decline in fertilizer prices, even if the global market collapses or all Ukrainian ports open for imports,” analysts predict, adding that by the end of March, all market scenarios are already known, and it is now important that Ukrainian grain exports do not stop.
Kokhavyno Paper Mill (KBF, Lviv region), which produces sanitary paper products, increased its production by 18% in 2023 compared to 2022, to UAH 1 billion 151.2 million, according to statistics from Ukrpapir Association.
According to the data provided to Interfax-Ukraine, in physical terms, the production of paper base for sanitary products increased by 2.8% to 41.7 thousand tons. In particular, in December, its output increased by 3% to 3.6 thousand tons by December 2022.
Last year, the production of toilet paper in rolls increased by 4.5% to 138 million units. KBF retained second place in terms of its output after Kyiv pulp and paper mill (259.5 million units).
As reported, in October, Kokhava Pulp and Paper Mill commissioned a paper machine with an estimated capacity of 25 thousand tons per year to produce pulp base paper (previously it produced only waste paper-based products), creating up to 200 new jobs.
To organize such production in 2021, the pulp mill attracted an EBRD loan of EUR 13.8 million.
Operating since 1939, the Kokhavynske Paper Mill produces the base paper for sanitary and hygiene products, as well as toilet paper and paper towels. Before the new machine was put into operation, it had two paper machines with a total capacity of 40 thousand tons of base paper per year.
As reported, in 2022, KBF produced products worth UAH 975.3 million, up 44.8% year-on-year. Net profit decreased by 12.7% to UAH 52.4 million.
In 2023, Ukrgasvydobuvannya JSC paid UAH 23.8 billion in rent payments, the company’s press service reports.
According to the press service, UAH 1.19 billion, or 5%, of this amount went to the budgets of the local and regional levels where the company operates.
The budgets of Kharkiv and Poltava regions received the largest amount of payments – UAH 584.16 million and UAH 496.34 million, respectively.
The amount of rent payments is calculated in accordance with the sale price of Ukrgasvydobuvannya’s natural gas in favor of Naftogaz of Ukraine.
As reported, in 2022, UGV produced 12.5 bcm of natural gas (commercial), which is 3% less than in 2021.
For 2023, Ukrgasvydobuvannya has been set the task to increase natural gas production by 1 bcm to 13.5 bcm.
According to the operational data, the company increased production by more than 0.7 bcm in 2023. At the end of 2023, UGV reached an average daily production of 37.5 million cubic meters.
NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.
Naftogaz Group companies paid UAH 90.2 billion in taxes in 2023.
“Last year, our group of companies transferred: UAH 83.4 billion to the state budget, UAH 6.8 billion to local budgets,” Naftogaz said on its Telegram channel on Monday.
It is specified that, in particular, in December 2023, the group’s companies transferred UAH 6 billion to the state budget and UAH 0.5 billion to local budgets.
“The energy security of our country is one of the key tasks of the Naftogaz Group. However, contributing to Ukraine’s economic development is equally important. We continue to be one of the largest taxpayers for the state,” Naftogaz CEO Oleksiy Chernyshov said as quoted on the company’s website.
At present, Gas Supply Company Naftogaz of Ukraine LLC continues to supply gas to 12.3 million consumers. It has signed 1,242 contracts with 449 district heating companies and 793 condominiums.
In addition, it is noted that 7 CHP plants managed by the group continue to provide heat to thousands of Ukrainians in Kamianske, Kryvyi Rih, Novoyavorivsk, Novyi Rozdil, Mykolaiv, Odesa and Kherson.
“Gas reserves in Ukrainian storage facilities are sufficient for the successful completion of the heating season,” Naftogaz said.
Switzerland plans to allocate 1.5 billion francs for the restoration of Ukraine for the period from 2025 to 2028 as part of its international cooperation strategy, said Viola Amherd, President of the Swiss Confederation.
“Switzerland is placing great emphasis on the recovery of Ukraine. The principles laid down at the Lugano conference serve as a political compass for recovery. Switzerland has planned 1.5 billion francs in support of Ukraine for the period from 2025 to 2028 as part of its international cooperation strategy,” Amherd said at a press conference with the President of Ukraine in Switzerland on Monday.
She also noted that she had discussed with Zelenskyy the issue of humanitarian demining in Ukraine and food security related to the restriction of grain and food exports through the Black Sea due to Russian aggression.
“If such a large exporting country as Ukraine harvests less crops and food, it will have major negative consequences. In this regard, we discussed the UN’s efforts to facilitate the unimpeded export of food and fertilizers from Ukraine through the Black Sea. Russia’s decision not to continue the grain initiative poses a threat to food security around the world,” Amherd said.
For his part, the President of Ukraine, answering the question of what facilities the Swiss funds will be used to restore, said that Ukraine needs to strengthen its energy system and build bomb shelters.
“You know that many representatives of the Swiss government have been to Ukraine many times. They have seen that thousands of Ukrainian schools, Ukrainian children are under constant risk of missile attacks, ballistic missiles, and Iranian drones. That’s why the issue of bomb shelters and safety for children is very important,” he said.
He also reminded that “Ukraine has experienced several blackouts, and it was very difficult, but this winter we are stronger, and this must be strengthened.”
“There should be a decentralized energy system, and it should be safe. As well as water supply,” the President summarized.
Global economic growth will slow down in 2024, according to more than half (56%) of chief economists surveyed at the World Economic Forum (WEF) in Davos.
The remaining respondents expect global GDP growth to remain at the level of 2023 or accelerate.
According to the International Monetary Fund, the global economy will grow by 2.9% in 2024 after growing by 3% in 2023.
Economists are most pessimistic about Europe – three-quarters of respondents (77%) believe that growth in the region will be weak or very weak. Meanwhile, 93% of respondents expect moderate or strong growth in South Asia, and 86% in East Asia.
The US GDP growth rate will range from moderate to strong, according to 56% of the surveyed chief economists. Back in September, the percentage was 78%. At the same time, only 13% expect high inflation in the United States and Europe.
The WEF organizers interviewed 30 chief economists from banks, consulting firms, international organizations and major companies, including Microsoft and Google.
“The global economy will be tested again this year,” said WEF Managing Director Saadia Zahidi. – “Global inflation is easing, but economic growth is stalling, financial conditions remain tight, tensions are rising, and inequality is growing, underscoring the urgent need for international cooperation to create the conditions for sustainable and inclusive economic growth.
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