Ukraine open for business

Energy imports, forecast, billion dollars

Source: Open4Business.com.ua and experts.news

ISSUE 147

Krivoy Rog’s Rudomain has reduced iron ore production by 25%

LLC “Rudomain” (Krivoy Rog, Dnipropetrovsk region), engaged in iron ore mining, reduced iron ore production in Krivoy Rog by 25% from 2022 and production in 2023 was at 50% of capacity.

The company told Interfax-Ukraine that Rudomain continues its operations, but the number of employees has been reduced from 1,250 to 950 due to mobilization in Ukraine. Replenishment of personnel occurs only in cases of extreme necessity, including the integration of women into traditionally male-dominated professions.

It is noted, however, that there has been a marked decline in sales since 2022, resulting in a drop in production of up to 75% compared to the pre-war period. In 2023, the downward trend continues and production is held at 50% of potential maximum production capacity throughout the year, which corresponds to a zero breakeven level.

By markets: Rudomain’s products are sold to countries in the near abroad, mainly in Poland and Slovakia. Historically, sales have been made exclusively by rail, thus avoiding maritime transportation problems.

Plans for 2024: sales are planned to increase based on the use of repair and renovation funds for machinery and technology. Failure to generate these funds in year 23 could be a problem in the next year.

“Actively working on plans to increase automation of manufacturing processes to reduce production costs,” the company’s response states.

And it is noted in terms of the impact of the economic downturn in Europe and the way forward: the general downturn in economic development in Europe is being felt.

“Entering new markets requires a significant increase in the global cost of production to cover logistics costs and unblock seaports. The key factors for improving the investment climate are the end of the war, the return of professionals to their jobs and renewed confidence in the state,” the response summarizes.

Rudomain LLC was registered in May 2010. Its main activity is iron ore mining. According to the company, it is active in Ukraine, the CIS and Europe. Since 2005, it has processed more than 20 million tons of substandard ores from the Krivoy Rog iron ore basin.

As of the end of 2020, two concentrators were up and running. The production capacity of the plant was up to 4 million tons of feedstock per year with Fe min 38%. Production of finished products with Fe content of 50-59% (fraction 0-10 mm) was about 1.5 million tons per year.

According to the Unified State Register of Legal Entities as of September 2021, ARDC Mining Asset Management Holding Ltd (Cyprus) owns 100% of Rudomain LLC. The ultimate beneficiary is a Cypriot citizen Andreou Katia.

Previously, the owner of Rudomain LLC was Fernando Trading Ltd (West Indies) with the ultimate beneficiary being resident individual Anatoly Medvedev.

Anatoly Medvedev, Andreou Katia, ARDC Mining Asset Management Holding Ltd, INTERFAX-UKRAINE, Rudomain

Ukrgasbank’s net profit exceeded UAH 4 bln

The profit of the state-owned Ukrgasbank (Kyiv) in January-November 2023 amounted to UAH 4.08 billion, while the state-owned bank ended the same period last year with a net loss of UAH 3.75 billion, the financial institution reported on Tuesday.

It was specified that the bank’s operating profit for January-November this year before deductions to reserves and taxation amounted to UAH 4.3 billion.

According to the release, Ukrgasbank’s assets have increased by UAH 35 billion since the beginning of the year and reached UAH 166.7 billion as of November 2023, while the portfolio of attracted customer funds has increased by UAH 29.9 billion since January and amounted to UAH 142.7 billion.

It was specified that the portfolio of corporate business funds increased the most significantly – by UAH 26.2 billion to UAH 85.5 billion, in particular, from small and medium-sized businesses (SMEs) – by UAH 4 billion to UAH 25.4 billion.

The bank added that the portfolio of term deposits of retail business clients in hryvnia amounted to UAH 9.8 billion at the end of November, having increased by UAH 3.5 billion since the beginning of the year.

According to the National Bank of Ukraine, as of October 1, 2023, Ukrgasbank ranked 5th in terms of total assets (UAH 166.44 billion) among 63 banks in the country.

PROFIT, UKRGASBANK

The Espresso Index has doubled in recent years

A cup of espresso costs 30 hryvnias on average in Ukraine. This is reported by the company Opendatabot, referring to the study of the Espresso Index by Poster POS.

Follow the changes on the Espresso Index page

The Espresso Index is an economic indicator used to measure the cost of a standard cup of espresso in different cities around the world. It can be useful for comparing the price level and cost of living in different places. This indicator helps to assess how big the difference in prices for the same goods and services is in different countries, reflecting purchasing power and inflation.

The Espresso Index in Ukraine has doubled in recent years: from UAH 15 in 2017 to UAH 30 at the end of 2023. It is worth noting that during the full-scale invasion, there was a sharp jump in prices. Thus, the average cost of an espresso in the country increased from 20 UAH to 28 UAH in 2022 alone.

The most expensive cup of coffee will be in Odesa (UAH 36), Donetsk (UAH 35), and Kharkiv (UAH 32). Instead, the lowest prices for a basic coffee drink in Ukraine are in Khmelnytsky (UAH 21), Sumy (UAH 23), Zhytomyr and Vinnytsia regions – UAH 24 each.

The Ukrainian restaurant automation company Poster POS presented the Espresso Index of Ukraine 2023 – a large-scale study of the average cost of a cup of coffee in Ukraine.