Geographical structure of Ukraine’s foreign trade (exports) in Jan-July 2024, thousand USD
Open4Business.com.ua
Sukha Balka mine (Kryvyi Rih, Dnipro region), part of Aleksandr Yaroslavsky’s DCH Group, commissioned two new iron ore production blocks at Yubileynaya and Frunze mines in October with total reserves of 170 thousand tons.
According to information in DCH Steel’s corporate newspaper on Thursday, at the beginning of this month, the company’s miners prepared and commissioned new production facilities.
At Frunze Mine, the company commissioned block 39-45 with reserves of 55 thousand tons of high-quality raw materials – the block was prepared by section 6, and tunneling operations were carried out using high-performance self-propelled equipment. At the beginning of October, the team of the No. 6 section started mining ore in this block.
Also in October, Yubileynaya Mine commissioned block 34-36 (+10) of the second floor of the Gnezdo deposit with reserves of 115 thousand tons. The block was prepared by the miners of the slicing section No. 19, and deep wells were drilled in this block by the miners of the section No. 9. Production will be carried out by the employees of the No. 17 section.
“The commissioning of these blocks will ensure the stable operation of the mines over the next three months,” the company said in a statement.
It was specified that 9 blocks were put into operation at the mine this year: six at Yubileynaya mine with total reserves of 880 thousand tons and three blocks with reserves of 140 thousand tons at Frunze mine.
Sukha Balka mine is one of the leading mining companies in Ukraine. It produces iron ore by underground mining. It includes Yubileynaya and Frunze mines. DCH Group acquired the mine from Evraz Group in May 2017.
In Ukraine this week there is a tendency of reduction of prices for white cabbage, analysts of EastFruit project report. Producers attribute this price situation to the excess of production in the market, and a significant part of the market supply is cabbage of medium-late varieties, which is not suitable for long-term storage.
At the moment, the prices for white cabbage are voiced by producers within the range from 15 to 23 UAH/kg ($0.36-0.56/kg), which is on average 16% cheaper than at the end of last week. Market participants explain the wide price range in this segment by different qualitative characteristics of the offered vegetables.
According to the project analysts, most farms are still active harvesting works, as a result of which the supply on the market is growing. At the same time, the demand for these products remains extremely low. Wholesale companies and retail chains are ready to purchase only in small wholesale, referring to the very limited period of realization, as most farmers offer for sale cabbage of low quality.
It should be noted that despite the negative price trend, the current prices for white cabbage in Ukraine are on average 2.9 times higher than in the same period last year. At the same time, market participants do not exclude that prices for this product will continue to decline, as many farms are actively harvesting due to improved weather conditions. As a result, the gradual growth of cabbage supplies to the market will force agrarians to continue to concede in price, if the situation with the rate of sales does not change.
You can get more detailed information about the market development of white cabbage and other horticultural products in Ukraine by subscribing to the operative analytical weekly – EastFruit Ukraine Weekly Pro. Detailed information about the product can be found here.
The State Enterprise “Forests of Ukraine” has approved a new Procedure for the use of timber, the CEO of the state enterprise Yuriy Bolokhovets said on his Facebook page.
He reminded that since its inception, the State Enterprise “Forests of Ukraine” has been selling the entire volume of timber at transparent and competitive exchange auctions. The market itself forms prices, which both rise and fall depending on market conditions.
The CEO said that a dialog with business had been going on for two years. The mechanisms of pricing, lot formation, and bidding have been partially improved. Auctions were introduced using a mechanism of phased price formation (first an increase, then a decrease). Weighted average prices by region are publicly available on the company’s website.
“Our key goal was to create truly market-based flexible algorithms that would promote market openness for all segments (from small to large) and balance the interests of the state and private business. The timber use procedure developed by the State Enterprise “Forests of Ukraine” is based on these principles,” explained Bolokhovets.
According to him, the innovations are aimed at creating even more stable working conditions for producers and minimizing price imbalances that sometimes arise as a result of uneven demand.
The revised timber sales procedure introduces six-month long-term fixed-price contracts that will allow businesses to plan their operations.
The auction will start in the first decade of November. More than 450 thousand cubic meters of timber will be offered for sale, including about 200 thousand cubic meters of roundwood and more than 250 thousand cubic meters of firewood. Lot sizes range from 3 to 12 thousand cubic meters.
In connection with the reorganization of the State Enterprise “Forests of Ukraine”, the newly formed branches (current forest offices) will form lots for sale, and the specific lot will be linked to the superforestry, which will be formed instead of the currently operating branches.
The starting prices of auctions for unprocessed timber of the branch will be set on the basis of the approved price list for each individual assortment in terms of species (group of species), quality class, diameter group, length and delivery basis.
The price list will be based on the current market value of the basic assortment prevailing in the forest plantations of the branch. The price of all other assortments (by species (group of species), quality class, diameter group, length and delivery basis) will be determined through a single scale of price coefficients, taking into account the dimensional and quality characteristics of a particular assortment.
Clear criteria for the possibility and sequence of auctions using the mechanism of stepwise price formation (first for an increase, then for a decrease) will be established, as well as standards for the permissible percentage price reduction during auctions.
“Thanks to the changes, there will no longer be situations when lower-quality varieties are put up for auction at a higher price because there was a situationally high demand for it last quarter. Prices will remain market-based, but balanced and fair. The business will have a clear understanding of the conditions under which auctions are scheduled using a mechanism of phased price formation (first price increase, then price reduction),” explained the CEO of the State Enterprise ‘Forests of Ukraine’ and expressed confidence that the predictability of the market will contribute to the development of Ukrainian woodworking.
As reported, Ukraine launched a forestry reform in 2016. It has already introduced the sale of raw wood at electronic auctions. Since 2021, an interactive map of wood processing facilities has been operating in a test mode in a number of regions.
The industry has implemented the Forest in a Smartphone project, which contains a list of logging tickets for timber harvesting and allows you to check the legality of logging on the agency’s online map.
On June 1, 2023, Ukraine launched a pilot for the electronic issuance of logging tickets and certificates of origin of timber. In addition, the State Enterprise “Forests of Ukraine” has launched a pilot project to procure timber harvesting services through the electronic platform Prozorro.
The Kyivmiskbud holding company has prepared and sent to the Kyiv City State Administration a detailed calculation of the amount of funds needed to resume construction of residential complexes, which amounts to UAH 4.84 billion, the company’s press service told Interfax-Ukraine.
According to Vasyl Oliynyk, Chairman of the Board and President of Kyivmiskbud, the financial forecasts are based on economic indicators provided by one of the Big Four audit companies and are based on the hryvnia/US dollar exchange rate. Kyivmiskbud specialists have been working on identifying and justifying the necessary funds for the past four months.
“The baseline scenario of financial forecasting provided by Ernst & Young envisages the need for funds in the amount of $107,569,366, which, according to the exchange rate of UAH to the US dollar, which is included in the draft state budget of Ukraine for 2025 ($1 = 45 UAH), amounts to UAH 4,840,621,470). If we subtract the funds required for the completion of Ukrbud’s facilities, which are to be provided by the Cabinet of Ministers, from the baseline scenario of E&Y’s financial forecast (UAH 4.84 billion), the required amount of additional capitalization from the Kyiv City Council will be UAH 2.56 billion,” the head of Kyivmiskbud explains.
Earlier, the Kyiv City Council’s Standing Committee on Budget, Socio-Economic Development and Investment Activity instructed Kyivmiskbud to calculate the amount of funds the company needs to stabilize its operations.
As reported, in March 2024, the KCSA set up a temporary commission to resolve problematic issues related to the activities of PrJSC HC Kyivmiskbud.
An audit of Kyivmiskbud conducted in 2023 by state-owned Baker Tilly Ukraine Consulting, NHD-AUDIT LLC and Ernst & Young LLC found no signs of actions to drive the company into bankruptcy, concealment of financial insolvency or massive transactions by related parties. At the same time, the auditors found that Kyivmiskbud’s operations were disrupted by external factors: COVID-19, a full-scale war, and the Ukrbud factor.
On November 17, 2023, the Kyiv City Council Commission approved an interim report with recommendations and proposals for the developer’s further work, including the purchase of apartments in Kyivmiskbud’s facilities, consideration of a financial loan or additional capitalization of the company. The commission also recommended that the Kyiv City Council address the Cabinet of Ministers on the issue of compensating Kyivmiskbud for the total planned loss associated with the completion of Ukrbud’s projects in the amount of UAH 2.28 billion.
HC Kyivmiskbud was established on the basis of the property of the state municipal construction corporation Kyivmiskbud in 1994 by merging controlling stakes in 28 enterprises and other assets in its authorized capital. The holding company consists of 40 joint-stock companies in which the company owns shares, six subsidiaries and 51 companies as associate members.
According to the National Securities and Stock Market Commission (NSSMC), the main shareholder of PrJSC HC Kyivmiskbud is the Kyiv City Council (80%).
Source: https://interfax.com.ua/
In January-September 2024, DTEK Energy’s machine builders manufactured and repaired 982 units of mining equipment, including 10 new tunnelling and shearers, and provided miners with 758,000 spare parts and components, the company said in a press release on Friday.
“Power engineers have been continuing to restore the power plant 24/7 for many months. Miners are mining coal and maintaining sufficient fuel supplies at thermal power plants, and machine builders are helping them with this by providing the necessary equipment. The key thing for everyone is to restore capacities as soon as possible and to improve the reliability of Ukrainian thermal power plants during the winter,” said DTEK Energy CEO Oleksandr Fomenko, as quoted in the document.
According to the energy holding, thanks to the support of machine builders in equipment, the company’s miners have commissioned 16 new coal faces in the first nine months of this year and plan to commission another 9 by the end of the year.
DTEK Energy’s investments in Ukrainian coal mining are expected to reach about UAH 7.7 billion in 2024.
As reported, in 2023, the company’s investments in Ukrainian coal mining amounted to about UAH 7 billion, which is almost twice as much as in 2022.
“DTEK Energy provides a closed cycle of electricity generation from coal. As of January 2022, the company’s installed capacity in thermal generation amounted to 13.3 GW. The company has established a full production cycle in coal mining: coal mining and enrichment, mechanical engineering, and maintenance of mine equipment.
Currently, most of DTEK Group’s thermal generation facilities have been destroyed as a result of Russian attacks.
