Business news from Ukraine

Business news from Ukraine

Scrap collectors reduced scrap supplies to steelmakers by 7%

In January-September of this year, ferrous scrap enterprises reduced the supply of scrap to Ukrainian metallurgical enterprises by 7% compared to the same period last year – to 703 thousand tons from 755.5 thousand tons, and by 72.2% compared to the first nine months of 2021 (2.530 million tons).

As reported in the operational information of the Ukrainian Association of Secondary Metals (UAVtormet) on Friday, the procurement of scrap metal for the first nine months of 2023 increased by 5.8% compared to the same period last year – up to 878 thousand tons.

At the same time, exports of scrap metal for the period amounted to 131.1 thousand tons compared to 35.2 thousand tons in January-September 2022 (an increase of 3.7 times). At the same time, imports of scrap amounted to 0.8 thousand tons, while in the first nine months of 2022 it amounted to 1.6 thousand tons.

As of October 1, 2023, the level of scrap stocks at Ukrainian steelmakers was estimated at 25-30 thousand tons.

As reported, in 2022, Ukraine reduced scrap procurement by 75.9% compared to 2021, to 996.7 thousand tons from 4.136 million tons. Last year, scrap exports amounted to 53.6 thousand tons, which is 11.5 times less than in the previous year (615.7 thousand tons). At the same time, scrap imports amounted to 1.8 thousand tons (in 2021 – 23 thousand tons).

In 2022, scrap supplies to the country’s steelmaking companies decreased by 73% compared to 2021, to 895.7 thousand tons from 3 million 323.4 thousand tons.

“UAVtormet forecasts ferrous scrap procurement of 1.25-1.3 million tons in 2023. In addition, it is expected that scrap supplies to the country’s steelmakers will amount to 1-1.05 million tons. Exports of scrap metal are expected to reach 180-200 thousand tons, while imports are expected to reach 0.8-1.2 thousand tons. Steel production is expected to reach 5.6-5.8 million tons.

Ukraine launches sale of narcotic drugs only by electronic prescription

On October 13, Ukraine launched the sale of narcotic (psychotropic) drugs exclusively by electronic prescription instead of prescription forms, the Ministry of Health reminds.

“In order to improve control over compliance with the rules of circulation, prescription and prescription of narcotic drugs, which were previously sold on the basis of prescription form No. 3, the sale of narcotic (psychotropic) drugs in pharmacies will be carried out exclusively on the basis of an electronic prescription,” the Ministry reminds.

The Ministry of Health clarifies that exceptions to the prescription of narcotic (psychotropic) drugs by paper prescription will apply only to narcotic drugs manufactured in a pharmacy, as well as in case of a technical failure in the central database of the system, which makes it impossible to issue electronic prescriptions.

In addition, a paper prescription will be used in case of prescribing such drugs in the temporarily occupied territories and territories of active hostilities.

The prescription of narcotic (psychotropic) drugs, partial or full cost of which is reimbursed under local budget programs, will also be carried out exclusively by electronic prescription.

“The adopted changes are intended to prevent uncontrolled circulation of narcotic and psychotropic drugs and improve patients’ access to painkillers using digital tools,” the Ministry of Health notes.

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Ukrainian agrarians harvested 52.5 mln tons of crops in 2023

Agrarians in all regions of Ukraine harvested 52.5 mln tons of grains and oilseeds, including 35.597 mln tons of grains and 16.883 mln tons of oilseeds, the press service of the Ministry of Agrarian Policy and Food reports.

According to the report, grain and leguminous crops were harvested on an area of 7737.9 thousand hectares with a yield of 46.0 c/ha.

To date, Ukraine has harvested barley on 1505 thousand hectares (101% of the plan), from which 5.863 million tons were harvested; wheat – from 4695 thousand hectares (101%) 22.210 million tons were harvested; corn – from 884.4 thousand hectares (22%) 5.8 million tons; corn – from 884.4 thousand hectares (22%) 5.8 million tons. hectares (22%) 5.846 million tons; peas – from 154.4 thousand hectares (103%) 396.8 thousand tons were harvested; millet – from 72 thousand hectares (86%) 162.4 thousand tons were harvested; buckwheat – from 127.7 thousand hectares (90%) 188.8 thousand tons were harvested.

In addition, other grains and pulses were harvested in the amount of 929 thou tons from 300.5 thou hectares.

Ukraine continues to harvest oilseeds, in particular, 4.005 mln tons of rapeseed (4.005 mln tons a week earlier) from the area of 1.396 mln hectares (98%), 9.042 mln tons of sunflower (7.308 mln tons a week earlier) from the area of 3.898 mln hectares (77%), and 3.776 mln tons of soybeans (2.205 mln tons) from 1.466 mln hectares (81%).

Sugar beet was harvested from 96.4 thou hectares (68.4 thou hectares a week earlier), which is 39% of the planned area. The harvest amounted to 4.602 mln tons. Vinnytsia region farmers are the leaders in sugar beet harvesting – 1 479.8 thsd tonnes.

The Ministry of Agrarian Policy is monitoring information on the yields of all crops as it revises its forecast. Thus, the yields of wheat, barley, peas and millet are in line with last week’s figures – 47.3 c/ha, 39 c/ha, 25.7 c/ha and 22.6 c/ha, while buckwheat yields increased to 14.8 c/ha, compared to 14.2 c/ha the previous week. Corn yields 66.1 c/ha compared to 62.5 c/ha last week. Rapeseed yields remained unchanged at 28.7 c/ha, soybean yields slightly increased to 25.8 c/ha, respectively, and sunflower yields 23.2 c/ha, compared to 23.0 c/ha a week earlier. The yield of sugar beet increased to 477.4 c/ha.

As reported, this season’s winter wheat plantings amounted to 4166 thou hectares (-834 thou hectares compared to the previous season), winter barley – 536 thou hectares (-255 thou hectares), and rapeseed – 1374 thou hectares (+110 thou hectares).

According to the adjusted forecast of the Ministry of Agrarian Policy, in 2023, farmers will be able to harvest 79.1 mln tons of grains and oilseeds, including the following volumes: wheat – 21.7 mln tons, barley – 5.7 mln tons and corn – 28.5 mln tons. Gross production of oilseeds will reach 21.6 million tons, including 13 million tons of sunflower, 4 million tons of rapeseed, and 4.6 million tons of soybeans. The sugar beet harvest is forecast at 13.7 million tons.

As reported, in the early spring of 2023, the total gross harvest for the current year was forecast at 63.5 million tons, or 13% less than in 2022. In June, after the start of the harvest, the forecast was raised to 68 million tons, or 7% less. In early September, due to favorable weather conditions, the forecast was revised upward to 76.7 million tons.

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Ölpreise steigen, Brent liegt bei 86,65 $ pro Barrel

Die Ölpreise steigen am Freitag und beenden die Woche aufgrund der eskalierenden Situation im Nahen Osten im Plus.

Der Preis für Dezember-Futures der Sorte Brent an der Londoner ICE-Futures-Börse lag am Freitag um 8.10 Uhr bei 86,65 $ pro Barrel und damit um 0,65 $ (0,76 %) höher als zum Ende der vorangegangenen Sitzung. Am Donnerstag war der Preis für diese Kontrakte um $ 0,18 (0,2 %) auf $ 86 pro Barrel gestiegen.

Die November-Futures für WTI im elektronischen Handel an der New York Mercantile Exchange (NYMEX) stiegen bis zu diesem Zeitpunkt um $ 0,79 (0,95 %) auf $ 83,7 je Barrel. Im vorangegangenen Handel sank der Wert dieser Kontrakte um $ 0,58 (0,7 %) auf $ 82,91 pro Barrel.

Seit Beginn dieser Woche ist der Preis für Brent um 2,4 % und für WTI um mehr als 1 % gestiegen, was auf die Befürchtung zurückzuführen ist, dass die Lieferungen aus dem Nahen Osten zurückgehen könnten, da der Konflikt in der Region nach dem Angriff der Hamas auf Israel eskaliert.

Daten über einen starken Anstieg der US-Öllagerbestände und Rekordfördermengen führten am Donnerstag zu einem Rückgang des WTI-Preises. Die geopolitischen Risiken sowie die Prognosen über das Wachstum der weltweiten Ölnachfrage stützen den Markt jedoch weiterhin.

“Der Konflikt im Nahen Osten wird den Ölmarkt so lange beunruhigen, wie die Welt auf Erdölprodukte angewiesen ist”, sagte Tyler Ritchie, Herausgeber von Sevens Report Research.

“Solange es keinen Waffenstillstand gibt, was hoffentlich bald der Fall sein wird, wird der Aufwärtsdruck auf den Ölmarkt anhalten”, so der Market Watch Experte.

Wie das US-Energieministerium am Donnerstag mitteilte, stiegen die kommerziellen Ölvorräte in den USA in der Woche zum 6. Oktober um 10,18 Millionen Barrel. Die Ölproduktion des Landes stieg in der vergangenen Woche um 300 Tausend Barrel pro Tag (bpd) auf einen Rekordwert von 13,2 Millionen bpd.

Am 12. Oktober revidierte die Internationale Energieagentur (IEA) ihre Prognose für die weltweite Ölnachfrage im Jahr 2023 nach oben und erwartet nun einen Anstieg um 2,254 Millionen Barrel pro Tag (bpd) und nicht mehr wie zuvor gemeldet um 2,243 Millionen bpd.

Die OPEC ihrerseits prognostiziert einen Anstieg der Ölnachfrage um 2,44 Millionen Barrel pro Tag im Jahr 2023 und 2,25 Millionen Barrel pro Tag im Jahr 2024.

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Ukraine’s economy to grow by 4.7% – Finance Minister

Ukraine’s economy is demonstrating resilience this year, with GDP growth projected to reach 4.7% after falling by 29.1% last year, Finance Minister Sergii Marchenko said at a meeting with the G7 financial bloc on the sidelines of the IMF and World Bank meetings in Marrakech on Thursday in Marrakech.

“Inflation is falling faster than expected: to 7.1% in September 2023 from 26.6% in 2022. Domestic borrowings have exceeded the plan and have already reached more than $11 billion since the beginning of the year. Thanks to our partners, international financial support is rhythmic and predictable, totaling $33.8 billion in 2023,” Marchenko was quoted as saying in a press release from the Ministry of Finance on Thursday evening.

The discussion, which was attended by finance ministers and central bank governors of the G7 member states, the IMF, the World Bank and the European Commission, focused on Ukraine’s financial system, the state of implementation of structural reforms and cooperation with international financial organizations and the EU in the context of meeting budgetary needs in 2024.

The Minister emphasized that the Government of Ukraine is committed to implementing the reforms identified in cooperation with international partners.

In their turn, finance ministers of a number of countries and leaders of the EU, IMF and World Bank assured to maintain their support for Ukraine as long as necessary, the release said.

Although the joint efforts of the Ukrainian government and international partners have ensured the full provision of all public services to the population for nine months in a row, avoiding monetary financing, Marchenko emphasized that the uncertainty provoked by the war remains.

According to him, the 2024 budget envisages the accumulation of maximum resources for the security and defense sector, with expenditures at the level of the current year, as well as the creation of conditions for the development of the domestic defense industry. At the same time, it provides for an increase in spending on social protection and humanitarian aid, as supporting Ukrainians is an important priority of the Ukrainian government, and therefore the state budget deficit is projected at $42.9 billion.

“I am very grateful to our partners for their assurances of continued support for the next year. We already have agreements with such countries as Japan and the UK. Also, Ukraine and the EU are actively working on the creation of the Ukraine Facility for 2024-2027 with a total volume of EUR 50 billion,” the Minister of Finance said.

He added that Ukraine’s fulfillment of the conditions set in cooperation with the IMF will allow it to receive $5.4 billion under the EFF program next year.

“However, even with all these commitments, the deficit remains high,” Marchenko added and expressed hope that donors would help Ukraine cover social and humanitarian spending in full.

Kyivstar has invested $3 mln in the development of Helsi

Ukraine’s largest mobile operator Kyivstar has invested $3 million in the development of Helsi (Healthy Ukraine LLC) after buying a controlling stake in August 2022, Kyivstar President Oleksandr Komarov said at the Kyiv International Economic Forum.

“Over the year that we have owned (Helsi), we have invested $3 million in the development of this player. The team has grown 2.5 times,” Komarov said.

According to him, the number of telemedicine consultations doubled in 2023.

Helsi is a medical information system and a leading digital healthcare provider in Ukraine with more than 23 million patients and is known as a provider of SaaS medical information system solutions for 1300 public and private clinics. “Kyivstar acquired a 69.99% stake in August last year for UAH 555.74 million.

According to Kyivstar’s report for the second quarter of 2023, Helsi increased the number of registered users to 25.4 million patients, compared to more than 25 million a quarter earlier.

The number of downloads of the Helsi mobile application increased by 0.4 million to 5.4 million in the second quarter, while the number of bookings of doctor’s appointments through the platform remained at approximately 1.8 million for the quarter.

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