Business news from Ukraine

Business news from Ukraine

EU plans to disburse EUR 4.5 bln to Ukraine by end of this year

In 2023, the European Union became the largest donor to Ukraine, having already disbursed EUR13.5 billion under the macro-financial assistance instrument and expecting to disburse another EUR4.5 billion by the end of the year, European Commissioner for Economic Affairs Paolo Gentiloni said.
“Overall, the progress is very good, and I am optimistic about the prospects that Ukraine will fulfill all the conditions by the end of 2024 and beyond,” he said on Wednesday at the 4th Ministerial Roundtable on Support to Ukraine at the IMF-World Bank (WB) meeting in Marrakech.
According to him, the EU and other international partners should be proud of the fact that they contributed to covering Ukraine’s financing gap both last year and this year, and thanks to this solidarity, Ukraine’s economy is in better shape today than many expected.
“We count on the support of all international partners. We also need to harmonize the conditions of support between international donors and international financial institutions to ensure their consistency,” the European Commissioner added, emphasizing that funding remains a key factor.
He noted that Ukraine has demonstrated the ability to continue to implement important economic reforms, recalling that the current conditions of the EU financial assistance include, among other things, judicial reform of Ukraine, improved regulation of economic activity and improved bankruptcy regime.
“The European Commission’s proposal to allocate $50 billion over the next four years will allow us to significantly help meet Ukraine’s financial needs,” Gentiloni said.

Ukrainian mining companies reduced iron ore exports by 40.8% in real terms

In January-September this year, Ukrainian mining companies reduced exports of iron ore by 40.8% in physical terms compared to the same period last year, to 12 million 644.570 thousand tons.

According to the statistics released by the State Customs Service (SCS), foreign exchange earnings from iron ore exports amounted to $1 billion 323.212 million (down 50.4%) in the period under review.

Iron ore was exported mainly to Slovakia (29.33% of supplies in monetary terms), the Czech Republic (22.58%) and Poland (19.83%).

In January-September of this year, Ukraine imported iron ore worth $86 thousand in the total amount of 126 tons. Imports during this period were made from Norway (41.18%), Italy (34.12%) and the Netherlands (23.53%). At the same time, in the same period of 2022, iron ore worth $27 thousand was imported in a total volume of 49 tons.

As reported, in 2022, Ukraine decreased the export of iron ore in physical terms by 45.9% compared to 2021 – to 23 million 984.623 thousand tons, while foreign exchange earnings decreased by 57.8% to $2 billion 912.974 million.

Iron ore was exported mainly to Slovakia (19.23% of supplies in monetary terms), the Czech Republic (17.32%) and Poland (16.49%).

Last year, Ukraine imported iron ore worth $65 thousand in a total volume of 101 tons, while in 2021 – $184 thousand in a volume of 1,202 thousand tons.

Imports were carried out from Norway (36.92%), the Netherlands (27.69%) and the UK (16.92%).

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Norway to allocate $18.5 mln for humanitarian demining in Ukraine

The Norwegian government is allocating an additional 200 million Norwegian kroner (about $18.5 million at the current exchange rate) for humanitarian demining in Ukraine, Norwegian Foreign Ministry State Secretary Eivind Vad Petersson has said.

“Since 2015, Norway has provided EUR 15 million in assistance through non-governmental organizations. Today, we are increasing our contribution by another 200 million kroner in additional demining assistance,” he said at the High Level International Donor Conference on Humanitarian Demining in Ukraine in Zagreb on Wednesday.

Vad Petersson also called for compliance with the Anti-Personnel Mine Ban Convention, adopted 25 years ago, expressing hope that Croatia would join it.

A statement on the Norwegian government’s website on Wednesday said that the widespread use of mines and cluster munitions in Ukraine has made it the most mined country in the world today, and that Norway will more than double its support for efforts to clear mines laid in Ukraine since the beginning of Russia’s brutal aggressive war.

It is noted that about 30% of Ukraine’s territory is currently littered with mines and unexploded ordnance, and demining is vital for Ukrainian farmers to grow crops.

“Russia’s military aggression on the territory of Ukraine affects not only Ukraine. It threatens food security around the world,” Foreign Minister Anniken Huitfeldt said in the release.

It is specified that Norway has previously provided NOK 164 million for demining activities since Russia launched a full-scale war against Ukraine in February 2022. The additional funds allocated under the Nansen Support Program for Ukraine will be channelled through existing demining organizations, including Norwegian People’s Aid, HALO Trust and the UN system.

Norway recalls that it has already provided more than NOK 4.5 billion in humanitarian aid to Ukraine and assistance to refugees in neighboring countries.

Earlier at the conference, Croatia, which organized the donor conference, announced the allocation of additional funding of EUR 5 million for humanitarian demining in Ukraine. Several other countries, including Spain, Slovakia, and Slovenia, announced at the conference that they would allocate additional funds for this purpose, but in these cases, the amounts were in the range of EUR0.5 million to EUR1.5 million.

According to a study conducted by the World Bank, the Ukrainian government, the European Commission, and the UN, the cost of humanitarian demining in the year after the start of Russia’s full-scale invasion was estimated at more than EUR34 billion out of the total cost of reconstruction and recovery of EUR383 billion. At the same time, the full extent of the contamination remains unclear due to the ongoing hostilities and occupation of the territory.

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Ukraine and Denmark sign memorandum of cooperation in agricultural sector

Minister of Agrarian Policy and Food Mykola Solsky and Minister of Agriculture and Fisheries of Denmark Jakob Jensen have signed a memorandum of understanding between the agriculture ministries of the two countries, the press service of the Ministry of Agrarian Policy reported.

“The signing of the memorandum is aimed at long-term strategic cooperation to improve the efficiency and sustainability of food production and agriculture,” the statement said.

According to the document, the parties will exchange information and experience in the field of green transition of agriculture and food systems, including joint policies and climate solutions; in the field of food safety and food security.

Ukraine and Denmark are also interested in the prospects of livestock development, including management, animal welfare, animal health, animal breeding, feed and organic farming.

Ukraine and Denmark will set up a joint working group to identify areas of cooperation.

Solsky thanked the Danish government for its support and assistance. According to him, Danish farmers have been successfully developing their business in Ukraine for the past 15 years. They are not deterred by the war in Ukraine.

“Denmark is one of the examples of agriculture in Europe and the world of how to be efficient and profitable. And an example of very high technology. We are interested in investments and in a greater presence of Danes in Ukrainian business. This is a good experience, an extremely high-quality approach, something we would like to learn from, something we want to follow,” the Ukrainian minister emphasized.

In turn, Jensen expressed confidence in the effectiveness of cooperation with Ukraine in the agricultural sector.

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Donors pledge EUR0.5 bln to help Ukraine with demining

The total amount of pledges to help Ukraine with humanitarian demining, confirmed on Wednesday by participants of the first such special high-level international donor conference in Zagreb, is almost EUR0.5 billion, said Croatian Deputy Prime Minister and Minister of the Interior Davor Božinović.
“The 34 participating states expressed their clear political support for Ukraine in the field of mine action and maintained their political commitments… The total amount of these contributions is almost EUR0.5 billion,” he said at a briefing after the first day of the conference.
According to him, additional contributions have been and will be made in the form of equipment, materials and expert assistance.
“Some countries have also made commitments that will be implemented in cooperation with international organizations, such as the United Nations Development Program,” Bozhynovych added.
He emphasized that the conference made it clear that Ukraine’s partners will join forces and act together at the national, European and international levels to identify as soon as possible the threats to the status quo posed by mines and explosive remnants of war.
“We emphasize the importance of using the most modern technologies, knowledge and experience, fully realizing that this is vital for the safety of Ukrainian citizens, as well as for the economic, social, environmental and all other aspects of post-war recovery and development of Ukraine,” said the Deputy Prime Minister and Head of the Croatian Ministry of Internal Affairs.
He reminded that the EU Council is currently discussing a 4-year EUR 50 billion Ukraine Facility program to help Ukraine, and once approved, it will be very important to allocate part of these funds for demining.
“We hope that the conference that took place today confirmed these expectations and that it will be properly reflected in the upcoming rounds of negotiations in the Council and approved by the European Commission,” added Bozhynovych.
He also welcomed Switzerland’s announcement to organize, as a follow-up to the Zagreb event, the next international donor conference on humanitarian demining in Ukraine next October in Geneva.
On Thursday, the second day of the conference, there will be an expert discussion of detailed demining measures and activities in Ukraine.
According to a study conducted by the World Bank, the Ukrainian government, the European Commission and the UN, the cost of humanitarian demining in the year after the start of the full-scale Russian invasion was estimated at over EUR34 billion out of the total cost of reconstruction and recovery of EUR383 billion. At the same time, the full extent of the contamination remains unclear due to the ongoing hostilities and occupation of the territory.
In the spring, the Ukrainian government estimated the priority funding needs for humanitarian demining this year at $400 million.

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Hungary lifts ban on imports of Ukrainian sugar

The Hungarian government has removed cane and beet sugar from the list of banned Ukrainian products for import after September 15, 2023, Agroinform.hu reported.

According to the report, the Hungarian government’s resolution on measures related to the transportation of certain agricultural products from Ukraine, which restricted the import of 24 Ukrainian agricultural products after September 15, removed the line referring to cane and beet sugar, as well as hard sucrose.

The decision came into force on October 10.

As reported, the European Commission announced on September 15 that it would not extend restrictions on imports of agricultural products from Ukraine to five neighboring EU countries (Poland, Bulgaria, Hungary, Romania and Slovakia) with some conditions to avoid a new surge in supplies.

The restrictions were imposed on May 2, 2023 and concerned imports of wheat, rapeseed, sunflower and corn. These five Eastern European member states argued that Ukrainian agricultural products, when imported duty-free into the EU, were settling with them and harming the local agribusiness sector.

After the restrictions were lifted, Poland, Hungary and Slovakia introduced unilateral bans. Poland expanded the list of products banned for import with rapeseed cake and meal, as well as corn bran, wheat flour and derivatives. Hungary brought the list to 24 commodity items.

Ukraine has filed a lawsuit with the WTO, accusing Poland, Hungary and Slovakia of discriminating against its agro-products.

Ukraine is currently negotiating the introduction of a licensing mechanism for exports of Ukrainian agro-commodities with mandatory verification in each of the five countries.

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