Business news from Ukraine

Business news from Ukraine

Industrial production in Ukraine decreased by 2.9%

Industrial production in Ukraine decreased by 2.9% in the first half of 2023, while last year the decline was 31.9%, the State Statistics Service (Ukrstat) reported.

The agency clarified that since March this year, industrial production has been growing: after a 51.2% jump in March, the recovery slowed to 18.2% in April, 17.9% in May, and 13.7% in June.

At the same time, the drop to pre-war January and February 2022 by 40% and 34.4%, respectively, led to a negative result for the first half of the year.

The State Statistics Service clarifies that the data excludes the temporarily occupied territories of Crimea and Sevastopol, as well as part of the temporarily occupied territories in Donetsk and Luhansk regions.

In terms of sectors, the statistical agency recorded the largest decline in January-June this year – 11.4% – in the supply of electricity, gas and steam, while in the mining industry it was 9.2%.

Metal ore production dropped the most – by 28.7%, while oil and gas production fell by only 2.7%, and coal production even recorded a slight increase of 0.8%.

Overall, production in the manufacturing industry also increased by 3.1% in the first half of the year.

This figure was driven by the production of motor vehicles (29.9%), machine building (12.9%), food processing (12.1%), furniture production, repair and installation of machinery (11.6%), production of rubber and plastic products (6.5%), and woodworking (4%).

The largest declines in the manufacturing industry were demonstrated by the production of coke and petroleum products (51.4%) and metallurgy (20.9%).

In nominal terms, in January-June 2023, Ukraine sold industrial products (goods and services) worth UAH 1549.66 billion, which is 6.5% more than in January-June 2022 (UAH 1455.125 billion), including UAH 282.363 billion abroad.

According to the report, the turnover of the mining and processing industry increased by 35% in June 2023 compared to June 2022.

In the total sales of industrial products for the six months of 2023, the manufacturing industry accounted for the largest share (56.2%), electricity, gas, steam and air conditioning (31.3%), mining and quarrying (11.4%), and water supply, sewerage and waste (1.1%).

As reported, industrial production in Ukraine fell by 36.9% in 2022, while in 2021, an increase of 1.9% was recorded.

Centravis took part in construction of international experimental thermonuclear reactor

Centravis Production Ukraine, a part of Centravis Ltd. holding company, took part in the construction of the International Thermonuclear Experimental Reactor (ITER) by shipping 1,300 meters of seamless stainless steel pipe for the reactor’s retro-reflectors.

According to the company’s press release on Friday, ITER is considered one of the most complex projects mankind is currently working on.

The project itself was started back in the 1980s. It was discussed and prepared for a long time. Finally, the reactor began to be built in 2020 in the south of France. The project involves 35 countries. The facility is planned to be launched in 2025, and it will reach full capacity in 2035.

According to the plan, ITER will produce clean energy through fusion.

Back in the 50s of the last century, scientists suggested that mankind is able to repeat the fusion of hydrogen isotope nuclei, as in the Sun, and get a lot of energy (1 g of thermonuclear fuel can replace 11 tons of coal).

In addition, no debris is left behind after fusion and it has low radioactivity. This type of plant can be four times more efficient than modern nuclear power plants and safer. But to get such energy, special conditions need to be created. In particular, the temperature is 10 times higher than in the core of the Sun.

“Projects like ITER are created for the future of mankind and it is an honor for us to join the cohort of its executors. We are working to ensure that there are more such orders,” said Centravis CEO Yuri Atanasov, who was quoted by the press service.

Earlier “Centravis” took part in the projects on construction of a new nuclear power plant Hinkly Point C in the UK, the largest fresh water storage in the UAE and others.

Centravis was founded in 2000 and is among the top ten largest seamless stainless steel pipe manufacturers in the world. Its main production facilities are located in Nikopol (Dnepropetrovsk region), in 2023 the company opened a branch in Uzhgorod.

The company employs more than 1400 people.

The geography of the company’s supplies exceeds 50 countries of the world. Currently “Centravis” has offices in the USA, Germany, Italy, Switzerland, Poland, United Arab Emirates. “Centravis” cooperates with Benteler Automotive, Buhlmann Group, Webco – with different companies on different continents.

Centravis Ltd. holding was established on the basis of CJSC “Nikopol Stainless Pipe Plant”, service and trading companies of LLC “Production and Commercial Enterprise “YUVIS”. Its shareholders are members of the Atanasov family. Centravis Ltd. owns 100% of shares of Centravis Production Ukraine PJSC.

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Ferrexpo was served with notice of suspicion of illegal mining for more than UAH 157 bln

Under the procedural guidance of the Specialized Environmental Prosecutor’s Office of the Prosecutor General’s Office, the chairman of the board of a mining and processing plant belonging to a group of companies owned by a member of the Parliament of the VII and VIII convocations was served with a notice of suspicion.

The press release does not specify the name of the plant, but photos and videos show the symbols of the Ferrexpo mining company, which includes Poltava Mining and Processing Plant (PGOK).

The chairman of the board is charged with illegal mining and abuse of power committed by a group of persons by prior conspiracy (part 2 of Article 28, part 4 of Article 240, part 2 of Article 364-1 of the Criminal Code of Ukraine).

According to the investigation, the chairman of the board, having entered into a criminal conspiracy with other unidentified officials of the mining and processing plant, set up an illegal scheme for the use of minerals for the purpose of enrichment.

Under the leadership of the suspect, the company, having a license to extract only iron ore, illegally processed and sold other minerals obtained in the process of mining. These rocks are supposed to be stored in specially designated storage facilities. They were processed and crushed into three different fractions, which were sold to business entities.

Between 2015 and 2021, more than 20 million cubic meters of minerals were illegally mined, which is about 164 thousand railcars. The amount of damage caused is over UAH 157 billion. This money can be used to purchase at least four new Patriot systems.

The issue of choosing a measure of restraint against the suspect and seizing his property for further compensation is being decided. Other persons involved in the crime are being identified in order to bring them to justice.

The pre-trial investigation in the criminal proceedings is carried out by the Main Investigation Department of the National Police of Ukraine with the operational support of the Strategic Investigations Department of the National Police of Ukraine and in cooperation with the State Service of Geology and Subsoil of Ukraine.

The press release reminds that according to Article 62 of the Constitution of Ukraine, a person is presumed innocent of committing a crime and shall not be subjected to criminal punishment until his or her guilt is proved in accordance with the law and established by a court verdict.

As reported in Ferrexpo’s semi-annual report, the company continues to monitor and analyze the situation with the accusations of the company’s management by the State Bureau of Investigation (SBI) of mining without a permit and subsequent sale.

On January 10, 2023, the SBI conducted several searches in connection with an investigation into alleged illegal mining. The National Police of Ukraine also investigated the same case and conducted searches and took samples in the dumps on January 17.

“The position of the Mining and Processing Plant is that the minerals in question are not a separate mineral resource, but are waste products obtained as a result of crushing iron ore during the technical process of producing iron ore pellets,” the report stated.

In addition, it is reported that on June 29, 2023, the SBI served suspicions on three representatives of the top management of the Mining and Processing Plant and the head of one of its divisions on suspicion of selling crushed stone without a permit. The employees were detained by the SBI and later released after posting bail totaling UAH 122 million, which was approved by the court.

The report explains that crushed stone sales were controlled by the State Service of Geology and Subsoil of Ukraine for many years and were stopped by the group in September 2021.

“It is the position of the Group that based on the existing mining license, the Group complies with the relevant legislation. The Group continues to monitor and analyze the situation regarding the suspicions announced by the SBI,” the company’s report summarized.

Earlier, the State Bureau of Investigation issued a press release claiming that the plant’s executives had illegally seized almost UAH 400 million from the extraction and sale of minerals of national importance without the appropriate permits.

“SBI officers, in cooperation with the SBU and the Prosecutor General’s Office, served suspicion notices to the management of the PJSC: the management of the plant’s board, heads of departments through which the company’s financial transactions were carried out, and the management of the gasket company through which the fraud was carried out,” law enforcement officials said in a statement.

According to them, “the cash from the sale was withdrawn through conversion centers and distributed among the members of the criminal group.”

The SBI indicated that 15 searches were conducted in the offices and residences of top managers of the company, gasket companies and companies in the transit and conversion sector.

Ferrexpo is an iron ore company with assets in Ukraine, owning a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky Mining and 100% in Poltava Mining.

Ukrhydroenergo and Canadian AECON sign Memorandum of Cooperation in Canada

Ukrhydroenergo and Canadian company AECON Construction Global Services Incorporated (AECON) have signed a Memorandum of Understanding in Ottawa, Canada, on cooperation in the construction of hydroelectric power plants in Ukraine.

According to the press service of the President of Ukraine, the Memorandum was signed by Ihor Syrota, CEO of Ukrhydroenergo, and John M. Beck, founder and chairman of AECON Group Incorporated.

The signing took place in the presence of President of Ukraine Volodymyr Zelenskyy and Prime Minister of Canada Justin Trudeau.

The document provides for the study of the possible participation of the Canadian AECON in the construction of the Kanivska PSP and Kakhovska HPP.

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Canada to provide macro-financial assistance to Ukraine again in 2024

Canada will again provide macro-financial assistance to Ukraine in fiscal year 2024, Prime Minister Justin Trudeau said on Friday in Ottawa after talks with Ukrainian President Volodymyr Zelenskyy.

“We have confirmed that Canada will make a financial contribution to the consortia created by the leader of the United Kingdom to provide military equipment to Ukraine. To ensure that the government has the necessary resources to provide services to its people…today I confirm that we will again provide significant macroeconomic assistance to Ukraine in fiscal year 2024,” he said.

According to him, Canada is “changing its approach,” and now we will provide our assistance for several years, so that Ukraine knows and can receive support on a bilateral basis.

“We are helping farmers whose activities were interrupted by Russia’s actions. We will also provide assistance to the Holodomor Museum in Ukraine, and we will help all Ukrainians to promote mental health,” he said.

He noted that “the new assistance that has been announced builds on the base of almost $9 billion that we have committed to provide and help Ukraine.”

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It will be hot in Kyiv in next two days, with rains in west

On Sunday, September 24, there will be no precipitation in Ukraine, only in the western regions there will be short-term rain, sometimes thunderstorms, the Ukrainian Weather Center reports.
At night and in the morning in Odesa region there will be fog in some places.
Southeast wind, north in the western regions, 5-10 m/s.
The temperature at night will be 11-16°, on the coast in some places up to 20°. During the day 25-30°, in the western regions 19-24°.
In Kyiv, no precipitation, southeast wind, 5-10 m/s. The temperature at night is 14-16°, during the day 26-28°.
According to the Borys Sreznevsky Central Geophysical Observatory. The highest temperature during the day on September 24 in Kyiv was recorded in 2015, it was 30.0°, the lowest at night was 2.2° below zero in 18881.
On Monday, September 25, there will be no precipitation in most regions, with only short-term rain in the western regions at night.
At night and in the morning in the western regions there will be fog.
The wind will be mostly northeast, 5-10 m/s.
The temperature at night will be 10-15°, in Transcarpathia and the coast 13-18°. During the day 23-28°, in the far west of the country 19-24°.
In Kyiv, no precipitation, mostly northeast wind, 5-10 m/s. Temperature at night 13-15°, during the day 25-27°.

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