Business news from Ukraine

Business news from Ukraine

Over 100 thousand trees have been digitized in Kyiv

More than 100,000 trees have been digitized in Kyiv, according to Oleksandr Voznyi, head of the Department of Environmental Protection and Climate Change Adaptation at the Kyiv City State Administration.

“Our online map of trees is being actively updated and as of today contains more than 107 thousand plantations. By creating this resource, we aimed to conduct a clear inventory and understand how many trees there are in the capital, what condition they are in, and to provide the community with effective control tools,” he wrote on Facebook.

Voznyi noted that a significant amount of work has been done by the utility companies of Desnianskyi, Holosiivskyi and Pecherskyi districts, which have digitized all street trees and the vast majority of parks and are now working in parks.

“Seven parks in Desnianskyi and one in Holosiivskyi districts of the capital have already been added to the online map. We have also started digitizing the Partisan Glory Park in Darnytsia district and the Eternal Glory Park in Pechersk district of Kyiv,” he said.

The resource will contain a photo of each “digitized” tree, information about its location (with reference to the exact coordinates), species, trunk diameter, height and condition.

The online map is still being updated. Since it is created using high-precision maps, it will be made public as soon as it is possible from the point of view of security issues.

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Abnormal heat wave hits Spain for the fourth time this summer

Spain has been hit by an abnormal heat wave for the fourth time this summer and its peak is expected in the coming days, EFE news agency reported on Monday.

According to forecasts, temperatures are expected to reach between 39 and 43 degrees Celsius in different parts of the country on Monday and Tuesday. Thus, around 40 degrees is expected in the Balearic Islands region, as well as in the southwest and northeast of Spain. In the south-west of Andalusia thermometer columns will rise to 43 degrees. In the central part of the country, as well as in the southern part of Galicia and Mallorca – about 39 degrees Celsius. In Catalonia’s Lerida and Girona, as well as in Barcelona, residents were urged to prepare not only for temperatures of 40 degrees Celsius, but also for storms and heavy rain.

In most of the country, the risk of forest fires due to abnormally high temperatures is assessed as high.

This heat wave is expected to last until August 24 and then subside. The cooling will first come to the western part of the country, and closer to the weekend will spread to the rest of Spain.

Because of the hot weather, forest fires are raging in the country. This year, natural fires in Spain have already destroyed almost 64 thousand hectares.

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Weather forecasters predict comfortable weather in Kyiv and Ukraine in coming days

In Ukraine, the heat will drop slightly in the next few days – on Tuesday, August 22, the temperature will be 15-20° at night, 24-29° during the day, 27-32° in Zakarpattia, central and eastern regions; in the south of the country, 18-23° at night, 30-35° during the day, according to the Ukrainian Weather Center.

Forecasters predict that August 22 will be without precipitation, only in the Carpathians, in the Carpathian region and in the northeast of the country there will be short-term rains in some places during the day. The wind will be northwest, 5-10 m/s.

No precipitation is expected in Kyiv. Northwest wind, 5-10 m/s. The temperature at night will be 18-20°, during the day 27-29°.

According to the data of the Borys Sreznevsky Central Geophysical Observatory. On August 22, the highest daytime temperature was 36.6° in 2000, and the lowest nighttime temperature was 4.6° in 1914.

On Wednesday, August 23, it will be without precipitation, only in the Carpathian region there will be short-term rains and thunderstorms. West, northwest wind, 5-10 m / s.

Temperature at night will be 12-17°, during the day 24-29°, in Transcarpathia and Prykarpattia up to 31°; in the southern part of the country at night 16-21°, on the coast up to 23°, during the day 28-33°.

In Kyiv on August 23, there will be no precipitation. West, northwest wind, 5-10 m/s. Temperature at night 14-16°, during the day 26-28°.

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Ukraine has all prospects to become an attractive investment hub for business – Deputy Head of Presidential Office

Ukraine has a set of advantages for attracting significant investments and localizing modern production of global brands, with only security guarantees and accession to the EU required, Rostyslav Shurma, Deputy Head of the Office of the President of Ukraine, said on the air of the national marathon “United News”.

According to him, Ukraine’s prospects are well illustrated by the example of the dialog with Sweden.

“Sweden has very good not only military technologies, but also, first of all, engineering technologies. This is a very wide range. Therefore, Sweden has the entire range of machine building, a complete portfolio, and this is critically important for the reconstruction of Ukraine, because first of all, we will need a huge amount of equipment – both for infrastructure and for the construction of new enterprises and factories,” the deputy head of the OP noted.

He emphasized that such equipment is sold not only as engineering solutions, but also together with financial packages, which are usually provided through export credit agencies, and this is one of the issues being addressed today during negotiations with the Swedish side.

“We are talking about billions of dollars, but the main focus should be on the private sector. Our task is to create conditions that make it profitable for companies to come to Ukraine. We have very qualified people and a large set of mineral resources. We have all the conditions to carry out full-fledged rising of production from Southeast Asian countries to Ukraine. Two main factors remain: security (victory in the war, security guarantees and further accession to NATO) and EU accession (unimpeded access to markets and financing and a set of reforms that we are currently working on). In fact, this is the formula for big projects, great recovery, and a new economy,” added Rostyslav Shurma.

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Kernel Agroholding is negotiating with creditors on deferring repayments until June 30, 2024

Agroholding “Kernel”, taking into account the continuation of Russia’s war against Ukraine, in the spring of 2023 initiated an extension of waivers (waivers) for another year – until June 30, 2024, the company said in a statement on the Warsaw Stock Exchange.

“At the moment, the process of agreeing such an extension with the majority of creditors is still ongoing. However, the Group has signed either 1) temporary moratoriums (standstills); 2) extensions; or 3) new waivers and consents (consents) under all credit facilities, pending final agreement with those lenders with whom extensions have not yet been finalized,” Kernel pointed out.

Agroholding noted that interest will continue to accrue and be paid in accordance with the terms of the loan agreements. “The company is also currently paying and intends to continue paying interest on the Eurobonds,” the release said.

“Kernel” recalled that earlier such waivers (Waiver Letters) in order to maintain stability and preserve business and assets for a period until June 3- June 2023 were signed in respect of, inter alia, loans of Natixis PXF, ING PXF, EBRD and EIB. Under these, the agroholding has obtained a deferral of any principal repayment, a waiver of specified potential or actual defaults or events of default arising from the war in Ukraine, but has been paying interest.

It is stated that the group has already agreed with those creditors that have not yet signed new waivers and consents, the principal terms of the extension of the terms until June 30, 2024, which are subject to final documentation and approval by the respective credit committees of each creditor. Their principal conditions, in addition to extending the maturity date to June 30, 2024, are the establishment of a capital expenditure basket sufficient to support the current scale of operations and the commencement of a shareholder support process in the form of a new capital injection of at least $60 million.

As of July 31, Kernel had $1 billion 445 million of interest-bearing debt (principal amount of bank loans and Eurobonds, excluding accrued interest and lease obligations), $1 billion 148 million of cash and cash equivalents and $327 million of inventory (including 1 million 282,000 tons of grain, 103,000 tons of oilseeds, 147,000 tons of sunflower oil and 111,000 tons of sunflower meal).

A substantial portion of the accumulated liquidity will be spent in fiscal year 2024 (FY, effective July 1, 2023 – IF-U) on working capital, capital expenditures for the development of an alternative export route across the Danube, repair of facilities, damaged as a result of Russian missile strikes, to complete construction and commissioning of an oil extraction plant in western Ukraine, and to address the maintenance backlog as a result of liquidity preservation measures taken in FY2022-FY2023, it said.

According to it, the group is considering investments in rolling stock, grain transshipment on the Danube River and river fleet to ensure a monthly export volume of about 300,000 tons with an estimated capital expenditure of about $50 million. The group does not have access to credit limits at banks, relying on accumulated cash, however, it continues to negotiate with various financial institutions for credit lines for working capital or capital expenditure. The uncertainty of future VAT refunds and the possible risk of hryvnia devaluation increase the risk of significant currency losses, Kernel adds.

Regarding the delisting, the intentions of which were first announced in early March this year, the company points out that on May 15 it filed an application with the Polish Financial Supervisory Authority (PFSA), and on July 13 it submitted to the PFSA an additional legal memorandum and other documents requested by the regulator. Kernel then sent a letter to the PFSA on Aug. 1 objecting to the applications filed with the regulator in the case.

“At the time of publishing this report, the company has not received any further information on the timing of the PFSA’s decision,” it said.

Kernel Agroholding was the world’s number one producer of sunflower oil (about 7% of global production) and its exporter (about 12%) before the war. It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in growing agricultural products and their realization.

The largest co-owner of Kernel through Namsen Ltd. – is Ukrainian businessman Andriy Verevsky, who this year increased his stake from 41.3% to 74.05% as part of the buyout and delisting of the agroholding from the Warsaw Stock Exchange.

Kernel’s net profit for the first nine months of FY 2023 (July-2022-March 2023) rose 36% to $437 mln, while revenue fell 45% to $2.715 bln.

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“Astarta” harvested 330 thousand tons of winter and spring crops in season-2023

Agro-industrial holding Astarta, the largest sugar producer in the country, has completed harvesting of early grain crops on the area of 57 thousand hectares and harvested 330 thousand tons of total winter and spring crops, including 271 thousand tons of winter wheat and 56 thousand tons of rape, the press service of the agricultural holding reported.

According to the report, the average yield of winter wheat amounted to 6.3 tons/ha, which is 33% higher than last year’s figures. The maximum average yield was obtained by agrofirm “Khmelnytske” of Vinnitsa region – 7.4 t/ha on the area of 6000 hectares, and on the area of 1350 hectares the yield reached 8.4 t/ha.

In addition, the enterprises of the agricultural holding threshed 56 thousand tons of winter rape, with a record average yield for the last five years – 4.1 t/ha. The maximum indicator of over 5 tons per hectare on the area of 1310 hectares was obtained on the fields of agrofirm “Poltavazernoprodukt” in Poltava region.

Agroholding also in early August began sowing campaign of winter crops for the harvest of 2024. 12 thousand hectares are allocated for rape, the sowing of which is already being completed, and 54 thousand hectares for winter wheat.

Preparations for harvesting soybeans, sunflower, corn, and sugar beets continue.

“Astarta” is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes six sugar factories, agricultural farms with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, an oil extraction plant in Globino (Poltava region), seven elevators and a biogas complex.

In the first half of 2023, Astarta’s revenue from sales of key products increased by 64.8% year-on-year to UAH 10.72 bln. The main contribution was made by sales of sugar – UAH 3.27 bln, which increased by 75.5%, corn – UAH 2.66 bln (+53.2%) and soybean meal – UAH 1.96 bln (+84.5%).

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