Italian cement producer Buzzi, through its subsidiary Dyckerhoff GmbH, has reached an agreement to sell part of its business in Eastern Europe to CRH, a leading provider of building materials solutions, for EUR0.1 billion, according to an official website on Tuesday.
As clarified in the release, the deals include a business in Ukraine and assets for the production of ready-mix concrete in Eastern Slovakia. Completion of the deal in Ukraine depends on obtaining the necessary regulatory approvals and is expected in 2024.
Buzzi Unicem SpA (Italy) combines businesses producing cement, concrete, sand, crushed stone, etc. The main activity of the group is the production of cement, which is produced in its own enterprises in Germany, the USA, Luxembourg, the Czech Republic, Poland, Russia and Ukraine. Dikerhoff Cement Ukraine PJSC, the Ukrainian branch of Buzzi, has branches set up at Volyn-Cement (Zdolbuniv, Rivne region) and YuGcement (Olshanske, Mykolaiv region) plants. The group also operates in the ready-mix concrete sector in Kiev, Odessa and Nikolaev.
Buzzi operates six ready-mix concrete plants in Eastern Slovakia.
It was reported in March 2023 that Italian cement producer Buzzi Unicem was listed by the National Agency for Prevention of Corruption (NAPC) as an international sponsor of war. Buzzi operates in Russia through OOO SLK Cement, which owns two cement plants, Sukholozhskcement and Korkino, a terminal in Omsk and the transport company Cemtrans. According to the NAZK, the company is one of the five leaders of the Russian cement industry.
Irish CRH Plc, the largest manufacturer of building materials in the world, in Russia owned six plants of building mixes, announced its withdrawal from the Russian market.
CRH entered the market of Ukraine in 1999, acquiring Kamenets-Podolsky cement plant in Khmelnitsky region. At the moment CRH also includes Odessa cement plant and Nikolaevcement (Lvov region).
A separate direction of CRH business in Ukraine is the production of concrete and reinforced concrete products. PoliBeton Energo’s Bila Tserkva Concrete Plant is a specialized enterprise that produces supports for power transmission lines. The PoliBeton concrete unit in the north of Odessa joined CRH in 2020.
The National Bank of Ukraine in order to prevent unfair speculation and minimize misunderstandings in the exchange of cash made changes to its “regulations” and abolished the definition of minor depreciation of banknotes, prohibiting financial institutions to refuse customers to exchange currency, if the counter or detector on the counter confirmed the authenticity of banknotes.
“This means that the cashier can’t “by eye” to assess the authenticity of banknotes or their condition and refuse to carry out a currency exchange operation because it seemed to him that the pattern or color doesn’t match somewhere. So, we completely eliminate the human factor! – NBU head Andriy Pyshny wrote on Facebook.
He stressed that representatives of banks and non-banking institutions have been conveyed the NBU’s principled position and in case of violation such actions will be regarded not only as non-compliance with NBU regulatory requirements, but also as a potential sign of fraud.
“On such facts we establish enhanced control and take adequate measures of influence,” Pyshny said.
The head of the regulator specified that the National Bank, depending on the level of the offense committed, will apply the influence measures that include fines: for banks – up to 400 thousand UAH, which will soon be increased for significant violations, for non-bank institutions – up to 5% of the equity of the institution.
Pyshnyy recalled that the NBU has not imposed any restrictions on currency exchange based on the year of issue of banknotes and its regulations expressly prohibit imposing any such restrictions.
He said that the National Bank will hold another meeting with market participants on June 21 to discuss the decision taken on Tuesday.
On June 23, 2023, Kyiv Think Tank Club, within the framework of the initiative aimed at supporting and developing the wine industry, will hold the second tasting seminar-presentation dedicated to the winners and finalists of the VIII All-Ukrainian Tasting Competition “Variety and Terroir. Micro winemaking. Unbreakable”.
According to the organizers, this event will be an interesting event for all wine lovers, both expert sommeliers and restaurateurs, representatives of retail, media community and ordinary consumers. At the seminar, visitors will be able to learn about the products of the leading craft producers of Ukrainian wines and spirits, as well as join the platform for the exchange of opinions and ideas between leading experts in the field of winemaking.
Maksym Urakin, founder of the Club of Experts, PhD in Economics, emphasized the importance of supporting domestic wine and spirits producers.
“Our event is not just aimed at developing a culture of wine consumption in Ukraine. It also contributes to the growth of domestic production, helping the economic revival of our country. Each bottle of wine produced in Ukraine is a step towards creating jobs, increasing tax revenues and enhancing economic stability,” said Maxim Urakin.
The wine samples presented at the event will be presented by the finalists of the VII All-Ukrainian Tasting Competition “Variety and Terroir. Micro winemaking. Unbreakable” of the All-Ukrainian Association of Winemakers and Sommeliers, which will give visitors the opportunity to experience a rich bouquet of flavors created using traditional winemaking methods and modern technologies. Natalia Blagopoluchnaya, President of the Ukrainian Association of Winemakers and Sommeliers, noted that all wines presented at the event have been expertly evaluated according to all criteria, from aroma and taste to texture, color and overall harmony.
The following Ukrainian wines and spirits will be presented at the wine evening:
“Sparkling pink, 2019” by 46 Parallel TM;
“Riesling, 2022 by Babchuk Winery;
“Rkatsiteli Orange, 2020” from TM “Driukivski Wines”;
“Pinot Noir, 2021 from Chateau Pinot TM;
“Pinot Noir, 2020 by Georgiy Samsoniuk;
“Merlot, 2021” and “Cabernet Sauvignon, 2021” from TM “My Wine”, Eduard Gorodetsky;
“White dessert vermouth” and “Honey casserole, 40%” from TM “Winemaker Vinokur”;
“Chacha Odesa Black, 2022, 42%” from TM “Winemaker Vinokur”;
Zweigelt 2019 TM “Vina Kovač”
Chorna perlina 2017 TM “Vina Kovača”
“Apple, 42%” from TM “KALYUS WINERY”;
“Calvados, 42% from Ivan Gorobets.
The partners of the event are the All-Ukrainian Association of Winemakers and Sommeliers, the House of Ukrainian Wine and the Public Union Ukrsadvynprom, which actively support the revitalization of domestic winemaking and expansion of its influence on the global wine market.
Information support for the event is provided by Open4business portal and Interfax-Ukraine news agency.
The special partners of the evening, Zakarpatski Kovbasy TM and Kozatski Kozyrni Cheese TM, will provide the perfect gastronomic pairings for the wines, which will help to further reveal the taste of each bottle presented.
Each participant will have the opportunity to personally taste the wines of leading Ukrainian winemakers, evaluate their character and quality, exchange opinions with other visitors and experts, and ask questions to the representatives of the producers. The seminar-tasting, which will be held at the Club of Experts, promises to be a bright event in the life of the Ukrainian wine community, bringing together wine connoisseurs, experts and producers under one roof.
In addition to supporting domestic winemaking and getting acquainted with the best samples of Ukrainian wine, the event participants will have the opportunity to engage in an important dialog about the future of winemaking in Ukraine. This includes discussing the current problems and challenges faced by the industry, sharing experiences and finding potential ways of development.
The organizers of the event hope that this initiative will not only raise the status of Ukrainian winemaking, but also stimulate the development of this industry by attracting investors’ attention, facilitating international dialogue and opening new prospects for Ukrainian wine on the global stage.
CLUB_OF_EXPERTS, HOUSE OF UKRAINIAN WINE, SEMINAR, TASTING, UKRAINIAN_WINE, URAKIN, WINE, WINE_INDUSTRY, WINEMAKING
Kiev analytical center “Club of Experts” on its YouTube channel presented another video overview of the macroeconomic situation in Ukraine and in the world.
In the new edition, the founder of the “Club of Experts”, Maksim Urakin, PhD in Economics, noted that since official data on the population of Ukraine is not available now because of the ongoing war, the UN estimates as of June 2023 (43.3 million people) are not completely correct.
“These estimates cannot be sufficiently accurate given the availability of other data sources, such as the Ukrainian Institute for the Future, which in its most recent study estimates the available population at 29 million inhabitants. This reflects a significant population decline of nearly 9 million over the past year, caused by the mass exodus of citizens out of the country after the war began,” Urakin noted.
Despite these challenges, the outlook for Ukraine’s gross domestic product (GDP) can be considered encouraging.
“The GDP decline in the first quarter of 2023 was down from the same period last year at 13.5%. But we foresee an overall positive trend, given the forecast of the NBU, which expects economic recovery starting from the second quarter of 2023,” said the expert.
With the increase in the negative foreign trade balance of Ukraine, it is clear that the country faces new challenges.
“In January-April 2023 the negative balance of foreign trade in goods of Ukraine increased 40 times in comparison with the same period of 2022 – up to $ 7.04 billion. This means that the cost of Ukraine to purchase the necessary goods by $ 7 billion exceeded the income from export of Ukrainian goods, “- said Urakin.
The world economy continues to show strong signs of recovery from the shocks caused by the COVID-19 pandemic. At the same time, GDP growth rates of the leading countries differ markedly.
“In the U.S., the economy is showing moderate growth of 1.3% in the first quarter of 2023, up 0.2% from what was previously reported. In China, meanwhile, GDP grew 2.2% in the first quarter of 2023, more than expected, thanks to a rebound in exports and consumer spending. The volume of China’s digital economy in 2022 also increased significantly – by 10.3% to 50.2 trillion yuan ($7.25 trillion), indicating the increasing role of the digital economy in the country’s overall economic growth,” said Maxim Urakin.
The expert stressed that despite different levels of growth, it is clear that the economies of different countries are still struggling due to the effects of the pandemic and global uncertainty. However, they continue to adapt and strengthen, as evidenced by this latest data.
Watch the full video on YouTube at the link:
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State-owned “Ukrgasbank” provided “Karpaty” Experimental Mechanical Plant (OMZ) wagon building enterprise (Lviv region) with a two-year loan to the amount of UAH 170 mln, including UAH 60 mln granted under the state program “Available loans 5-7-9%”, as press-service of the bank informed.
According to a press release on Monday, such support from Ukrgasbank allowed the company to provide itself with orders, maintain its staff (more than 600 employees) and stable tax revenues to the budget.
“Since the beginning of the war, Ukrgasbank continues to support the national railcar industry by providing financing for the working capital of OMZ Karpaty LLC,” the statement said.
According to the bank, since the beginning of 2023, OMZ Karpaty has built 392 cars, including 291 grain cars, 35 gondola cars, 64 cement cars and two platforms. The company is also developing a new direction – repair of diesel locomotives.
Besides, the production is diversified in the direction of press-compactors production, which are exported to the EU.
The main activities of OMZ Karpaty LLC are construction of freight cars, repair of rolling stock, production of tank containers, tanks, metal structures and hydraulic elevators.
According to the resource opendatabot, in 2022 the company’s income increased by 2.9 times against 2021, to 1 billion 231.5 million UAH, net profit was 13.4 million UAH against a loss of 2.67 million UAH a year earlier.
According to the NBU on May 1, 2023, Ukrgasbank with assets of UAH 164.38 billion ranked 5th among the 65 operating banks in the country.
Philip Morris International (PMI) will invest more than $30 million to launch a new factory in the Lviv region, the company’s press service said Tuesday.
According to the report, preparatory work for the construction of the future factory will begin in July 2023. The company expects production to start in the first quarter of 2024. The new factory will employ more than 250 people, mostly in manufacturing. Employment will primarily be offered to employees of the Philip Morris plant in Kharkiv.
“By opening this new factory, we are once again demonstrating our support for Ukraine. This investment represents our dedication as a long-term economic partner of the country. The new production facility at the location proposed by UkraineInvest will create jobs, meet the demand of the Ukrainian market with quality products and support the Ukrainian economy in difficult times for the country,” said Maxim Barabash, CEO of Philip Morris Ukraine.
PMI European Region President Massimo Andolina expressed confidence that the new company will provide a reliable supply of products and employment opportunities for Ukrainians. “This investment is a powerful signal to other international investors – confidence in the Ukrainian economy, the Ukrainian people and the future of Ukraine,” he summarized.
“Philip Morris Ukraine” works in the Ukrainian market since 1994 and during this time has invested more than $700 million in the Ukrainian economy. In 2022, the company paid 25.3 billion UAH of taxes in Ukraine.
As reported in May, PMI said that at the present time considers it unsafe to resume production at its factory near Kharkiv (Dokuchaevskoe village, Kharkiv district, Kharkiv region), which was suspended in February 2022, and intends to run an alternative production in the country.
After the factory was suspended, PMI supplied products to Ukraine from the company’s eight plants abroad for some time. But then, in search of a solution that would allow the production of Ukrainian product in Ukraine, an agreement was signed to produce the company’s products at Imperial Tobacco’s facilities in Kiev, where they are now produced.
Since the start of a full-scale war in Ukraine, the company has ensured a steady supply of its products in Ukraine through imports from PMI’s 8 factories and a temporary partnership with another manufacturer in Ukraine.
According to PMI, the tobacco market in Ukraine in 2022 decreased by 30% and in the first quarter of 2023 by 26.7% due to the departure of some consumers from Ukraine, as well as the loss of some territories that are under occupation. In addition, the company noted the growth of the shadow tobacco market.
In March 2022, in response to Russia’s military invasion of Ukraine, PMI said it was suspending planned investments in Russia, including new product launches, investments in innovation, and commercial and manufacturing activities. In addition, the company has intensified plans to reduce production operations in Russia amid supply chain disruptions and changing regulations. PMI later announced that its board of directors and management were considering opportunities to exit its business in Russia.
