Business news from Ukraine

Business news from Ukraine

Demand for buses in Ukraine increased by 14% – Ukravtoprom

Initial registrations of new and used buses (including minibuses) in Ukraine in September 2024 increased by 14% compared to September 2023, to 247 units, Ukravtoprom reported in its telegram channel.
At the same time, the share of new buses, as in the previous year, amounted to 63% (155 units), which is 10 percentage points more than in August this year.
“Ukravtoprom notes that compared to August of this year, when 161 buses were registered, the demand for them increased by 53%.
The leader in the top three most frequently registered new buses in September was Etalon produced by Chernihiv Automobile Plant with 60 vehicles registered, up 76% or 24 buses from last September, when it was ranked second.
Ataman buses, which were in the lead in September 2023 and August 2024, took second place with 37 units registered against 56 units a year earlier.
ZAZ buses took the third position – 24 units, which in September 2023 were also third with 17 vehicles, and in August this year they took the sixth place in the ranking with three buses.
The top three leaders in September among used buses are: Mercedes-Benz – 31 units, Volkswagen – 16 units and MAN – 9 units.
According to the association, in January-September, a total of 1415 buses were added to the Ukrainian bus fleet (-29% compared to the same period in 2023). Of these, 803 units were new (-35%); 612 units were used (-19%).
In Ukraine, buses are produced by Cherkasy Bus, Chernihiv Automobile Plant of Etalon Corporation, Zaporizhzhia Automobile Plant of UkrAuto Group, and Bas Motor LLC (Bogdan buses), but their main range is school buses purchased by regions under the School Bus state program.

Pivdennyi GOK allocated UAH 17 mln to upgrade pellet production units

Northern Mining and Processing Plant (Pivdennyi GOK, Kryvyi Rih, Dnipro Oblast), part of Metinvest Group, has repaired the LURGI 552A roasting machine and upgraded the pellet mill at pellet production shop No. 2 (PPO 2).
According to the plant’s information on Tuesday, Metinvest allocated UAH 17 million to repair the roasting machine and modernize the roar.
It was specified that the roasting machine was put back into operation at the beginning of the month after a quarterly repair.
“The main achievement of the modernization is an increase in the roasting machine’s productivity. The machine now produces 463 tons of pellets per hour compared to 460 tons previously. The second significant result of the modernization is a reduction in specific gas and electricity consumption. And the third is the improvement of the quality characteristics of finished products. All in all, we expect this to bring us up to UAH 10 million in annual benefits,” said Andriy Stebliy, deputy head of the production and planning department at Pivdenny GOK.
According to him, during the repairs, the specialists also carried out standard work, such as replacing the refractory lining of the roasting machine’s furnace and repairing metal structures. Conveyor belts were replaced in the fencing, firing and rumble sections. Process fans were repaired, conveyors, main and auxiliary units and mechanisms involved in the LURGI 552A production line were maintained.
Last summer, crude pelletizers were installed at BOF Shop No. 2 on LPGI 552B and LPGI 552A, which allowed us to reorient to the requirements of the European market and further save resources. At the same time, specialists modernized the automatic process control system.
“Metinvest is a vertically integrated group of steel and mining companies. The Group’s businesses are located primarily in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions.
Metinvest’s major shareholders are SCM Group (71.25%) and Smart Holding (23.75%), which jointly manage the company. Metinvest Holding LLC is the management company of Metinvest Group.

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Association of Meat Industry on catastrophic situation in meat and pig industry and ASF vaccine prevention

Today we are going through the most difficult times in the history of Ukraine’s independence. As a result of the war, many sectors of the economy are operating at minimal profitability or even at a loss, and suffer financial losses every day due to logistical and personnel problems, enemy attacks on energy infrastructure, and mining of farmland. However, there are industries that could take advantage of the global situation and make a real breakthrough and support Ukraine’s economy during the war. Among these industries is the Ukrainian meat industry.

Back in 2014, the war began with the massive introduction of African swine fever (ASF) from the border areas of Luhansk, Donetsk, and then Chernihiv regions – with pig corpses along the border rivers and with the massive migration of infected wild boar to the border areas. Until February 2022, the Veterinary Service somehow managed, with varying success, to contain the unprecedented onslaught of ASF cross-border spread in the world: even in the face of gross violations of biosafety standards and illegal trade in pigs infected with ASF due to the lack of compensation to farmers affected by ASF. But not now, when Russia can bomb Ukraine with viruses and its state agro-terrorism against the backdrop of nuclear threats from it no longer seems so significant: we are on the verge of collapse of the meat industry and pig production in Ukraine.

The losses of the Ukrainian pig industry from ASF in 2024 may amount to 50% of the pig population a year earlier.

The history of pig breeding clearly shows that no epizootic emergency has ever been brought under control without strict quarantine measures, which were sooner or later mitigated by the development of appropriate vaccines.

For more than 100 years, humanity has not been able to develop a vaccine against ASF due to the special properties of its pathogen: in particular, because its most dangerous structures are not on the surface but in various internal layers of viral particles – virions. Only at the cost of great intellectual efforts, enhanced by artificial intelligence, and enormous material and technical investments, by 2020 Europeans, together with the Americans, managed to develop about a dozen recombinant candidate vaccine strains. And already in 2022, based on no more than three of them, the Americans, together with the Vietnamese and Japanese, developed the world’s first biotechnology facilities for the production of commercial vaccines against ASF. The safety of these vaccines and their ability to stop ASF outbreaks in Vietnam, Indonesia, and the Philippines have been proven in about one million pigs. Countries in Central America, Africa, China, and Ukraine have expressed interest in these vaccines. Their effectiveness is being studied by the European Union: in 2024, registration trials began in Romania, where the ASF situation is much calmer than in Ukraine, and EU scientists received grants to study the dynamics of the epizootic process in Asian countries. In the EU, the ASF control system makes it easy to contain the disease at the level of sporadic cases in wild boar populations.

The Ukrainian Meat Industry Association has always paid special attention to the possibility of overcoming the main enemy of the meat industry and pig breeding – ASF. Therefore, in 2023, we supported the initiative of the Center for Animal Production Efficiency LLC to conduct registration studies of the first commercial vaccine against ASF and, in case of positive results, to apply through the relevant state authorities for its accelerated registration in Ukraine. On April 07, 2023, we first made a proposal at the meeting of the Working Group on Meat Industry Development of the Ministry of Agrarian Policy to study the AVAC ASF Live vaccine against ASF (agenda attached).

In its October 2023 Memorandum, the World Organization for Animal Health (OIE) summarized the requirements for the use of ASF vaccines: it clearly indicates a) the high risk of using low-quality or inappropriate vaccines, b) the requirement to use ASF vaccination as part of the existing anti-epizootic measures and c) the third key requirement of the WHO, which was formulated on the basis of the study of scientific data, including reports from Southeast Asia, and addressed to manufacturers of ASF vaccines: they should familiarize themselves with and, upon agreement, adopt the criteria of the WHO 2023 draft standard as a basis for assessing their quality (https://www. woah.org/app/uploads/2023/10/a-bsc-report-sept-2023-1.pdf). According to the dossier materials provided by the manufacturer to the Center for Animal Production Efficiency LLC, the AVAC ASF Live vaccine meets the WHO regulatory requirements, but the question remains whether and under what conditions it will be able to protect the pig industry from field variants of the pathogen in the Ukrainian ASF nosoarea. This can only be done through registration trials.

After the release of the October Memorandum of the WHO, on November 02, 2023, the Ukrainian Meat Industry Association once again submitted a proposal to the Working Group on the Development of the Meat Industry of the Ministry of Agrarian Policy on the urgent need for the industry to study the possibility of vaccine prevention of ASF in Ukraine and progress with vaccine prevention of ASF in the world (protocol attached).

The Meat Industry Association also asked the OIE for methodological and legal assistance in the implementation of ASF vaccination in Ukraine in accordance with OIE requirements, which immediately received a positive response from the OIE leadership, and the Center for Animal Production Efficiency LLC began active communication with the OIE and its recommended scientific institutes and OIE scientists.

But the leadership of the Ukrainian Pig Association (UPA) decided in advance, in 2023, that this vaccine was not a vaccine at all, but a worthless candidate, and in order to block these trials, they resorted to their own interpretation of the data of scientific works and WHO decisions.

It would be funny, but given the current situation in the Ukrainian pig industry, it is sad to see that the authors from the ASU use their own conclusions on experimental results that have been very carefully analyzed by the editors of scientific peer-reviewed publications as arguments – precisely in terms of the validity of the conclusions.

The ASU’s interpretation of the October 2023 WHO Memorandum looks strange: the authors’ bias is evident in their translation of the first provision of the Memorandum on “The risks of using poor quality or non-compliant vaccines” as “vaccines with an unconfirmed status of safety and efficacy.” Given this potential for artistic representation, for some reason the authors of the ACS completely ignored the WHO provisions on vaccination as an integral part of existing anti-epizootic measures (“ASF vaccination should not be used as a stand-alone disease control measure”), and there is no need to talk about the WHO draft standard for ASF vaccine prevention – the ACS does not want to know about it.

But for some reason, the ACA decided to believe that Vietnamese vaccines against ASF registered in three countries do not currently have a confirmed status of a safe product and “truthfully” claim that these commercial products have the status of a “candidate vaccine against ASF” A vaccine cannot be considered a “candidate vaccine” if it has already been registered and recognized as a vaccine. In 2023, Vietnam provided Ukraine with official confirmation that the vaccines were properly registered (translation of the confirmation is attached). Furthermore, the ASU dared to interpret the results of a scientific scopus publication on the 2021 Vietnamese field isolate ASFV-GUS-Vietnam as derived from a mutation of the ASFV-G-ΔMGF vaccine strain… The article raises the issue of a thorough study of its impact on the evolution of the field virus in different ASF nosoareas, which is critically important for the implementation of ASF vaccine prevention, but there is not even a hint of the genetic fantasies of the ASF authors.

Even more surprising is the ASU authors’ interpretation of the scopus publication of a respected European scientific team on the genetic stability tests of the ASFV-G-ΔMGF vaccine strain. The ASU leadership makes a very far-sighted conclusion that the vaccine virus is capable of infecting, which means it is restoring virulence, quote: “Studies (Evaluation of African swine fever vaccine candidate ASFV-G-ΔMGF in conversion to virulence study at https://pubmed.ncbi.nlm.nih.gov/37248243/) showing that the ASFV-G-ΔMGF vaccine virus (used to formulate AVAC ASF Live) regains virulence (ability to infect).” What a deep understanding of scientific issues! Unfortunately, European scientists did not have the courage to interpret the results of serial passaging of the vaccine strain in this way. Their analytical abilities were only enough to make a cautious statement that “The genomic changes did not affect the recombination site, but included deletions and reorganizations in the terminal regions of the genome.” That is, they pointed to the stability of the genome and the absence of critical reversion of the vaccine strain. However, this does not negate the need for research aimed at, quote: “on the long-term effects and transmission characteristics before a thorough benefit-risk analysis can be conducted.” This is indeed a very important and scientifically balanced recommendation: and, unfortunately, not only for ASF vaccines, but also for all other viral vaccines used in pig production. After all, to the knowledge of the authors from the ASU, many of these commercial vaccines do have genomic changes, and it is in the recombination sites. This causes constant tension in our pig farms with circovirus and parvo virus infections, PRRS, Aujeszky’s disease… But the ASU management professes the theory that this can only happen with the AVACASFLive vaccine, because they have accurately established that “it restores virulence (the ability to infect).”

Well, it’s pointless to continue to analyze the “anti-vaccine efforts” of the ASU leadership, which is “concerned about false information and data manipulation” in the scientific publications mentioned above. We have translated these and the following “arguments” of the USBA into English and sent them, along with our arguments and explanations of the current situation with ASF in Ukraine, to the WHO and to the interested unions of pig producers and processors in the EU as part of the pan-European coalition to eradicate ASF in Ukraine and Europe, which is being formed on our initiative and with our participation.

Few people know now, but a similar situation occurred in the 1950s and 1960s with the introduction of a vaccine against classical swine fever developed in Kharkiv under the leadership of Professor I.I. Kulesko. The resistance of the “public” was similar.

As of October 2024, in Ukraine, after a year of talk and outright misinformation about ASF vaccine prevention, up to 50% of pigs in the industrial sector and in households have been lost. A significant number of pigs infected with ASF have been illegally sold for more than a year, causing an unprecedented wave of ASF in Ukraine. Losses to Ukraine’s economy reach €1 billion, as opposed to the growth and development of the industry, which is capable of providing €6 to €12 billion in added value annually.

These are the consequences of disinformation by the ASU leadership – the loss of €1 billion to the Ukrainian economy and the industry’s potential for growth.

It is time to move on from verbal battles and get down to business – to save the pig industry in Ukraine and analyze the pros and cons of ASF vaccine prevention based on our own results – and in the current conditions of its Ukrainian noso-area. No one will do this for us, and it is a pity if some pig producers still do not understand this. And this can only be done within the framework of registration trials, appropriately – according to the program kindly prepared for us by the WHO, in the edition of the European Veterinary Union.

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Population structure of Ukraine (data from Ukrainian institute of future)

Population structure of Ukraine (data from Ukrainian institute of future)

Open4Business.com.ua

“Forests of Ukraine” increased timber sales by 7%

In January-September 2024, the State Enterprise “Forests of Ukraine” increased its timber sales to 9.3 cubic meters, which is 6.9% more than in the same period in 2023, the company’s CEO Yuriy Bolokhovets said in a telegram channel.
“Once again, we are convinced of the correctness of the decision to refuse processing. This year, we are no longer maintaining unprofitable workshops and are actively selling resources to the market at prices determined by exchange trading,” he said.
According to Bolokhivets, roundwood was the driver of sales growth, with sales increasing by 562 thousand cubic meters to 4.4 million cubic meters. In monetary terms, roundwood brought in an additional UAH 2.1 billion compared to last year.
At the same time, there were other factors that led to a decrease in revenues, he said. Among them is a drop in prices for industrial firewood, which reduced revenues by about UAH 330 million compared to last year. At the same time, the cost of contractors’ services has increased, and, accordingly, the cost of harvesting (instead of shadow barter, there are now transparent relations based on market prices), explained the CEO of the state enterprise.
“Les Ukrayiny managed to keep its net profit at the level of the previous year – UAH 2.6 billion, as well as a profitability level of more than 15%,” stated Bolokhovets.
At the same time, the state-owned enterprise more than doubled its free timber supplies to the Armed Forces of Ukraine to UAH 305 million. Due to the refusal to process wood, Forests of Ukraine received additional resources to help the frontline, increased salaries for lower-level employees, increased investments in fixed assets and the formation of the procurement services market, the head of the state enterprise added.
“Throughout the year, the average price of timber has been slowly but steadily declining. However, I hope that by the end of four quarters we will surpass last year’s economic performance. The transformation process will help the company become stronger and we will have a solid foundation for growth in the coming years,” summarized the CEO of Forests of Ukraine.
As reported, Ukraine launched a forestry reform in 2016. As part of it, the sale of raw wood at electronic auctions has already been introduced. Since 2021, an interactive map of wood processing facilities has been operating in a test mode in a number of regions.
The industry has implemented the Forest in a Smartphone project, which contains a list of logging tickets for timber harvesting and allows you to check the legality of logging on the agency’s online map.
On June 1, 2023, Ukraine launched a pilot of electronic issuance of logging tickets and certificates of origin of timber. In addition, the State Enterprise “Forests of Ukraine” has launched a pilot project to procure timber harvesting services through the electronic platform Prozorro.

Ukraine increases rolled steel output by almost quarter

Ukrainian metallurgical enterprises increased production of rolled steel in January-September this year, according to preliminary data, by 22.7% year-on-year, to 4.821 million tons from 3.929 million tons.
According to Ukrmetallurgprom on Tuesday, steel production during the period increased by 28.2% to 5.884 million tons, and pig iron production by 21.9% to 5.356 million tons.
In September, the company produced 503.9 thousand tons of rolled products, 610 thousand tons of steel, and 624.1 thousand tons of pig iron, compared to 589.3 thousand tons of rolled products, 690.7 thousand tons of steel, and 643.6 thousand tons of pig iron in the previous month.
As reported, in 2023, Ukraine increased production of total rolled products by 0.4% compared to 2022 – up to 5.372 million tons, but reduced steel production by 0.6% to 6.228 million tons, and pig iron by 6.1% to 6.003 million tons.
In 2022, Ukraine reduced production of total rolled products by 72% compared to 2021, to 5.350 million tons, steel by 70.7% to 6.263 million tons, and pig iron by 69.8% to 6.391 million tons.
In 2021, the company produced 21.165 million tons of pig iron (103.6% compared to 2020), 21.366 million tons of steel (103.6%), and 19.079 million tons of rolled products (103.5%).