Business news from Ukraine

Business news from Ukraine

Ukraine cuts imports of nickel ores by 98%

Ukraine in January-April of this year reduced the import of nickel ores and concentrates in physical terms by 97.5% compared to the same period last year – up to 7.238 thousand tons.
According to statistics released by the State Customs Service (SCS), in monetary terms, imports of nickel ores decreased by 98% to $257,000 during the period.
Imports were from Guatemala (100% of shipments in monetary terms).
Ukraine did not export or re-export this product in January-April, both this year and last year.
As it was reported, in 2022, Ukraine reduced the imports of nickel ores and concentrates by 71.9% in physical terms compared to the previous year – up to 346.719 thousand tons. In monetary terms, imports of nickel ores decreased by 73.8% to $15.428 million. Imports were from Guatemala (100% of deliveries in monetary terms).
For 2022, like in 2021, Ukraine did not export or re-export this product.
Ukraine imports nickel ore from Pobuzhsky Ferronickel Plant (PFK, part of Solway Group).
PFC processes about 1.2 million tons of ore per year.

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Ukraine has increased exports of scrap metal almost fivefold

Ukrainian companies in January-April this year increased the export of scrap ferrous metals in 5 times compared to the same period last year – up to 56.449 thousand tons from 12.470 thousand tons.

According to statistics, promulgated by the State Customs Service (SCS), exports of scrap metal for the period amounted to $16.684 million (an increase of 3 times) in monetary terms.

However, in March and April, there was an increase in exports of scrap metal: if about 8.28 thousand tons of scrap metal was exported in January and 16.5 thousand tons in February, then in March – 15.45 thousand tons and in April – about 16.19 thousand tons.

Exports of scrap metal in January-April 2023 was carried out in Poland (97.37%), the Netherlands (1.10%) and Slovakia (0.67%).

In the first two months of the year, the country did not import scrap metal, in March-April, 176 tons of scrap metal worth $64 thousand (49.23% from Slovakia, 21.54% from Moldova and 15.38% from the Netherlands).

Earlier, Alexander Kalenkov, president of Ukrmetallurgprom, stated in his column on Interfax-Ukraine that scrap metal is exported via the European Union, where a preferential export duty of EUR3 per ton operates, and from there the raw material is redirected to actual customers. It would cost EUR 180 export duties if the scrap metal was exported directly to the customers – and the Ukrainian budget has already lost 350 million hryvnias on it.

According to him, the State Bureau of Investigation has already taken interest in such export schemes.

The head of “Ukrmetallurgprom” urged to temporarily ban the export of scrap ferrous metals to provide the strategically important raw materials in the ongoing war.

“If scrap metal will remain in the country – more than 500 thousand people will have jobs, and the country will have millions of foreign exchange earnings from the export of steel. At the same time, the military also benefits, because metallurgists help the fighters a lot by buying equipment and cars for them, and even producing body armor. Nobody benefits from the export of scrap metal. That is why now the authorities should be proactive and temporarily ban the export until the situation stabilizes and stops threatening the national economic security,” says Kalenkov.

He noted that a ton of scrap metal, processed into steel, provides 10 times more to the budget than the export duty in the EU – about $300 per ton.

As reported, Ukraine in 2022, reduced exports of scrap ferrous metals in 11.5 times compared to the previous year – up to 53.557 tons, in monetary terms down to 12.4 times – to $ 19.271 million. At the same time last year, the country reduced the import of scrap metal in kind by 12.6 times – to 1.824 tons. Imports of scrap metal in 2022 was carried out mainly from Turkey (78.92% of supplies in monetary terms), Russia (13.25%) and Cyprus (5.08%), while exports – to Turkey (38.97%), Poland (34.25%) and Greece (10.12%).

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Twitter has new CEO

Twitter owner Ilon Musk said Friday that Linda Iaccarino, who was previously head of advertising at U.S. media corporation NBCUniversal, has become the company’s new CEO.
“I am pleased to welcome Linda Iaccarino as Twitter’s new CEO,” Musk wrote on Twitter.
He added that Iaccarino will focus primarily on business processes, while he himself will focus on “product design and new technology.”
Earlier on Friday, NBCUniversal announced that Linda Iaccarino was leaving her post at the company.
Musk himself had announced the day before that he had found a new head for the social network he bought.
Musk and Iaccarino recently appeared together at a conference in Miami, where they gave a keynote speech entitled “Twitter 2.3: From Conversations to Partnerships.”
Musk bought the microblogging service for $44 billion last year. The deal, announced in April, was not closed until late October after lengthy litigation between the parties.

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Swiss Nestle started construction of pasta factory in Volyn region

Switzerland’s Nestlé, the world’s largest producer of food and soft drinks, has launched the announced construction of a plant to manufacture pasta and other food products in the Smolyhiv village, Torchyna district, Volyn region. Earlier the company invested CHF40 million (nearly $45 million) in the project, business.rayon reported.
Alessandro Zanelli, general director of Nestlé in Ukraine and Southeast Europe, expressed confidence Wednesday at a ceremony marking the start of construction that the plant in Torchin will become a European regional hub for the culinary category.
“I’ve seen Ukrainian cities that were destroyed after all kinds of attacks and how they were rebuilt within a year. The Ukrainians are working successfully to rebuild the infrastructure. Of course, we are calculating the possible risks, but we are confident that we are doing the right thing. Ukraine is worth investing in,” said Marco Sattembri, executive vice president of Nestlé and chief executive of the European zone.
It is specified that at the first stage of work the enterprise will create 300-400 workplaces. Specialists from Kharkov, where there is already a factory producing instant noodles “Mivina”, and local staff are involved in the work at the plant.
Nestle is one of the world’s largest food producers, headquartered in Vevey, Switzerland. The company has 376 factories in 84 countries and produces chocolate and confectionery products, ready-made breakfasts, pet food, baby and medical food, coffee, mineral water, etc. Its portfolio includes more than 2 thousand brands, including Nestle, Nescafe, KitKat, Gerber and Maggi.
Nestle in Ukraine produces coffee and beverages, confectionary, culinary products (cold sauces, seasonings, soups, instant food), baby and special food, ready-made breakfasts and pet food. The most famous Ukrainian brands of the company are Svitoch, Torchin and Miwina.
As reported, in December 2022, Nestle announced its decision to open the production of “Mivina” in Volyn.

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Ukraine prepares for concession port terminals “Chernomorsk”

The Ministry of Development of Communities, Territories and Infrastructure (Minvosstaniya) is preparing to concession the first and fifth terminals of the Chornomorsk sea port.
“The first stage is the development of a feasibility study (feasibility study), the next stage is to hold a tender among those wishing to receive the port terminals “Chernomorsk” for concession,” the press service of the Ministry of Reclamation said in a statement on Friday.
The Ministry reminded that the process of transferring the terminals to concession had begun even before the full-scale invasion of Russia.
Deputy Prime Minister and Head of the Ministry of Restoration Alexander Kubrakov explained that the private partnership will lead to significant investments in the terminals, will optimize the logistics of transportation and improve the quality of service.
Besides, according to his words, thanks to the concession Ukraine will annually receive concession fee and taxes collection to the budget.
The feasibility study will be financed by the Global Infrastructure Fund, experts and consultants will be provided by the European Bank for Reconstruction and Development and the International Finance Corporation.
As reported, in 2021, the Ministry of Infrastructure and the State Enterprise “Administration of the Sea Ports of Ukraine” transferred the state stevedoring companies of the sea ports “Kherson” and “Olvia” to private partners of the state.
Concession is an agreement on the transfer of natural resources, enterprises, other economic facilities owned by the state or a territorial community for temporary operation by other states, foreign firms, private persons.

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Bulgaria has changed conditions for foreign citizens to enter this year

Bulgarian authorities have revised the entry conditions for foreign citizens, now travelers with unopened Schengen single and multiple entry visas, as well as with national visas of Romania, Croatia and Cyprus can not enter the country, writes the government newsletter of the republic.
“The Republic of Bulgaria will consider the following documents issued by the member states of the Schengen Agreement: a single entry visa valid for two or more entries after it has been used once to enter a Schengen country, as well as a visa with limited territorial validity for two or more visits after a single entry into the Schengen area,” the document says.
As the newspaper notes, similar requirements will be imposed on holders of national short-term and long-term visas of Cyprus or Romania. After visiting these countries entry into Bulgaria is possible for a period of not more than 90 days within 180 days.
The national short-term and long-term visas and residence permits issued by Croatian authorities until December 31, 2022 are recognized as equivalent to the Bulgarian national visas for transit and residence.