Business news from Ukraine

S&P has affirmed Uzbekistan’s long-term sovereign credit rating at “BB-/B” level

International rating agency S&P Global Ratings has affirmed Uzbekistan’s long-term sovereign credit rating at “BB-” with “stable” outlook, the agency said in a statement.

The short-term credit rating was affirmed at “B”.

According to the agency, at the next stage of reforms implemented in Uzbekistan, the new tariff policy aimed at ensuring energy security and efficiency, and the reduction of budget subsidies deserve special attention.

S&P notes that the “Uzbekistan – 2030” strategy attracts investments in transport, telecommunications, agriculture, tourism and other sectors, reforms the energy sector, privatization and improvement of fiscal policy.

Thanks to investments in electricity and gas production, green energy and mining, as well as reforms aimed at creating a market economy, S&P forecasts Uzbekistan’s GDP growth to average above 5% per year in 2024-2027.

According to S&P estimates, gradual reduction of the budget deficit will be achieved starting from 2024 by increasing the targeting of subsidies and social spending and abolishing some tax exemptions.

The report also notes that the law “On State Debt” sets the upper limit of state debt and there are annual limits on newly attracted foreign debt.

According to the agency’s report, Uzbekistan’s sovereign credit rating may be upgraded and the outlook may be improved if reforms lead to higher-than-expected economic growth in the medium term and have a positive impact on the sector’s fiscal and external indicators.

Factors downgrading the country’s credit rating are the rapid growth of the country’s total external debt, increased fiscal and balance of payments risks due to failure to achieve the expected results of projects financed by external loans.

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Zelenskyy hopes for faster delivery of military aid to Ukraine as part of $61 bln US package

President of Ukraine Volodymyr Zelenskyy has stated the need to accelerate the delivery of military assistance to Ukraine as part of the $61 billion support package approved by the US Congress in April this year.

“It is very important that this (the decision of the Congress to help Ukraine – IF-U) was adopted. It is a weapon for us, it is an important signal for Russia. And it is important that it was a united positive decision within the United States. But I believe that not much of this amount has come today. This is my personal opinion. But I can’t staff the brigades, the reserves, just to change the brigades that are standing, so that there is a normal rotation,” Zelensky said in an interview with The Guardian published on Saturday.

Thus, he said, “Russia clearly understands this – what they are doing with Kharkiv and why they are going north and looking in that direction – to stretch the front.”

“They know that we have an understaffed reserve, they know that we cannot send a reserve without the appropriate weapons – the way they send theirs like meat. They understand that our troops in the east, and the Russian Federation does not abandon its main goal of occupying the entire east of our country, need to stretch our forces. They are stretching our front and understand that if enough (weapons – IF-U) came, we would staff the brigades, we would not withdraw our forces from Donbas and could respond with our long-range (to shelling – IF-U) of Kharkiv region,” the president said.

At the same time, Zelensky emphasized, no one is blaming anyone. “We are where we are. We are at war. And not at the beginning of it. And so we need to look for a way out of the situation every day.”

He also noted that, in general, the amount allocated by Congress is large enough to equip Ukrainian brigades easily and quickly, but, in his opinion, it is coming slowly.

“And everyone is happy, everyone is happy that they managed (to agree on the aid to Ukraine – IF-U), that everyone put pressure on the US together, bipartisan support, 61 billion – and it is just beginning to be transferred to us, coming to us. But Russia is faster. Russia is slower than Ukraine, but faster than the West. And this is a problem. And if every minute can take away people’s lives, then we want faster deliveries (from the US – IF-U). It’s just that the price of this is more painful for us than for our partner countries. Because no one in their families died. And thank God! But you don’t know what war is until it comes to your home,” Zelensky emphasized.

He also emphasized that “this speed is constantly lacking in the West, in our partners,” adding that this could be due to various reasons, including bureaucratic ones or “a different approach to life in non-war time.”

“In war, you have other priorities: survival, people, children – this is the main thing. And when you’re safe, you get used to it, and that’s why your time goes differently. You don’t need to survive now, because the next second you might be killed. For example, you are in Kharkiv, and if you don’t go down to the bomb shelter – and their (Russian – IF-U) weapons are 60 km, 100 km away – and you don’t go down, you could be dead,” Zelensky summarized.

Farmers will be compensated up to 50% of cost of construction and restoration of reclamation systems

At a meeting on Friday, the Cabinet of Ministers decided to compensate up to 50% of the cost of restoring and building reclamation systems for water user organizations, the Ministry of Agrarian Policy and Food reported.

According to Resolution No. 628 “On Amendments to the Procedure for the Use of Funds Provided in the State Budget for Providing State Support to Agricultural Producers Using Reclaimed Land and Water User Organizations” developed by the Ministry of Agrarian Policy, farmers using reclaimed land can receive compensation for the reconstruction and modernization of existing or construction of new reclamation systems, as well as for the restoration of pumping stations.

The amount of assistance for farmers will not exceed UAH 26.5 thousand per 1 hectare of cultivated land subject to hydraulic reclamation, excluding the cost of sprinklers.

The budgetary subsidy is provided for the works and reclamation systems commissioned for the period from November 1, 2023 to October 31, 2024.

The Ministry of Agrarian Policy clarified that farmers will submit applications for budgetary funds and documents for it through the State Agrarian Register. The Ministry will announce the start of the application process later.

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Forecast of unemployment rate in Ukraine according to methodology of international labor organization until 2025

Forecast of unemployment rate in ukraine according to methodology of international labor organization until 2025

Source: Open4Business.com.ua and experts.news

Ukraine exported 50 mln tons of cargo via sea corridor, sending more than 1.7 thousand vessels

Since August 2023, the sea corridor created by the Ukrainian Navy has exported 50 million tons of cargo, with 1,737 vessels handled in ports, the Ministry of Communities, Territories and Infrastructure (Ministry of Reconstruction) reports.

“50 million tons of cargo were exported through the Ukrainian sea corridor in 9 months. Despite constant attacks by Russians, Ukrainian port workers managed to handle 1737 vessels,” the Ministry said in a Facebook post on Saturday, while former Deputy Prime Minister and head of the Ministry of Recovery Oleksandr Kubrakov said that agricultural products accounted for 35 million tons.

Thanks to the combined efforts of the government, the Ukrainian Sea Ports Authority, international partners and all port industry workers, it was possible to establish stable exports of Ukrainian agricultural products by sea, the report said.

The Facebook page of the Ukrainian Sea Ports Authority (USPA) reports that the Black Sea ports have reached a record volume of cargo handling.

“Starting with the first vessel Joseph Shulte, which sailed through the Ukrainian corridor on August 16, 2023, Ukrainian Black Sea ports have handled this record volume of cargo despite the enemy’s constant attacks on our critical infrastructure. This is 1737 vessels handled!” the USPA said in a statement.

Last Thursday, former Deputy Minister of Community Development, Territories and Infrastructure Yuriy Vaskov announced that exports through the sea corridor had reached 50 million tons.

The head of the Ukrainian Sea Ports Authority (USPA), Yuriy Lytvyn, said that the results of the Ukrainian “grain corridor” were almost one and a half times higher than the Black Sea Grain Initiative. According to him, the rate of grain cargo transportation for eight months is already 10% higher than the results of the grain initiative for the year.

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On June 12, forum “Grain. Pigs. Meat”

Grain – Pigs – Meat is a value chain that can increase the added value of up to 6 billion euros per year and even more, as opposed to grain exports, which leave almost no added value in Ukraine.

The Forum of the same name “Grain. Pigs. Meat – 2024” will be held in Kyiv on June 12.


Mykola Babenko, chairman of the Forum’s organizing committee and head of the Meat Industry Association and the Center for Efficiency Improvement in Livestock, said: “There are many mechanisms for filling the budget with taxes. Stimulating the production of industries with high added value is the best one, we are convinced of that. For example, grain exports bring almost nothing to the budget, while grain processing into bioethanol, feeding pigs with bioethanol production waste, and pork exports account for hundreds of percent of added value in Ukraine, billions of euros on the same grain that is exported. Six billion euros of added value can be gained annually by Ukraine’s economy just by quadrupling the number of pigs in Ukraine to the level of 1991.”

Stimulating the development of high value-added industries, such as pig and meat production, could provide an alternative domestic market for Ukrainian grain. Currently, the pig industry consumes only 2 million tons of grain, but it is capable of consuming 10 million tons annually.

Register: https://meatindustry.com.ua

Open4business is a media partner

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