Business news from Ukraine

Business news from Ukraine

Lithuania, Czech Republic, Latvia and Estonia propose to Brussels to ban imports of ferrous metal scrap, copper and aluminum from Russia

Four EU countries – Lithuania, the Czech Republic, Latvia and Estonia – propose to Brussels to ban the import of waste and scrap ferrous metals, copper and aluminum from Russia.

Such a proposal was presented at a meeting of the European Union Environment Council held on March 25, the Lithuanian Environment Ministry said.

“Lithuania proposes that the European Commission assess all possibilities at EU level and make a proposal to suspend waste imports from Russia to the EU or allow Member States to adopt unilateral restrictive measures. We believe that such imports contribute to financing Russia’s war against Ukraine and should be stopped,” Lithuania’s deputy permanent representative to the EU, Ambassador Jurga Kasputene, said at the council meeting.

According to the Environment Ministry, more than 118 million euros worth of waste and scrap ferrous metals, copper and aluminum were imported from Russia to the EU in 2022-2023. Most of these imports go through Lithuania.

According to the ministry, cross-border transportation of waste is regulated by the Basel Convention and the Waste Transportation Regulation, so individual member states cannot unilaterally ban or restrict such imports.

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On November 16, Kyiv Investment Forum 2023 will be held in Brussels

On November 16, Brussels will host the Kyiv Investment Forum 2023, which this year will focus “on long-term strategies for the sustainable recovery and development of the Ukrainian capital, as well as its integration into the global economic space,” the press service of the Kyiv City State Administration (KCSA) reports.

“The forum will take place on November 16 in Brussels and will bring together city leaders, European and Ukrainian politicians, leading economists, investors and urbanists,” the KCSA said on Wednesday, citing the Department of Economics and Investments, which is organizing the event.

The forum’s main session will reportedly focus on Europe’s changing geopolitical landscape and the growing importance of megacities. Participants will examine the challenges of conflict and war, emphasize the value of sustainable development and the recovery of war-affected communities. It will include four panel discussions and two sections on challenges and problems in both wartime and post-war.

The Forum will also include a panel discussion on investments in transformation, including business ecosystems and innovation clusters.

“A separate discussion will be devoted to restoring the mental health of the population, social integration and adaptation of veterans and people affected by wars

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Brussels will continue to support Moldova, Ukraine and Georgia in implementing pro-European reforms

Brussels will continue to support Moldova, Ukraine and Georgia in carrying out pro-European reforms, according to a statement issued on Friday following the EU summit.

“The European Union will continue to work closely with Ukraine, Moldova and Georgia and support their reform efforts on their European path,” it said.

The statement says that the meeting also decided that Brussels will support Moldova in addressing the challenges it faces due to the events in Ukraine.

Last March, Georgia applied for EU membership, but has not yet been granted candidate status.

In February 2022, Ukrainian President Volodymyr Zelenskyy signed Ukraine’s application for EU membership. In June of the same year, the EU Council granted Ukraine candidate status.

In June 2022, Moldova was also granted candidate status.

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Brussels has not yet made decision to extend ban on imports of Ukrainian grain to 5 countries

Following the meeting of the coordination platform on Ukrainian grain exports, no decision was made on whether or not to extend the current temporary ban on grain imports to Poland, Hungary, Romania, Slovakia and Bulgaria, which expires on September 15.

This was reported to Interfax-Ukraine on Wednesday after the 9th meeting of the joint coordination platform, chaired by the head of the cabinet of the Vice President of the European Commission Valdis Dombrovskis, Mr. Hager.

According to her, the first part of the meeting was attended by representatives of five member states, Ukraine, the Republic of Moldova and the Commission. “The Commission presented the latest forecasts of the market situation in terms of harvest, trade and prices. Countries were invited to share the latest information. The platform also discussed how to increase storage capacity and reduce border crossing time. Finally, they exchanged views on short-term actions to facilitate trade flows and on ways to support transport,” the EC representative said about the content of the first part of the platform meeting.

According to Garcia, the second part of the meeting, which was attended by representatives of Estonia, Latvia, Lithuania, Greece, Italy and Croatia, was devoted to alternative routes.

“In the context of this meeting, the Commission informed that no decision has yet been made on preventive measures, the phased abolition of which is scheduled for September 15, 2023. In any case, the Platform will continue to meet regularly and monitor grain imports from Ukraine,” the European Commission representative stated.

As you know, in May 2022, the EU decided to temporarily suspend import duties, quotas and trade remedies on Ukrainian exports to the European Union – known as autonomous trade measures – to help alleviate the difficulties faced by Ukrainian producers and exporters after the Russian invasion. At the same time, following logistical problems in Bulgaria, Hungary, Poland, Romania, and Slovakia caused by imports of wheat, corn, rapeseed, and sunflower seeds originating in Ukraine, exceptional and preventive measures on their imports came into force on May 2, 2023, and were extended on June 5.

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Ukraine may file lawsuit against Brussels and EU member states at WTO – Ukraine’s trade representative

Ukraine may file a lawsuit against Brussels and European Union member states at the World Trade Organization (WTO) if they do not lift restrictions on the export of its agricultural products after September 15, Taras Kachka, Deputy Minister of Economy and Trade Representative of Ukraine, told Politico.

“With full respect and gratitude to Poland, if any bans are imposed after September 15, Ukraine will file a lawsuit against Poland and the EU at the World Trade Organization,” he said.

Ukraine’s trade representative insists that these restrictions violate the Free Trade Agreement, which has been in place between Ukraine and the EU since 2014.

“We do not intend to take immediate retaliatory measures, given the spirit of friendship and solidarity between Ukraine and the EU,” Kachka explained, adding that a systemic threat to Ukrainian interests would force Ukraine to take the case to the WTO.

In addition, Kachka told the newspaper that there is no evidence of price deviations or a significant increase in grain supplies to justify the extension of import restrictions. Kyiv has engaged in “constructive cooperation” with the European Commission, five EU member states, and Moldova, a key transit hub for Ukrainian exports to the EU.

“We have received significant support for ensuring better transit of goods through the territory of neighboring member states, including Poland and Hungary. In the last two months, we have made significant progress in cooperation with Romania on the transportation of goods from Ukraine,” Kachka said.

As reported, Deputy Head of the Presidential Office Ihor Zhovkva said in an interview with Interfax-Ukraine that if Brussels fails to take action against Poland, Hungary, Bulgaria, Slovakia and Romania, which violate the trade agreement, Kyiv “reserves the choice of legal mechanisms for response.”

Ukraine’s Foreign Ministry noted that Kyiv reserves the right to initiate arbitration proceedings under the Association Agreement with the EU or to apply to the WTO.

Source: https://www.politico.eu/article/ukraine-eu-wto-poland-hungary-grain-curbs/

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European leaders in Brussels to discuss aid to Ukraine and developments in Russia

A two-day EU summit will open Thursday in Brussels.
“We will reaffirm even more decisively our commitment to support Ukraine for as long as it takes, including through sustained financial and military assistance. We must also discuss how to further strengthen international support for the Ukrainian peace formula,” European Council President Charles Michel wrote in an invitation letter to EU heads of state and government for the European summit.
The meeting of the European Council may also touch upon the latest developments in Russia in connection with the discussion of Ukraine. This issue was not raised during preparations for the summit, so there are “high expectations” from its consideration, a high-ranking EU official who commented on the agenda on condition of anonymity on the eve of the meeting told reporters.
At the same time, the source said the EU will continue to work on how to use frozen Russian assets to help rebuild Ukraine. However, he stressed, it is a complex and ambiguous issue.
“There will be a debate. I don’t know what the outcome will be. In any case, the topic is very controversial, very technical, and there are a whole series of side effects,” the EU functionary continued.
He said tackling it requires caution and coordination with G7 countries because “it seems simple, but there are a number of consequences.”
“We can’t do whatever we want. You can’t take (other people’s) money and put it in your wallet. We abide by the principles of the rule of law. When assets are frozen, you have to be able to get them back as soon as the incriminating behavior stops. So you have to be able to get that money back: the whole asset and the interest on it,” explained the senior source.
“That’s why it’s difficult,” he said, adding that such sanctions are a signal to everyone, including investors, and some investors will wonder what could happen to their funds if they get on the sanctions list. “So you have to think about the side effects of these measures,” the journalist’s interlocutor said.
The European official pointed to the legal complexities of the problem, explaining that an ill-considered decision could be made and then lawsuits would follow, and that would defeat the purpose sought.
Michel, in his message to EU leaders, also said: “Our meeting will be preceded by a lunch with NATO Secretary General Jens Stoltenberg, with whom we can exchange views on global and European security.”
The president of the European Council recalled that in Versailles in 2022, the leaders of the EU member states “decided to take on greater responsibility for European security and defense.” Now, he said, “it is time to assess what we have achieved and to discuss how to speed up our work in order to meet our commitments.”
The European Council meeting will include an exchange of views on the economic situation of the union. “I would like us to assess progress in improving our competitiveness, strengthening our economic base and enhancing our economic security and sustainability, reflecting on further actions that may be needed,” Michel wrote in an invitation letter.
EU leaders will address the migration situation. Mentioning the recent tragic migrant shipwreck in the Mediterranean Sea, the president of the European Council called it “a stark reminder that we must continue to work tirelessly to solve the European migration problem.”
EU heads of state and government will once again turn their attention to the PRC. “Regarding China, we will give further guidance after our debate in October and the debate held by the foreign ministers in May. This will be an opportunity to reaffirm our unified position on China,” Michel noted.
He listed a number of other foreign policy issues that he believes deserve the attention of the European Union’s top leadership. These include the upcoming European Union-Latin America and Caribbean Community summit, EU relations with partners in the southern neighborhood and developments in the Western Balkans.

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