For the first time since February 24, 2022, construction companies plan to increase the number of employees, according to the press service of the Ministry of Reconstruction.
As noted in a press release, such positive sentiment is recorded in a survey conducted in June 2023 by the National Bank of Ukraine “Business Activity Expectations Index of Enterprises”.
According to the survey, the construction companies expect an increase in the volume of construction, the number of new orders, as well as an increase in the purchase of raw materials and supplies.
According to the research Ukrainian business positively evaluates results of its activity for the third month in a row, which indicates gradual adaptation to difficult conditions of full-scale Russian invasion.
Debugging of production and logistics chains, improvement of inflation and exchange rate expectations as well as revival of domestic demand contribute to activation of business processes.
It is noted that business expectations of the construction business have improved due to the expansion of Western logistics, road construction and rehabilitation, as well as due to weather conditions.
JV Nibulon LLC (Nikolaev), one of the largest operators on the grain market of Ukraine, attracted EUR27 million from the Export Investment Fund of Denmark (EIFO) to increase the capacity of the Bessarabian branch in Izmail, where an elevator and a flour mill will be built, the company’s press service said on Facebook.
“We are extremely impressed by the speed of decision-making and support from Denmark in these difficult times for the Ukrainian economy. We really need more and more such positive signals so that others can emulate them,” Nibulon CFO Olga Babanina said.
According to the grain trader, the raised funds will be used to build an elevator for simultaneous storage of 118.5 thousand tons of grain and high-tech modern mill with a capacity of 750 tons per day.
This infrastructural solution will allow Nibulon to increase its export capacity up to 300,000 tons per month and supply flour to the domestic market as well as serve the interests of the food security mission of UN World Food Program via the Danube ports, the company explained.
Besides, the company added that construction of the new production facilities will allow to increase the number of jobs in the region and employ 100 specialists.
As it was informed, the financing is carried out within the framework of social program of Danish Investment Fund, created for Ukraine. The launch of the program was announced in May during the Ukrainian Investment Forum in Copenhagen.
JV Nibulon LLC was founded in 1991. Before the Russian military invasion the grain trader had 27 transshipment terminals and complexes for reception of agricultural crops, capacities for simultaneous storage of 2.25 mln tons of agro-industrial complex products, fleet of 83 vessels (including 23 tugboats) and owned Nikolaev Shipbuilding Plant.
“Nibulon” before the war worked 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
The grain trader exported a maximum of 5.64 million tons of agricultural products in 2021, reaching record volumes of deliveries to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons and in the second half of the year – 3.71 million tons.
Nibulon’s losses from Russia’s full-scale invasion reached $400 million. The grain trader is currently operating at 30% of its capacity and has set up a special unit to clear farmland.
After the victory, Ukraine will become the largest builder and construction site in Europe, with hundreds of towns and villages in need of restoration, President of Ukraine Volodymyr Zelenskyy said.
“After the victory, Ukraine will become the largest builder and construction site in Europe. We need to rebuild hundreds of cities and villages, thousands of infrastructure facilities, hundreds of thousands of homes. This will give a boost to the economy,” Zelenskyy said in a speech at the Verkhovna Rada plenary session on Wednesday.
The President also emphasized the importance of preserving cultural and historical space in cities.
Kyiv authorities are initiating appeals on the need to improve the legislation in terms of the requirement of compulsory equipping new housing with shelters, the press service of Kyiv City State Administration said.
“Today, developers, unfortunately, bypass the existing requirements of compulsory installation of shelters in houses. The reason is in the gaps of the current legislation, which requires providing for shelters in the construction project or the possibility to use the shelter nearby. Well, the “or” should not be! We can see what it has led to: there are practically no new buildings in the fund of protective constructions”, – deputy head of Kyiv City State Administration Petr Panteleev is quoted in the press release.
In addition, he notes that the SES and local self-government are also removed from the process of taking the houses into use.
According to the KSCA, from 4.2 thousand shelters tested in the capital 2.9 thousand are suitable for use, another 736 can be shelters, provided they are properly equipped. 578 facilities do not meet the regulatory requirements for the premises where shelters can be equipped.
As reported, the law “On Amendments to Certain Legislative Acts of Ukraine on ensuring civil protection requirements during the planning and development of territories,” which, in particular, provides for mandatory placement of bomb shelters in new buildings, was signed by the president in August 2022.
Kernel Agro Group is completing the construction of Starokonstantinov Oil Extraction Plant (SEP) in Khmelnitsky Oblast, CEO of the agro-holding Evgeniy Osipov said at the Grain Ukraine-2023 international grain conference.
“As early as next year, we will finish the construction of the Starokonstantinovsky Oil Extraction Plant, which will be able to process 1 million tons of sunflower annually,” he said in a statement on the company’s Facebook page on Wednesday.
According to Osipov, Kernel has invested more than $800 million in the Ukrainian market over the past few years.
“Each of our initiatives is implemented with the goal of strengthening the country’s agricultural potential. We must be ready to accept the products of Ukrainian farmers in time. We must provide all necessary services to our agrarians so that they can sell their products, get the necessary resources and invest them into production,” he stressed.
Osipov clarified that “Kernel” intends to increase the volume of processing and production of products with added value. To do this it is important to build effective logistics for the company’s partners to export their products.
“Our task is to increase the efficiency of the business system,” explained the CEO of Kernel.
As reported, in February 2023, “Kernel” acquired the river terminal “Danube Prom Agro” in the Ukrainian port of Reni on the Danube.
Kernel Agro Holding before the war was the world’s number one producer of sunflower oil (about 7% of world production) and its exports (about 12%). The company is one of the largest producers and sellers of bottled oil in Ukraine. Kernel is also involved in crop growing and sales of agricultural products.
The largest co-owner of Kernel, through Namsen Ltd. – Ukrainian businessman Andrei Verevskyi, with a 41.3% stake, has recently proposed Kernel’s delisting from the Warsaw Stock Exchange and a buyout of its shares from other shareholders.
For the first half of fiscal 2023 (FY, July-December 2022), Kernel cut its net profit by 12.6% YoY to $370.3
Deputy Prime Minister and Minister for Reintegration of Temporarily Occupied Territories Iryna Vereshchuk believes that it is better to invest in social hostels for IDPs than in the construction of modular towns.
“Today we have 25 modular camps in Ukraine. At most 5 thousand internally displaced people live in them. We have 4.8 million internally displaced people. Is it effective? As for me, it is better to invest in social hostels,” Vereshchuk said on the air of a national telethon on Friday.
According to her, there are a lot of dwellings in Ukraine, which, after being repaired, can be suitable for people living there.
Vereshchuk also drew attention to the fact that the modular hostels need to be maintained, which requires funds.
