In the next video YouTube-channel of the analytical center “Club of experts” the prospects of trade and economic relations between Ukraine and Egypt were considered.
As the founder of the Club of Experts Maxim Urakin emphasized, before the war Egypt was the most favorable trade partner for Ukraine, the trade surplus with which amounted to almost 2 billion U.S. dollars. Grain and metallurgical products were the main Ukrainian goods at the Egyptian market.
At the same time, in the first months of the war, the Russian blockade of maritime communications in the Black Sea limited Ukrainian exports to Africa and, above all, to Egypt. The grain agreement improved the situation, but only with regard to agricultural exports. In order not to lose the Egyptian market, the Ukrainian companies have to adapt to the current situation now in order not to make additional efforts after the war.
According to the President of the Ukrainian Exporters Club Eugenia Litvinova, the Ukrainian producers should pay attention to the Egyptian market of dairy products in the first place. In this case, it is necessary to take into account the separation of Egyptian groups of goods for wholesale and retail trade while creating favorable conditions for imports. Also, according to her, the demand in Egypt is for canned and dried fruits, confectionery, chocolate, oils, fats, mineral water, as well as crockery, various cutlery, baths, showers, sinks, building materials and other goods for the retail trade.
“I want to draw attention to the fact that all Ukrainian exporters who want to trade with Egypt, must be registered in the general administration to control exports and imports. After that it is possible to establish logistics through rail and road ways, taking into account the temporary inaccessibility of the port of Odessa”, – she explained.
Besides, Yevgeniya Litvinova noticed that since March of the last year, Egypt obliged Ukraine to use the letter of credit for many groups of goods that leads to rise in price of transactions from 0,2 to 0,5%. This factor, according to the expert, will also directly affect trade and its final results.
“If we talk about advice to our small and medium-sized businesses when entering the Egyptian market, first you need to understand what exports are, if you have not previously been involved in this process. Then you should analyze in which cases it is profitable to open a Ukrainian enterprise in Egypt to work, and in which cases you do not always need to do it and not always profitable. Finally, the third tip – go through the registration. At least look at how to pass authorization, registration through a single window in Egypt. I draw your attention to the fact that your brand should be registered at least in Ukraine before you start to pass this registration in Egypt, “- summed up Eugenia.
In turn, the head of the Egyptian diaspora in Ukraine, Dr. Atia Walid noticed that in recent years Egyptian-Ukrainian trade relations have been intensively developed and our country has been invited to participate in major infrastructure projects, which are now being implemented by the Egyptian authorities.
“Back in 2021 Egypt discussed with the Ukrainian government investment in the special economic zone of the Suez Canal. That is, the Egyptian economic policy is primarily aimed at encouraging investment in the country’s economy. Egypt, of course, is interested in cooperation with Ukrainian companies from the point of view of opening joint ventures on its territory, which can well be realized today, despite the war. I think it is quite realistic for Ukrainian companies to open branches there, if they are interested in the sales market. Egypt is ready to facilitate this,” stressed the representative of Egypt.
In his opinion, our suppliers should work more actively both with the Egyptian embassy in Kiev and the Ukrainian embassy in Cairo. This will facilitate the passage of bureaucratic procedures and reduce the likelihood of becoming victims of fraud.
“Ukrainian businessmen should check with the Egyptian embassy or the Chamber of Commerce the authenticity of the documents of those organizations with which they cooperate. And only after that, conclude a contract according to all international rules. You should not believe the promises and pretty eyes, and do not forget the basics of doing business in the field of export-import. I wish all businessmen in Egypt and in Ukraine only success,” said Dr. Atia Walid.
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ATIA_VALID, BUSINESS, CLUB_EXPERTS, CLUB_EXPORTERS, EGYPT, EXPORT, GOODS, IMPORT, LITVINOVA, TRADE, UKRAINE, URAKIN
Six vessels with 223.4 thousand tons of food left Ukrainian ports on Friday, having received permission from the Joint Coordination Center (JCC).
“On October 28, six ships left Ukrainian ports, they are transporting a total of 223,430 tons of grain and other agricultural products as part of the Black Sea Grain Initiative,” the SKC said in a statement.
The ship Kavo Perdika will deliver 54,160 tons of corn to Israel, the ship Zante – 47,270 tons of rapeseed to Belgium. Dry cargo ship Asl Tia transports 39 thousand tons of sunflower meal to China, dry cargo ship Super Bayern transports 33 thousand tons of corn to Italy.
In addition, two ships Rising Eagle (25 thousand tons of wheat) and Lina (25 thousand tons of corn) are sent to Egypt.
“Grain that has arrived at its destination can be processed and then transported to other countries,” the SKC explained.
It is noted that as of October 27, the total tonnage of grain and other agricultural products exported from three Ukrainian ports is 9,239,819 tons.
“At the moment, 101 vessels have been registered for verification by the SKC, another 76 have applied to join the initiative,” the message says.
As reported, in Istanbul on July 22, with the participation of the UN, Ukraine, Turkey and Russia, two documents were signed on the creation, first, for a period of 120 days, of a corridor for the export of grain from three Ukrainian ports: Chernomorskaya, Odessa and Yuzhny. Ukraine set as its goal to export 3 million tons of agricultural products per month as part of the initiative.
AGRICULTURAL PRODUCTS, BELGIUM, CHINA, dry cargo ships, EGYPT, ISRAEL, ITALY
President of Ukraine Volodymyr Zelensky has appointed former Deputy Head of the President’s Office, former member of the Supervisory Board of NJSC Naftogaz Ukrainy Yulia Kovaliv as Ambassador of Ukraine to Canada.
A photocopy of the relevant decree was posted on Facebook by Deputy Head of the President’s Office Andriy Sybiha.
In addition, Vasyl Miroshnychenko was appointed Ambassador of Ukraine to Australia, and Mykola Nahorny was appointed Ambassador of Ukraine to Egypt
The Ministry of Trade and Industry of the Arab Republic of Egypt has canceled preventive import duties on steel billets, rebar and aluminum products regardless the country of origin, including from Ukraine.According to an official posting on the website of the Egyptian Ministry, Minister of Trade and Industry Nevin Gamea has issued two orders to terminate resolutions No. 907 of 2019 and No. 168 of 2021, introducing preventive measures against the import of steel billets, rebar and aluminum products.According to this information, these two decisions come into force the next day after their publication in the Egyptian Gazette.As the minister explained, both decisions were made to support the sectors of the economy due to high inflation rates, growth in energy, materials and to meet the production needs of Egyptian companies.In turn, Ibrahim al Seginy, Assistant Minister for Economic Affairs and Head of the Commercial Processing Sector, explained that the sector received a number of complaints from the local industry, as the introduction of preventive duties affected these sectors. At the same time, it was recorded that there was a significant increase in prices for these goods, as well as the lack of a sufficient number of local substitute products to meet the needs of the local market. It also affected the high cost of finished goods, which negatively affects the competitiveness of Egyptian exports.According to the Ministry of Economy of Ukraine, on April 15, 2019, Egypt announced the introduction of temporary protective duties on steel products (for fittings in the amount of 17-25%, semi-finished products made of iron and unalloyed steel – 10-16%, depending on the price).This measure was introduced by Egypt to protect local steel producers from an increase in steel supplies to the country after the closure of the American market (as a result of the US government’s imposition of barrage measures on steel and retaliatory measures from other countries, including the EU). These restrictions were supposed to be valid until April 11, 2022.
Ukraine and Egypt will hold the Intergovernmental Joint Commission on Economic and Scientific and Technical Cooperation in Cairo on December 14 to December 16, the Economy Ministry said on the website, following the meeting of Deputy Economy Minister, Trade Representative of Ukraine Taras Kachka with Egyptian Ambassador to Ukraine Ayman Elgammal.
“We are currently conducting a study on the possibility of concluding an agreement on a free trade area with Egypt. Ukraine is interested in increasing the supply of agricultural and food products, vehicles, electrical equipment, engineering products,” the ministry’s press service said, citing Kachka.
He said that Egypt occupies a leading position among the countries of Africa and the Arab world in terms of trade with Ukraine. According to the results within the period of January-August 2021, trade between the countries amounted to $1.044 billion, for the entire last year to $1.7 billion.
According to the Ukrainian side, a major project of the Egyptian government, namely the construction of the new capital Vedian is interesting concerning the possibility of participation of Ukrainian business.
JSC Zaporizhtransformator (ZTR), part of Energy Standard Group of businessman Konstantin Grigorishin, will ship a single-phase reactor to Egyptian Electricity Transmission Company (EETC) by the end of this year.
According to a report on the ZTR website, the enterprise has a long-standing cooperation with Egypt – the equipment has been supplied there since the 90s, when ZTR was just mastering work in foreign markets, and Egypt was a priority.
Reactors manufactured by ZTR are installed at EETC, therefore, the press service notes, it is not surprising that ZTR was the first enterprise with which the customer began to work on the issue of manufacturing a single-phase reactor as part of an urgent and important project.
“The substation where the equipment is planned to be installed is of strategic importance for Egypt, being a link between Egypt and Jordan,” the report says.
ZTR emphasizes that the shipment of equipment will be carried out by container lines (and not in a cargo hold of a ship) – such a scheme was used by the enterprise for the first time this year when shipping three reactors to Argentina due to small overall dimensions of the equipment.
At the same time, according to ZTR, transportation costs have been more than halved, which, in turn, increases the competitiveness of the enterprise and makes it possible to participate in tenders on other continents along with local manufacturers.
ZTR has experience in deliveries to 88 countries. It manufactures power oil transformers, electric reactors and controlled shunt reactors.
