Business news from Ukraine

Number of enterprises relocated under relocation program is growing in Ukraine

As of July 15, the number of enterprises relocated to safe regions under the relocation program reached 678, while at the end of May there were 601, the Ministry of Economy reported on Saturday.
“Of these, 68% (467 enterprises) have already resumed their work,” the ministry said, which is also 77 more than at the end of May.
According to the Ministry of Economy, a total of 1,732 companies have applied through the digital engagement platform to help with relocation.
Among the enterprises that have already resumed their activities in a new location, the largest share is made up of enterprises in wholesale and retail trade, repair of vehicles and motorcycles (38.7%), processing industry (33.1%), information and telecommunications (5.9%), professional, scientific and technical activities (5.3%).
Most companies have moved their facilities to Lviv (24.6% of relocated enterprises), Zakarpattia (16.1%) and Chernivtsi (11.4%) regions, the agency said.
As reported, the program to move Ukrainian production from the zone of active hostilities started in mid-March. According to the head of the parliamentary committee on finance, tax and customs policy of Ukraine, Danila Getmantsev, as of March 27, 1,120 applications were received under the evacuation program, of which 368 were transferred for transportation. By this date, the number of displaced enterprises under the evacuation program has reached 89, of which 47 have already resumed work in a new location.
The Ministry of Economy then updated the data as of April 5: the number of applications for relocation increased to 1424, relocated enterprises – up to 178, resumed work – up to 67.
According to the Ministry of Economy on May 12, the number of relocated enterprises increased to 510, resumed work – up to 303, so the topic of relocation and filing applications for it has slowed down recently.

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UKRTRUBOPROM ENTERPRISES CUT PRODUCTION OF PIPES BY 27% IN JAN-JUNE – CEO

In January-June of the current year, the enterprises of the Ukrtruboprom association, according to recent data, reduced production of pipes by 27.1% compared to the same period last year, to 226,900 tonnes.
According to a press release from the association on Wednesday, in January, Ukrtruboprom enterprises increased production of pipes by 2.2 times compared to the same period last year, to 61,300 tonnes, and in February by 16.2%, to 49,000 tonnes, but production has been declining since March.
So, in March, production of pipes amounted to 3,500 tonnes (5.9% compared to March 2021), in April – 18,500 tonnes (32.1% compared to March 2021), in May – 51,400 tonnes (86.5%), and in June – 43,200 tonnes (64.5%).
It is specified that in general, in the first half of the year, all plants showed a negative trend. Interpipe Niko Tube and Trubostal reduced production of seamless pipes by 14% and 44.4% respectively, Centravis stainless pipes by 25%, Interpipe Novomoskovsk Pipe Plant electric-welded pipes by 37.6%.
Heorhiy Polsky, General Director of Ukrtruboprom, noted that at the beginning of the year, pipe plants were increasing their output amid favorable external market conditions, which were mainly due to the post-COVID recovery of the global economy and high hydrocarbon prices. However, the full-scale invasion of Russian troops into the territory of Ukraine led to a severe decline in production: in March, almost the entire industry stopped.

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GOOGLE SERVICES TO REMAIN FREE FOR UKRAINIAN SMALL AND MEDIUM-SIZED ENTERPRISES UNTIL WAR END

Google has decided to maintain special conditions for Ukrainian small and medium-sized enterprises (SMEs) until the end of the war, exempting them from paying for Google Workspace, which was introduced in the rest of the world on July 1, Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov has said.
“Since July, Google has been introducing a paid subscription to Google Workspace, but we have agreed on special conditions for our small and medium-sized enterprises. Until the end of the full-scale war, these services will be free,” Fedorov wrote on the Telegram channel on Monday.
He also thanked Google for its regular assistance and support to Ukraine, in particular, for providing the country with $15 million in assistance and free use of Google Workspace by Ukrainian teachers, as well as donating 43,000 laptops to schools.
Google Workspace includes corporate mail, cloud storage and other services.

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SINCE BEGINNING OF WAR, 93 ENTERPRISES MOVED TO LVIV REGION

Since the beginning of Russia’s armed invasion of Ukraine, 93 enterprises have moved to Lviv region, the press service of the Lviv regional military administration reports.
“In general, we have processed more than 400 applications for relocation. Of the 93 enterprises that have already moved, 38 have started work,” Orest Filts, the head of the investment policy department at the administration, said.
According to him, representatives of food, chemical, furniture, light industry and woodworking moved to Lviv region. As Filts noted, among them is Gemini Espresso, a natural coffee company, and MatrolLux, a manufacturer of mattresses, upholstered and cabinet furniture.
According to him, two more machine-building enterprises are planning to start work soon – Wind Farms of Ukraine LLC, which is part of Kramatorsk Heavy Machine Tool Plant, and Pozhmashina, the only manufacturer of specialized firefighting equipment in Ukraine.
According to the estimates of the Lviv regional administration, more than 2,500 jobs will be created at the displaced enterprises.

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2/3 OF UKRAINE’S MILK PROCESSING ENTERPRISES ARE ALREADY OPERATING – ASSOCIATION

After the economic recession caused by the Russian invasion of Ukraine, 60-65% of milk processing enterprises resumed work, even in the conditions of hostilities, the industry is able to meet domestic demand, so importing milk into the country is not advisable.
This opinion was published on the website of the profile association “Union of Dairy Enterprises of Ukraine” (SMPU) on Thursday.
According to her, the import of dairy products to Ukraine is inappropriate, since the resumption of the work of two-thirds of the enterprises of the industry, taking into account the stocks of dairy products intended for export, the supply of which disrupted the hostilities, makes it possible to meet the needs of the domestic market.
In addition, the association predicts that the production of raw milk in Ukraine per capita in 2022 will grow by 8% compared to 2021 – up to 229 kg from 212 kg.
At the same time, the SMPU recalls that after the start of the war, the Cabinet of Ministers included military goods, meat and edible offal, milk and dairy products, vegetables, nuts and a number of other goods on the list of critical imports. “However, the SMPU believes that there is no need to import milk. After all, even in the conditions of war, the dairy industry of Ukraine continues to work and fully supplies the country with high-quality dairy products. Therefore, the inclusion of dairy products in the lists of critical imports is a useless waste of precious foreign exchange funds,” the statement emphasizes. message.
In addition, according to the association, competition with imported “milk” will lead to a reduction in production by Ukrainian dairies and, accordingly, to a decrease in milk production.
“The government should support Ukrainian dairy producers. Now one of the main tasks of the state is to preserve the number of cows and the dairy industry. Therefore, SMPU insists on removing dairy products from the list of critical imports,” the organization said in a statement.
As reported, on February 28, the Cabinet of Ministers significantly expanded the list of critical imports. It includes meat and meat by-products, milk and dairy products, poultry eggs, natural honey, vegetables and edible root crops and tubers, fruits and nuts, coffee, tea, spices, cereals, wheat and wheat-rye flour, soybeans, juices. and plant extracts.

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UKRAINE STARTS PLACING STATE ORDERS FOR ENTERPRISES

Prime Minister Denys Shmyhal says that the state has already begun placing state orders for enterprises to meet critical needs.
“What, for its part, is the government doing to ensure a speedy transition to a ‘war footing’? Firstly, financial support for the functioning of the country. We are negotiating with all international organizations and countries on financial assistance. Of the latest decisions, the European Investment Bank will redirect EUR 639 million from other projects to the state budget of Ukraine,” Shmyhal said in his address on Sunday afternoon.
Also, according to him, the Ministry of Finance has already held the first issue of war bonds and will soon have a second issue.
“Everyone who is ready to lend to Ukraine, our military, our doctors, and critical infrastructure workers, can do this by purchasing war bonds,” he said.
Shmyhal also noted that the government has already authorized the relevant ministries to open four accounts with the National Bank, to which funds from individuals, organizations, companies, and international financial organizations will be credited to the fund for the restoration of Ukraine.
“Secondly. The economy of martial law implies a clear planning of needs. The state has already begun to place state orders for enterprises to meet critical needs. It’s not just about weapons. It’s about food, medicine, fuel and other important goods,” the prime minister added.
Among other things, he said that the government had already decided to limit the export of a number of socially important goods and raw materials from which they are produced.

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