Business news from Ukraine

International research company Corteva Agriscience to raise export of corn seeds from Ukraine to EU by 16 times

The international research company Corteva Agriscience has established export supply chains for corn seeds from Ukraine to the EU, and in the context of the Russian military invasion plans to increase its exports to European countries by 16 times by the end of the year compared to last year.
According to a press release from the company, as of early August, it has already shipped 3,000 tonnes of corn seeds grown at its seed complex in Poltava region to the European Union.
The company clarified that, for security reasons, it suspended the operation of the seed plant immediately after the start of the Russian invasion of Ukraine, but at the initiative of the employees themselves, after some time, resumed the operation of the enterprise. The launch of its work made it possible to provide Ukrainian farmers with seed material that is critical for the sowing campaign.
Corteva, in the context of Russian aggression, also for security reasons, refused to supply seeds of Ukrainian production by land to the countries of the Caucasus and Central Asia, but expanded logistics to the EU as much as possible.
“On the production lines of the Corteva plant in Ukraine, high standards of seed production have been introduced, which allow us to produce goods that meet all the quality criteria adopted in the EU. Seeds are controlled by many indicators at all stages of production – from field to bag, and meet the maximum requirements of both Ukrainian, and foreign farmers choosing Corteva genetics,” the company said.
Earlier, in April, the company decided to leave the Russian market due to the military aggression of the Russian Federation against Ukraine.
Corteva Agriscience is a global agricultural company. It offers farmers comprehensive solutions to maximize yields and profitability. It has more than 150 research facilities and more than 65 active ingredients in the portfolio.

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Ukrainian parliament plans to apply EU legislation in field of geographical indications of spirits

The Verkhovna Rada adopted as a basis the European integration bill No. 6480, which implements the provisions of EU Regulation No. 2019/787 in the field of geographical indications of alcoholic beverages and the production of alcoholic beverages according to EU standards into Ukrainian legislation.
The corresponding bill, submitted by the Cabinet of Ministers of Ukraine, was adopted at a parliament meeting on Friday by the votes of 266 people’s deputies (with the minimum required 226), Taras Melnichuk, representative of the Cabinet of Ministers in the Verkhovna Rada, said.
“This bill establishes general rules for the definition, description, presentation and labeling of alcoholic beverages, the rules for using the official names of alcoholic beverages; defines the features of the use and protection of geographical indications of alcoholic beverages; introduces a system for controlling geographical indications of alcoholic beverages,” the deputy wrote in his Telegram channel.
According to the text of the document, Ukrainian alcoholic beverages with geographical indications have significant potential in the European market, however, their sale and legal protection in the EU is possible only after successful state registration in Ukraine, the procedure for which currently does not exist due to the absence of the concept of legal protection of geographical indications of spirits.
To solve this problem, bill No. 6480 legislates the concept of “alcoholic beverage” and establishes a unified classification list of categories of alcoholic beverages and requirements for them; introduces requirements for ethyl alcohol and distillates used for the production of alcoholic beverages; ensures compliance with the rules for the definition, description, presentation and labeling of alcoholic beverages, including alcoholic beverages with geographical indications; ensures compliance with the requirements for the official names of alcoholic beverages.
“The implementation of the law will have a positive impact on the market environment, the state – by ensuring that Ukraine fulfills its obligations under the Association Agreement by bringing national legislation closer to the EU acquis in the field of legal protection of geographical indications; consumers – by ensuring transparency and fair competition in the alcohol market and providing information on alcoholic beverages,” is indicated in the explanatory note to the document.

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President of Ukraine and PM of Netherlands discuss cooperation, grain exports, support from EU

President of Ukraine Volodymyr Zelensky discussed with Prime Minister of the Netherlands Mark Rutte issues of defense cooperation between the two countries, the export of agricultural products through Ukrainian ports, as well as financial support for Ukraine by the European Union.
“I maintain continued contact with our partners. Discussed the course of hostilities, Ukraine- Netherlands defense cooperation and financial support from the EU with Mark Rutte. Emphasized the importance of exporting Ukrainian grain by sea ASAP,” Zelensky said on Twitter on Thursday evening.

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Ukrenergo earns over UAH 500 mln from sale of cross-sections for electricity export to EU over month

In the first 27 days of exporting electricity to the EU, NPC Ukrenergo earned over UAH 500 million from the sale of access to interstate power lines at cross-border sections with Romania and Slovakia, the company’s press service reported on Monday.
“This is the result of high competition at auctions for access to interstate power grids, which Ukrenergo conducts according to transparent European rules. From six to 13 participants participated in each of the auctions,” the report says.
It clarifies that in the direction of Romania there were ten or more companies in most auctions, and more than six in the direction of Slovakia, while in total more than 200 participants have already registered for participation in the auctions.
The company notes that the export of electricity to the EU countries allows the state and electricity producers to earn funds to prepare for the heating season: buy coal, finance repairs of power units of power plants and grids. In particular, at present, the company sells at auctions all available transmission capacity with Romania and Slovakia – 100 MW, which is in demand, since the price of electricity in the EU exceeds the Ukrainian one by several times.
The company’s income from access to interstate grids during the war can be used to settle the balancing market to give electricity producers an additional resource to prepare for winter. To this end, amendments to the law on the electricity market are expected.
According to Ukrenergo, the weighted average daily price of access to sections with Romania and Slovakia amounted to UAH 7,700 per MW over 24 days. At the same time, the highest weighted average price was at auctions for the delivery day on July 26 – UAH 14,600 per MW. At the same time, in previous years, such a record did not exceed UAH 3,000/MW.

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State Customs Service issued 80 certificates for export of scrap metal to EU

In January-June of this year, the State Customs Service of Ukraine issued 80 certificates for the export of scrap metal to EU countries to enterprises dealing with ferrous scrap, according to the Ministry of Finance’s response to the letter of the Ukrainian Association of Secondary Metals (“UAVtormet”), dated July 23, 2022.
At the same time, the Ministry of Finance stated that the State Customs Service did not receive requests from subjects of foreign economic activity regarding problems in obtaining certificates.
In turn, “UAVtormet” sent a letter to the Ministry of Finance and the State Customs Service on June 20, 2022, a copy of which is in the possession of the “Interfax-Ukraine” agency, in which it pointed out the appeal of market participants regarding selectivity in the issuance of permits for export procedures, in particular, in the issuance of certificates for supply of scrap to the EU.
In the appeal of “UAVtormet” it was emphasized that the Ministry issued an order dated March 2, 2021 approving the procedure for issuing certificates. According to the Association, the procedure for obtaining a certificate is significantly complicated, it does not contain a complete list of necessary documents, and the procedure for a full or partial inspection of vehicles for product identification is used to delay the registration of export consignments.
UAVtormet believes that this creates corruption risks and causes financial losses to both the state and Ukrainian business.
The association asked the Ministry of Finance to hold an operational meeting on problematic issues in the export of scrap metal, with the involvement of experts from the ministry, the State Customs Service, the Chamber of Commerce and Industry, “UAVtormet” and “UAVtormetresurs”.
As reported, Ukrainian enterprises in January-June of this year reduced the export of ferrous metal scrap eightfold compared to the same period last year – to 28.74 thousand tons, in monetary terms, the export of scrap metal decreased by 6.8 times – to $12.24 million.
Scrap metal was exported in January-June 2022 mainly to Turkey (61.35%), Poland (12.49%) and Germany (9.45%).
In 2021, Ukraine increased the export of scrap metal by 17.2 times compared to the previous year – up to 615.69 thousand tons. In monetary terms, the export of scrap metal increased 25.2 times to $238.90 million.
Ukrainian Association of Secondary Metals (“UAVtormet”), Ukrainian Association of Scrap Metal Exporters (UAEM) and “Ukrainian Association of Secondary Metals and Resources” (“UAVtormetresurs”) operate in Ukraine.

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The EU Council approved a proposal to allocate a new tranche of 500 million euros for military assistance to Ukraine

The Council of the European Union has approved an earlier political decision to provide Ukraine with a new tranche of EUR500 million from the European Peace Fund to strengthen support for the Armed Forces of Ukraine to protect the country’s territory from Russian aggression.
The corresponding decision was made on Friday in Brussels, according to the EU Council.
“Today, the Council approved two European Peace Fund (EPF) assistance measures aimed at strengthening EU support for the capabilities and resilience of the Ukrainian Armed Forces to protect the country’s territorial integrity and sovereignty, as well as to protect the civilian population from ongoing Russian military aggression. Thanks to the 5th tranche of EUR500 million mobilized today, the EU contribution under the EPF for Ukraine will now amount to EUR2.5 billion.
Commenting on the decision, EU High Representative for Foreign Affairs and Security Policy Josep Borrell said: “The EU remains focused and unwaveringly supporting Ukraine in its struggle for freedom and independence. Ukraine needs more weapons, we will provide them. In this context, Member States The EU agreed to mobilize the 5th tranche of military assistance in the amount of EUR500 million, which in total amounts to EUR2.5 billion of military equipment for the Armed Forces of Ukraine.”
The press release details that, in line with the current priorities stated by the government of Ukraine and the support provided so far, the assistance measures include EUR490 million in military equipment designed to deliver lethal force for defensive purposes and EUR10 million intended to cover equipment deliveries. and for consumables such as personal protective equipment, first aid kits and fuel.

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