Business news from Ukraine

Business news from Ukraine

Exports of honey from Ukraine to EU amounted to 45.8 thousand tons in 2023

In 2023, Ukraine exported 45.8 thousand tons of honey to the European Union, with 28% of imports of this product from Ukraine, said Olena Dadus, Deputy Director of the Agrarian Development Department of the Ministry of Agrarian Policy and Food.
“The markets of the European Union are key for honey exports, as Ukraine is the second largest exporter of honey to the EU, accounting for 28% of all imports of this product by the bloc. According to the Register of Export Capacities, about 72 Ukrainian enterprises are engaged in the supply of honey abroad,” the press service of the Ministry of Agrarian Policy and Food quoted her as saying at the Honey Forum ”European Integration of the Ukrainian Honey Industry: Challenges and Opportunities.”
According to the State Customs Service and the State Statistics Committee, honey exports in 2023 amounted to 55.4 thousand tons worth $121.4 million, including 45.8 thousand tons (93.6% of total exports) worth $94.9 million. At the same time, in the first half of 2024, honey exports to the EU amounted to 40.6 thousand tons worth $70.7 million.
The Ministry of Agrarian Policy recalled that the main countries of honey export in 2023 were the European Union (Germany, Poland, Spain, France, Belgium, Romania, Italy, Hungary, Greece) and the United States.
As reported, as part of Ukraine’s association with the European Union, Ukrainian companies were entitled to supply 18.507 thousand tons of honey to the EU market free of duty starting June 5, 2024. After this volume was exhausted, the EU resumed quotas on August 21. From January 1, 2025, and until June 5, 2025, a new tariff quota will be introduced, which corresponds to 5/12 of the threshold set for the emergency braking.

, ,

From November 10, new entry rules will come into force in EU

On November 10, new border crossing rules will come into force in the EU countries – a new IT system EES (Entry/Exit System) will start working.
EES will record the entry and exit of all foreigners, including citizens of non-EU countries, including Ukrainians. Instead of stamps in the passport, facial scanning and fingerprints will be used. Biometric data will be taken once during the first entry and stored in the system for three years.
The introduction of the system will not affect the visa-free regime.

Ukraine can become EU member by the end of 2029 – European Commissioner for Enlargement

Ukraine can become a member of the European Union (EU) within the next five years, provided that it implements all the necessary reforms, European Commissioner for Enlargement Oliver Varghese said at a press conference in Brussels on Wednesday.
According to Deutsche Welle, Varghese said that additional tools have been created for Ukraine, Moldova and the Western Balkans to “help them accelerate reforms.”
“These tools are called the Growth Plan, the Ukraine Plan, depending on the country. And with the help of this plan, we have made it possible for the Western Balkans, Moldova, and Ukraine to complete reforms in order to prepare everything and become an EU member by the end of the next European Commission mandate,” he said.
On September 30, a report on EU enlargement was presented in Brussels, which describes the progress of the candidate countries.
At a summit in Brussels on June 23, 2022, the European Council granted Ukraine candidate status in the EU. Kyiv has to implement several important reforms related to the rule of law, oligarchs, and corruption, among other things.

Ukraine and EU agree on substantial increase in electricity imports

Ukraine and the EU have agreed to increase the capacity of electricity imports during the winter months to 2.1 GW, Ukraine’s Energy Ministry said Tuesday.

“Starting December 1, the maximum capacity of imports of e/e from EU countries will be increased from the current 1.7 GW to 2.1 GW. This will increase the resilience of the Ukrainian energy system in the face of criminal Russian shelling and infrastructure destruction. I am grateful to European partners, in particular to European Commissioner Kadri Simson for their consistent position and effective steps to support our energy system on the eve of winter,” Energy Minister German Galushchenko was quoted by the press service as saying.

Ukraine will also additionally have an opportunity for guaranteed 250 MW of overflow capacity from the EU in emergency assistance mode.

As the Energy Ministry recalled, the need to make an important decision for Ukraine on increasing the import capacity was discussed at a meeting between Ukrainian President Volodymyr Zelenskyy and European Commission President Ursula von der Leyen in September in Kiev.

, ,

EU finalizes up to EUR 35 bln for Ukraine from frozen Russian money

The EU Council has finally approved a financial aid package for Ukraine, including an exceptional macro-financial assistance (MFA) loan of up to EUR35 billion under the G7’s Emergency Revenue Assistance (ERA) initiative, which provides for up to USD50 billion to be repaid with proceeds from frozen Russian assets.

According to a post on the social network X of Hungary, which holds the EU presidency, a credit cooperation mechanism was also approved to help Ukraine repay loans of up to EUR45 billion (about $50 billion) provided by the EU and G7 partners under this initiative.

Earlier it was reported that the terms of the new MFA will be tied to the terms of the Ukraine Facility, and its disbursement is scheduled to begin by the end of this year.

The day before, US Treasury Secretary Janet Yellen said that the US is very close to finalizing the US part of the ERA loan. “We are 99% ready,” she said. According to her, the United States is still waiting for guarantees from the European Union to introduce a longer-term sanctions regime to ensure that the profits from Russian assets remain available. Currently, the EU sanctions regime requires a unanimous extension every six months, and its extension to three years is being blocked by Hungary.

According to German Finance Minister Christian Lindner, with such funding from the United States, the European Union’s support will amount to “approximately EUR18 billion,” which is equivalent to about $20 billion, although the EU has approved a loan under the ERA of up to EUR35 billion as a safety net.

On October 22, the United Kingdom announced that it was providing Ukraine with a GBP2.26 billion (almost $3 billion at current exchange rates) military loan to purchase the necessary military equipment under the ERA.

Back in June, immediately after the G7 decision on the ERA initiative, Canada announced the allocation of CAD5 billion ($3.6 billion at the current exchange rate) under the initiative.

The IMF, in its updated EFF Extended Fund Facility program following the fifth review, indicated that if the war ends at the end of 2025, Ukraine will need $33.1 billion of the $50 billion to support its budget: $19.1 billion next year, $9.2 billion in 2026, and $4.9 billion in 2027.

In a negative scenario, if the war continues until mid-2026, Ukraine’s budget will need the full $50 billion to cover the deficit.

,

Three energy-modernized kindergartens for 410 children opened in Rivne with EU support

Three energy-modernized preschools in Rivne for a total of 410 children have started operating, the project was funded by the European Union under a EUR1.56 million grant, the press service of the project manager, the Nordic Environment Finance Corporation (NEFCO), reports.
The energy modernization was carried out for the buildings of the Rivne Special Child Educational and Rehabilitation Center, the Pahinets Center compensatory kindergarten and the 35th kindergarten, which are attended by a total of about 410 children, including IDPs and children with special needs.
“The European Union is pleased with the successful completion of the energy efficiency modernization project in Rivne, which has significantly improved the learning environment for local children, including IDPs and children with disabilities. This initiative reaffirms our unwavering commitment to helping vulnerable people in Ukraine, especially in these difficult times of war. The EU continues to support projects that strengthen the resilience and well-being of communities across Ukraine,” commented Josep Cornet, Head of the Reconstruction, Energy, Infrastructure and Environment Unit at the EU Delegation to Ukraine.
According to Viktor Shakirzyan, Secretary of Rivne City Council and Acting Mayor, these buildings had low energy efficiency and were in need of overhaul for a long time.
“Thanks to the modernization measures, we will be able to reduce costs from the community budget by reducing heat, electricity and water consumption. The work performed will also help reduce greenhouse gas emissions, which is part of our commitment to the NetZeroCities initiative to achieve climate neutrality by 2030,” he said.
The project “Reconstruction and Rehabilitation of Municipal Infrastructure in Rivne to Support the Urgent Needs of Internally Displaced Persons” was successfully implemented with the financial support of the European Union and implemented by the Nordic Environment Finance Corporation (NEFCO) under the NIP “EU Support for Urgent Housing Needs” program.
In total, the partnership between Rivne community and NEFCO has been going on for nine years, and four projects worth EUR 3 million 760 thousand have already been implemented. In particular, comprehensive thermal modernization of schools #26, #18 and #27, as well as kindergartens #14, #33 and #46, has been carried out to support the city’s transition to energy-efficient public buildings. Other measures implemented in educational institutions include the installation of eight new individual heating stations, replacement of kitchen equipment in 11 buildings, replacement of water tap nozzles in 13 buildings, and replacement of lighting fixtures with new LED lamps in 31 buildings.
NEFCO has also provided grant funding for the implementation of the project “Energy Efficiency of Public Buildings and Street Lighting in Rivne” under the Norway-Ukraine Energy Efficiency Initiative program. The grant funds will be used to insulate the facades of buildings, replace windows and entrance doors, and insulate roofs in pre-schools #7 and #57. Street lighting will also be modernized, including the replacement of lamps with energy-efficient ones, on the main and secondary streets of Rivne. The grant funds will also be used to install solar photovoltaic power plants on the roofs of three buildings of the Central City Hospital of the Rivne City Council, which need uninterrupted electricity supply.

,