Metinvest Mining and Metallurgical Group sold 55% of its steel and mining products in the European Union (EU) in January-June 2023.
According to the company’s presentation at the 15th J.P. Morgan Global Emerging Markets Corporate Conference, during this period, Metinvest sold 35% of its steel products in Ukraine, 2% in MENA, 1% in the CIS and 7% in other regions for a total of $2.423 billion.
In addition, the Group sold 28% of its iron ore products in Ukraine, 10% in Asia, and 7% in other regions for a total of $1.131 billion.
At the same time, in 1H2022, Metinvest sold 48% of its steel products in the EU (50% in 2H2022), 28% (35%) in Ukraine, 13% (4%) in MENA, 6% (1%) in the CIS and 5% (10%) in other regions for a total of $3.603 billion ($2.113 billion).
In addition, the company’s share of sales of iron ore products in the first half of 2022 in the EU amounted to 45% (60% in the second half of 2022), in Ukraine – 20% (27%), in Asia – 19% (2%), in other regions – 15% (11%) for a total of $1.669 billion ($903 million).
The presentation states that sales of steel products in 1H2023 decreased by 33% year-on-year, mainly due to a 54% and 56% decrease in pig iron and flat products production at Ukrainian steelmakers amid a lack of slab sales and a decline in average selling prices. This was partially offset by increased supplies of billets (up 3%) and long products (up 14%), as well as coke (up 10%), with higher resale volumes.
The positive six-month trend in 1H2023 compared to 2H2022 (up 15%) was driven by higher sales volumes of all products, including finished products (up 22%), semi-finished products (up 7%) and coke (up 18%).
At the same time, logistical challenges continued to shape the geography of sales.
Sales of iron ore products in 1H2023 decreased by 32% compared to 1H2022, mainly due to a 44% drop in iron ore prices and reduced supplies due to the blockade of Ukrainian Black Sea ports, as well as lower intragroup consumption and a drop in local demand. The results were also affected by the negative dynamics of prices for iron ore with an iron content of 62%. This was partially offset by an increase in sales of pellets and coking coal concentrate by 43% and 42%, respectively. This resulted in significant changes in regional revenue shares.
At the same time, compared to the second half of 2022, there was a positive trend (up 25%), primarily due to an increase in sales of all products, namely pellets (up 2.1 times), iron ore concentrate (up 56%) and coking coal concentrate (up 13%).
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the USA. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
The EU Council announced on Wednesday that the Committee of Permanent Representatives (Coreper) of the European Union has agreed on the Council’s negotiating mandate to extend for another year the suspension of import duties and quotas on Ukrainian and Moldovan exports to the EU.
“By agreeing to renew these measures, we demonstrate our continued support for Ukraine and Moldova, while protecting the internal market from excessive increases in imports of certain sensitive agricultural products,” commented Aja Labib, Foreign Minister of Belgium, which holds the EU Council presidency, on the agreement of the Permanent Representatives.
The Council communiqué explains that the two legislative proposals that member states will discuss with the European Parliament are aimed at extending the suspension of import duties and quotas for another year: from June 6, 2024 to June 5, 2025 for Ukraine and from July 25, 2024 to July 24, 2025 for Moldova – provided that “the protection of sensitive agricultural products is simultaneously enhanced by strengthening safeguards” already included in the relevant existing regulations.
Brussels explains that “by renewing these measures, the EU will continue to support and stimulate trade flows from Ukraine to the EU and the rest of the world, and will contribute to creating conditions for the expansion of economic and trade relations leading to the gradual integration of Ukraine into the EU’s internal structure.”
As for Moldova, these measures are intended to “help preserve the conditions necessary to enable Moldova to continue its trade relations with the EU and with the rest of the world through the EU,” the EU Council said.
The European Commission (EC) announced on Tuesday the allocation of €83 million in “initial humanitarian aid” to Ukraine and Moldova for 2024.
“To help the most vulnerable people (…) in 2024, the EU will provide an initial €75 million in humanitarian aid to Ukraine and €8 million to Moldova. And we will continue to closely monitor the changing needs on the ground to respond to the most urgent humanitarian challenges,” said Janez Lenarčič, EC Member for Crisis Management.
The European Commission’s communiqué explains that €75 million for Ukraine has been allocated for humanitarian projects “to provide emergency assistance, including access to basic needs such as shelter, protection services, drinking water, education and healthcare.”
Humanitarian projects for Moldova worth €8 million provide “targeted assistance to the most vulnerable populations, including humanitarian cash assistance to meet basic needs, protection and health care.”
The European Commission said that with this new funding, it has allocated a total of €926 million for humanitarian assistance programs for the civilian population of Ukraine after February 2022. Of these funds, €860 million is earmarked for humanitarian programs inside Ukraine and €66 million for support to Ukrainian refugees in neighboring Moldova.
At an informal meeting in Brussels, EU defense ministers agreed to fulfill their promise to supply 1 million artillery shells to Ukraine, Estonian Defense Minister Hanno Pevkur said.
“We have just agreed with the EU defense ministers that we will fulfill our promise to supply 1 million artillery shells to Ukraine. By the end of March, we will have delivered more than 0.5 million shells. More than 1.1 million shells by the end of 2024. The EU’s production capacity will increase to 1.5 million by the end of 2024,” Pevkur wrote on social media site X.
Last spring, the EU countries jointly agreed to send one million shells to Ukraine by March 2024 to repel Russia’s military aggression.
27 EU leaders have agreed on an additional €50 billion package of support for Ukraine within the EU budget, European Council President Charles Michel said.
“We have an agreement. We have unity. All 27 leaders have agreed on an additional €50 billion package of support for Ukraine within the EU budget. This provides sustainable, long-term and predictable funding for Ukraine. The EU is taking the lead and responsibility in supporting Ukraine; we know what is at stake,” Michel wrote on social media platform X on Thursday.
Ukraine has received confirmation of funding for participation in 10 joint projects with EU member states under the EU4Health program in the amount of EUR 4.5 million.
According to the Ministry of Health, the program is being implemented within the framework of an agreement between Ukraine and the EU concluded in 2022 on Ukraine’s participation in the EU4Health program to participate in 10 joint projects with other EU member states.
Under the program, the European Commission has approved funding for the implementation of projects in Ukraine to prevent cardiovascular disease and diabetes, monitor and prevent cancer and other non-communicable diseases, strengthen infection control in hospitals and among healthcare workers, improve diagnosis of rare diseases, and exchange of experience in treatment between EU countries.
The projects will train specialists in the control of medicines and medical devices in accordance with EU standards, as well as in the latest treatment methods and evaluation of medical technologies, and implement the European system for assessing the safety of human blood, tissues, and cells.
In addition, the projects are aimed at integrating the Ukrainian eHealth system into the EU’s single eHealth system, cooperation between EU countries to jointly set priorities, goals and measures to improve the global health of EU citizens and strengthen the system of response to and surveillance of cross-border threats.
The Ministry of Health clarifies that under the 2023 work program, 12 calls for proposals were announced for non-governmental organizations with a total budget of about EUR 20 million. They relate, in particular, to the areas of access to health care, mental health, prevention and diagnosis of non-communicable diseases (NCDs).
Each participating country appoints a national program committee (representatives of the Ministry of Health) and coordinators for project implementation within the country, and in Ukraine, specialists from the Public Health Center have been appointed.
The total budget of the EU4Health program for 2021-2027 is EUR 5.3 billion. EU4Health is implemented through annual work programs. The agreement allows Ukraine to receive EU funding in the health sector on equal terms with the EU countries, Norway, Iceland and Moldova.
Ukraine’s participation in the program involves the payment of an annual contribution totaling EUR 12.1 million (2022-2027). In 2022, an agreement was signed to cancel the membership fee for Ukraine in that year. Currently, the Ministry of Health and the Ministry of Foreign Affairs are working on ratification of the agreement in the Verkhovna Rada and on the abolition of membership fees for Ukraine until the end of the program (until 2027).
