The Ukrainian government has introduced a quota for exports of poultry and poultry by-products to the EU in the amount of about 137,000 tons starting July 1.
According to Cabinet of Ministers Resolution No. 612 of May 30, published on the government portal, the quota for the supply of poultry meat and edible offal to the EU, including chickens, geese, ducks, guinea fowl (UKTZED code 0207), is set at 133.28 thousand tons, and turkey meat and edible offal (UKTZED code 0207 24-27) at 3.76 thousand tons.
The Ministry of Economy will consider applications for licenses to export these goods to the EU within 10 days. Permits will be issued on the basis of applications and approvals provided by the Ministry of Agrarian Policy.
For the period of martial law, applicants shall prepare and submit documents electronically through the relevant information and communication systems (the Ministry of Economy’s electronic services portal, the Unified State Web Portal of Electronic Services).
The licensing regime for the export of quota goods to the EU is also mandatory if the non-resident counterparty is registered in the EU under a foreign economic agreement (contract).
At the same time, the volume of quotas approved for the commodity item “Meat and edible offal of poultry: poultry chickens, ducks, geese, guinea fowl”, excluding the reserve quota of 1400 tons for new exporters, and for the commodity “Turkey meat and edible offal of turkeys” is distributed by the Ministry of Agrarian Policy among exporters in proportion to the actual volume of their exports to the EU in the first quarter of 2024. Information on the actual export volumes of these products for the first quarter of 2024 must be provided by exporters to the Ministry of Agrarian Policy with supporting documents by June 25, 2024.
The reserve quota of 1400 tons will be distributed among exporters who did not export these products in the first quarter of 2024.
If there is an unused balance of the quota as of November 1, 2024, it is distributed among exporters in proportion to the actual exports of these products to the Member States of the European Union for the three quarters of 2024.
As reported, on May 13, the EU Council finally approved the extension of the autonomous trade measures for another 12 months – until June 5, 2025. At the same time, restrictions have been imposed on the duty-free supply of a number of agricultural products – poultry, eggs, sugar, oats, cereals, corn and honey – in the amount of the average export volume for the period from the second half of 2021 to the end of 2023.
Ukraine increased its exports of granulated slag to the EU in 2023 to 367 thousand tons, up 53% compared to 2022, of which 324.5 thousand tons (+47.5% compared to 2022) were supplied by Recycling Solutions, the company’s press service reports.
“We have managed to attract new customers and expand our sales market, despite the fact that the European construction sector is going through a crisis. Europe lacks its own similar raw materials, and Ukraine can meet the demand of European manufacturers. For us, this is an opportunity to support the national economy and ensure the inflow of foreign currency into the country,” Vadym Khoroshko, Director of the Construction Admixtures Department, explained in a press release.
According to the published data, the total volume of granulated slag imports to the EU countries in 2023 amounted to 3.35 million tons. The leading suppliers are Japan (1.2 million tons), China (0.7 million tons), Turkey (0.7 million tons) and Ukraine. The main consumers of this product are cement plants, which are currently operating unstably due to lower demand. The European construction market and road construction have slowed down significantly. On the other hand, the launch of the Carbon Based Import Adjustment Mechanism (CBAM) in October 2023 is having a positive impact on the waste and by-products market. In the spring, a new cement production season begins, in which Recycling Solutions expects demand to remain at the level of 2023, the press release said.
It is reported that in 2023, 44% of construction admixtures sold by Recycling Solutions were exported. The largest volumes were purchased by customers from Poland and Slovakia. In addition to slag, last fall the company was the first Ukrainian producer to export 1380 tons of dry ash.
The company also notes an increase in sales in the domestic market, explaining that demand for construction admixtures is driven by reconstruction projects and the emergence of small tenders for road resurfacing. In particular, last year Recycling Solutions shipped 407.2 thousand tons of granulated slag to Ukrainian customers, which is 69% more than last year. The company also sold 363.3 thousand tons of dump slag used for road construction and emergency repairs, and shipped 282 thousand tons of other ash and slag materials, 30% more than in 2022.
In addition, last year Recycling Solutions launched an aluminosilicate microsphere production plant in Burshtyn, Ivano-Frankivsk region. The company operates on equipment evacuated in 2022 from Druzhkivka (Donetsk region), which was located in close proximity to the front line. Investments in the project amounted to $313 thousand. The launch of production made it possible to ship 521 tons of microspheres in 2023.
Recycling Solutions was founded in 2012 and is part of Rinat Akhmetov’s umgi investment company. It provides strategic by-product and waste management services. Currently, it is an integrated operator of secondary resources management for the coal, metallurgical, heat and power, and agricultural sectors of Ukraine. The company’s activities include processing and sale of ash and slag materials, metallurgical slag, rare and industrial gases, ammonium sulphate, livestock by-products, and production of heat and electricity from coal mine methane.
umgi founded SCM in 2006 to manage assets in the raw materials sector. Later, it expanded its range of activities and changed its business model from management to investment. The total market value of its portfolio companies exceeds $500 million.
In 2023, the countries of the European Union imported 163.7 thousand tons of honey for a total of EUR359.3 million, according to the Statistical Office of the European Union (Eurostat).
Exports of honey from the EU countries amounted to only 24.9 thousand tons worth EUR146 million.
Over 10 years, since 2013, imports have increased by 20%, exports – by 14%.
Last year, the main suppliers of honey to the EU were China (60.2 thousand tons, or 37% of all foreign supplies), Ukraine (45.8 thousand tons, 28%), Argentina (20.4 thousand tons, 12%), Mexico (10.7 thousand tons, 7%) and Cuba (4.7 thousand tons, 3%).
The UK became the main importer of honey from the European Union – 4.3 thousand tons. Saudi Arabia, Switzerland and the United States imported more than 3 thousand tons.
The largest buyer of foreign honey among the EU countries was Germany, which imported 41 thousand tons in 2023. Belgium took the second place (31.4 thousand tons), and Poland was the third (23.3 thousand tons). Spain was the leading exporter (7.1 thou tons).
Ukraine in 2023 supplied the European Union market with 45.8 thousand tons of honey, which was the second result and accounted for 28% of all imports of this product by the Commonwealth countries, Eurostat reports.
According to the report, the largest supplier of honey in 2023 was China with 60.2 thousand tons and 37% of the market share, the third place belonged to Argentina with 20.4 thousand tons (12%), the fourth – Mexico with 10.7 thousand tons (7%), the fifth – Cuba with 4.7 thousand tons (3%).
The largest importer of honey in 2023 was Germany, which imported 41 thousand tons of honey from outside the EU, accounting for 25% of all EU imports. Belgium was the second largest importer with 31.4 thousand tons (19%), followed by Poland with 23.3 thousand tons (14%), Spain with 15.7 thousand tons (10%) and France with 7.7 thousand tons (5%).
In total, EU members imported 163.7 thousand tons of natural honey from non-EU countries in 2023, worth EUR359.3 million. At the same time, EU member states exported 24.9 thousand tons worth EUR146.0 million.
The UK was the leading buyer of honey produced in the EU in 2023 with 4.3 thousand tons (17% of all non-EU honey exports). This was followed by Saudi Arabia with 3.5 thousand tons (14%), Switzerland with 3.4 thousand tons (13%), USA with 3.3 thousand tons (13%) and Japan with 2.5 thousand tons (10%).
Spain was the largest exporter. It sent 7.1 thousand tons of honey to countries outside the EU, which amounted to (29% of all exports of this product from the EU). It is followed by Germany with 5.5 thousand tons (22% of all exports), Romania with 1.7 thousand tons (7%), Hungary with 1.6 thousand tons (6%) and Greece with 1.5 thousand tons (6%).
Source: https://ec.europa.eu/eurostat/en/web/products-eurostat-news/w/ddn-20240520-1
The National Association Ukrtsukor has asked the Cabinet of Ministers to urgently establish a zero quota on sugar exports to the European Union for 2024 due to the achievement of the maximum volume stipulated by the EU decision for the export of Ukrainian sugar to these countries in 2024, the association reported on Facebook.
“In fact, we are talking about initiating the closure of Ukraine’s border for sugar exports to the EU as soon as possible due to the fact that sugar exports have already reached 262.6 thousand tons, defined as Ukraine’s quota for 2024,” the statement said.
“Ukrtsukor believes that such an appeal is a confirmation of the constructive position of Ukrainian sugar producers and their readiness to integrate into the European sugar market and meet its requirements.
The business association reminded that on May 13, 2024, the Council of the European Union approved the extension of temporary trade liberalization measures for Ukraine for another year, until June 5, 2025. At the same time, it provided for the application of an emergency braking mechanism for particularly sensitive agricultural products, in particular sugar, if imports of these products in 2024 exceed the average imports recorded in the second half of 2021 and throughout 2022 and 2023. Similar emergency braking measures may be applied in 2025 if, in the period from January 1, 2025 to June 5, 2025, the volume of Ukrainian exports exceeds 5/12 of the quota set for 2024.
Despite the fact that the EU has sharply reduced the amount of Russian gas it imports, significant volumes are still flowing into the bloc. More than two years after Russia launched its full-scale invasion of Ukraine, its gas is still flowing into Europe.
Although the European Union has significantly reduced the amount of gas it imports from Russia, the hydrocarbon still powers some European homes and businesses, thus increasing the Kremlin’s revenues.
When the war broke out, European leaders were forced to reckon with their long-established dependence on both Russian gas and oil. Gas was a particular problem, as in 2021, 34% of EU gas came from Russia.
Central and Eastern European countries were particularly dependent. When the EU proposed a ban, German Chancellor Olaf Scholz was quick to speak out against it. “Europe has deliberately removed energy supplies from Russia from the sanctions. At the moment, Europe’s energy supply for heat production, transportation, electricity and industry cannot be ensured in any other way,” he said.
Vladimir Putin took advantage of this. Throughout 2022, Russia reduced gas imports to Europe. European leaders feared a winter energy shortage. These fears never materialized, but importantly, they meant that the EU never imposed sanctions on Russian gas.
“It was never a sanction,” says Benjamin Hilgenstock of the Kyiv School of Economics. “It was a voluntary decision of the countries, and a reasonable one, to diversify their supplies and no longer blackmail Russia,” he told DW.
According to EU data, the share of Russian pipeline gas imported by member states has decreased from 40% of the total in 2021 to about 8% in 2023. However, if liquefied natural gas (LNG) – natural gas cooled to a liquid state so that it can be transported by ship – is included, the total share of Russian gas in the EU’s total volume last year was 15%.
One of the main ways to reduce the EU’s dependence on Russian gas has been to increase imports of LNG from countries such as the United States and Qatar. However, this has unwittingly led to a sharp increase in the supply of Russian LNG at high prices to the bloc.
According to Kpler, Russia has become the second largest supplier of LNG to the EU. In 2023, LNG imports from Russia will account for 16% of total LNG supplies to the EU, which is 40% more than in 2021.
Import volumes in 2023 were slightly down on 2022, but data for the first quarter of 2024 show that Russian LNG exports to Europe were up again by 5% year-on-year. France, Spain, and Belgium were particularly large importers. These three countries accounted for 87% of the LNG that entered the EU in 2023.
However, most of this LNG is not needed by the European market and is transshipped in European ports and then re-exported to third countries around the world, resulting in profits for some EU states and companies.
Most of the Russian LNG that comes to Europe is simply “transshipped,” says Hilgenstock. “So it has nothing to do with the supply of natural gas to Europe. It’s just European companies making money by facilitating Russian LNG exports.”
According to a recent report by the Center for Research on Energy and Clean Air
(CREA), just under a quarter of Europe’s LNG imports from Russia (22%) will be transshipped to world markets in 2023. Petras Katinas, an energy analyst at CREA, told DW that most of this LNG was sold to Asian countries.
As a result, some EU members, such as Sweden, Finland and the Baltic states, are putting pressure on the bloc to impose a complete ban on Russian LNG, which would require the consent of all member states.
The EU is currently discussing a ban on re-exporting Russian LNG from European ports. According to the Bloomberg news agency, they are also considering imposing sanctions on key Russian LNG projects, such as Arctic LNG 2, the UST Luga LNG terminal, and the Murmansk plant.
“We really should basically ban Russian LNG,” said Hilgenstock. “We don’t think it plays any significant role in Europe’s gas supply, or that it can be replaced relatively easily with LNG from other sources.” A 2023 study by the Bruegel think tank confirms this analysis.
However, Acer, the EU’s energy regulator, recently warned that any reduction in Russian LNG imports should be done in “gradual steps” to avoid an energy shock.
EU countries continue to receive Russian gas
Pipeline gas from Russia also continues to flow to the EU. Although the Nord Stream pipelines are not working and the Yamal pipeline no longer carries Russian gas to Europe, it still arrives at the Austrian gas hub of Baumgarten via pipelines that pass through Ukraine. Austrian state-owned energy company OMV has signed a contract with Russian gas company Gazprom until 2040.
In February, Austria confirmed that 98% of its gas imports in December 2023 will come from Russia. The government says that it wants to terminate the contract with Gazprom as soon as possible, but for this to happen, EU sanctions against Russian gas must be legally imposed.
Like Austria, Hungary continues to import large quantities of piped Russian gas. Hungary has also recently signed a gas deal with Turkey, but experts say that this gas, which is supplied by the Turkstream pipeline, also comes from Russia.
Gilgenstock says that some countries continue to buy Russian gas because they benefit from cheap and attractive contracts. “So if there is no embargo on Russian gas, it all depends on these countries,” he says.
For countries such as Austria and Hungary, the possible suspension of pipeline imports from Russia may ultimately depend on Ukraine. Kyiv insists that it will not extend the existing agreement with Gazprom on gas supplies through its territory. This agreement expires at the end of 2024.
Although Russian gas is still imported into Europe, its overall share of European gas imports has fallen sharply since 2021. The EU says it wants to be completely free of Russian gas by 2027, a goal that Gilgenstock believes is looking increasingly realistic.
“I think that if this whole messy story has shown us anything, it’s that we can diversify our gas and other energy supplies relatively quickly by getting off Russia,” he said.
However, in his opinion, the political environment is “not very favorable” for a full gas embargo, especially for a pipeline embargo. He cites Hungary’s EU presidency in the second half of 2024 as a potential obstacle. Budapest has closer ties to Moscow than most EU member states.
As for LNG, he is more optimistic and says that, in addition to EU action, major LNG importers such as Spain and Belgium must take action themselves.
“This illegal import of Russian gas is a huge problem, especially in terms of messaging,” he said. “And we are helping Russia with its LNG supply chain, which we shouldn’t be doing.”
