Europe should be prepared for a possible increase in tariffs on imports of goods to the United States, as promised by President Donald Trump, said European Central Bank (ECB) President Christine Lagarde. The fact that Trump has not yet signed a decree to impose additional duties on all imports was “a very sensible approach, as total tariffs will not necessarily lead to the expected results,” Lagarde said in an interview with CNBC in Davos.
In her opinion, the new US tariffs will be more “selective and focused”.
“We in Europe need to prepare and wait in advance to see what will happen in order to respond to it,” Lagarde added.
At the same time, the ECB President noted that the regulator is “not too concerned” about external risks to inflation.
In response to a journalist’s question about the possible consequences of a new wave of inflation in the United States, Lagarde said that “accelerating inflation in the United States will be a problem for the United States, and that is where the main effects will be felt first.”
The ECB has cut rates by a total of 100 basis points in 2024, with the key deposit rate now at 3%. Economists expect four rate cuts of 25 bps each in 2025. Earlier, the Experts Club think tank, Brian Mefford and Maxim Urakin, released a video analysis on what changes are expected in US domestic and foreign policy under Trump, the video is available on the Experts Club YouTube channel – https://youtu.be/W2elNY1xczM?si=MM-QjSqGce4Tlq6T
Electricity exports to Europe in November decreased by 31% compared to October and were almost four times lower than imports, according to DiXi Group, a Ukrainian think tank in the areas of politics, energy and security, citing Energy Map.
“Last month, electricity exports fell by 31% to 41.9 thousand MWh,” DiXi Group said in a Facebook post.
According to it, 30% or 12.7 thousand MWh went to Slovakia, another 23% (9.4 thousand MWh) to Hungary. 19% (8.1 thousand MWh and 7.8 thousand MWh) went to Moldova and Romania. 9% (3.9 thousand MWh) went to Poland.
According to DiXi’s information, imports amounted to 162.4 thousand MWh, which is 11% less than in October and almost four times more than exports.
DiXi explained that exports fell in the second half of last month, while imports increased due to Russia’s massive attacks on energy infrastructure on November 17 and 28, which led to a shortage in the power system.
As reported, according to D.Trading, in November-2024, Ukraine remained a net importer of electricity, and its imports amounted to 165 million kWh, which is 9% lower than in October.
As DiXi reported earlier, in October-2024, Ukraine exported 60.7 thousand MWh instead of 0.7 thousand MWh in September.
Despite the overall shortage of electricity caused by 11 massive Russian attacks on the power system this year, at certain hours, in particular, during the active operation of renewable energy generation, as well as at night, Ukraine has a surplus, which allows for exports. An alternative to exports is, in particular, a forced limitation of electricity production from renewable energy sources, which should be compensated by NPC Ukrenergo. Due to the surplus, other types of generation should also reduce their capacity.
Metinvest Mining and Metallurgical Group is ready to invest in Europe and expand its presence in the market, including steel production, and is currently in the process of mergers and acquisitions of some European steel assets, said Alexander Vodovez, Chief Executive Officer of the Group, at the European Business Summit in Brussels.
“We are negotiating with several European companies to come to Ukraine. We are currently in the process of merging and acquiring some European steel assets, as we have a huge resource base and want to use it properly,” said the top manager.
According to the head of Metinvest’s CEO’s office, before the war, the group employed about 120,000 people and accounted for about 5% of Ukraine’s GDP. But with the start of the full-scale invasion, the company lost almost 50% of its enterprises, particularly in Mariupol and Avdiivka. Today, Metinvest employs about 60,000 people in Ukraine, Italy, the United States, Bulgaria and the United Kingdom. About 9,000 of the company’s employees serve in the Ukrainian Armed Forces, and about 1,000 employees have been killed. The group’s enterprises operate under the threat of shelling, with some facilities located just 10 km from the frontline.
Vodoviz emphasized the importance of entering the EU market, especially as Ukraine fights Russian aggression.
“Ukraine has the largest resource base on the European continent. And we can offer Europe access to these resources. In return, we want access to European technologies and the financial system to implement projects both in Ukraine and in the EU. But we do not need free money – we are ready to compete. We are ready to be part of the economic society of Europe and want this accession process to be completed as soon as possible,” stated the head of Metinvest’s CEO’s office.
At the same time, he clarified that the main obstacle for Ukraine on its way to European integration is the war: “We cannot simply turn a blind eye to the war, but our government has a homework assignment – to go through all the procedures for joining the European Union: monitoring, enforcement of laws, etc.” The top manager emphasized that Ukraine’s European integration will help ensure the strategic autonomy of the European steel industry from Russia.
Plastic production in Europe in 2023 decreased by 8.3%, according to the industry organization Plastics Europe. According to its managing director, Virginia Janssens, the decline was stronger than expected.
At the same time, global plastic production grew by 3.4%, in particular due to the scale-up of production in China and the United States. According to S&P Global, China accounted for 60% of the growth in petrochemical capacity last year.
The share of European suppliers in the global market will decline to 12% in 2023 from 28% in 2006. In addition, due to declining demand, the volume of mechanical plastic recycling in Europe last year fell for the first time since 2018, Plastics Europe noted. This is the most common recycling method in the region.
In October, the industry organization Plastics Recyclers Europe pointed out the alarming nature of the downward trend in the European plastic recycling market, which is why many companies are leaving it. Among other things, the market is under pressure from an oversupply of virgin plastic outside Europe.
Businesses are also dissatisfied with European legislation aimed at achieving ambitious climate goals. According to the companies, it is “stifling growth,” the FT writes. American ExxonMobil (SPB: XOM) and Saudi Arabia’s SABIC this year announced their intention to close petrochemical plants in Europe. LyondellBasell, Versalis, and Trinseo are also going to close their sites or revise their plans for them.
Europe will need to rethink its support of Ukraine if Donald Trump is elected president of the United States, Hungarian Prime Minister Viktor Orban said on Sunday, as the continent “will not be able to bear the burdens of the war alone”.
Orban opposes military aid to Ukraine and has made clear he thinks Trump shares his views and would negotiate a peace settlement for Ukraine.
He backs former president Trump, the Republic candidate, to beat Democratic candidate Kamala Harris in Tuesday’s U.S. election.
“We (in Europe) need to realize that if there will be a pro-peace president in America, which I not only believe in but I also read the numbers that way, … if what we expect happens and America becomes pro-peace, then Europe cannot remain pro-war,” Orban said.
Ukraine will be high on the agenda when European leaders meet in Budapest in the coming week, he said, referring to a European Political Community meeting and a more informal meeting of EU leaders due to take place.
“Europe cannot bear the burden of [the war] alone, and if Americans switch to peace, then we also need to adapt, and this is what we will discuss in Budapest,” Orban said.
Europe is jittery about how the outcome of the U.S. election will affect the war in Ukraine and the continent’s security.
Orban has angered Brussels with his close ties to Russia and opposition to aid for Ukraine.
Hungary’s foreign minister Peter Szijjarto said in July that the Hungarian government sees Trump as a “chance for peace” in Ukraine.
In July Orban said his team was assisting Trump’s aides with policies on families and migration. On Thursday, he called Trump to wish him good luck ahead of Tuesday’s election.
Two Ukrainian producers of chicken and eggs, MHP and Avangard, topped the list of European producers of chicken and eggs and took 15th place in the global ranking, according to the WattPoultry magazine, which researches the global market for the production, processing and sale of poultry products.
According to the ranking, MHP agricultural holding topped the list of broiler producers in the European Union and took 15th place in the world ranking with a production of 704 thousand tons of chicken meat per year.
Ukrainian agricultural holding Avangard was ranked first among egg producers in the European Union and 15th among world leaders with a production of 13.3 million eggs.
“Demand for chicken meat continues to grow and consumption is expected to increase by 16% between 2024 and 2033, according to the Organization for Economic Cooperation and Development (OECD) and the Food and Agriculture Organization, which is obviously good news for global poultry producers. Nothing is guaranteed, but as demand remains high, companies in our industry at least have plenty of opportunities to capitalize on them,” the publication emphasized.
The compilers of the rating reminded that broiler and egg producers, wherever they are in the world, are forced to deal with disease outbreaks and increasingly stringent regulations. However, they can at least be sure that demand for their products will continue.
MHP is the largest chicken producer in Ukraine. It produces grain, sunflower oil, and processed meat products.
In 2023, the company earned $142 million in net profit compared to a net loss of $231 million a year earlier. Last year, the group’s revenue increased by 14% to $3.021 billion.
As reported, in March 2022, Avangard announced losses of UAH 1.5 billion since the beginning of Russia’s military invasion of Ukraine. Russian aggression has led to the shutdown of a number of the group’s key poultry farms, and chickens at the Chornobaivska poultry farm (Bilozerka, Kherson region) were left without food and died.
“Ukrlandfarming is one of the largest agricultural holdings in Eurasia. It is engaged in growing grain, raising cattle, and distributing machinery, fertilizers, and seeds. “Avangard, a part of it, is Ukraine’s largest producer of eggs and egg products.
