Business news from Ukraine

Ukraine continues to increase exports of dairy products – Infagro

Ukraine, despite low prices on the global market, increased exports of most dairy products in May, both compared to April this year and compared to May 2023, Infagro, an industry information and analytical agency, reported.

According to experts, the reason for this is a significant increase in processing volumes against the backdrop of much weaker domestic sales growth than last year. Among the main commodity items, Ukraine exports the least amount of butter and cheese products. Exports of spreads, casein, and whey powder increased significantly compared to May last year.

At the same time, imports of dairy products (butter, rennet cheese, processed cheese) declined in May. Contrary to expectations, imports of cheese stopped growing. This is due to the upward trend in prices for milk and dairy products in Europe and, in particular, in Poland, the main supplier of this product to Ukraine, analysts explained.

“In June, exports of dairy products will increase further, while imports are likely to decline,” Infagro predicts.

As reported, in January-March 2024, Ukraine increased exports of dairy products by more than 40%. At the same time, imports decreased, but analysts urge domestic producers to pursue a reasonable pricing policy in order not to lose their positions in the domestic market.

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Ukraine exported 49.5 mln tons of grains and pulses

As of June 21, 2023-2024 marketing year (July-June), Ukraine exported 49.54 million tons of grains and pulses, up 2.3% year-on-year, according to the website of the Ministry of Agrarian Policy and Food.

According to the report, in June, exports of grains and pulses amounted to 2.608 million tons, while a year earlier this figure was recorded at 3.087 million tons.

In terms of crops, since the beginning of the current season, Ukraine has exported 18.123 mln tonnes of wheat (686 thsd tonnes in June), 2.461 mln tonnes of barley (75 thsd tonnes), 1.6 thsd tonnes of rye (0), and 28.416 mln tonnes of corn (1.366 mln tonnes).

Total exports of Ukrainian flour as of June 21 are estimated at 96.7 thousand tons, which is 35.9% less than a year earlier. In June, Ukraine supplied 4.2 thsd tonnes to foreign markets. At the same time, in 2023-2024 MY Ukraine exported 91.3 thsd tonnes of wheat flour, and in June – 4.1 thsd tonnes.

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12 small and medium-sized enterprises will be able to receive funding of up to EUR 40 thousand for export development

The Ministry of Economy of Ukraine, together with the European Union and the German government, has launched a new grant program worth EUR 480 thousand, under which 12 small and medium-sized enterprises will be able to receive funding of up to EUR 40 thousand to develop their exports, the press service of the Ministry of Economy reports.

According to the report, the program is open to small and medium-sized Ukrainian businesses operating in the processing industry (food, light industry, mechanical engineering, construction, furniture manufacturing, etc.), the creative industry (fashion, design, etc.), and other industries with export and innovation potential.

The project is expected to provide 12 selected participants with a grant of up to EUR 40 thousand each, as well as group and individual consultations from experts, networking sessions, and other activities that will help identify and eliminate processes that “block” businesses on the way to export and innovation development.

Applications for participation in the grant program can be submitted until 23:59 on June 25, 2024 on the project website.

“Since the start of the full-scale Russian invasion, the EU4Business program has provided almost EUR 8 million to support SMEs in Ukraine (…). With this grant program, we want to help Ukrainian businesses overcome the consequences of the war, provide access to finance, help them find new markets, and improve the business environment in Ukraine,” said Henrik Witfeldt, Head of Public Finance, Business Support and Social Policy at the EU Delegation to Ukraine.

As reported, the EUR 480,000 grant program for small and medium-sized businesses is part of the EU4Business international cooperation program: SME recovery, competitiveness and internationalization. It is jointly funded by the European Union and the German government and implemented by the German federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The program’s implementing partner in Ukraine is the Global Compact Network in Ukraine.

Export Credit Agency supported UAH 1.23 bln of exports in May

In May 2024, the Export Credit Agency (ECA) supported UAH 1.23 billion of exports, while since the beginning of the year this amount amounted to UAH 2.93 billion, according to the ECA website.

It is specified that one hryvnia of ECA’s insurance liability has generated UAH 11.15 of future export revenue as of today.

Among ECA’s partner banks, MTB Bank provided the largest financing to Ukrainian exporters in May (UAH 79.2 million), and it also supported the largest exports – by UAH 911.2 million. It is followed by Ukrgasbank (UAH 182 million of supported exports and UAH 28.2 million of loans issued) and Oschadbank (UAH 80.8 million and UAH 17.1 million, respectively) in the top three in May.

Since the beginning of the year, the leader among banks is Urgasbank, which has provided export loans worth UAH 120.5 million, thus securing UAH 1.75 billion in future revenue.

Among the regions, Kyiv (UAH 911.2 million), Ivano-Frankivsk (UAH 158.4 million), and Lviv (UAH 165.2 million) regions were the most active users of ECA insurance to develop export potential in May, while partner countries included Poland (UAH 660.7 million), Denmark (UAH 197.6 million), and the Netherlands (UAH 158.4 million). The most popular export products include milk and dairy products, processed vegetables, alcoholic and non-alcoholic beverages.

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Ukraine reduced exports of titanium ores by 43%

In January-May this year, Ukraine reduced exports of titanium ores and concentrate in physical terms by 43.1% year-on-year to 3,207 thousand tons.

According to statistics released by the State Customs Service (SCS) on Thursday, exports of titanium ores and concentrate decreased by 43.5% to $5.303 million in monetary terms.

The main exports were to Turkey (68.87% of supplies in monetary terms), the Philippines (6.32%) and Poland (5.83%).

At the same time, experts point to inconsistencies in the statistics on titanium ore exports. In particular, at the request of Interfax-Ukraine, Velta Production and Commercial Firm (PCF) LLC with titanium ore mining assets in Novomyrhorod (Kirovohrad region) reported that in January-February 2024 alone, the company exported more than 15 thousand tons of ilmenite (titanium concentrate) to the Czech Republic and Mexico. At the same time, experts believe that the GTS provides data only on the supply of rutile (also a titanium-containing ore).

In five months of 2024, Ukraine imported 56 tons of titanium ore from China worth $86 thousand.

As reported, in 2023, Ukraine reduced exports of titanium ore in physical terms by 96.4% compared to 2022 – to 11,648 thousand tons, while revenue decreased by 85.1% to $19.426 million. At the same time, the main exports were made to Turkey (38.21% of supplies in monetary terms), Japan (16.53%) and India (6.12%).

During this period, Ukraine imported 1 ton of such ore from the Netherlands for $2 thousand.

In 2022, Ukraine decreased exports of titanium ore by 41.8% year-on-year to 322.143 thousand tons, and by 19.6% in monetary terms to $130.144 million. The main exports were made to the Czech Republic (47.91% of supplies in monetary terms), the United States (11.94%) and Romania (9.75%).

In 2022, Ukraine imported 196 tons of similar products from Senegal (70.41%) and Turkey (29.59%) for $115 thousand.

In Ukraine, titanium ores are currently mined mainly by the United Mining and Chemical Company (UMCC), which manages Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipro region) and Irshansk Mining and Metallurgical Plant (Irshansk, Dnipro region). ) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), as well as Mezhirichinsky GOK and Valky Ilmenite (both based in Irshansk, Zhytomyr region). In addition, Velta (Dnipro) has built a mining and processing plant at Birzulivske deposit with a capacity of 240 thousand tons of ilmenite concentrate per year.

In addition, Velta, a Dnipro-based industrial and commercial company, has built a mining and processing plant at the Birzulivske deposit with an annual capacity of 240 thousand tons of ilmenite concentrate.

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Ukraine increased exports of iron ore by 2.3 times

In January-May this year, Ukrainian mining companies increased exports of iron ore in physical terms by 2.27 times compared to the same period last year, to 15 million 542.428 thousand tons.

According to the statistics released by the State Customs Service on Thursday, foreign exchange earnings from iron ore exports increased by 81.7% to $1 billion 367.161 million during the period under review.

Exports of iron ore were carried out mainly to China (40.53% of supplies in monetary terms), Slovakia (15.65%) and Poland (14.91%).

In January-May 2024, Ukraine imported iron ore worth $121 thousand in the total volume of 303 tons, while in January-May 2023 it imported iron ore worth $42 thousand in the total volume of 68 tons. This year’s imports were carried out from the Netherlands (39.67%), Norway (23.14%) and Italy (20.66%).

As reported, in 2023, Ukraine decreased exports of iron ore in physical terms by 26% compared to 2022 – to 17 million 753.165 thousand tons, foreign exchange earnings from iron ore exports amounted to $1 billion 766.906 million (down 39.3%). Iron ore was exported mainly to Slovakia (28.39% of supplies in monetary terms), the Czech Republic (19.74%) and Poland (19.56%).

Last year, Ukraine imported iron ore worth $135 thousand in the total amount of 250 tons. During this period, imports were made from Norway (34.81%), Italy (28.89%) and the Netherlands (28.89%). While in 2022, iron ore was imported for $65 thousand in a total volume of 101 tons.

In 2022, Ukraine decreased exports of iron ore in physical terms by 45.9% compared to 2021 – to 23 million 984.623 thousand tons, while foreign exchange earnings decreased by 57.8% to $2 billion 912.974 million. Iron ore was exported mainly to Slovakia (19.23% of supplies in monetary terms), the Czech Republic (17.32%) and Poland (16.49%).

In 2022, Ukraine imported iron ore worth $65 thousand in a total volume of 101 tons, while in 2021 – $184 thousand in a volume of 1,202 thousand tons. Imports were carried out from Norway (36.92%), the Netherlands (27.69%) and the UK (16.92%).

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