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.
Railcar-building company Dneprovagonmash JSC (DVM) plans to sell up to 100 railcars for export to Europe, businessman Sergiy Tigipko has said.
“Today we produce 80 railcars a month for the domestic market, but we have already started to produce for export… The European market is 8-9 thousand railcars a year, and we have set a goal of selling 100 railcars a month there. In terms of money, the average car is about EUR 100 thousand,” he said during the “Money for Victory” forum organized by Forbes Ukraine.
According to him, the Austrian steelmaker Voestalpine provides lighter and stronger metal for railcar construction, which is a competitive advantage in the European market.
For its part, the group is investing in the modernization of the enterprise (metal work, welding, painting) and staff training.
As reported, at the beginning of 2023, TAS Group became a strategic investor in the TransAnt GmbH railcar building joint venture of Austrian Voestalpine and ÖBB Rail Cargo with a 40% stake, and in the spring of 2024 it became the majority owner of TransAnt, increasing its stake to 61%.
In October 2023, as part of an innovative project with Austrian partners, Dniprovagonmash, a member of the TAS group, shipped the first lightweight modular freight cars (MultiBOX) for operation on the EU railways, and by the end of the year it had a full line of platform freight cars for the EU market.
According to TAS Dneprovagonmash’s financial report for 2023, this year it plans to invest UAH 100.2 million in the development of the European direction, including the purchase of equipment.
In 2023, the company produced 378 freight cars (including for the EU market), which is 34.8% less than in 2022, while sales decreased by 40.6% to 370 units.
Net income from sales of railcars and other products decreased by 2.8% to UAH 1 billion 77 million, while net profit increased slightly to UAH 49.2 million.
TAS Group was founded in 1998 by businessman Tigipko. Its business interests include the financial sector (banking and insurance) and the pharmacy sector, as well as industry, real estate, and venture capital projects.
Since August 2023, the sea corridor created by the Ukrainian Navy has exported 50 million tons of cargo, according to Yuriy Vaskov, former Deputy Minister of Community Development, Territories and Infrastructure (Ministry of Reconstruction).
“According to my information, exports via the grain corridor have already reached 50 million tons,” Vaskov said at the Grain Ukraine-2024 conference on Thursday.
The Ministry of Economic Development and Trade reported that from August to May 10, 45 million tons of cargo were exported to 44 countries through the grain corridor.
Last Tuesday, the head of the Ukrainian Sea Ports Authority (USPA), Yuriy Lytvyn, said that the results of the Ukrainian “grain corridor” were almost one and a half times higher than those of the Black Sea Grain Initiative. According to him, the rate of grain cargo transportation over eight months is already 10% higher than the results of the grain initiative for the year.
As of May 24, Ukraine exported 45.402 mln tonnes of grains and pulses since the beginning of 2023/24 marketing year (MY, September 2023 – August 2024), of which 3.997 mln tonnes were shipped in May, the press service of the Ministry of Agrarian Policy of Ukraine reported, citing the State Customs Service.
According to the report, as of the same date last year, the total shipments amounted to 44.593 mln tons, including 2.707 mln tons in May.
In terms of crops, since the beginning of the current season, 16.949 million tons of wheat have been exported (in May, the figure was 1.163 million tons), 2.363 million tons of barley (161 thousand tons), 1.4 thousand tons of rye (0.2 thousand tons), 25.563 million tons of corn (2.662 million tons).
Total exports of Ukrainian flour as of May 24 are significantly lower than last year’s figure (138.9 thousand tons) and are estimated at 90.9 thousand tons (4.3 thousand tons in May), including 85.9 thousand tons of wheat (3.9 thousand tons).
“Solidarity corridors” have allowed Ukraine to export more than 136 million tons of products such as grain, ore and steel since 2022 and import more than 52 million tons of goods, including fuel, vehicles, fertilizers, as well as military and humanitarian aid, pap.pl reports, citing the European Commission.
“In 2022, the EC, in cooperation with Ukraine and Moldova, created the so-called solidarity corridors to improve the operation of EU-Ukraine-Moldova transport routes after Russia’s invasion of Ukraine. These are alternative logistics routes that allow for the transportation of goods by rail, road, and inland waterway. The corridors, created to circumvent Russia’s blockade of Ukrainian grain exports through the Black Sea, now cover trade in all sectors,” the European Commission reminded.
“Solidarity Corridors” allow Ukraine and Moldova to export all types of goods to world markets and ensure the delivery of necessary products to Ukraine, the EC explained. These routes pass through the Danube region, Poland, the Baltic States and the Adriatic region. They complement the Black Sea route created by Ukraine in the fall of 2023.
The European Commission is convinced that the Danube Corridor and the Polish-Baltic Corridor are crucial for all imports, while the Adriatic Sea is of particular importance for Ukraine’s non-agricultural exports.
The European Union and international financial institutions have so far allocated more than EUR 2 billion to these routes. Large-scale projects include EU funding to improve navigation on the Danube and the Sulyn Canal to the Black Sea. River pilots have been trained with EU funds. In addition, information exchange with Ukrainian ports has been improved. This cooperation has helped to increase the safety and capacity of Danube navigation.
“Two years ago, the Solidarity Corridors changed logistics routes in Eastern Europe to support the functioning of the economies of Ukraine and Moldova and prevent a global food crisis. To date, they have brought about EUR 50 billion in revenue to businesses and at the same time strengthened Ukraine’s economic ties with the EU,” said European Commissioner Adina Valian.
In January-April this year, Ukraine increased exports of carbon steel semi-finished products in physical terms by 96.9% year-on-year to 583,229 thousand tons.
According to statistics released by the State Customs Service (SCS) on Friday, exports of carbon steel semi-finished products increased by 82.2% to $288.324 million in monetary terms.
The main exports were made to Bulgaria (37.50% of supplies in monetary terms), Poland (15.84%) and Italy (7.74%).
In January-April 2024, Ukraine imported 5 tons of semi-finished products from Egypt for $5 thousand, while in January-April 2023, it imported 72 tons of semi-finished products from China for $133 thousand.
As reported, in 2023, Ukraine decreased exports of carbon steel semi-finished products in physical terms by 36.7% compared to 2022, to 1 million 203.454 thousand tons, while exports in monetary terms decreased by 48.9% to $608.516 million. The main exports were made to Bulgaria (36.66% of supplies in monetary terms), Poland (23.01%), and Italy (9.60%).
In addition, in 2023, Ukraine imported 96 tons of semi-finished products from China (98.26%) and Turkey (1.74%) for $172 thousand.
In 2022, Ukraine decreased exports of carbon steel semi-finished products by 72% year-on-year to 1 million 899.729 thousand tons in physical terms and by 70.9% in monetary terms to $1 billion 191.279 million. The main exports were made to Bulgaria (26.55% of supplies in monetary terms), Poland (13.97%) and Italy (12.13%).
In 2022, Ukraine imported 5,558 thousand tons of similar products, which is 85.7% less than in 2021. In monetary terms, imports decreased by 86% to $3.634 million. Imports were made from the Russian Federation (96.92% of supplies before the war), China (1.84%), and Romania (1.21%).
