Business news from Ukraine

Customs officers prevented export of ancient violin from Ukraine

Odessa customs officers prevented the export from Ukraine of an antique violin, signed with the name of the famous master Antonio Stradivari, but dated the year after his death – 1742.
“An ancient violin of the genius master tried to take out a citizen of Ukraine, which through the checkpoint “Orlovka” was going to Bulgaria in a car. Despite the presence of a musical instrument with signs of antiquity, he chose the “green corridor” to pass customs control,” the press service of the State Customs Service of Ukraine reported on Friday.
According to the press service, the man also confirmed the absence of goods and items subject to written declaration and taxation of customs payments during oral questioning.
“Based on a risk assessment and analysis, the car was transferred to the “red corridor.” The suspicions of the customs officers were justified: in the luggage compartment, among various packages and suitcases, at the very bottom in a cardboard box was found a case with a violin. On the bottom deck (back – IF-U) of the musical instrument – inscription “ANTONIUS STRADIUARIUS CREMONENSIS FACIBAT ANNO 1742”, – details of detention are given in the message.
The case also contained a bow and a set of strings. No documents authorizing their export from Ukraine were found with the citizen.
According to the violation of customs regulations, made by Odessa customs officers on the grounds of part 1 of Art. 483 of the Customs Code of Ukraine, a musical instrument with signs of antiquity, a bow and a set of strings seized.
Their value and cost will be determined by the appropriate expertise, and their further fate – the court.
Activities were carried out by Odessa customs officers in cooperation with border guards and representatives of the SSU in the Odessa region.
Antonio Stradivari (1644-1737) – unsurpassed master of making bowed instruments. There are about 650 survived Stradivari’s instruments including about 450 violins.

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Ukraine has exported 39 million tons of grain since beginning of marketing year

Ukraine since the beginning of 2022/2023 marketing year (MY, July-June) and till April 10 has exported 38.82 million tons of grain crops, including 22.86 million tons of corn (58.9% of total supplies), 13.34 million tons of wheat (34.4%) and 2.3 million tons of barley (5.9%).
As reported on the website of the Ministry of Agrarian Policy and Food on Monday, the rate of grain exports since the beginning of this MY is 14.3% lower than the same period of the previous MY, when 45.26 million tons were delivered abroad on that date.
According to the Ministry, Ukraine exported 22.86 million tons of corn (+9.5% compared to the same period last year), 13.33 million tons of wheat (-23%), 2.3 million tons of barley (2.4 times less), 17.7 thousand tons of rye (9.1 times less) and 120.1 thousand tons of flour (+56.9%) from the beginning of 2022/2023 MY to April 10 this year.
It is specified that Ukraine exported 848 thousand tons of cereals, including 476 tons of corn, 337 tons of wheat, 33 thousand tons of barley and 4.2 tons of flour in March.
As reported, Ukraine exported 48.51 million tons of cereals and leguminous crops in 2021/2022 MY, which is 8.4% higher than in the previous MY, despite the full-scale invasion of Russia and the difficulties with the export of agricultural products due to the blockade of Ukrainian seaports. 18.74 million tons of wheat (12.6% more than in 2020/2021MY), 23.54 million tons of corn (+1.9%), 5.75 million tons of barley (+35.9%), 70.9 thousand tons of flour (-44.1%) were supplied to foreign markets.
Ukraine in 2020/2021 MY exported 44.72 million tons of grain and leguminous crops: 16.64 million tons of wheat, 23.08 million tons of corn, 4.23 million tons of barley, 126.9 thousand tons of flour and 18.4 thousand tons of rye.
In 2019/2020 MY, Ukraine exported 56.72 million tons of grain and leguminous crops.
The total export of Ukrainian flour as of April 10 is estimated at 120.1 thousand tons (in April – 4.3 thousand tons), including wheat – 115.5 thousand tons (4.2 thousand tons).

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European Dairy Association supports extension of preferential treatment for Ukrainian exports to EU

The European Dairy Association (EDA) supports the extension of preferential treatment for Ukrainian dairy exports to the EU, according to the March issue of Dairy Flash.
“As EDA, we have made clear our support for the extension of the European Commission’s “zero quota, zero tariff” approach when it comes to Ukrainian dairy exports to the EU. It goes without saying that we expect compliance with the principle of reciprocity in the trade approach,” the EDA stressed.
The corresponding statement was made at the 6th Forum “Civil Society EU-Ukraine” that was held by the Trade Service of the European Commission with the participation of business organizations, environmental groups and non-governmental organizations of the EU and Ukraine.
EDA is a European platform of dairy processors, uniting cooperatives, private dairies, world dairy industry leaders, as well as small and medium-sized companies operating in the dairy sector. It has a major think tank. EDA committees and working groups work to ensure a sustainable dairy base in Europe, to unlock the potential of EU domestic markets, and to ensure growth in global dairy processing.

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Ukraine will refrain from exporting grain and sunflower to Poland until new season – Minister

Ukraine will temporarily refrain from exporting grain and sunflower to Poland until the new season in order to solve the problem of overstocking the Polish market and protests of Polish farmers, the Polish Ministry of Agriculture and Rural Development reported, citing Ukrainian Minister of Agricultural Policy and Food Nicholas Solski.
“We all understand who is to blame for this situation, but we must solve the problem. Therefore, Ukraine will refrain from exporting wheat, corn, rapeseed and sunflowers to Poland (until the new season),” the Polish agency quoted Solsky from a joint press conference on Friday with his Polish colleague Robert Telus at the border with Ukraine in Dorohusk.
“The Ukrainian side made a proposal to very much limit for some time, and at the moment even stop the flow of grain to Poland,” Telus said, in turn.
As reported, April 5, Ukrainian President Vladimir Zelensky at a meeting with Polish Prime Minister Mateusz Morawiecki in Warsaw said that the parties have found a way out of the problem of Ukrainian grain exports to Poland.
“We discussed the issues of our farmers – Polish and Ukrainian. We have found a way out. I believe that in the coming days, weeks we will finally solve all the issues, because there cannot be any difficulties between such close partners and real friends as Poland and Ukraine,” Zelenski said.
Earlier, the governments of Poland and Romania announced their intention to ask the European Commission to develop mechanisms that would help avoid price dumping to the detriment of local farmers.
Polish farmers threatened to disrupt the events during Zelenski’s visit to Warsaw, and Polish Minister of Agricultural Policy Henryk Kowalczyk resigned.
If the international community had been able to “push” Russia to increase ship inspections in the Bosporus, Ukraine would have been able to reduce the flow of grain traffic through European countries, Solsky said then, in turn.

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“Ukrmetallurgprom” considers it necessary to temporarily ban export of scrap ferrous metals

The association of enterprises “Ukrmetallurgprom” considers it necessary to temporarily ban the export of scrap ferrous metals to provide metallurgical enterprises with strategically important raw materials in the conditions of the ongoing war.
“If scrap metal will remain in the country – more than 500 thousand people will have a job, and the country will have millions of foreign exchange earnings from the export of steel. At the same time, the military also benefits – because metallurgists help the fighters a lot, buying for them equipment and cars, and even producing body armor. Nobody benefits from the export of scrap metal. So now the authorities should be proactive and temporarily ban exports until the situation stabilizes and stops threatening national economic security,” wrote Ukrmetallurgprom President Oleksandr Kalenkov in his column on the Interfax-Ukraine website.
According to him, since the beginning of the war Ukraine’s mining and metallurgical complex has been experiencing the worst crisis since independence. A large part of the enterprises have been seized or destroyed by the occupiers, while others are trying to work under constant shelling and partial loss of capacity. The blockade of sea ports has led to the fact that the geography of customers has almost halved, and with it the volume of supply of products.
Nevertheless, enterprises are trying to hold on and even increase production, because they realize the level of responsibility entrusted to them. More than half a million Ukrainians work in the metallurgical and allied industries, and MMC’s share in Ukraine’s GDP is over 10%.
“But the reality throws up new challenges every time. One of them was the shortage of scrap metal, without which it is impossible to increase the metallurgical production”, – said the head of the association.
He named the reasons for the deficit: the occupation of the eastern regions, where traditionally significant volumes of raw materials have been procured (the volume of this raw materials has decreased by almost 80%). At the same time the export of scrap metal has increased sharply: only in the first two months of 2023 about 25 thousand tons were exported, which is almost 60% more than in November-December 2022.
“Given the growth rate of the export indicator, at the end of the year we may see a figure of 250 or even 300-400 thousand tons of exports – and this is absolutely unacceptable for a market that can barely collect about 1 million tons of scrap metal per year. After all, the industry will require more than a million – even in conditions of incomplete resumption of production,” wrote the president of Ukrmetallurgprom.
“Now the situation with the shortage has worsened and began to lead to temporary, but so far, production stoppages. However, the issue must be resolved. And the volume of production instead of growing, will fall to a minimum. This, in turn, will provoke a spiral of new problems not only for the industry, but also for the economy – because, let me remind you, even in the toughest year of 2021 the MMC enterprises paid to the budgets over 42 billion gon. And this is exactly the funds, for which Ukraine can build up its military potential and win on the battlefield”, stated Kalenkov.
He added that Ukraine, losing money because of the drop in production, does not earn anything from scrap metal export – the raw material is exported via the European Union, where a favorable export duty of EUR3 is applied, and from there it is redirected to the actual customers. To export raw material directly to customers would cost EUR 180 export duties and the Ukrainian budget lost already EUR 350 mln on it. Not surprisingly, the State Bureau of Reconstruction and Development has already taken an interest in the export schemes and has already launched an investigation.
As Mr. Kalenkov explained, 1 ton of scrap metal processed by the president of Ukrmetallurgprom into steel gives 10 times more to the budget than the export duty payable to the EU – about $300 per ton. Therefore, the question whether to export raw materials or leave them in the country for processing, should not be – the benefits are obvious, he summarizes.
As reported in the middle of 2021, Ukrmetallurgprom asked to ban the export of scrap until the end of 2023. With a corresponding request Ukrmetallurgprom appealed to the Prime Minister of Ukraine Denis Shmygal in a letter dated July 8, 2021.
According to the Ukrainian Association of Secondary Metals (UAVtormet), the export of scrap metal in January-February 2023 amounted to 24.8 thousand tons compared to 7.1 thousand tons in January-February 2022 (an increase of 3.5 times).

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The Experts Club and the Exporters Club analyzed the main export risks in 2023

A new video has been released on the YouTube channel of the Club of Experts, in which the Kyiv-based think tank Club of Experts and the Ukrainian Exporters Club presented a joint study on the main risks facing Ukrainian companies in exporting goods in 2023.

Yevheniia Lytvynova, President of the Ukrainian Exporters Club, emphasized that exporters should consider five key risks for their business: currency risk, payment risk, production risk, transportation risk, and bureaucratic risk.

“Understanding these risks is critical for successful exports, especially in the current geopolitical situation, exporters should consider these risks and plan at least 3 months in advance when cooperating with foreign companies,” Lytvynova said.

The experts also reviewed the state of Ukrainian exports in recent years.

“Over the past year, the situation in Ukrainian exports has undergone significant changes. Poland, Romania, and Turkey have become Ukraine’s main trading partners,” explained Maksym Urakin, founder of the Club of Experts.

He added that in 2022, Ukraine exported goods worth $44 billion, which is 35% less than in the previous year. The main profit in the global market came from the export of grains and vegetable oils, although exports of metallurgical products declined.

The Club of Experts and the Club of Exporters also emphasized the importance of supporting Ukrainian exporters in the current global market environment.

“We recommend Ukrainian exporters to contact our clubs with questions about certification, access to foreign markets and opening production facilities abroad. We are always ready to help and advise,” emphasized Yevgeniya Litvinova.

She urged Ukrainian companies to be active in the global market.

“We want Ukrainian companies to maintain competitive prices for their goods while working with foreign partners. Do not hesitate to contact us with any questions related to exports,” added Ms. Litvinova.

Yevheniya Lytvynova urged Ukrainian companies not to lose hope and to actively develop their capabilities.

“Ukrainian exports have great potential, and we believe that cooperation with the Club of Experts and the Club of Exporters will help companies realize it,” she said.

In conclusion, the speakers noted that they plan to devote the next session to imports and import-related risks. They called on all stakeholders to join the discussion and explore new opportunities for the development of export-import business in Ukraine.

The experts also emphasized that in order to enter new export markets and verify counterparties around the world, we suggest that Ukrainian exporters consider products and solutions from Dun & Bradstreet, the world leader in the market of information on legal entities.

Watch the full video here:

You can subscribe to the Club of Experts channel by clicking here:

https://www.youtube.com/@ExpertsClub

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