Business news from Ukraine

Ukrainian enterprises reduced export of ferrous scrap by 12.9 times

Ukrainian enterprises in January-September of this year reduced the export of ferrous scrap by 12.9 times compared to the same period last year – up to 35.275 thousand tons.
According to statistics released by the State Customs Service (SCS), in monetary terms, the export of scrap metal over this period decreased by 13.9 times – to $12.640 million.
At the same time, over nine months, the country reduced the import of scrap metal in physical terms by 11.1 times – up to 1,554 thousand tons. In monetary terms, the import of scrap decreased 9.7 times to $3.279 million.
The import of scrap metal in January-September was carried out mainly from Turkey (78.87% of deliveries in monetary terms), the Russian Federation (14.09%) and Cyprus (5.4%); export – to Turkey (59.42%), Poland (15.34%) and Germany (9.41%).
In addition, in January-September 2022, Ukrainian steel enterprises did not import products of direct reduction of iron from ore under code 7203 – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal, but exported 258 tons of these products to India (100%) in the amount of $48 thousand
As reported, Ukraine in 2021 increased the export of scrap metal by 17.2 times compared to the previous year – up to 615.687 thousand tons. In monetary terms, the export of scrap metal increased 25.2 times – up to $238.895 million.
In 2021, the country reduced the import of scrap metal in physical terms by 13.1% to 22.964 thousand tons. In monetary terms, the import of scrap increased by 72.4% to $44.883 million.
The import of scrap metal in 2021 was carried out mainly from Turkey (60.42% of deliveries in monetary terms), the Russian Federation (33.44%) and Belarus (1.57%); export – to Turkey (84.85%), Romania (6.66%) and Poland (3.45%).
In addition, Ukrainian steel enterprises in 2021 imported from the Russian Federation 1,603 thousand tons of products of direct reduction of iron from ore under code 7203 – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal, in the amount of $653 thousand, while in 2020 – 2,648 thousand tons for $805 thousand. At the same time, the export of these products to India amounted to 288 tons for $91 thousand.

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Mining enterprises of Ukraine reduced export of iron ore by 35.3%

Mining enterprises of Ukraine in January-September of the current year reduced the export of iron ore raw materials (IORM) in physical terms by 35.3% compared to the same period last year – up to 21 million 366.874 thousand tons.
According to statistics published by the State Customs Service (STS), for the specified period, foreign exchange earnings from the export of iron ore decreased by 55.2% – to $ 2 billion 666.161 million.
Iron ore was exported mainly to Slovakia (19.45% of supplies in monetary terms), Poland (16.99%) and the Czech Republic (16.03%).
During the specified period, iron ore was imported to Ukraine for $27 thousand in a total volume of 49 tons, while in January-September 2021 – for $158 thousand in a total volume of 1.175 thousand tons. Import was carried out from Norway (44.44%), Great Britain (40.74%) and Italy (11.11%).
As reported, Ukraine in 2021 reduced the export of iron ore raw materials (IORM) in physical terms by 4.2% compared to 2020 – up to 44 million 357.727 thousand tons, but increased revenue by 62.8% – up to $6 billion 899.816 million The export of iron ore was carried out mainly to China (41.90% of supplies in monetary terms), the Czech Republic (9.65%) and Poland (7.99%).
Last year, IORM was imported to Ukraine for $184 thousand in a total volume of 1.202 thousand tons, while in 2020 123 tons of iron ore for $75 thousand were imported. Imports for 2021 were carried out from Egypt (55.98%), the Netherlands ( 21.2%) and Poland (7.07%).

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Ukraine almost completely stopped export of coke

Ukraine in January-September of this year reduced the export of coke and semi-coke in kind by 98% compared to the same period last year – up to 3.697 thousand tons.
According to statistics published by the State Customs Service (STS), in monetary terms, the export of coke and semi-coke over this period fell by 97.5% to $987,000.
At the same time, the main exports were to Hungary (43.62% in monetary terms), Georgia (38.56%) and Turkey (17.81%).
Ukraine in January-September 2022 imported 331.941 thousand tons of coke and semi-coke, which is 30.8% less compared to January-September 2021. In monetary terms, imports decreased by 11.2% – to $164.592 million. Imports were carried out mainly from the Russian Federation (46.04% of deliveries in monetary terms), Poland (29.94%) and the Czech Republic (13.87%).
As reported, Ukraine in 2021 increased the export of coke and semi-coke in physical terms by 3.3 times compared to 2020 – up to 194.535 thousand tons. In monetary terms, the export of coke and semi-coke over this period increased by 4.8 times – up to $41.838 million. The main exports were to Kazakhstan (29.03% of deliveries in monetary terms), Turkey (20.06%) and Algeria %).
Ukraine imported 789,903 thousand tons of coke and semi-coke last year, which is 2.1 times more compared to 2020. In monetary terms, imports increased 4.3 times – up to $351.238 million. Imports were carried out mainly from the Russian Federation (65.48% of deliveries in monetary terms), the Czech Republic (20%) and Poland (8.45%).
As a result of hostilities in eastern Ukraine, a number of mines and coking plants ended up in territories temporarily not controlled by Ukraine.

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Ukraine doubled revenue from export of oil crops, reduced by 11% for oils and fats

In January-August 2022, Ukraine doubled its revenue from the export of oilseeds compared to the same period last year – up to $1.71 billion, but reduced the supply of vegetable fats and oilseed processing products – by 11%, to $3.65 billion

As reported on the website of the National Research Center “Institute of Agrarian Economics” on Friday, during the specified period, 1.6 million tons of sunflower seeds were exported for $823 million, 0.9 million tons of rapeseed for $415 million and 0.8 million tons of soybeans for $413 million. .

It is specified that the largest buyers of oilseeds for the eight months of 2022 were Romania (19.3% of the total), Bulgaria (18.0%), Turkey (16.9%), Poland (12.2%), Hungary (7. 9%), Germany (5.9%), Moldova (3.7%) and the Netherlands (3.1%). The total share of these eight countries in domestic exports of oilseeds was 87%.

In turn, in January-August 2022, Ukraine exported vegetable oils and fats of all kinds for $3.65 billion, which is 11% less than last year’s figures for the corresponding period.

According to the IAE, the main export product of this group is sunflower oil, whose export earnings for eight months of this year amounted to $3.36 billion, or 92% of all supplies of oil and fats.

The largest buyers of Ukrainian vegetable oils and fats of all kinds in January-August 2022 were Poland with a share of 14.5%, followed by India (11.7%), Turkey (9.8%), the Netherlands (8.1% ), Italy (5.4%), Bulgaria (4.9%), Spain (4.7%), Romania (4.5%). Together, these countries account for about 64% of the export value of vegetable oils and fats.

“The final figures for the export of oilseeds and vegetable oils in 2022 will largely depend on the ability of Ukrainian exporters to make the most of the established routes for exporting products, including through seaports using the “grain corridor,” the IAE summed up in the message.

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Woodworkers of Ukraine are asked not to introduce licensing for export of firewood

The Association of Woodworking Enterprises of Ukraine public union asks the government not to impose licensing and quotas on the export of fuel wood from Ukraine, as this may upset the balance in the industry and lead to attempts to manually control the work of enterprises.

The negative impact on wood processing of the possible introduction of licensing or export quotas was reported on the association’s website on Friday.

It is clarified that the organization asks the Cabinet of Ministers not to adopt the relevant changes to Decree No. 1424 of December 29, 2021 regarding exported fuel wood in the form of logs, logs, brushwood, branches, knots, wood chips or cod, sawdust, cod, shavings, debris and wood waste and scrap, agglomerated or non-agglomerated, fuel briquettes and pellets.

“While the Ukrainian economy needs to be supported like never before, the Cabinet of Ministers may adopt changes to the legislation that will actually lead to an increase in the number of corruption schemes, pressure on woodworking enterprises and a decrease in the investment attractiveness of Ukraine,” the association emphasizes.

In addition, it is noted that the adoption of this document may lead to the fact that, under the guise of providing the domestic market with fuel lumber, the process of manual control over enterprises engaged in the corresponding production will begin to be set up.

Reportedly, the activities of the industry are already controlled by authorities, including when commissioning the necessary equipment, hiring workers, obtaining environmental permits, etc. The introduction of wood processing licensing will allow these departments to openly demand funds from exporting enterprises.

“We ask the Cabinet of Ministers of Ukraine not to accept this document, to hold additional discussions on this issue with representatives of business and the public in order to make effective decisions for the industry and the country’s economy as a whole,” the association quotes its head Pavel Vasiliev.

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Ukrainian energy trader “ECU”, if necessary, is ready to stop export of electricity

JSC “Energy Company of Ukraine” is ready for any developments in the electricity market, in particular, to stop exports, said Vitaliy Butenko, General Director of the company.
“The situation in the energy sector of Ukraine today remains quite difficult in the context of the war. The company is ready for any scenario, including the cessation of exports,” Butenko said in a comment to the Energoreforma Internet portal on her request.
At the same time, he noted that the strategy of ECU JSC is primarily aimed at working in the domestic market.
“At the same time, we took advantage of the opportunity to export electricity, which made it possible for the state to earn additional profit. For 1.5 months, the income of three state-owned companies from the export activities of ECU amounted to almost UAH 2 billion, and the state’s share in electricity exports to Romania and Slovakia in September reached about 44%,” Butenko emphasized.
Regarding the loan in the amount of UAH 500 million, provided to the company NAEK by Energoatom, Butenko noted that its repayment does not depend on the presence or absence of exports.
“In accordance with our obligations to SE NAEK Energoatom, the state energy trader will repay the loan by the end of this year,” the head of ECU stressed.
As reported, a source of Energy Reform in the government said that from October 10 to October 15, a decision could be made to stop electricity exports to Europe, currently carried out at a capacity of 300 MW. The reason for this is the shortage of power generating capacities, associated, in particular, with the shutdown of all six units of ZNPP, the repair of 1.5 units at other NPPs and the possible withdrawal of another unit for repair, which leads to excess coal consumption, as well as a large number of TPP units in repair.
JSC “Energy Company of Ukraine” (JSC “EKU”), 100% of whose shares belong to the state, on August 17 for the first time entered the export of electricity in the Romanian and Slovak directions, from October 1 it began to export electricity to Poland.
Receipts from ECU by the state-owned NPC Ukrenergo (as a fee for the cross-section and transmission of electricity), SE Guaranteed Buyer (as part of the PSO for the population) and NNEGC Energoatom (payment for electricity) from August 19 to 13 September amounted to almost UAH 1.542 billion.
Earlier, Butenko said that state investments in ECU start-up capital, provided to him in August by NNEGC Energoatom in the form of repayable financial assistance in the amount of UAH 500 million, would be returned by the end of 2022.
According to ECU estimates, these investments can bring UAH 8.2 billion in income to state-owned companies by the end of the year.
JSC “ECU” is a diversified energy supply company that carries out operations for the purchase, sale, supply and market optimization of energy consumption for commercial customers. While the company supplies for export, however, it plans to work also in the domestic market. 100% of the company’s shares belong to the state, the powers to manage them are exercised by the Ministry of Economy.

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