Business news from Ukraine

Grain export coordination center continues intensive work – Turkish Defense Minister

The Joint Coordination Center in Istanbul for maritime exports of agricultural products from Ukraine continues to work intensively, as it is necessary to send the first ships with Ukrainian grain to customers as soon as possible.
This was announced by Turkish Defense Minister Hulusi Akar during a meeting with Minister of Infrastructure of Ukraine Oleksandr Kubrakov, according to the website of the Turkish Ministry of Defense.
During the meeting, Akar said Turkey is fulfilling and will continue to fulfill its part of the obligations as part of the shipment of goods from the seaports of Ukraine.
According to the Turkish department, its head expressed satisfaction with the news about the possible start of grain exports from Ukraine this week.

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State Customs Service issued 80 certificates for export of scrap metal to EU

In January-June of this year, the State Customs Service of Ukraine issued 80 certificates for the export of scrap metal to EU countries to enterprises dealing with ferrous scrap, according to the Ministry of Finance’s response to the letter of the Ukrainian Association of Secondary Metals (“UAVtormet”), dated July 23, 2022.
At the same time, the Ministry of Finance stated that the State Customs Service did not receive requests from subjects of foreign economic activity regarding problems in obtaining certificates.
In turn, “UAVtormet” sent a letter to the Ministry of Finance and the State Customs Service on June 20, 2022, a copy of which is in the possession of the “Interfax-Ukraine” agency, in which it pointed out the appeal of market participants regarding selectivity in the issuance of permits for export procedures, in particular, in the issuance of certificates for supply of scrap to the EU.
In the appeal of “UAVtormet” it was emphasized that the Ministry issued an order dated March 2, 2021 approving the procedure for issuing certificates. According to the Association, the procedure for obtaining a certificate is significantly complicated, it does not contain a complete list of necessary documents, and the procedure for a full or partial inspection of vehicles for product identification is used to delay the registration of export consignments.
UAVtormet believes that this creates corruption risks and causes financial losses to both the state and Ukrainian business.
The association asked the Ministry of Finance to hold an operational meeting on problematic issues in the export of scrap metal, with the involvement of experts from the ministry, the State Customs Service, the Chamber of Commerce and Industry, “UAVtormet” and “UAVtormetresurs”.
As reported, Ukrainian enterprises in January-June of this year reduced the export of ferrous metal scrap eightfold compared to the same period last year – to 28.74 thousand tons, in monetary terms, the export of scrap metal decreased by 6.8 times – to $12.24 million.
Scrap metal was exported in January-June 2022 mainly to Turkey (61.35%), Poland (12.49%) and Germany (9.45%).
In 2021, Ukraine increased the export of scrap metal by 17.2 times compared to the previous year – up to 615.69 thousand tons. In monetary terms, the export of scrap metal increased 25.2 times to $238.90 million.
Ukrainian Association of Secondary Metals (“UAVtormet”), Ukrainian Association of Scrap Metal Exporters (UAEM) and “Ukrainian Association of Secondary Metals and Resources” (“UAVtormetresurs”) operate in Ukraine.

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Grain export to be launched from Ukrainian ports within two weeks

The export of Ukrainian grain will be launched primarily from Chornomorsk commercial sea port (Odesa region).
“We believe that within the next 24 hours we will be ready to work on resuming the export of agricultural products from our ports. We are talking about the port of Chornomorsk, it will be the first. Then there will be the port of Odesa and the port of Pivdenny,” the Deputy Minister of Infrastructure Ukraine Yuriy Vaskov said during a briefing in Kyiv on Monday.
According to him, within two weeks the Infrastructure Ministry will be technically ready to export from all terminals of the three seaports of the country.
The first shipment of grain, according to Vaskov, is expected this week.

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Agreement on export of Ukrainian grain will bring relief to countries on verge of bankruptcy – UN Secretary General

UN Secretary-General Antonio Gutierres, before signing documents within the framework of the initiative for the safe transportation of grain and food from Ukrainian ports, said that “the main attention in the preparation process was paid to what is more important for the people of the whole world.”
“It will bring relief to developing countries that are on the brink of bankruptcy and the most vulnerable people on the brink of starvation. And help stabilize world food prices, which were already at record levels even before the war,” he said on Friday in Istanbul .
“In particular, the initiative that we have just signed opens up trials for significant volumes of commercial food exports from three key Ukrainian ports in the Black Sea – Odessa, Chornomorsk and Yuzhny,” he said. At the same time, he stressed that “the shipment of grain and food supplies to world markets will help close the global gap in food supplies and reduce pressure on prices.”
The UN Secretary General acknowledged that “this agreement was not easy.” “From the very beginning of the war, I have emphasized that there is no solution to the global food crisis without ensuring full global access to Ukrainian food and Russian food and fertilizers. Today we have taken important steps towards this goal, but it has been a long way,” he said. .
He said, “We look forward to the Turkish government maintaining its decisive role going forward, and I assure that the United Nations will continue to be actively involved in the success of the agreement. We are stepping up efforts to ensure that the UN can fulfill their obligations.”
He also announced the creation of a joint coordinating center to monitor the implementation of the Black Sea initiatives.
According to Gutierres, as part of the initiative, “a task force led by the secretary general of the apparatus, Rebecca Greenspan, has focused its efforts on facilitating the unhindered access of food and fertilizer produced in the Russian Federation to world markets.”
“This is an unprecedented agreement between two sides involved in a bloody conflict. But conflicts continue, and people die every day, and fighting rages every day. The beacon of hope in the Black Sea today shines brightly thanks to the collective efforts of many people,” he said.

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Ukraine reduces export of semi-finished products from carbon steel in quantity terms by 60%

Ukraine reduced the export of semi-finished products from carbon steel in quantity terms by 60.8% in January-June this year compared to the same period last year, to 1.427 million tonnes.
According to statistics released by the State Customs Service, in monetary terms, exports of carbon steel semi-finished products over this period decreased by 54.1%, to $900.84 million.
The products were mainly exported to Bulgaria (21.38% of supplies in monetary terms), Italy (15.59%) and Turkey (11.87%).
In addition, Ukraine imported 5,530 tonnes of such products in January-June, which is 47.2% less than in January-June 2021. In monetary terms, imports decreased by 45.2%, to $3.53 million. The products were mainly imported from the Russian Federation (99.72% of supplies) and China (0.25%).

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Ukraine, Turkey and the Russian Federation agreed on a 120-day grain export from the ports of Odessa, Chornomorsk and Pivdenny

Ukraine, Turkey and Russia, with the support of UN Secretary General António Guteres, agreed to facilitate safe shipping for the export of grain, related food products and fertilizers (including ammonia) from the seaports of Odessa, Chornomorsk and Pivdenny within 120 days from the possibility of extending this period.
The corresponding signing of documents within the framework of the initiative for the safe transportation of grain and food from Ukrainian ports took place in Istanbul on Friday: the Minister of Infrastructure of Ukraine Oleksandr Kubrakov, in the presence of Turkish President Recep Tayyip Erdogan, signed a tripartite document with Turkish Defense Minister Hulusi Akar and the UN Secretary General, who also signed a second such a tripartite document with Russian Defense Minister Sergei Shoigu.
As noted in the text of the initiative, a copy of which is available to the Interfax-Ukraine agency, it is based on agreements between the parties to the 1974 international convention on the safety of life at sea.
In particular, the parties agree on the following:
– maximum security guarantees for all vessels participating in this initiative;
– creation under the auspices of the UN in Istanbul of a joint coordination center (JCC), which includes representatives of all parties;
– Creation and work on the ships participating in the initiative of inspection teams from representatives of the parties, which will inspect the ships in the ports designated by Turkey, when entering / leaving the Turkish Strait to check the absence of unauthorized cargo and personnel on board.
At the same time, all activities in Ukrainian territorial waters will be under the control and responsibility of Ukraine.
The parties will not launch any attacks on merchant and civilian vessels, as well as on port facilities participating in this initiative.
If clearance of approaches to ports is required, a minesweeper from a third country must be involved
Merchant vessels must be pre-registered with the SKC and will be under technical control for the duration of their passage through the maritime humanitarian corridor agreed by all parties.
The RCC will develop and disseminate a detailed operational and communications plan, including the identification of safe havens and medical assistance options along the route.
In order to prevent provocations and incidents, the movement of vessels transiting the maritime humanitarian corridor will be remotely controlled by the Parties.
“No warships, aircraft, unmanned aerial vehicles (UAVs) can approach the maritime humanitarian corridor closer than the distance agreed by the RCC without the permission of the RCC and only after consultation with all Parties,” the text of the initiative emphasizes.
This initiative will be valid for 120 days from the date of signing by all Parties and may be automatically renewed for the same period, unless one of the Parties notifies the other of its intention to terminate the initiative or change it.
At the same time, the achievement of an agreement on the export of Ukrainian grain does not mean a weakening of the security regime in the Black Sea, representatives of Ukraine have repeatedly emphasized.

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