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UKRAINE CANCELED LICENSING OF EXPORTS OF WHEAT AND FERTILIZERS

Wheat and its mixture with rye (meslin) are excluded from the list of goods whose export is subject to licensing, the Cabinet of Ministers made the corresponding decision at a meeting on Friday, Taras Melnychuk, a government representative in parliament, said.

“The commodity items “Oats” and “Mineral or chemical, nitrogen fertilizers” have been excluded from the volume of quotas of goods whose export is subject to licensing. These items are included in the List of goods whose export is subject to licensing,” he added in his telegram message.

As reported, on March 7, the Government of Ukraine expanded the list of goods the Ministry of Economy will issue export permits for: wheat, corn, poultry meat, chicken eggs and sunflower oil were included in the list of licensed exports.

Already in March, corn and sunflower oil were excluded from this list, but wheat remained, despite the requests of market participants.

As for oats, on March 5, a ban was introduced on its export in the form of a zero quota.

Nitrogen fertilizers were also banned for export at first, but at the end of March the government allowed their export within the quarterly quota of 210,000 tons, or 70,000 tons per month.

In June this year, Ukraine managed to increase grain exports by 23% by May – up to 1.4 million tons. In terms of crops, corn accounted for 86%, wheat – 10%, barley – 3%.

EXPORT, LICENSING, UKRAINE, WHEAT

FOREIGN TRADE TURNOVER BY THE MOST IMPORTANT POSITIONS IN JAN-APR 2022 (EXPORT)

Foreign trade turnover by the most important positions in Jan-Apr 2022 (export)

SSC of Ukraine

EXPORT, FOREIGN TRADE TURNOVER

DEBUT AUCTION FOR ELECTRICITY EXPORT TO EUROPE PROVES UKRAINE’S ABILITY TO EARN BILLIONS OF HRYVNIAS – UKRENERGO

The average price of access to the interstate cross-section for the export of 100 MW of electricity to Romania as of June 30 at UAH 4,200/MWh became a record, and the auction itself for its redemption, held for the first time after the opening of exports by Europe, proves the ability of Ukraine to earn billions of hryvnias on this, Board Chairman of NPC Ukrenergo Volodymyr Kudrytsky said.
“This is the first auction for access to the interstate cross-section after the synchronization of the Ukrainian and European energy systems, and record UAH 4,200 per MWh of access. In just one day, the state-owned company Ukrenergo earned UAH 10 million,” Kudrytsky wrote on his Facebook on the night of Tuesday to Wednesday.
He suggested that if the export capacity was increased to 1,000 MW and auctions were held to buy access to interstate cross-sections at the same level, the state could earn up to UAH 100 million per day, or UAH 36 billion per year. Accordingly, 2,000 MW can bring the state about UAH 72 billion a year, the head of Ukrenergo said.
“This is the price of European rules and the transparency and competitiveness of the auction procedure, as opposed to the traditional desire to ‘steer,’ which can multiply UAH 72 billion by zero. And that is why Ukrenergo will always actively profess and defend these principles – a deviation from them will cost the state very dearly,” he stressed.
As reported, on June 30, the commercial export of the first 100 MW of electricity to Europe will start after the synchronization of the Ukrainian and European energy systems, agreed by ENTSO-E on June 27. At first, the resource will be supplied to Romania, then the directions to Slovakia and Hungary will be opened, but in general, the capacity for export is still 100 MW. In a month, Ukrenergo expects an increase in exports.

AUCTION, ELECTRICITY, EUROPE, EXPORT

CANCELLATION OF LICENSING OF WHEAT EXPORT FROM UKRAINE TO INCREASE PURCHASE PRICES FOR NEW CROP – GRAINTRADE

Licensing of wheat exports from Ukraine, introduced on March 6 amid Russian aggression, has created additional pressure on domestic wheat purchase prices, and the abolition of this state regulation will revive exports and stabilize prices for this exchange commodity.

This is how experts of the electronic grain exchange GrainTrade commented on the statement made recently by First Deputy Minister of Agrarian Policy Taras Vysotsky about the abolition of licensing for wheat exports in July, according to the website of the grain trading platform on Monday.

“Amid blocked ports, the purchase prices for grain in Ukraine fell sharply, but the introduction of licenses for the export of wheat further increased pressure on prices, which dropped to UAH 5,500-6,500/tonne with delivery to the mill… In anticipation of the harvesting of the new crop, agricultural producers have to vacate warehouse space, therefore, they are activating wheat sales, which increase pressure on prices. Therefore, the cancellation of licenses will revive exports and stabilize wheat prices,” GrainTrade said in a statement.

According to it, licensing complicates the export of wheat bran for processing enterprises, which are forced to spend additional funds on their storage or disposal, which also pushes down the price of wheat in Ukraine.

As reported, last week, Deputy Minister Vysotsky, at a meeting with representatives of the European Business Association, said that Ukraine planned to cancel the licensing of wheat exports in July and recalled active cooperation with Baltic and Polish partners to create alternative routes for the export of Ukrainian agricultural products.

The Ministry of Agrarian Policy is also working to continue the abolition of quotas and duties for the entire period of Ukraine’s candidacy for the EU, as well as the harmonization of legislation with the European one.

EXPORT, GRAINTRADE, LICENSING, NEW CROP, WHEAT

MINISTRY OF AGRARIAN POLICY OF UKRAINE WORKING ON INDEFINITE ABOLITION OF QUOTAS, PLANS TO CANCEL LICENSES FOR WHEAT EXPORT

The Ministry of Agrarian Policy and Food of Ukraine is working to extend the abolition of duties and quotas for the import of agricultural products to the EU countries for the entire period of its candidacy for the EU, as well as to harmonize Ukrainian legislation with the European one.
The integration prospects in the context of Ukraine obtaining the status of a candidate for EU membership were announced by First Deputy Minister Taras Vysotsky at a meeting with the European Business Association (EBA) on June 22, according to the EBA website on Friday.
According to the organization, in addition to the abolition of quotas and duties from the EU in early July, it is planned to cancel licenses for the export of Ukrainian wheat to the EU countries.
Also, in order to open alternative logistics routes, the ministry is negotiating with countries on the use of the Baltic and Polish corridors for the export of agricultural products.
“To support the dairy industry, the Ministry of Agrarian Policy is negotiating with the European Commission to provide grants of up to EUR 50 million to small farmers, and the possibility of submitting them to other international support programs is being considered,” EBA quotes Vysotsky.
The association noted that in the near future it is planned to separate queues for customs clearance of goods with perishable products at two checkpoints on the border with Poland – in Krakovets and Yahodyn.
As reported, on June 4, Regulation of the European Parliament and of the Council No. 2022/870 on temporary trade liberalization measures, exempting Ukrainian exports from all duties and quotas for a year, came into force.

EXPORT, LICENSES, QUOTAS, WHEAT

UKRAINE IS INCREASING EXPORT OF SUNFLOWER OIL – EXPERTS

In May 2022, Ukraine exported the maximum volumes of sunflower oil since the beginning of the full-scale invasion of the Russian Federation – 186 thousand tons, which is 23% more than the previous month.

In May, there was also a gradual increase in the countries-importers of Ukrainian oil – products were shipped to more than 60 countries of the world, although the EU countries remained its main consumers, the website of the APK-Inform agency reported on Friday.

According to him, Poland became the largest importer of Ukrainian oil, which accounted for 20% (37.2 thousand tons) of supplies of this product from Ukraine.

“Shipping to more distant countries of the world (25% of Ukrainian exports in May) is significantly limited by logistics, an increase in delivery time and, accordingly, its cost. At the same time, Turkey should be singled out among the main importers after the EU countries, where almost 12 thousand tons of sunflower oil,” the agency said in a statement.

The growth in sunflower oil exports indicates the adaptation of market participants to current realities and the gradual establishment of product supply chains through land border crossings and Danube river ports, the agency stated.

In turn, according to the Ministry of Agrarian Policy and Food of Ukraine, the country exported 202.65 thousand tons of sunflower oil in May (+56% compared to April 2022), which is 8% higher than the data from APK-Inform.

EXPORT, SUNFLOWER OIL

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