Business news from Ukraine

POPE APPEALS TO UNBLOCK GRAIN EXPORTS FROM UKRAINE – VATICANNEWS

Pope Francis has called for the unblocking of grain exports from Ukraine, stopped due to the blockade of its seaports by Russian warships, since the lives of millions of people depend on food supplies, and it cannot be used as a weapon.
He made the corresponding appeal at a general audience on June 1, according to the website of the VaticanNews agency.
“The blockade of grain exports from Ukraine, on which the lives of millions of people depend, especially in the poorest countries, is a cause for great concern. I warmly appeal to do everything possible to solve this problem and guarantee the universal right to food. Please do not use grain, a staple food product as a weapon in war!” he urged.
As reported, on the eve of the leaders of the European Union called on Russia to lift the blockade of Ukrainian ports in the Black Sea, allowing the export of food, as well as the EU countries to facilitate the transportation of Ukrainian agricultural exports.

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IT SECTOR BROUGHT UKRAINE $6.7 BLN IN EXPORT REVENUE IN 2021, $2 BLN IN FIRST QUARTER OF 2022

The Ukrainian IT industry in 2022 will be able to reach the indicators of 2021, provided that the current situation does not change dramatically for the worse, Andriy Yavorsky, Senior Vice President for Strategy and Technology at the Ukrainian IT company GlobalLogic, said.
According to him, in 2021, the IT sector, according to the reports of the Ministry of Economy, brought Ukraine about $6.7 billion in export earnings, and for the first quarter of 2022, according to the IT Association, about $2 billion, which would show a possible growth in IT -industry by 28-30%, if the aggravation of the military conflict had not begun.
“If there was no war, we would expect that each next quarter would be a little more than the previous one, and as a result, this year the IT industry would have to accumulate about $ 8.5 billion in export earnings (…) Due to the situation With the war, we can assume that the IT business has sunk by 5-10%,” Yavorsky said during an online meeting of the IT Media Club on Wednesday.
He noted that the IT business includes export-oriented and domestic industries, as well as telecom operators.
According to him, after the start of active hostilities on the territory of Ukraine, the export IT industry of the country sank by 5%, the domestic one even more, “but it did not account for a very large market share.
“Conventionally, the entire IT industry has fallen by 10 percent. Accordingly, it was $2 billion – now $1.7-1.8 billion. If everything remains stable, we do not expect further decline. But it is possible – the flow of new projects is rather weak. If If we look pessimistically, the industry will generate about $7 billion by the end of the year, but I still want to believe that we will make not $7 billion, but $7.5 billion,” the top manager summed up.
As reported, the Ukrainian IT company GlobalLogic notes a 2-fold reduction in the number of vacancies in the IT market of Ukraine since the beginning of the active phase of hostilities.
IT-company “GlobalLogic Ukraine” is the largest software developer in Ukraine. It has offices and more than 4.5 thousand specialists in Kyiv, Kharkov, Lvov and Nikolaev.

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POLAND DECIDED TO TEMPORARILY NOT CARRY OUT VETERINARY CONTROL OF UKRAINIAN GRAIN TO THIRD COUNTRIES TO SPEED UP EXPORTS

Poland has decided to temporarily not carry out veterinary control of feed of plant origin (including forage grain cargoes) in transit through its territory to third countries, which will allow Ukraine to export agricultural crops through the Rava Ruska-Werhrata border crossing.
The corresponding simplified grain export regime began to operate on May 31, Valeriy Tkachev, deputy director of the commercial work department of Ukrzaliznytsia JSC, wrote on Facebook on Tuesday evening.
“This means that such goods can be imported into Poland through any checkpoints – both railway and land. When imported, these goods will be subject only to customs border control. Thus, the transfer of wagons with grain cargo through the border crossing Rava Ruska – Verhrata is allowed . This will increase the export of grain from Ukraine!”, he wrote on the social network.
As reported, on May 17, Ukraine and Poland agreed on the possibility of transit of grain crops through joint border inspection posts, as well as on ensuring its rail transit through the border checkpoints Verkhrata – Rava Ruska, Medica – Shehyni and Krostsenko – Smolnitsa.
In addition to ensuring the possibility of transit of Ukrainian grain through Polish border checkpoints, the parties agreed to increase the number of Polish veterinary inspectors on the border with Ukraine to 19 people, as well as to change their work schedule to round-the-clock at the busiest border checkpoints.
Earlier, on May 11, the Ministry of Infrastructure of Ukraine and the Ministry of Infrastructure and Development of Poland agreed to improve logistics capabilities at the joint border.

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PRESIDENT OF EC: EU WORKING ON CREATION OF SOLIDARITY LINES FOR GRAIN EXPORT FROM UKRAINE

The EU is working on the creation of solidarity lines for the export of grain from Ukraine, President of the European Commission Ursula von der Leyen has said.
She has said that 20 million tonnes of wheat are stuck in Ukraine and must be taken out. Therefore, they have created and are working hard on solidarity lines that will make it possible to take out batches of this wheat through land routes and trains to their ports. This is not trivial and, of course, more tiring and more expensive, but it is necessary to take this grain out, von der Leyen said at a press conference following the Special Meeting of the European Council in Brussels on Tuesday.

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UK IS WORKING FOR WAYS TO RESUME GRAIN EXPORTS FROM UKRAINE

The UK is working with international partners to find ways to resume grain exports from Ukraine, a Downing Street spokesperson said on Saturday.
According to The Guardian, according to her, the UK was involved in “intensive work … with international partners to find ways to resume the export of grain from Ukraine to avert a global food crisis.”
Prime Minister of the UK Boris Johnson had a telephone conversation with Ukrainian President Volodymyr Zelensky and told him that London would work with G7 partners to ” push for urgent progress” on the issue.
During the conversation, they also agreed on the next steps to ensure “safe shipping lanes.”

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IN MARCH-APRIL UKRAINE EXPORTED AGRICULTURAL PRODUCTS WORTH ALMOST $2BLN

The value of Ukrainian agricultural exports for the two months of the war with Russia (March-April) amounted to $ 1.74 billion, while in January-February the supply of such products brought 3.2 times more revenue – $ 5.68 billion, for January-April the country exported $ 7.42 billion worth of agricultural products
The key commodity groups in agricultural exports from Ukraine are traditionally cereals and oilseeds, vegetable oils and fats, waste from the processing industry and meat products, according to the website of the Institute of Agrarian Economics (IAE) on Monday.
According to the agency, agricultural products continue to be the main source of foreign exchange earnings for Ukraine’s foreign trade: in January-April 2022, its share in total exports exceeded 44%.
Despite the Russian military invasion, exports of agricultural products from Ukraine in January-April 2022 still exceed the figures for the first four months of 2021 by 3%, this excess is due to significant intensity of exports in January-February 2022 and a record harvest of 2021, the largest since the country’s independence.
“Today Ukraine still exceeds last year’s record food exports. However, Russia’s ongoing aggression, hostilities, occupation of territories in different regions of our country and blocking of seaports significantly reduce domestic foreign sales potential. Final export figures will depend on liquidity. , – quotes IAE deputy director of the institution Nikolai Pugachev.
It was reported that before the Russian military invasion, Ukraine exported up to 5 million tons of agricultural products per month through the ports of Odessa and Nikolaev, but now due to their naval blockade by Russia, the country can transport about 500 thousand per month. tons of grain. This leads to a monthly shortfall of about $ 1.5 billion in export earnings.
Since the beginning of the 2021/2022 marketing year (MY, July-June) and as of May 19, Ukraine has exported 46.51 million tons of cereals and legumes, which is 13.8% higher than on the same date of the previous MY. A total of 18.54 million tons of wheat was exported to foreign markets (18.7% more than in the same period of 2020 / 2021MG), 21.83 million tons of corn (+ 6.9%), 5.68 million tons of barley (+ 37.2%), 70.6 thousand tons of flour (-35.7%).

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