Business news from Ukraine

UKRAINE EXPORTS 46 MLN TONS OF GRAIN SINCE BEGINNING OF MARKETING YEAR 2021/22

Since the beginning of the 2021/2022 marketing year (MY, July-June) and as of May 5, Ukraine has exported 46.0 million tons of grain and leguminous crops, which is 17.9% or 7.0 million tons higher than on the same date of the previous MY.
According to the Information and Analytical Portal of the Agroindustrial Complex of Ukraine, by May 5, 18.53 million tons of wheat were exported (22.5% more compared to the same date in 2020/2021MY), 21.33 million tons of corn (+11.4%), 5.68 million tons of barley (+37.8%) and 69.7 thousand tons of flour (-34.4%).
161.9 thousand tons of rye were also delivered to foreign markets against only 1.7 thousand tons a year earlier.
Thus, for the week of April 28 – May 5, Ukraine exported about 300 thousand tons of grain crops, including almost 270 thousand tons of corn, 20 thousand tons of wheat and 10 thousand tons of barley. Such a decline is explained by the blockade by the troops of the aggressor country of the Russian Federation of Ukrainian seaports – its key export infrastructure.
As reported, in 2020/2021, Ukraine exported 44.72 million tons of grain and leguminous crops, including 16.64 million tons of wheat, 23.08 million tons of corn, 4.23 million tons of barley. Also, 126.9 thousand tons of flour and 18.4 thousand tons of rye were delivered to foreign markets.
In addition, Ukraine exported 56.72 million tons of grain and leguminous crops in 2019/2020 MY.
Deputy Head of the Office of the President Rostyslav Shurma in March called the goal of Ukraine in 2022 to harvest at least 70% of last year’s crop.

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FOREIGN TRADE TURNOVER BY THE MOST IMPORTANT POSITIONS IN 2021 (EXPORT)

Foreign trade turnover by the most important positions in 2021 (export)

SSC of Ukraine

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STRUCTURE OF EXPORT OF SERVICES IN 2021 (GRAPHICALLY)

Structure of export of services in 2021 (graphically)

SSC of Ukraine

CABINET AUTHORIZED AGRARIAN MINISTRY TO LICENSE EXPORT OF NITROGEN FERTILIZERS UNTIL JULY 1

The Cabinet of Ministers of Ukraine instructed the Ministry of Agrarian Policy and Food to issue licenses for the export of nitrogen mineral and chemical fertilizers in the amount of up to 210,000 tonnes by July 1, 2022, before that, the Ministry of Economy issued permits for supplies.
The corresponding resolution on the change of the licensee body (No. 458) of April 26 was published on the government website.
“The issuance of licenses for the export of goods specified in this paragraph of the notes is carried out on the basis of applications within a quota of 70,000 tonnes per month and on the basis of approvals that are provided by the Ministry of Agrarian Policy within one day without involving a subject of foreign economic activity in the order of interdepartmental exchange of information,” the decision says.
Earlier, by resolution No. 353 of March 24, the Cabinet of Ministers lifted the ban on the export of nitrogen fertilizers that it had introduced in early March, setting an export quota of up to 210,000 tonnes of products for the period until July 1, 2022. At the same time, the monthly export volume should not exceed 70,000 tonnes per month.
As reported, in early March, the government imposed a ban on the export from Ukraine of nitrogen, phosphorus and potash mineral or chemical fertilizers, as well as complex multi-component fertilizers.
Thus, the export of phosphate, potash and multicomponent fertilizers is still prohibited.
“I emphasize that this ban is of a forced and temporary nature and is used to restore the balance of certain goods in the domestic market and ensure the sowing campaign, which is extremely important in order to prevent a food crisis in Ukraine and the world,” Roman Leschenko, who served as Minister of Agricultural policy of Ukraine at that time, said.

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UKRAINE WANTS TO EXPAND EXPORT VIA ROMANIA

Prime Minister Denys Shmyhal has discussed with Romanian Prime Minister Nicolae Ciucă the possibility of expanding export and transit corridors through Romania, as well as using additional facilities of Romanian seaports.
“We discussed the possibility of expanding the already established export corridors, transit corridors through the territory of Romania, as well as using the additional capabilities of Romanian seaports and checkpoints between our countries,” Shmyhal said at a joint briefing with Ciucă on Tuesday evening.
The parties also discussed the process of restoring the settlements of Ukraine affected by the war, and also discussed the participation of Romania in such projects.
In addition, the prime ministers discussed cooperation between countries in the energy sector, economy, business and transit potential.
Among other things, he thanked Romania for launching and operating hubs on its territory for international technical and humanitarian support to Ukraine, as well as for helping displaced Ukrainian citizens.
In addition, Shmyhal said that the countries are working on a draft memorandum of cooperation to ensure the social protection of children who have suffered in war and armed conflicts.
Later, the press service of the government reported that at a meeting of the parties Shmyhal proposed to consider the possibility of opening the Diakivtsi (Ukraine) – Racovăț (Romania) checkpoint as soon as possible and further granting it the status of a checkpoint for cargo transportation to increase transit opportunities between Ukraine and Romania.
In addition, he noted the role of Romania in the international processes of condemnation and punishment of Russia for crimes against humanity and acts of genocide that continue on the territory of Ukraine.
In turn, the Prime Minister of Romania assured that they will continue to support Ukraine in its fight and will support the tightening of sanctions against the aggressor.

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GERMAN RHEINMETALL APPLIES FOR EXPORT OF LEOPARD TANKS TO UKRAINE

The German company Rheinmetall applied to the German Federal Government with another application for the export of 88 tanks Type 1A5 Leopard to Ukraine, the Welt newspaper reported, citing documents provided by the manufacturer.
According to the edition, the application was submitted at the end of last week. Delivery could take place in a few weeks if German Chancellor Olaf Scholz decides.
In addition, earlier bids from Rheinmetall for 100 Marder armored personnel carriers and from Krauss-Maffei Wegmann Group for 100 PzH 2000 self-propelled howitzers were sent for approval.
It is noted that the decision on deliveries is approved by the Federal Security Council, which is headed by the chancellor. So far, Scholz has not agreed to direct deliveries of heavy weapons to Ukraine.
The cost of used Leopard 1A5 tanks, which can be delivered to Ukraine, is about EUR 115 million. Together with Marder BMPs and self-propelled howitzers, the amount of heavy weaponry aid to Ukraine could amount to more than EUR 2 billion.

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