Business news from Ukraine

UKRAINE CUTS ELECTRICITY EXPORT BY 92,6% IN JANUARY

Ukraine in January 2021 reduced electricity exports by 92.6% (by 645.3 million kWh) compared to the same period in 2020, to 51.9 million kWh, according to the data of NPC Ukrenergo. According to the calculations of Interfax-Ukraine, in particular, supplies from the Burshtyn TPP energy island in the direction of Hungary, Slovakia and Romania fell by 89.7% (by 448.9 million kWh), to 51.9 million kWh.
Electricity was not supplied to Poland and Moldova last month, while in January last year, 151.2 million kWh and 45.2 million kWh were exported in these directions, respectively.
Ukrainian electricity also was not exported to Belarus and the Russian Federation in January 2021 and 2020.
In addition, in January 2021, Ukraine reduced electricity imports by 52.4% (by 292.4 million kWh) compared to the same period last year, to 268.3 million kWh, including Belarus supplied 180.6 million kWh, Slovakia – 78.3 million kWh, Hungary – 6.9 million kWh, and Romania – 2.5 million kWh.
In addition, as Inter-Transmission Compensation mechanism associated with the parallel operation of the IPS of Ukraine with the power systems of neighboring countries and power supply to dead-end areas, 6.26 million kWh of electricity was imported from the Russian Federation last month and 0.01 million kWh from Belarus.
Emergency supplies from Belarus amounted to 3.13 million kWh, and 0.08 million kWh to Belarus.

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UKRAINIAN KSG AGRO RAISES EXPORT OF AGRICULTURAL PRODUCTS TO ASIA AND AFRICA

KSG Agro agricultural holding in 2020 increased export of agricultural products to African and Asian markets by 46%, to 7,770 tonnes, the holding’s press service has said.
“Last year, we expanded our presence in export African and Asian markets. In the context of the quarantine crisis, the issue of diversifying supplies and expanding the range of products supplied is especially acute,” Serhiy Kasyanov, the head of the board of directors of KSG Agro, said.
According to the agricultural holding, in 2020, the export of wheat flour to Libya increased by 3.6 times compared to 2019, to 3,000 tonnes.
It is clarified that KSG Agro exported 172 tonnes of sugar to Libya, 4,000 tonnes of corn to Malaysia, 600 tonnes of barley to Oman.
KSG Agro is a vertically integrated holding. It is engaged in pig breeding, production, storage, processing and sale of grain and oilseeds.
For the nine months of 2020, the agricultural holding received $ 4.77 million in net profit, which is 52% less than in the same period in 2019, revenue decreased by 17%, to $ 14.67 million.

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EXPORT OF GRAIN FROM UKRAINE IN 2020/2021 MY TO BE 45.4 MLN TONNES – FORECAST

The Ministry of Economy of Ukraine in the 2020/2021 marketing year (MY) forecasts a decline in grain exports by 20.5% compared to the previous MY, to 45.4 million tonnes.
According to the forecast balance released by the ministry, in particular, wheat exports will decline by 14.6%, to 17.5 million tonnes, corn by 22.4%, to 23.5 million tonnes and barley by 23.8%, to 3.82 million tonnes.
According to the ministry, the total production of grains and legumes in this MY is expected at 65.5 million tonnes.

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UKRAINE CUTS EXPORT OF FRUIT AND BERRY IN 2020

In 2020, Ukraine exported fruit and berry products worth $238 million, which is 8% less than a year earlier, and is associated with quarantine restrictions and complication of customs procedures at the borders, the Ukrainian Agricultural Export Association (UAEA) reported on Friday.
According to the association, 92% of total exports were frozen fruits and berries ($111 million), walnuts in shell and without shell ($ 98 million), as well as apples and pears ($10 million).
According to the association, in kind, the export of walnuts decreased 41.2%, to 39,000 tonnes, and apples and pears – 64.3%, to 19,000 tonnes, at the same time, the export of frozen fruits was the maximum for the period of independence of Ukraine reaching 55,000 tonnes.
The UAEA reported that sales of Ukrainian fruits, berries and nuts to the EU countries in 2020 provided 77% of the total revenue from these products. Most of these products were bought by Poland ($57.7 million), France ($19.7 million), Germany ($17.2 million), the Netherlands ($11.6 million), Italy ($11.5 million), Austria ($11.2 million), the Czech Republic ($9.6 million) and Greece ($9.5 million). Turkey ($10.5 million) and Belarus ($9.2 million) are other major trading partners.
The association said that the average price of Ukrainian apples in 2020 grew by 1.5 times, to $500 per tonne, frozen fruits and berries – by 13.6%, to $2,023 per tonne, and shelled walnuts – by 5.1%, to $3,000 per tonne.

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STRUCTURE OF EXPORT OF SERVICES FOR 9 MONTHS OF 2020 (GRAPHICALLY)

Structure of export of services for 9 months of 2020 (graphically).

UKRAINIAN AUTHORITIES PLAN TO LIMIT CORN EXPORT

The Ministry of Economy and grain market participants have agreed on a maximum corn export volume for the 2020/2021 marketing year (MY) in the amount of 24 million tonnes and will amend the annex to the memorandum of understanding between the grain market participants, the ministry said in a statement following a meeting held on January 25.
“Now, according to the regions, the projected corn production is 30.3 million tonnes, which is one of the best corn yields in all years. The Ministry of Economy believes that there are no problems with exporting corn to foreign markets or a probable shortage of this crop in the domestic market,” Economy Minister Ihor Petrashko said.
The report indicates that, if necessary, the parties agreed to revise the approved maximum amount of corn allowed for export, after the publication of official statistics on crop production in 2020.
As reported, the associations of poultry and livestock breeders initiated the restriction of corn exports at the level of 22 million tonnes in 2020/2021 MY in the “grain” memorandum. They argue their proposal to limit exports by the need to guarantee the domestic market 7.5 million tonnes of corn for production of animal feed.
The Ukrainian Grain Association considers the volume of corn exports at the level of 24 million tonnes acceptable for the market participants and corresponding to their forecasts of the harvest of this crop, acting executive director of the association Serhiy Ivaschenko told Interfax-Ukraine. Earlier, the association opposed the restriction of corn exports at the level of 22 million tonnes, since, in its opinion, the real goal of the initiators of the restrictions was to create an artificial surplus in the domestic grain market to reduce prices.
One of the members of the American Chamber of Commerce told Interfax-Ukraine that the association discussed the possibility of limiting corn exports before making a final decision and agreed that there was no urgent need for it, but if such a limitation is introduced, then it should be set at the level of 24 million tonnes, but not 22 million tonnes as suggested by its initiators.

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