Business news from Ukraine

MYRONIVSKY HLIBOPRODUCT STOPS EXPORTS OF POULTRY TO EU

Myronivsky Hliboproduct (MHP), certified in the EU, has stopped exports of poultry to these countries as of January 23, the group has said.
“All MHP production facilities continue to operate as normal and have begun to take all necessary steps according to the export sales diversification strategy approved by the group’s management. MHP continues to adhere to existing quality and biosafety standards and sells its products both on the local market and in the countries, where there is no export ban,” MHP said.
The group said that now the production team of specialists and veterinarians at the MHP facilities is following a clear plan to counteract bird flu and is taking all necessary measures to prevent potential outbreaks at all MHP production sites.
According to the group, at present the state veterinary authorities of Ukraine are in close cooperation with the EU authorities in order to coordinate and take all necessary steps to resolve the issue of opening the market and come to a final agreement on the implementation of detailed regionalization, which has not yet been officially ratified.
MHP said that in 2019 about 30% of the group’s total exports were sent to the EU. In January-September 2019, MHP increased poultry exports by 26%, to 269,670 tonnes. In 2018, exports grew by 30%, to 286,800 tonnes.

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SCRAP METAL EXPORTS FROM UKRAINE DECREASES BY 87% IN 2019

Ukrainian enterprises in 2019 decreased exports of ferrous scrap metal by 87.2% compared to 2018, to 42,182 tonnes.
According to customs statistics released by the State Fiscal Service of Ukraine, exports of scrap metal in monetary terms fell by 88.9%, to $11.781 million.
In 2019, the country increased imports of scrap metal in kind by 17.2% compared to 2018, to 49,934 tonnes. Imports in monetary terms decreased 6.4%, to $34.254 million.
Imports of scrap metal for the mentioned period arrived mainly from Turkey (62.55% of deliveries in monetary terms), Russia (28.45%), and the Netherlands (2.23%); and major exports were shipped to Turkey (85.88%), the Netherlands (6.27%) and Germany (5.37%).
Ukrainian metal companies in 2019 imported 2,502 tonnes of ferrous products obtained by direct reduction of iron ore (HS code 7203) – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal for $811,000. The HBI was imported from Russia for a total value of $810,000 and China for $1,000.

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UKRAINE REDUCES COKE EXPORTS IN 2019

Ukraine reduced coke and semi-coke exports by 43.6% year-over-year to 14,421 tonnes in 2019.
According to customs statistics, published by the State Fiscal Service of Ukraine, coke and semi-coke exports were down 59.8% in monetary terms, to $2.715 million.
The majority of deliveries were made to Belarus (23.78% in monetary terms), Moldova (19.48%) and Romania (17.67%).
Imports of coke and semi-coke rose by 4.4%, to 876,938 tonnes in 2019, worth $263.429 million (4.6% up).
The goods were mainly imported from Russia (77% in monetary terms), Poland (12.28%) and the Columbia (4.46%).

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UKRAINIAN COMPANIES INCREASE POULTRY EXPORTS IN 2019 BY 26% TO $578 MLN

Ukraine in January-December 2019 increased export of poultry by 26%, to 414,490 tonnes, the State Customs Service has reported. According to its report, in monetary terms exports of these products increased by 14.2%, to $578.63 million. In 2019, import of poultry and offal increased by 0.6% and amounted to 131,180 tonnes, in monetary terms by 1.2%, to $52.53 million.
In addition, according to the agency, pork exports in January-December 2019 amounted to 2,260 tonnes, which is 28.6% more than in 2018. These products were delivered for a total of $5.27 million (39.6% more).
Pork imports to Ukraine last year decreased by 18.8%, to 23,190 tonnes. Pork was imported to the country for $44.23 million, which is 14.8% less than the figure for 2018.

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EXTENDED RUSSIAN SANCTIONS WILL AFFECT 1.3% OF UKRAINIAN EXPORTS

The enhanced sanctions of the Russian Federation against Ukrainian goods will affect 1.3% of current exports of Ukrainian goods for January-September 2019, which in monetary terms is $31.2 million, and about 0.4% of current imports of Russian goods to Ukraine for the specified period, or $21.4 million, a source at the Ministry of Economic Development, Trade and Agriculture has told Interfax.
The largest restrictions regarding the ban on imports to Ukraine relate to the following items: boilers for central heating for $8.7 million, parts of pumps for $3.6 million, radiators for central heating with non-electric heating for $2.8 million.
The source noted that a significant part of goods that fell under the sanctions is industrial medical goods: plastic products for $6.5 million, pipes, tubes, hoses for $4.5 million, hygienic or pharmaceutical products from vulcanized rubber for $1.4 million, other products made of vulcanized rubber, except for hard, for $3.7 million.
At the same time, the ban on import to Ukraine of Russian paper and cardboard for recycling in monetary terms is estimated at $21.4 million. According to data of the State Statistics Service for the nine months of 2019, the volume of the Russian Federation in the total import of this item is 52.6%.
As for the supply of starch, in January-September 2019 this product was not exported to the Russian Federation.
“At the same time, there is a tendency to increase the use of EU tariff quotas for starch with a volume of 10,000 tonnes compared to 2016. During 2017-2019, the quota is used almost in full,” the source said.
The government of the Russian Federation by the resolution of December 16, 2019 expanded the list of goods prohibited for imports to Ukraine, supplementing it with the position “paper and cardboard for recycling.” In addition, the list of goods originating in Ukraine, which are forbidden for imports to the Russian Federation, was expanded.

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UKRAINE TO RETAIN LICENSING OF ANTHRACITE EXPORTS, ZERO QUOTAS FOR SILVER, GOLD EXPORT

Ukraine has retained the zero quotas for exports of unprocessed gold and silver (apart from banking metals) and scrap precious metals and extended the licensing of exports of anthracite for 2020.
The Cabinet of Ministers approved resolution No. 1109 on December 24 and posted it on its website on December 27.
In addition, according to the Montreal Protocol on Substances that Deplete the Ozone Layer, in 2020, exports and imports of the respective substances and goods will be licensed as previously.

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