Business news from Ukraine

EXPORTS OF FRUITS AND BERRIES FROM UKRAINE 68% UP IN Q1 2018

The cost of exports of fruit and berries from Ukraine totaled $57 million in January-March 2018, which is 68% more than a year ago. According to the Ukrsadprom association, the key exported fruit were walnuts ($42 million), frozen berries ($10 million), apples and pears ($5 million). “Out of these groups of fruit and berries only for frozen berries the volume in kind and in cost declined. The volume of walnuts exported from Ukraine grew from 7,000 to 13,000 tonnes, and apples and pears from 6,000 to 14,000 tonnes,” the association said.
Ukrainian fruit and berries are of greatest demand in the EU countries (60% of revenue of Ukrainian exporters).
Ukrainian apples are mainly sold in the CIS and EU, in particular, Belarus, Moldova, Sweden (85% of the cost of their exports). Average export price of apples this year exceeded $320 per tonne.
“Major purchases of fruits and berries were carried out by France in the amount of $6.9 million, Turkey – $6.5 million, Poland – $4 million, Belarus – $3.7 million, Greece – $3.5 million, Germany – $2.8 million and the Netherlands – $2.7 million,” Ukrsadprom said.
At the same time, imports of fruit and berry products in Ukraine in January-March 2018 amounted to $143 million.
According to the report, it is mainly formed of exotic fruits (citrus fruits, bananas and other fruit). If one takes into account only traditional fruits and berries for Ukraine, the total foreign trade surplus was $40 million. At the same time, the association pointed out a surplus in the trade in pome fruits, which in recent years has been negative.

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PHILIP MORRIS UKRAINE STARTS EXPORTS TO HONG KONG

Philip Morris Ukraine, one of the largest tobacco producers in Ukraine, in February 2018 started shipments of Kharkiv Tobacco Factory’s products to Hong Kong.
“Now the Philip Morris Ukraine products made at the tobacco factory in Kharkiv region are sold in 13 countries, including Japan, Georgia, Armenia, Moldova, Albania, Saudi Arabia and other countries of the Persian Gulf. Since February 2018, we have been manufacturing products for the duty free zone in Hong Kong, having started with one SKU [stock keeping unit] – Virginia,” Philip Morris Ukraine Director for Corporate Affairs in Ukraine, Georgia, Armenia and Moldova Nataliya Bondarenko said at the third Kharkiv Investment Forum.
According to her, more than 40% of the company’s cigarettes are exported.
“Philip Morris Ukraine’s tobacco factory produces not only cigarettes, but also shredded tobacco, filters for other factories in Eastern Europe, the Middle East, Africa and the European Union for export,” Bondarenko said.
Over $117 million has been invested in the construction and modernization of the factory, she said. At present, the production facility located on 32 hectares has a full production cycle and its design capacity exceeds 30 billion cigarettes a year.
“With the assistance of the government and the creation of the necessary conditions for business development, we can produce 20-30% more, developing at the international level as an export hub. Philip Morris Ukraine has temporarily suspended the development of export capacities in connection with a trial related to UAH 635 million,” she said.
Court proceedings were launched in May 2016 after the company’s tax dispute with the State Fiscal Service of Ukraine, which accuses the company of violations in imports of raw materials and exports of cigarettes, as well as of the illegal use of the Marlboro trademark.

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UKRAINE EXPORTS ELECTRICITY FOR $80 MLN IN JAN-MARCH, LARGEST CUSTOMERS – HUNGARY, POLAND, MOLDOVA

Ukraine in January-March this year exported electricity for $80.471 million, in particular in March for $30.813 million. According to the State Fiscal Service, in January-March electricity was supplied to Hungary for the amount of $51.395 million, Poland for $19.024 million, Moldova for $8.147 million and other countries for $1.905 million.
Thus, in monetary terms exports of Ukrainian electricity in January-March 2018 increased by 18.1% compared to the same period in 2017 ($68.12 million).
In addition, Ukraine in January-March 2018 imported electricity for $457,000 (from Russia for $442,000, from Belarus for $15,000 and Moldova for $1,000).

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