The Cabinet of Ministers of Ukraine has proposed to the Verkhovna Rada to make the import of 120,000 tonnes of sugar duty-free until October 1, 2021 to stabilize the situation on the market for this product.
The government approved the corresponding draft law at a meeting on June 2.
The draft law proposes to the Verkhovna Rada to supplement Section XXI “Final and Transitional Provisions” of the Customs Code of Ukraine with Clause 4.4, providing for appropriate changes in the taxation of sugar imported into the customs territory of Ukraine.
According to an explanatory note to the document, Ukraine in the 2020/2021 marketing year produced about 1.1 million tonnes of sugar with the demand of the domestic market of at least 1.3 million tonnes due to unfavorable weather and climatic conditions and a reduction in the cultivated areas of sugar beets. The limited supply of sugar on the market caused a sharp rise in prices for this product, while the growth of its imports restrains the depreciation of the hryvnia exchange rate.
The document specifies that the import quota of 120,000 tonnes will be distributed among importers in the order of priority of filing applications with the customs authority.
As reported, the Ministry of Economy in April 2021 announced the impossibility of stabilizing prices on the Ukrainian sugar market using market mechanisms due to a decrease in domestic sugar production. The agency proposed a temporary zeroing of the import duty on the import of 120,000 tonnes of white sugar until October 1, 2021, which will reduce the rush demand for it in the domestic market and ensure the competitive production of sugar-containing products.
According to the ministry, the duty on the import of sugar into Ukraine is currently 50% of its customs value.
MAIN TRADE PARTNERS OF UKRAINE IN % FROM TOTAL VOLUME (IMPORT FROM OTHER COUNTRIES TO UKRAINE) IN JAN-FEB 2021
Coke and chemical plants of Ukraine in January-April of this year imported 3.13 million tonnes of raw coking coal and coking coal concentrate, which is 1.9% more than in the same period last year.
According to the information report of the Ukrmetalurgprom association, the supply of Ukrainian coal mined during this period amounted to 1.27 million tonnes, which is 0.3% more than in the same period last year.
In general, in January-April 2021, Ukrainian coke and chemical plants received 4.4 million tonnes of coal for coking, which is 1.4% more compared to January-April 2020. At the same time, the share of imported coals in the total supply amounted to 71% versus 70.7% in January-April 2020.
Some 2.725 million tonnes of coke (101.3% versus January-April 2020) were supplied to Ukrainian metallurgical enterprises, including 2.683 million tonnes of Ukrainian origin (100.3%), and 42,000 tonnes of imported coke (2.8 times more than in January-April 2020). The share of imported coke in the total supply amounted to 1.54% versus 0.56% in January-April last year.
In addition, in January-April 2021, some 1.187 million tonnes of scrap metal were procured (130.1% compared to the same period in 2020), of which 1.1 million tonnes (122.1% compared to January-April 2020) were supplied to domestic consumers as imported. Exports of scrap metal in January-April 2021 amounted to 87,000 tonnes (750% compared to the same period in 2020).
It is noted that the provision of metallurgical enterprises with Ukrainian iron ore raw materials for the specified period was carried out in accordance with the needs of metallurgical production. The iron ore was not imported. Iron ore exports in January-April 2021 amounted to 14.21 million tonnes (92% compared to the same period in 2020).
According to the updated data of Ukrmetalurgprom, in January-April of this year, enterprises produced 11.037 million tonnes of sinter (107% versus January-April 2020), some 3.251 million tonnes of gross coke with moisture content 6% (101.1%), some 7.073 million tonnes of cast iron (109%), some 7.136 million tonnes of steel (107.2%), some 6.39 million tonnes of rolled products (107%), and 290,000 tonnes of pipe products (105.2%).
As of May 13, 2021, of the main operating production facilities 17 out of 21 blast furnaces, seven out of eight open-hearth furnaces, 12 out of 16 converters, five out of 15 electric furnaces and 15 out of 17 continuous casting machines were in operation.
The European Bank for Reconstruction and Development (EBRD) will provide a EUR 20 million senior secured loan to Winner Imports Ukraine LLC, Ukrainian importer and retailer of several well-known international vehicle brands. The money will be invested in sustainable dealerships for Renault and Volvo.
As reported on the bank’s website on Tuesday, the loan was approved by the EBRD’s board of directors on May 18. Financing will focus on green economy transition and circular economy through investments in dealerships, expansion of client’s logistic capacities, distribution and service infrastructure for vehicles, including electric.
“All building financed by the Bank will obtain BREEAM or EDGE sustainable certification. Project contributes to the adoption of advanced green practices in a country where such standards and practices are still uncommon, for instance, according to the latest data, only 12 BREEAM certificates have been issued in Ukraine to date with only one certificate issued in the retail category,” the EBRD said.
The total cost of the project is EUR 43 million, but the sources of co-financing are not given.
Winner Imports Ukraine LLC, part of Winner Group, is the official importer of Ford, Volvo, Jaguar, Land Rover, Porsche and Bentley, SAIC Motor vehicles in Ukraine.
In addition, in 2020, the company became an official dealer of the Renault auto brand, since the spring of the same year it began to provide services for cars of this brand in its multi-brand center Winner Automotive, and has planned to open a Renault concept dealership this year.
Winner Group Ukraine has been operating in the Ukrainian market for over 28 years, during this time more than 140,000 cars have been sold and more than 50 dealer centers have been opened in Ukraine.
MAIN TRADE PARTNERS OF UKRAINE IN % FROM TOTAL VOLUME (IMPORT FROM OTHER COUNTRIES TO UKRAINE) IN Jan 2021
FOREIGN TRADE TURNOVER BY THE MOST IMPORTANT POSITIONS IN JAN 2021 (IMPORT)
