Agroholding KSG Agro has begun exporting sunflower oil to Poland and Italy, and the first batch of 2,000 tons of rapeseed has been sent to Slovakia, according to a press release from the agrarian group on Thursday.
“Currently, there are very good conditions for agricultural producers to export to the EU – in fact, there are no taxes (in particular, VAT) and import duties. So, if you solve problems with transportation, establish efficient logistics, you can have a good source of replenishment of foreign exchange income”, – quotes the agricultural holding of its owner Sergey Kasyanov.
According to him, the export of agricultural products to the EU makes it difficult to increase the cost of logistics and increase its time. So, if earlier one delivery to the EU was carried out on average in 5-7 days, then in the conditions of the Russian military invasion and queues at border crossings, delivery can last 20-30 days.
It is specified that the supply of sunflower oil to Poland and Italy will be carried out with the help of flexitanks – polymer containers designed for the transportation of liquid cargo on conventional trucks.
In addition to KSG Agro LLP, we are currently negotiating with partners regarding the possibility of bottling and refining sunflower oil in the EU countries in order to quickly increase its exports and sell products ready for consumption.
“We managed to build effective supply chains for export supplies of both grain and high value-added products (vegetable oil) to the markets of the EU countries, despite the blockade of seaports. In 2022-2023, we plan to focus on developing the export of our products in order to increase foreign exchange earnings. There are all the prerequisites for this, for example, high demand in the EU for grain and the same rapeseed,” Kasyanov summed up in the message.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares.
According to the agricultural holding, he is in the top 5 pork producers in Ukraine.
In 2021, the holding increased its net profit by 16 times compared to 2020, to $20.27 million, revenue by 44%, to $30.75 million, while doubling EBITDA to $12.28 million.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.
The Cabinet of Ministers of Ukraine allowed the export of 100 thousand tons of coal, which is planned to be delivered to Poland.
Taras Melnichuk, a representative of the Cabinet of Ministers in the Verkhovna Rada, said on Telegram that a corresponding change was made at a government meeting on Friday in the list of goods whose exports and imports will be subject to licensing, and quotas for 2022.
Earlier, Prime Minister Denys Shmyhal said that at the request of the Polish side, Ukraine is ready to consider the possibility of opening a quota for the export of 100,000 tons of coal.
He specified that coal reserves in the warehouses of Ukrainian power plants amount to almost 2 million tons, which is 2.5 times more than a year ago. “Therefore, we are ready to lend a shoulder of support to our Polish friends,” he stressed.
As reported, since mid-June 2022, Ukraine has set zero quotas for the export of all types of coal, except for coking coal, and on September 7, it completely banned the export of Ukrainian coal.
According to the State Customs Service, Ukraine’s coal exports for eight months of 2022 amounted to 523.863 thousand tons for $166.667 million, incl. to Slovakia – by $108.295 million, Poland – by $35.028 million, Hungary – by $20.779 million, other countries – by $2.565 million.
Ukraine will consider the possibility of opening a quota for the export of 100,000 tons of coal to Poland in September, Prime Minister Denys Shmygal said.
“On behalf of the President of Ukraine, at the request of the Polish side, Ukraine is ready to consider the possibility of opening quotas for coal exports to Poland. We are talking about 100,000 tons in September, which are now critically needed by our Polish partners,” he wrote on his Telegram channel.
Shmyhal specified that coal reserves in the warehouses of Ukrainian power plants amount to almost 2 million tons, which is 2.5 times more than a year ago. “Therefore, we are ready to lend a shoulder of support to our Polish friends,” he stressed.
The Prime Minister of Ukraine added that during the visit of his Polish counterpart Mateusz Morawiecki to Kyiv, the parties also discussed the restoration and commissioning of the Khmelnytsky NPP-Rzeszow power line.
“We planned to finish before December 14, but thanks to the acceleration of work, we can complete a week earlier. This will allow us to export an additional 1,000 MW to Poland. For our part, we ask Poland to assist in expanding export quotas within the framework of ENTSO-E,” Shmyhal said.
According to him, Ukraine expects that by the end of 2022 the amount of available transmission capacity in the direction of Slovakia, Romania and Hungary will increase from 300 MW by another 200-300 MW, and in the direction of Poland – over 1000 MW.
As reported, since mid-June 2022, Ukraine has set zero quotas for the export of all types of coal, except for coking coal, and on September 7, it completely banned the export of Ukrainian coal.
According to the State Customs Service, Ukraine’s coal exports for seven months of 2022 amounted to 450.6 thousand tons for $145.917 million, incl. to Slovakia – by $93.349 million, Poland – by $34.084 million, Hungary – by $15.919 million, other countries – by $2.565 million.
President of Ukraine Volodymyr Zelensky said that Ukraine will look for opportunities to help Poland in the energy sector and find a way out of their future energy risks in the near future.
“Today we raised important energy issues. We discussed energy challenges. We are interested that Ukraine can help Poland. We are doing everything to find a way out of their future energy risks in the near future,” Zelensky said at a press conference with Polish Prime Minister Mateusz Moravetsky and Latvian President Egils Levits in Kyiv on Friday.
He also called this issue a priority in relations with Poland.
“For us, this is a priority in our relations. Despite the fact that we have a ban on the export of coal during this difficult period, we will look for an opportunity to help Poland. Because Poland, in spite of everything, found certain steps to help us, when it was not easy for her. We understand this responsibility,” the President added.
Polish Prime Minister Mateusz Morawiecki has left for Kyiv, where he will hold several meetings to discuss topics such as the geopolitical situation, the energy market and security, government spokesman Piotr Muller told private TV channel Polsat on Friday.
At the same time, he noted that no significant or sudden changes would be announced during the visit, but this visit is a political signal to the Kremlin, reminiscent of Poland’s position in connection with the Russian aggression against Ukraine.
“We will support Ukraine in this very difficult situation, because we believe that Russia is violating all possible international standards. In addition, protecting Ukraine is also protecting our security,” Muller said.
The agreement between the National Bank of Poland and the National Bank of Ukraine, under which Ukrainian refugees could exchange cash hryvnia for zlotys from the end of March, is terminated on September 10.
According to the press service of the NBU on Tuesday, over more than five months of the program, Ukrainians in Poland exchanged about UAH 680 million for zlotys, including UAH 383 million in April and UAH 30 million in August.
