Business news from Ukraine

Business news from Ukraine

Poland has banned several tons of bagels from Ukraine

The Polish Agricultural and Food Products Quality Inspectorate (IJHARS) in Rzeszów has issued a decision to ban three batches of bagels with a total weight of 5.34 thousand tons imported from Ukraine from circulation on the Polish market.

According to the inspectorate’s post on Monday on the social network X, the decision was made due to the low fat content and high sugar content of the bagels.

The decision was immediately implemented.

As reported, on April 5, IJHARS in Lublin withdrew three batches of ice cream with a total weight of 8.48 tons imported from Ukraine from the Polish market due to defrosting.

Earlier, the Polish Trade Inspectorate announced the largest fine in its history of 1.5 million zlotys (about $380 thousand) imposed on an importing company for importing 11.5 thousand tons of technical rapeseed and feed wheat from Ukraine as counterfeit goods for further use as food. In addition, a decision was made to ban the import of 57.66 tons of tomato paste from Ukraine due to the presence of mold.

In March, IJHARS Chief Inspector Przemysław Rzodkiewicz said that over the past year, 1.4% of the batches of products from Ukraine inspected by the commission at the border were rejected.

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Poland bans import of three batches of ice cream from Ukraine

The Polish Inspectorate for Agriculture and Food Quality (IJHARS) in Lublin has decided to ban the circulation of three batches of ice cream with a total weight of 8.48 tons imported from Ukraine due to defrosting.
The decision was immediately implemented, the inspectorate said in a post on the social media platform X on Sunday.
It is also noted that the day before IJHARS in Poznan decided to ban from the Polish market another batch of ice cream imported from Ukraine, totaling 1.44 tons, due to the lack of declaration of sweetener (aspartame) in the composition.
Earlier this week, the Polish Trade Inspectorate announced the largest ever fine of 1.5 million zlotys (about $380,000) imposed on an importing company for importing 11,500 tons of technical rapeseed and feed wheat from Ukraine as counterfeit products for further use in the form of food products.
In addition, it was decided to ban the import of 57.66 thousand tons of tomato paste from Ukraine due to the presence of mold.
A week earlier, IJHARS chief inspector Przemyslaw Rjodkiewicz said that 1.4% of batches of products from Ukraine, which the commission checked at the border, were rejected last year.

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Ukrainian Join UP! has opened agency in Poland

One of Ukraine’s largest tour operators, Join UP! has opened its first franchise agency in Poland, the office will operate in Katowice and become the hundredth in the company’s franchise network, its press service told Interfax-Ukraine.

The Join UP! brand entered the Polish market in 2022 as a tour operator and began cooperating with local travel agents. The opening of a franchise agency was the next step in strengthening the travel brand in the market.

“The interest in cooperating with us on a franchise basis in Poland demonstrates the high trust of our partners, which we have gained over more than a year of work in the new market. We try to support entrepreneurs in all the countries where we operate and give them the opportunity to build a profitable business together with Join UP!”, comments Marina Daineko, Head of Sales Development.

In addition, she noted that the development of the franchise network abroad expands access for Ukrainians to the already familiar travel service created by compatriots.

The development of the franchise network is one of the strategic vectors of the brand. Join UP! started this direction more than 10 years ago, and as of March 2024, the network includes 100 travel agencies, 33 of which opened after the start of the full-scale invasion. The office in Katowice became the second foreign office under the franchise program (since 2017, it has been operating in Moldova).

According to Daineko, the average cost of a lump sum (one-time start-up) fee in Ukraine is UAH 60 thousand (depending on the city and region), the highest is in Kyiv, in small towns – about 40 thousand. Royalties (monthly payment) range from $50 to $125 per month, also depending on the region.

In Poland, the cost of a lump sum payment is EUR2500, and royalties are 0.5% of the sales of Join UP! tours and 1% of the sales of tours of other tour operators.

In addition to full franchise support provided by the brand, new cooperation formats are also being introduced to attract new partners.

According to Deineko, with the outbreak of a full-scale war, several dozen franchise agencies in the country closed due to occupation and destruction. In addition, the logistics of traveling in Ukraine have changed dramatically.

“To preserve the Ukrainian tourism sector in such difficult conditions, it is extremely important to support and unite the market. To this end, we have launched the Join UP! program with simplified conditions for joining the Join UP! network for agents with experience,” she said.

Today, the Join UP! brand is represented in eight markets. In 2022, the brand’s companies appeared in Estonia, Latvia, Lithuania, Kazakhstan, Poland and Romania, and its position in the Moldovan market, where the tour operator has been represented for several years, was strengthened. This year, the company plans to enter the Czech Republic and Slovakia as a tour operator.

Join UP! LLC was established in 2013, with an authorized capital of UAH 72 million 671 thousand. In 2023, revenue increased to UAH 16 million 639 thousand, which is 2.3 times higher than in 2022. At the same time, the company incurred a 1.8-fold higher net loss of UAH 234 million 120 thousand, compared to UAH 129 million 486 thousand a year earlier.

The strategic partner of the tour operators operating under the Join UP! brand is SkyUp, and together they are part of the UPfamily group of businesses, the ultimate beneficiaries of which are Yuriy and Alexander Alba.

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Poland fines several Ukrainian agro companies

The Polish Trade Inspectorate for Quality of Agricultural and Food Products (IJHARS) has fined 1.5 million zlotys (about $380,000) to an importing company that imported technical rapeseed and fodder wheat to the Polish market and sold them to a number of local companies as food agricultural products, according to the website of the agency.

It is specified that the trade inspection checked 3,882 tons of rapeseed and revealed the facts of changing the declared purpose from technical to consumer use and the declared country of origin from Ukraine to Poland.

A similar decision on the importing company in the form of imposing a fine was issued for the shipment of 7679 tons of wheat, which also revealed a discrepancy between the purpose of the product and its country of origin.

“Agri-food products intended for technical purposes are generally not produced, stored or transported in accordance with the safety standards required for food products. They are competitively priced because they are not subject to the provisions of food law, and businesses selling them do not incur the costs associated with meeting higher safety standards,” the agency said.

The trade inspectorate, based on the analysis of seized documentation, found that the fined company had put on the market more than 11,500 tons of counterfeit rapeseed and wheat imported from Ukraine and resold the goods to six counterparties from the Pomeranian and Lubelskie voivodships.

“Regardless of the administrative decision issued, the case is also the subject of criminal proceedings under the supervision of the regional prosecutor’s office in Rzeszów,” the office emphasized.

The fine issued to IJHARS in Lublin is not an isolated case, the Trade Inspection Office emphasized. Over the past few months, 6 other companies were fined for similar violations in the supply of wheat, barley, poultry meat and for obstructing inspectors from inspecting cargoes from Ukraine.

According to Przemyslaw Rzodkiewicz, chief inspector of commodity quality of agricultural and food products, inspectors checked more than 82,000 shipments in 2023.

“In order to intensify activities to ensure proper quality and positive image of food products in Poland, we have created a special group in IJHARS to combat food fraud and will soon launch a campaign together with numerous partners to counter misinformation about this category of goods,” he said.

Source: https://www.gov.pl/web/ijhars/rekordowa-kara-za-oszustwa-zwiazane-z-importem-produktow-rolnych-z-ukrainy

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Ukrainian ice cream producer buys plant in Poland

Ukrainian ice cream and frozen semi-finished products producer Three Bears has acquired Nordis, which owns a plant for the production of semi-finished products and ice cream in Poland, the company’s founder Dmytro Ushmayev told the Ukrainian edition of Forbes.

“We have indeed acquired the Nordis plant in Poland. Nordis is similar in potential to Three Bears,” Ushmayev said.

The owner of the company refused to disclose the amount of the deal and clarified that the Ukrainian company plans to invest in the development of production in Poland.

According to the Ministry of Justice of Poland, in September 2023, the management of the Polish plant for the production of semi-finished products and ice cream Nordis changed. Dmitry Ushmayev, founder of Three Bears, became the new owner of the company. Andriy Tyshchenko, director of the Ukrainian manufacturer, has also joined Nordis’ supervisory board.

Nordis owns a plant in western Poland and warehouses. The company produces more than 100 types of ice cream and semi-finished products. Nordis also has a distribution network in 19 cities in Poland. The previous owner and CEO of Nordis was Slawomir Jankowski.

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DTEK Energy Holding has signed agreement with Polish company to build energy storage system in Poland

DTEK Energy Holding, through its EU-focused subsidiary DRI, has signed an agreement with Polish company Columbus Energy to build a 133 MW energy storage system in southern Poland.
“On March 27, DRI signed a definitive binding share purchase agreement with Polish company Columbus Energy, which will give it the right to build a 133 MW battery storage facility in southern Poland, subject to permits,” DTEK said in a release on its website on Wednesday.
DTEK notes that this is the largest energy storage system (ESS) project in Poland, and the agreement is its first major infrastructure investment in the country and a key element in the company’s plan to create a pan-European energy system uniting Ukraine and the EU. DTEK’s goal is to create a 5 GW portfolio of renewable energy projects in Europe by 2030 through DRI.
The acquisition of the 133 MW SPP project makes DTEK Group one of the first companies to develop this technology on a large scale in Poland, the release said.
DRI expects to close the deal with Columbus in the coming months and start construction of the facility in Q4 2024 to complete it and put it into operation in early 2026. The project is committed to providing energy capacity to the Polish market for 17 years (from 2027).
“Today’s signing marks an exciting moment in Europe’s quest to move beyond fossil fuels. This project will not only provide vital flexibility on Poland’s path to a renewable future, but will also be an important achievement for Central and Eastern Europe in demonstrating how battery storage can be successfully developed. DTEK’s investments in the country are a crucial step towards the integration of the energy systems of Ukraine and Poland,” said Maxim Timchenko, CEO of DTEK Group, as quoted in the release.
According to Krzysztof Kokhanowski, Vice President of the Board and CEO of PIME, the largest association in the energy storage industry in Poland, it is gratifying to see international energy players like DTEK investing in the Polish battery market through its EU subsidiary.
“Poland is one of the leaders in the European Union in the production of batteries and battery cells, and in the next 5 years it will be one of the leaders in the construction of energy storage facilities based on battery technology. The construction of this new facility will certainly contribute to our country’s efforts,” he said.
According to the release, Poland currently uses 30 GW of coal and natural gas-fired power to balance its energy system, which is increasingly using renewable energy sources and shifting from centralized to distributed generation. The batteries will help to ensure the grid’s performance and provide the power system with a reliable mechanism for balancing the unstable nature of renewable energy.
As reported, DTEK Group implemented a 1 MW pilot project in Enerhodar in 2021, before Russia’s full-scale invasion of Ukraine. It is now under occupation. In early 2024, DRI launched its first projects in Europe: in Romania, the 60 MW Ruginoasa wind farm and the 53 MW Glodeni solar power plant. It also intends to develop renewable energy in Romania, Italy, and Croatia.

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