Business news from Ukraine

UK SUPPLIED UKRAINE WITH ALMOST 200 MOBILE POWER GENERATORS

Ukraine has received two batches of mobile power generators in a total of 177 received from the UK to maintain the reliability of the country’s energy supply, the Ministry of Energy said in a statement.
“In total, the UK announced the transfer of more than 500 portable generators, which will be used by both public and commercial energy companies to provide sustainable power to social facilities, homes, businesses,” the ministry said.
The generators will become a backup source of power in the event of a power outage as a result of enemy shelling of electrical networks and equipment.
“One of our main tasks is to provide our citizens, businesses, the Armed Forces of Ukraine with a stable energy supply. At a time when the Russian invaders are destroying our power grids and critical energy infrastructure, these generators will become an additional guarantee of a reliable energy supply for Ukrainians,” Minister of Energy German Galushchenko stressed. .
As informed in the Ministry of Energy, in the near future, deliveries of the following batches of mobile power generators from the UK are expected.

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UK PRIME MINISTER JOHNSON: UK WITH PARTNERS WILL INCREASE ECONOMIC PRESSURE ON RUSSIA

The UK will increase economic and sanctions pressure on the Russian Federation, in particular, will affect its ability to use its energy resources, said British Prime Minister Boris Johnson
“It is necessary to provide all kinds of support to Ukraine and together with partners we will increase economic pressure, and we will intensify sanctions against Russia every week. We will not be limited to asset freezes or sanctions against oligarchs – we will also affect Russia’s ability to use its energy resources,” Johnson said at a joint press conference with Ukrainian President Volodymyr Zelensky on Saturday in Kyiv.

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UKRAINIAN PARLIAMENT ENLARGES DEFENSE SPENDING WITH 1.7-BLN-POUND LOAN FROM UK

Ukraine’s spending on the development and procurement of weapons and military hardware in 2022 has been increased by UAH 67.57 billion with UK loans totaling 1.7 billion and aimed at bolstering capacities of the Ukrainian Navy.
The Ukrainian Verkhovna Rada adopted the respective bill by 342 votes on Tuesday.
The bill enlarges this year’s budget expenditures from UAH 1,525.930 trillion to UAH 1,593.5 trillion with the special fund’s growth to UAH 221.11 billion.
Meanwhile, the budget deficit ceiling was raised from UAH 188.8 billion to UAH 256.36 billion, including UAH 96.1 billion for the special fund.
In addition, the budget no longer has restrictions at the amount of 3% of the planned revenue for the provision of state guarantees, as well as restrictions at the amount of UAH 10 billion and UAH 20 billion, respectively, for the provision of portfolio guarantees and loan guarantees, in order to increase the national defense capacity.
The bill limits road fund expenditures. “The money will be primarily spent on repaying the state debt, defense, and the development and maintenance of roads,” the Servant of the People faction said in comment on the bill.
An explanatory note says that Ukraine will be implementing state investment projects to purchase two minesweepers from British suppliers, to deliver and service these minesweepers, to ensure the joint construction of eight missile craft, and to deliver and install weapons on the available ships. It is also planned to jointly build a frigate and to receive advisory and technical support for the construction of naval infrastructure, including the delivery of equipment.
At the end of January, the Verkhovna Rada ratified a framework intergovernmental agreement on loan funding of the development of the Ukrainian Navy. The agreement was signed in London on November 12, 2021, to envisage allocations for the construction of eight missile craft, the procurement of two minesweepers from the UK, and the opening of two naval bases in Ukraine.

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UK BANS EXPORT OF LUXURY GOODS TO RUSSIA

The UK denies Russia and Belarus access to Most Favored Nation tariff for hundreds of their exports, imposes a 35% import duty on a number of Russian goods, including vodka, and, same as the European Union, bans exports of luxury goods to Russia, the British government said in a statement on Tuesday.
“The UK denies Russia and Belarus access to Most Favored Nation tariff for hundreds of their exports, depriving both nations key benefits of WTO membership,” the statement said.
Same as the EU, London bans “exports of luxury goods to Russia alongside its G7 allies,” the statement said. The ban applies to vehicles, clothes and art.
The British government also “published an initial list of goods worth GBP 900 million – including vodka – which will now face an additional 35 percent tariff, on top of current tariffs,” the statement said.

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UK SENDS HUMANITARIAN AID TO MOLDOVA FOR UKRAINIAN REFUGEES

The UK has sent humanitarian aid to Moldova for Ukrainian citizens who are fleeing the country due to the Russian invasion, British Foreign Secretary Liz Truss said.
“We are providing vital humanitarian aid to those fleeing Russia’s horrific attack on Ukraine. This shipment of hygiene kits and blankets to Moldova will ensure that those most affected by the conflict receive the crucial help they need,” the minister said on Twitter.

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UK DECIDES TO STOP IMPORTING RUSSIAN OIL BY YEAR END

The UK will gradually stop importing Russian oil by the end of 2022 in response to Vladimir Putin’s illegal invasion of Ukraine, the British government said in a statement on Tuesday.
“The UK is working closely with the US, the EU and other partners to end our dependence on Russian hydrocarbons in response to Russian aggression in Ukraine, recognising the different circumstances and transition timelines. This significant move will increase the growing pressure on Russia’s economy by choking off a valuable source of income,” the document says.
According to it, the refusal of imports will not be immediate: the UK, which covers 8% of its oil demand from Russia, will have more than enough time to adjust supply chains, support industry and consumers. The government will work with companies through a specially created Taskforce on Oil to help them use this period to find alternative sources.
London notes that oil accounts for 44% of Russian exports, which provides 17% of federal budget revenues.
According to the British government, in a competitive global market for oil and petroleum products, demand can be met by alternative suppliers. The UK has various reliable suppliers outside of Russia, including the Netherlands, Saudi Arabia and the United States.
“In another economic blow to the Putin regime following their illegal invasion of Ukraine, the UK will move away from dependence on Russian oil throughout this year, building on our severe package of international economic sanctions,” UK Prime Minister Boris Johnson said.
According to London, Russian oil is already being ostracised by the market, with nearly 70% of Russian oil currently struggling to find a buyer, and in a competitive global market demand will quickly be met by alternative suppliers. On March 1, Russian ships were banned from UK ports and authorities were granted new powers to detain Russian vessels.
The statement notes that the UK is not dependent on Russian natural gas, making up less than 4% of our supply. Ministers are also exploring options to reduce this further.
The Prime Minister confirmed that the government will set out an energy strategy to set out the UK’s long term plans for greater energy security, including both renewable and domestic oil and gas supplies.
As reported earlier on Tuesday, the United States announced a complete renunciation of Russian oil imports.

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