Business news from Ukraine

Export of wheat from Ukraine in new season may be reduced by more than third – opinion

The export potential of Ukrainian wheat in the 2022/2023 marketing year (MY, July-June) may be about 12 million tons, which is 36% lower than in the previous 2021/2022 MY (18.7 million tons) and by 28% less than the year before last 2020/2021 MY (16.6 million tons).

As reported on the APK-Inform agency website on Friday, the decline in wheat exports is due to a 39% decrease in the expected gross grain harvest in Ukraine in 2022/23 MY compared to the previous season – to 52.3 million tons from 86 million tons, as well as the limited capacity of the country’s export infrastructure.

According to him, Egypt and Indonesia have been the key importers of Ukrainian grain products for several seasons: at the end of 2021/2022 MY, their shares in total exports amounted to 16% and 14%, respectively (2.9 million tons and 2.5 million tons in natural expression). It is specified that in 2021/2022 MY, Egypt increased purchases of Ukrainian wheat in relation to the season 2020/2021 MY by 19%, and Indonesia – by 2%.

Turkey became the third largest importer of Ukrainian wheat in the past MY – its imports more than doubled compared to the previous season – from 794 thousand tons to 1.9 million tons, and its share in total exports increased from 5% to 10%.

As reported, the US Department of Agriculture (USDA) in the July report predicts the harvest of Ukrainian wheat in the 2022/2023 marketing year (MY, July-June) at the level of 19.5 million tons, its export – 10 million tons, domestic consumption within the country – 10, 2 million tons. The corn harvest is estimated at 25 million tons, export – 9 million tons, domestic consumption – 10.7 million tons.

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Germany to supply bridge-laying tanks to Ukraine

Germany will supply Ukraine with 16 Biber bridge-laying tanks, the German Ministry of Defense has reported.

“We continue to support! To further support the ground forces of Ukraine, Minister Lambrecht has decided to deliver a batch of 16 Biber armored bridge layers. They can be used to overcome water or other obstacles in battle,” the ministry said on Twitter on Friday.

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JYSK opens one more store in Ukraine

On Thursday, July 28, a chain of furniture and household goods stores JYSK opened a store in the Maidan shopping center in Chervonohrad (Lviv region), the retailer’s press service told Interfax-Ukraine.
The press service said that JYSK occupied a space for a store with an area of 982 square meters in the Maidan shopping center and the storage space of 282 square meters.
“We at JYSK believe that by continuing to develop business under martial law, the company contributes to the economy of Ukraine and its future victory. Since the beginning of the war, each opening of a new JYSK store or the resumption of a damaged JYSK store has been accompanied by charity events. This time we would like to draw public attention to the importance of full psychological and metal rehabilitation of our wounded defenders,” JYSK Country Manager in Ukraine Yevhen Ivanitsa said.
The retailer will hold a charity event together with the NGO Space of Opportunities starts a charity event. All customers of the network can take part in it by purchasing patriotic stickers. All proceeds will be transferred to the rehabilitation of the defenders of Ukraine.
According to the press service, the previous charity activity in the sale of patriotic stickers made it possible to collect more than UAH 230,000 in a week.

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German Interior Minister Feser and Social Affairs Minister Heil visit Ukraine

German Interior Minister Nancy Feser and Social Affairs Minister Hubertus Heil arrived in Ukraine on a visit, Spiegel reported on Monday.
“At the beginning of their journey, the politicians wanted to visit the war-torn city of Irpen,” the report says.
It is noted that for Feather and Heil this is the first visit to Ukraine since the beginning of a full-scale Russian invasion. In addition to the visit to Irpen, meetings are also planned with Ukrainian politicians, including with the Minister of Internal Affairs of Ukraine Denis Monastyrsky, the head of the State Emergency Service of Ukraine Serhiy Kruk, First Vice Prime Minister – Minister of Economy Yulia Sviridenko, Minister of Social Policy Oksana Zholnovich and Mayor of Kyiv Vitaliy Klitschko.

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Ukrainian seaports administration starts forming caravans for grain export from ports

The Ukrainian Sea Ports Administration (USPA) reports on the ongoing preparation of the ports of Odessa, Chornomorsk and Yuzhny for the resumption of work in connection with the signing on July 22 in Istanbul of the Initiative for the export of grain and related food products by sea.

“Considering the above, we inform you that the event and the exit of ships to the indicated seaports will be carried out by forming a caravan, which will be accompanied by a leading ship,” the USPA posted on Facebook on Saturday.

In order to draw up plans for the formation of caravans, USPA asks to submit applications for the inclusion of ships by e-mail.

During the signing of the Initiative and immediately after it, Turkish President Recep Tayyip Erdogan and Ukrainian Infrastructure Minister Oleksandr Kubrakov said that ship traffic could resume in the coming days.

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Ukraine, Turkey and the Russian Federation agreed on a 120-day grain export from the ports of Odessa, Chornomorsk and Pivdenny

Ukraine, Turkey and Russia, with the support of UN Secretary General António Guteres, agreed to facilitate safe shipping for the export of grain, related food products and fertilizers (including ammonia) from the seaports of Odessa, Chornomorsk and Pivdenny within 120 days from the possibility of extending this period.
The corresponding signing of documents within the framework of the initiative for the safe transportation of grain and food from Ukrainian ports took place in Istanbul on Friday: the Minister of Infrastructure of Ukraine Oleksandr Kubrakov, in the presence of Turkish President Recep Tayyip Erdogan, signed a tripartite document with Turkish Defense Minister Hulusi Akar and the UN Secretary General, who also signed a second such a tripartite document with Russian Defense Minister Sergei Shoigu.
As noted in the text of the initiative, a copy of which is available to the Interfax-Ukraine agency, it is based on agreements between the parties to the 1974 international convention on the safety of life at sea.
In particular, the parties agree on the following:
– maximum security guarantees for all vessels participating in this initiative;
– creation under the auspices of the UN in Istanbul of a joint coordination center (JCC), which includes representatives of all parties;
– Creation and work on the ships participating in the initiative of inspection teams from representatives of the parties, which will inspect the ships in the ports designated by Turkey, when entering / leaving the Turkish Strait to check the absence of unauthorized cargo and personnel on board.
At the same time, all activities in Ukrainian territorial waters will be under the control and responsibility of Ukraine.
The parties will not launch any attacks on merchant and civilian vessels, as well as on port facilities participating in this initiative.
If clearance of approaches to ports is required, a minesweeper from a third country must be involved
Merchant vessels must be pre-registered with the SKC and will be under technical control for the duration of their passage through the maritime humanitarian corridor agreed by all parties.
The RCC will develop and disseminate a detailed operational and communications plan, including the identification of safe havens and medical assistance options along the route.
In order to prevent provocations and incidents, the movement of vessels transiting the maritime humanitarian corridor will be remotely controlled by the Parties.
“No warships, aircraft, unmanned aerial vehicles (UAVs) can approach the maritime humanitarian corridor closer than the distance agreed by the RCC without the permission of the RCC and only after consultation with all Parties,” the text of the initiative emphasizes.
This initiative will be valid for 120 days from the date of signing by all Parties and may be automatically renewed for the same period, unless one of the Parties notifies the other of its intention to terminate the initiative or change it.
At the same time, the achievement of an agreement on the export of Ukrainian grain does not mean a weakening of the security regime in the Black Sea, representatives of Ukraine have repeatedly emphasized.

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