Business news from Ukraine

EXPERTS INCREASE FORECAST FOR HARVEST OF GRAIN AND OILSEEDS IN UKRAINE

The Ukrainian Grain Association (UGA) increased the forecast for the harvest of grain and oilseeds in Ukraine in 2022 by 4.4% compared to the May forecast – up to 69.4 million tons from 66.5 million tons, according to the UGA website on Wednesday.

At the same time, the assessment by the association of sown areas under these crops increased by 1.6% compared to forecasts in May – up to 19.1 million hectares from 18.8 million hectares.

“Ukrainian farmers, despite the difficult wartime conditions, minefields and hostilities due to the aggressive war of the Russian Federation, continue to courageously fight for the harvest so that Ukraine has enough grain and can export part of the crop to the world market. This year, Ukraine can get 69 .4 million tons of grain and oilseeds from an area of about 19.1 million hectares,” the UGA said in a statement.

At the same time, the export of grain and oilseeds from Ukraine in the 2022/2023 marketing year (MY, July-June) can reach 31.5 million tons, subject to a significant increase in the throughput capacity of border crossings on the western borders of Ukraine. Given the current throughput capacity, Ukraine can count on the export of about 25-30 million tons of crops in the 2022/2023 marketing year that has begun.

According to the results of 2021/2022 MY, it is expected that the transitional crop balances in the country will amount to about 25.9 million tons (+0.9 million tons compared to UGA forecasts in May). In 2022/2023 MY, this figure may increase to 36.6-48 million tons due to the inability to export agricultural products at the usual pace for Ukraine. In May, the association predicted transitional balances for 2022/2023 MY at the level of 31-43 million tons.

According to UGA forecasts, in 2022, a wheat harvest is expected at the level of 20.8 million tons (+8.3% compared to the organization’s May forecast); 27.3 million tons of corn (+4.6%); 6.6 million tons of barley (forecast kept); 9 million tons of sunflower (forecast kept); 2.2 million tons of soybeans (+4.7%); 1.5 million tons of rapeseed (+13.3%).

UGA also predicts the export of wheat in 2022/2023 MY at the level of 10 million tons, corn – 10 million tons, barley – 2 million tons, sunflower – 6 million tons, soybeans – 1.8 million tons, rapeseed – 1.45 million tons.

“In general, the export of grains and oilseeds in 2022/2023 MY can be expected at the indicated level, if Ukraine, under the blockade of the Black Sea ports, can double the throughput of other logistics directions, including railway crossings at the borders with the EU countries,” the association explained in message.

At the same time, the unblocking of the Black Sea ports will greatly simplify the logistics and cost of transporting grain for export, and producers will be able to make a big profit for the grown crop in accordance with the high prices for agricultural crops that are currently prevailing on the world market. “Unblocking Ukrainian ports and ensuring the safety of navigation in the Black Sea is the only way to quickly and effectively resume Ukrainian grain exports to countries in dire need. The lack and high cost of food can cause, according to UN estimates, famine in many poor countries of the world, mass protests and riots, and as a result mass migration of people from Africa and the Middle East to the EU,” the UGA summed up in the message.

As reported with reference to the data of the State Statistics Service, in 2021 Ukraine harvested a record harvest of grain and leguminous crops in the amount of 85.7 million tons, which is 32% more than in 2020. In total, 32.07 million tons of wheat (+28.9%), 41.87 million tons of corn (+38.2%) and 9.42 million tons of barley (+23.3%) were harvested.

Ukraine in 2021 also harvested 16.38 million tons of sunflower (+25% compared to 2020), 10.8 million tons of sugar beet (+18.1%), 3.5 million tons of soybeans (+24.4%), 2.92 million tons of rapeseed and 42 thousand tons of oilseed flax (an increase of 3.7 times).

The Ukrainian Grain Association (UGA) is an association of producers, processors and large grain exporters who annually export about 90% of Ukrainian grain products.

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AMAZON RECEIVES PEACE PRIZE FROM UKRAINE FOR SUPPORTING THE COUNTRY

Amazon received the Ukraine Peace Prize for supporting the country during the war unleashed by Russia, the award was presented by Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov during a meeting in Lugano (Switzerland).
“Amazon AWS has been actively supporting Ukraine since the beginning of Russia’s full-scale invasion. The company helped save our digital infrastructure during the war. In particular, the migration of Ukraine’s state registries and critical databases to the Amazon AWS cloud environment was critical. And from the very first days of the war, it banned the registration of new customers from Russia and Belarus,” the message on the Telegram channel of the Ministry of Digital Transformation says.
The ministry notes that Fedorov also discussed with Liam Maxwell, Director of Government Transformation at Amazon Web Services, further cooperation in the areas of digital lending and the post-war reconstruction of Ukraine.
“Maxwell noted that the company is ready to help with technological solutions for the digitalization of the public sector and the judicial system,” the ministry said.
Ukraine Peace Prize is an award introduced by the President of Ukraine for companies and corporations, governments, officials, world politicians who most support Ukraine and help in the fight against the Russian aggressor.
As reported, Google was the first to receive the Ukraine Peace Prize. This award was also received by Microsoft.

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IRISH PRIME MINISTER ARRIVES IN UKRAINE

Irish Prime Minister Micheál Martin has arrived in Kyiv to express support for the Ukrainian people, The Irish Times said.
Ireland will stand by Ukraine in the face of Russia’s “immoral and unprovoked war of terror,” Martin said ahead of his arrival in Kyiv this morning.
“The bombardment and attacks on civilians are nothing short of war crimes, and I will use my visit to express Ireland’s support for moves to hold those behind these attacks fully accountable,” Martin said.
The Prime Minister of Ireland has arrived in Kyiv, where he is expected to meet with Ukrainian President Volodymyr Zelensky. Martin will also discuss with the Ukrainian authorities how Ireland and the EU can support the current and future needs of the country.
The Irish government says that Martin will personally see the destruction due to bombing and targeted attacks on civilians during the invasion and occupation by Russian troops.
According to the statement, the prime minister “will reiterate Ireland’s full backing for continuing sanctions against Putin’s regime, for Ukraine’s path to full EU membership, as well as our commitment to work with EU colleagues to ensure the reconstruction of Ukraine.”
“The spirit and resolve of the Ukrainian people has inspired us all, and Ireland will provide every support for Ukraine’s path to full EU Membership, and continue to welcome and support civilians fleeing this war,” the prime minister said.
Martin was invited to Ukraine last month by President Zelensky.
The exact details of the visit last night were not released due to security concerns, but Martin was expected to travel to Kyiv by land from Poland.

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UKRAINE PLANS TO IMPLEMENT $1.5 BLN RAILWAY DEVELOPMENT PROJECTS IN 3 YEARS

Minister of Infrastructure of Ukraine Oleksandr Kubrakov during the forum in Lugano (Switzerland) on Tuesday, July 5, presented a number of planned projects for the development of the country’s railway export infrastructure.

According to the information in the presentation that Kubrakov presented, in particular, among the projects: construction of new and modernization of existing railway lines (both 1435 and 1520 mm) in the direction of the border with the EU and the seaports of the Danube; modernization of rolling stock for freight traffic; modernization of equipment for changing the gauge.

The total cost of these projects is $1.5 billion.

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DENMARK TO PROVIDE UKRAINE WITH FINANCING PACKAGE IN AMOUNT OF EUR 13.5 MLN

Denmark will provide Ukraine with a financing package in the amount of EUR 13.5 million, Danish Foreign Minister Jeppe Kofod said.

“I am pleased to announce today that we will provide a financing package in the amount of EUR 13.5 million to support concrete measures before the start of winter,” he said on Tuesday during a conference on the restoration of Ukraine, which is being held in Lugano, Switzerland.

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WALES AND SCOTLAND ALLOCATE GBP 100 MLN FOR MILITARY ASSISTANCE TO UKRAINE

he Welsh government has allocated GBP 35 million for military assistance to Ukraine, Scotland has allocated GBP 65 million. Wales has accepted 3,000 Ukrainian refugees, Scotland – 6,000, British Prime Minister Boris Johnson said. “The Welsh Government has contributed £35m to our military support for Ukraine, and Welsh families have taken in 3,000 refugees,” Johnson said on Twitter Monday.

According to him, he discussed with the First Minister of Wales Mark Drakeford the continuation of joint work against Russian aggression.

Johnson also wrote that he also talked with the First Minister of Scotland Nicola Sturgeon.

“I’ve just spoken to Nicola Sturgeon to herald the success of UK collaboration supporting Ukraine. I thanked the Scottish Government’s £65 million contribution in upping UK’s military aid to Ukraine to £2.3 billion & efforts to help house 6,000 Ukrainian refugees,” he wrote.

Earlier, materials appeared in the media that allegedly the Welsh government did not agree on the allocation of GBP 35 million as part of a new package of British military assistance to Ukraine for GBP 1 billion.

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