Business news from Ukraine

Second caravan of four vessels with 170 thousand tons of agricultural products left Ukrainian ports

The second caravan of four vessels under the Istanbul Grain Initiative left Ukrainian ports on Sunday morning, the total tonnage increased to almost 170,000 tons, sunflower oil and sunflower seeds appeared in addition to corn.
“The second caravan with Ukrainian food has just left the ports of Odessa and Chornomorsk – 3 ships from Chornomorsk and one more from Odessa. There are almost 170 thousand tons of agricultural products on board 4 bulk carriers Mustafa Necati, Star Helena, Glory and Riva Wind” , – the Ukrainian Sea Ports Administration reported on Facebook.
According to the Turkish Ministry of Defense on Twitter, the Riva Wind ship is heading to Iskenderun with 44,000 tons of corn, Mustafa Necati – to Italy with 6,000 tons of sunflower oil, Star Helena – to China with 45,000 tons of sunflower seeds and Glory – to Istanbul with 66 thousand tons of corn.
“The vessels will be anchored north of Istanbul and will be inspected by the Joint Coordination Centre,” the Turkish Defense Ministry specified.
As reported, on July 22 in Istanbul, at the proposal of the UN, Ukraine, Turkey and UN Secretary-General António Guteres signed the Initiative for the safe transportation of grain and food from the Ukrainian ports of Odessa, Chornomorsk and Yuzhny.
As part of the implementation of agreements with a cargo of Ukrainian corn, 4 ships have already been sent with more than 80 thousand tons of corn: Razoni, Navi Star, Rojen and Polarnet.

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Grain export to be launched from Ukrainian ports within two weeks

The export of Ukrainian grain will be launched primarily from Chornomorsk commercial sea port (Odesa region).
“We believe that within the next 24 hours we will be ready to work on resuming the export of agricultural products from our ports. We are talking about the port of Chornomorsk, it will be the first. Then there will be the port of Odesa and the port of Pivdenny,” the Deputy Minister of Infrastructure Ukraine Yuriy Vaskov said during a briefing in Kyiv on Monday.
According to him, within two weeks the Infrastructure Ministry will be technically ready to export from all terminals of the three seaports of the country.
The first shipment of grain, according to Vaskov, is expected this week.

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ITALY IS READY TO PARTICIPATE IN DEMINING OF UKRAINIAN PORTS

Italy, if necessary, is ready to take part in mine clearance operations at Ukrainian ports in order to ensure the exit of ships with grain from them, Italian Foreign Minister Luigi Di Maio said on Wednesday.
“We are putting pressure on the creation of sea corridors for the transportation of agricultural products from Ukrainian ports, especially grain. To do this, it is necessary to clear the sea areas near the ports, especially near Odessa,” Sole 24 Ore quoted him as saying.
“Italy has expressed its willingness to participate in demining operations. We want the UN to play a central role in conducting and coordinating operations, along with other partners such as Turkey,” Di Maio added.
He noted that the export of grain would be possible “with Russian guarantees for the safety of ships and their cargo.”

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WORLD TRADE ORGANIZATION TO CONSIDER UNBLOCKING UKRAINIAN PORTS ON JUNE 12-15 IN GENEVA

The World Trade Organization (WTO) will consider unblocking Ukrainian ports for food security at the 12th Ministerial Conference on June 12-15 in Geneva.
“We are grateful for the personal efforts of the Director General of the WTO to find a solution to the logistics of Ukrainian grain, so important for Ukraine, Africa and the world. Free and fair trade will save the world from hunger and poverty,” the press service quoted the First Deputy Prime Minister as saying. Minister of Economy Yulia Sviridenko following her meeting with WTO Director-General Ngozi Okondji-Ivela at the World Economic Forum.
During the meeting, the parties also agreed on cooperation on the eve of the 12th Ministerial Conference.

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KYIV DEMANDS FROM RUSSIA TO STOP PLUNDER OF GRAIN, UNBLOCK UKRAINIAN PORTS, RESTORE FREEDOM OF NAVIGATION – MFA COMMENT

The Ministry of Foreign Affairs of Ukraine (MFA) strongly condemns the Russian Federation’s actions in disposing of grain that was illegally seized from Ukrainian farmers.
“The Ministry of Foreign Affairs of Ukraine strongly condemns the Russian Federation’s actions in disposing of grain that was illegally seized from Ukrainian farmers. Russian occupants are stealing Ukrainian grain and either consuming it themselves or attempting to sell it on international markets. The plunder of food supplies from the territory of an independent sovereign state is one of the aspects of looting,” the MFA said in a comment posted on the website on Wednesday.
“The Ministry of Foreign Affairs of Ukraine warned consumer countries that grain consignments exported by Russia could contain stolen grain obtained as a result of Russian occupation authorities’ plundering. Any country that knowingly purchases stolen grain is considered to be complicit in the crime.”
According to existing information, the occupants have already seized at least 400-500 thousand tons of grain worth more than $100 million, according to the Ukrainian government. It is known that “almost all grain-laden ships departing from Sevastopol transport stolen Ukrainian commodities.”
“The criminal seizure, export and consumption of Ukrainian is another example of Russia’s destructive acts, which, in particular, contravene the fundamental principles of the Food and Agriculture Organization of the United Nations (FAO) – achieving food security for all and overcoming hunger,” the ministry emphasizes.
In addition, “the aggressor state’s policy puts into doubt the relevance of its participation in FAO and other international organizations.”
The Ministry of Foreign Affairs of Ukraine demands that Russia stop illicit grain stealing, unblock Ukrainian ports, restore freedom of navigation, and allow trade ships to pass.
“We urge the international community to strengthen economic sanctions against Russia in order to stop its military aggression against Ukraine, to avert a humanitarian disaster and the world’s food security crisis,” the ministry said.

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PROFIT OF UKRAINIAN PORTS SHOULD BE RETURNED TO CITIES FOR INFRASTRUCTURE DEVELOPMENT

The profits of ports should be returned to the cities in which they are located for the development of their infrastructure, Mykolaiv Mayor Oleksandr Senkevych has told Interfax-Ukraine on the sidelines of the International Mayors Summit (IMS).
“Mykolaiv was a city of shipbuilders. Now the factories are standing idle, Mykolaiv has turned into a port city. However, we do not receive money from the port infrastructure to the local budget, except for personal income tax and land lease,” Senkevych said.
He recalled that last year the net profit of the Ukrainian Sea Ports Authority amounted to more than UAH 2.6 billion.
“I think that this amount needs to be “halved.” Half of the profits is to be divided between the port cities, in proportion to the transshipment of goods. Cities should receive a portion of what they have earned for the country. Then we will be able to restore our infrastructure,” he said.
In his opinion, it will be possible to talk about the restoration of production and the attraction of significant investments in shipbuilding after the adoption of a law on technology parks. Senkevych considers promising a mechanism for the establishment of tax credits and preferential rates by local governments.
“Roughly speaking: they built a plant for EUR 100 million, you are provided with a tax credit for 50% of this amount for five to seven years. Personal income tax and land tax are paid from this amount. It is profitable for the enterprise to work officially, pay high salaries to employees,” Senkevych said.

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