Business news from Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF SEPTEMBER 24

Official rates of banking metals from national bank as of September 24

One troy ounce=31.10 grams

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UKRAINE PLANS TO BAN USE OF PALM OIL IN BABY FOOD

The Verkhovna Rada intends to prohibit the use of hydrogenated palm oil in the production of food products, mostly consumed by children, to regulate the use of trans fatty acids in them, as well as to establish labeling requirements for foods containing palm oil and fines for their sale. Corresponding bill No. 5148 on amendments to certain laws of Ukraine concerning improving the quality of food products eaten by children was supported at first reading by 304 MPs with the required 226 votes.
According to an explanatory note to the document, it is proposed to ban the use of palm oil in traditional dairy products, as well as hydrogenated palm oil and other hydrogenated vegetable fats in baby food and confectionery.
In addition, the bill prohibits the production and circulation of food products in which the content of trans fatty acids exceeds 2 grams per 100 grams of the total amount of fat in the food product.
The explanatory note states that the sale of food products containing the above substances and ingredients entails the imposition of a fine on legal entities in the amount of 40 minimum wages (currently the minimum wage is UAH 6,000), on individual entrepreneurs – in the amount of 25 minimum wages.
The document also establishes the labeling of products containing palm oil, which, if the bill enters into force, will have to be marked with the easily visible phrase “Contains palm oil” next to the name of the product.

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STRUCTURE OF EXPORT OF SERVICES IN JAN-JUNE 2021 (GRAPHICALLY)

Structure of export of services in Jan-june 2021 (graphically)

SSC of Ukraine

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EUROPEAN UNION INVITES UKRAINE TO DEVELOP BENCHMARKS FOR ACHIEVING CLIMATE NEUTRALITY

The European Union has invited the Ukrainian government to determine specific targets for achieving climate neutrality by 2050, 10 years ahead of schedule.
“The EU welcomes the submission of an updated NDC with increased ambition and encouraged Ukraine to continue developing concrete milestones to achieve Ukraine’s climate neutrality by 2050 and to align its sectoral strategies with that objective,” a press release by the EU Delegation to Ukraine, following the second meeting of the working group within the framework of the dialogue on Green Deal between Ukraine and the EU, reads.
The EU reiterated the need for Ukraine to pursue reforms, and strengthen administrative capacities to implement the commitments of enhanced NDC and possibly achieve additional emission reductions.
“The EU underlined the need for rapid adoption, implementation and enforcement of Ukraine’s key environmental legislation (Waste management, Industrial Emissions, Environmental Control, Emerald network) and of the National Forest management Strategy,” the message says.
Deputy Director General NEAR and Head of the Support Group for Ukraine (SGUA) Katarína Mathernová signalled EU’s readiness to support further Ukrainian efforts, including through financial assistance, for setting up a robust Ukrainian climate governance based on long-term climate neutrality objectives which would guide policies and the “whole-of-the-economy” green transition.
As reported, in accordance with NDC, Ukraine should reduce greenhouse gas emissions by 65% of the 1990 level by 2030, and achieve climate neutrality by 2060. Such goals were set and approved by the Cabinet of Ministers decree of July 30, 2021.

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UKRAINE EXPECTS TO JOIN EUROPEAN CONVENTION ON COMMON TRANSIT IN Q2 2022

Ukraine’s accession to the European Convention on a Common Transit Procedure is expected at the end of the second quarter of 2022, already in the third quarter Ukrainian enterprises will be able to go in transit through 35 countries on the principle of one vehicle – one transit declaration – one guarantor’s undertaking, Director of the Department for the Implementation of the International Transit System of the State Customs Service Serhiy Demchenko has said.

During a roundtable entitled “Implementation of customs procedures in accordance with EU practice: what changes may Ukrainian business expect? Practical aspects” held at Interfax-Ukraine, he said that these are all EU countries, the European Free Trade Association (EFTA) countries, Turkey, Serbia, North Macedonia and the U.K.

The expert recalled that joining the Convention is stipulated by the Ukraine-EU Association Agreement and shall intensify international trade due to the establishment of joint transit procedures by Ukraine with the countries-members of the Convention and their use of a single technology – the New Computerised Transit System (NCTS) system. This system allows the member countries to exchange customs data in real time and monitor goods at every stage of transportation.

“The common transit system provides for four main special transit simplifications for enterprises: the authorized consignor, the authorized consignee, special sealing and a guarantee,” Demchenko said. He added that new approaches are being applied to the standard guarantee amount, which will reduce the amount when it is used by 50%, 70% or 100%.

To obtain simplifications in NCTS, the legislation provides for a special procedure. The guarantee can be provided by companies that have received the financial guarantor status. To submit a transit declaration to NCTS, a company needs to register on the Trader’s Portal in the “personal account” on the “Single Window for International Trade” portal.

“Ukrainian legislation on common transit has already been generally shaped and is in line with the best European practices,” International Key Expert on Customs reform of the EU4PFM Programme to improve Public Financial Management (PFM) in Ukraine, former Deputy Chairman of the Lithuanian Customs Service Vytenis Ališauskas said during the roundtable.

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To date, more than 3,000 customs officials are registered in the system, more than 180 companies have access to the Trader’s Portal, about 300 T1UA declarations have been submitted, three companies have received the financial guarantor status, and the Helpdesk operates.

As reported, NCTS is still used in Ukraine on a national scale. However, as a representative of the State Customs Service said, “enterprises that use NCTS (have submitted 50 or more declarations) can submit documents to the State Customs Service for simplifications, which will be valid even after Ukraine joins the Convention, that is, with the international application of the system.”

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UKRAINE CLIMBS TO 13TH PLACE IN WORLDSTEEL RATING

Ukraine, following the results of work of metallurgical enterprises in August 2021, increased steel production by 1.7% compared to the same period in 2020 – up to 1.858 million tonnes, having risen from the 14th to 13th place in the ranking of 64 countries – the world’s major manufacturers of these products, compiled by the World Steel Association (Worldsteel).
In August, an increase in steel production from August 2020 was recorded in all countries of the top ten, except for China.
The top ten steel producing countries in August 2021 are as follows: China (83.239 million tonnes, a drop of 13.2% versus August 2020), India (9.850 million tonnes, an increase of 8.2%), Japan (7.924 million tonnes, an increase of 22.9%), the United States (7.521 million tonnes, an increase of 26.8%), Russia (6.290 million tonnes, an increase of 4.4%), South Korea (6.130 million tonnes, plus 6.2%), Turkey (3.501 million tonnes, an increase of 7.1%), Brazil (3.149 million tonnes, an increase of 14.1%), Germany (3.020 million tonnes, an increase of 6.7%) and Iran (2.540 million tonnes, an increase of 8.7%).
This is followed by Vietnam (2.250 million tonnes, an increase of 48%), Taiwan (China, 1.950 million tonnes, an increase of 21.9%), Ukraine (1.858 million tonnes, an increase of 1.7%), Mexico (1.540 million tonnes, plus 6.6%) and Italy (1.358 million tonnes, an increase of 44.3%).
In general, in August of this year, steel production decreased by 1.4% compared to the same period last year – to 156.806 million tonnes.
For the eight months of this year, the top ten steel producing countries looks like this: China (733.015 million tonnes, an increase of 5.3%), India (77.739 million tonnes, an increase of 25.6%), Japan (63.988 million tonnes, an increase of 17%), the United States (57.065 million tonnes, plus 19.5%), Russia (50.758 million tonnes, an increase of 7.7%), South Korea (47.455 million tonnes, an increase of 8.4%), Germany (26.662 million tonnes, an increase of 17.4%), Turkey (26.565 million tonnes, an increase of 16.7%), Brazil (24.119 million tonnes, an increase of 20.9%) and Iran (20.371 million tonnes, an increase of 9.7%).
This is followed by Vietnam (17.370 million tonnes, an increase of 65.5%), Italy (16.299 million tonnes, an increase of 27.4%), Taiwan (15.402 million tonnes, an increase of 9.8%), Ukraine (14.590 million tonnes, 6.6%) and Mexico (12.541 million tonnes, plus 15.9%).
In general, in the eight months of 2021, some 64 countries produced 1.322 billion tonnes of steel, which is 10.6% more than in the same period last year.