Business news from Ukraine

UKRAINIAN ENTERPRISES IN 2021 INCREASE EXPORT OF FERROUS SCRAP BY 8.9 TIMES

Ukrainian enterprises in January-May this year increased exports of ferrous scrap by 8.9 times compared to the same period last year, to 146,345 tonnes, including 59,366 tonnes of scrap exported in May.
According to statistics released by the State Customs Service on Wednesday, in monetary terms, exports of scrap metal increased by 12.5 times, to $52.333 million.
At the same time, in January-May this year, the country increased imports of scrap metal in quantity terms by 51.3%, to 10,351 tonnes. In monetary terms, imports of scrap increased by 2.4 times, to $18.007 million.
Scrap metal in January-May this year was mainly imported from Turkey (63.78% of deliveries in monetary terms), the Russian Federation (28.98%) and the U.S. (2.26%); and exported – to Turkey (96.26%), Germany (0.99%) and Lithuania (0.91%).

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20 STATE-OWNED ENTERPRISES OF UKRAINIAN DEFENSE MINISTRY ARE TO BE LIQUIDATED

Twenty state-owned enterprises of the Ukrainian Defense Ministry are to be liquidated and fifteen others are to be reorganized based on the results of 2020-2021, Ukrainian Deputy Defense Minister Ihor Khalimon said.
“Over the course of 2020-2021, 20 state enterprises should be liquidated, 15 reorganized, and three prepared for privatization (the 209th Operations Officer’s Directorate, the 417th Operations Officer’s Directorate, and the Druzhbivsky Quarry of Nonmetallic Minerals Kvarts),” Khalimon said in an interview with Interfax-Ukraine.
In line with a list of state-owned assets endorsed by the Defense Ministry order of September 11, 2020, which envisions the optimization of the state enterprise management system, 42 of the 111 Defense Ministry enterprises (40 related to the ministry’s Main Directorate and the other two to its Main Intelligence Directorate) will remain operating, Khalimon said.
“We’re talking about optimizing the system of management of state enterprises by determining a list of economic assets to be engaged in meeting the needs of the Ukrainian Armed Forces,” he said.
The Defense Ministry currently manages 109 economic entities, which generated losses of over UAH 53,000 in 2019, Khalimon said.
“Based on the results of economic activities in 2020, the enterprises transferred UAH 269.235 million to the Ukrainian state budget, which is 12% more than in the previous period, the enterprises’ aggregate revenue grew by 23% to UAH 1.069 billion, and the net sales revenue grew by 19.6% to UAH 984.7 million,” Khalimon said.
According to him, after the reorganization of the state-run enterprise Ivano-Frankivsk Military Timber Industrial Complex and the state-run enterprise Lviv Military Forestry Complex, 11 newly established forestry enterprises, based on the results of financial statements, worked profitably, with no wage arrears.

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UKRAINE INTENDS TO PRIVATIZE EIGHT STATE-OWNED ENTERPRISES

The Cabinet of Ministers has transferred eight state-owned enterprises to the management of the State Property Fund (SPF): Ecotransenergo, Kharkiv Industrial and Trade Enterprise, State Scientific and Technological Production Enterprise Veresk, Settlement and Clearing Center, Industrial and Metallurgical Consulting, state-owned enterprise State Information Analytics, Polupanivka Quarry, as well as the state institution Partner Fund.
The resolution was adopted by the government at a meeting on Wednesday without discussion.
According to an explanatory note to the draft resolution, out of these enterprises, as of July 1, 2020, only three were economically active. These are Ecotransenergo, Kharkiv Industrial and Trade Enterprise, and State Information Analytics.
The total value of Ecotransenergo’s assets as of in the middle of 2020 was estimated at UAH 47 million, Kharkiv Industrial and Trade Enterprise – UAH 22 million, while the value of their assets in the first half of 2020 fell by 6.5% and 3%, respectively, according to the document.
In the first half of last year, both companies posted losses totaling over UAH 4 million, while Ecotransenergo also has wage arrears of over UAH 1.7 million.
As indicated in the explanatory note, there is no data on the activities of SOE State Information Analytics.

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SERVICE ENTERPRISES OF UKRAINE REDUCE SALES BY 5.5% IN Q3

The volume of sales of enterprises in the service sector of Ukraine in the third quarter of 2020 amounted to UAH 238.3 billion, which in comparable prices is 5.5% lower than the level of the third quarter of 2019, the State Statistics Service has said.
According to the report, the volume of services sold to the population amounted to 19.3% of the total volume of services rendered.
The State Statistics Service reminds that in the first quarter of 2020 the volume of sales of service enterprises decreased by 1.7%, in the second quarter by 18.3%.

TRANSPORT ENTERPRISES OF UKRAINE REDUCE TRANSPORTATION OF GOODS

Transport enterprises of Ukraine (excluding the territory of the Autonomous Republic of Crimea and Sevastopol, as well as part of the JFO zone) in January-August 2020 reduced transportation of goods by 13.4% compared to the same period in 2019, to 382.2 million tonnes, the State Statistics Service has reported.
According to the report, the freight turnover of carriers for the specified period decreased by 17.1%, to 185.7 billion tonne-kilometers.
According to statistics, for the eight months of this year, 196.7 million tonnes of cargo were transported by rail in domestic traffic and for export, which is 5.3% less than in January-August 2019. Some 119.4 million tonnes (23.5% less) were transported by road, 3.3 million tonnes (12.4% less) by water, 62.7 million tonnes (15% less) by pipeline, and 100,000 tonnes by air (10.7% less).

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UKRAINIAN ENTERPRISES INCREASE CONSUMPTION OF METAL BY 3.26%

Ukrainian enterprises increased the consumption of metal by 3.26% in January-May of this year compared to the same period last year, to 1.66 million tonnes.
According to an Ukrmetallurgprom association press release published on Friday, 434,700 tonnes, or 26.2% of the domestic metal consumption market, were imported in the first five months of the year.
“In January-May 2020, 1.66 million tonnes of rolled metal were delivered to domestic consumers, of which 434,700 tonnes, or 26.2%, were imported. For five months of 2020, there was an increase in the consumption of rolled metal in the domestic market compared to January-May 2019 by 3.26% with a simultaneous decrease in the share of the imported component by 7.6%,” the association said in the press release.
According to Ukrmetallurgprom, in January-May 2020, Ukrainian metal enterprises produced 7.43 million tonnes of rolled metal (93.8% compared to the same period in 2019), of which about 6.21 million tonnes or 83.5% were exported, according to information from ETR-Spectrum LLC.
The share of semi-finished products of export deliveries in January-May 2020 accounted for 49.74%, which exceeds the indicator for the period January-May 2019 (45.38%). The share of flat products of export deliveries in the first five months of 2020 is slightly lower than in the same period in 2019 (32.05% and 34.00%, respectively). The same picture is observed with regard to long products – 18.21% in January-May 2020 compared with 20.62% for the same period in 2019.
The main export markets for Ukrainian metal products in January-May 2020, according to ETR-Spectrum LLC, were the countries of the European Union (31.1%), Africa (14.8%) and other European countries (14.1%).
Among the metallurgical importers in January-May, the CIS was at the first place (39.1%), the EU-28 was the second (26.1%), and the Asian countries third (18.0%).

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