Business news from Ukraine

Ukrainian sugar producers ask EU to lift ban on sugar exports

Ukrainian sugar producers have asked EU countries to reconsider the sugar export ban on domestic EU markets and resume it taking into account the sugar shortage in Europe, Nazar Mykhailovin, acting head of Ukrtsukor, said.
“Not all countries impose an embargo on Ukrainian products. We need a way through which we can sell exports of sugar. We have to forget about the sea route for some time, but the transit through the EU countries, particularly through Poland and Romania is needed,” he commented to Interfax-Ukraine agency about the situation with the export of Ukrainian sugar to the EU.
According to the industry association, during the period from June 2022 to March 2023 almost 99.9% of Ukrainian sugar was sold on the EU internal market.
The top countries that bought Ukrainian sugar in March 2023 included Romania, Poland, Hungary, Italy, Bulgaria, the Czech Republic and Croatia. Poland, one of the first to ban imports of Ukrainian sugar, bought 8,242 tons of the product from Ukraine, Mikhailovin said.
“Since the beginning of the war, Ukraine has lost its sea export corridor, which has become inaccessible for Ukrainian sugar. Accordingly, the export was carried out mainly to European countries.
At the same time Mikhailovin reminded that due to the beginning of the war the EU made a decision, thanks to which and the presence of export potential Ukraine has the ability to export sugar to the EU domestic markets.
In the sugar beet sugar production season of the 2022 harvest, the factories produced 1.330 million tons of products, which fully met the needs of the domestic market and export potential, the industry association said.
“In the 2022/2023 marketing year, the export potential will depend on the area sown under sugar beet, weather conditions and yields in both Ukraine and Europe,” Mikhailovin said.

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Oil prices stable, Brent $85.65 barrel

Oil prices are stable Wednesday ahead of the release of last week’s U.S. energy inventory data and the country’s March inflation report.
June Brent crude futures on London’s ICE Futures exchange stood at $85.65 a barrel by 8:05 a.m. Wednesday, up $0.04 (0.05%) from the previous session’s close. Those contracts rose $1.43 (1.7%) to $85.61 a barrel on Tuesday.
The price of WTI futures for May oil grew by $0.07 (0.09%) to $81.6 per barrel at electronic trades of the New York Mercantile Exchange (NYMEX) by that time. Contracts rose $1.79 (2.2%) to $81.53 a barrel in the previous session.
“The recent OPEC+ decision to cut production continues to support the oil market,” said Warren Patterson, who is responsible for oil market strategy at ING Groep NV.
“However, at the moment all traders’ attention is focused on data on consumer price dynamics in the U.S., and higher-than-expected inflation will have a negative impact on risky assets,” Patterson was quoted by Bloomberg.
These data will be published by the Labor Department of the USA on Wednesday at 15:00 Moscow time. Experts questioned by Trading Economics on average predict a slowdown of inflation in the country in March to 5.2% on an annualized basis from 6% in February.
The market’s attention is also directed to the U.S. Energy Department’s report on the country’s energy inventories for the week ended April 7, which will be released at 5:30 p.m.
According to the American Petroleum Institute (API), released on Tuesday night, U.S. oil inventories rose by 377,000 barrels last week after falling by 4.3 million barrels a week earlier. Experts polled by Trading Economics, on average, had expected a 1.3 mln barrel increase in inventories.
Stocks at Cushing terminal, which stores oil traded on Nymex, decreased by 1.4 million barrels, API data show. If this estimate is confirmed by official data, the reduction in inventories in Cushing will be noted at the end of the sixth week in a row.

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European Dairy Association supports extension of preferential treatment for Ukrainian exports to EU

The European Dairy Association (EDA) supports the extension of preferential treatment for Ukrainian dairy exports to the EU, according to the March issue of Dairy Flash.
“As EDA, we have made clear our support for the extension of the European Commission’s “zero quota, zero tariff” approach when it comes to Ukrainian dairy exports to the EU. It goes without saying that we expect compliance with the principle of reciprocity in the trade approach,” the EDA stressed.
The corresponding statement was made at the 6th Forum “Civil Society EU-Ukraine” that was held by the Trade Service of the European Commission with the participation of business organizations, environmental groups and non-governmental organizations of the EU and Ukraine.
EDA is a European platform of dairy processors, uniting cooperatives, private dairies, world dairy industry leaders, as well as small and medium-sized companies operating in the dairy sector. It has a major think tank. EDA committees and working groups work to ensure a sustainable dairy base in Europe, to unlock the potential of EU domestic markets, and to ensure growth in global dairy processing.

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Ukraine cuts pork imports from EU

The total supply of chilled and frozen pig meat in March 2023 from the EU was almost 67% lower than last year, falling to 503 tonnes, the Association of Ukrainian Pig Breeders has reported.
In monetary terms, Ukraine imported $949,000 worth of pork in March, the data of the State Customs Service was cited by the industry association.
According to its analysts, this is the lowest monthly figure since 2018.
“During March, the average price of pork by slaughter weight in the EU was about $2.54/kg. The price of pork imported to Ukraine fell to $1.88/kg, which is 5.7% lower than in February this year,” the association said, explaining the decline in import activity by higher prices in EU countries compared to prices for domestic products.
“Even the absence of import duties has not made European pork more price-competitive compared to domestic pork. As long as this status quo persists, external supplies of pig meat will remain inactive,” the industry association predicted.
In general, in the first quarter of 2023, pork imports amounted to 3,160 tonnes, which is more than 75% less than in the first quarter of 2022, the analysts said.

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Ukraine approves document allowing creating common roaming space with EU

On Friday, the Government of Ukraine approved amendments to Annex XVII-3 (Rules applicable to telecommunication services), Annex XVII to the Ukraine-EU Association Agreement, creating the legal framework for the internal market regime in the telecommunications services sector, including with regard to roaming in public mobile networks, provided for by the draft decision of the Ukraine-EU Association Committee in Trade Configuration, Taras Melnychuk, a representative of the Cabinet of Ministers in the Verkhovna Rada, wrote on his Telegram channel.
“We are moving towards Roam like home with the EU. Today, we approved a document that will allow Ukraine to conclude an agreement with the European Union this year,” Prime Minister Denys Shmyhal said, commenting on this decision on his Telegram channel.
At the same time, he said that joining the EU roaming space means not only the abolition of call charges, but also modern, transparent European rules in the field of telecommunications.
It is envisaged that the legislation in the field of telecommunications services in Ukraine, in particular with regard to roaming, will be supplemented taking into account current changes in EU legislation.
As First Deputy Prime Minister, Minister of Economy Yulia Svyrydenko commented on the document, this government decision is one of the stages in the implementation of the updated Priority Action Plan agreed by the Ministry of Economy and the European Commission to strengthen the implementation of the Free Trade Area Agreement. The main focus of this plan is the integration of Ukraine into the internal market of the EU.
“The approval of the decision of the Ukraine-EU Association Committee in Trade Configuration will create conditions for Ukraine to receive an internal market regime in the field of roaming. This year, this area will be a pilot project for the full legal integration of Ukraine into internal European regulation,” the press service of the Ministry of Economy quoted Svyrydenko.

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Housing became cheaper in EU for first time since 2015 – Eurostat

Housing prices in the European Union fell by 1.5% in the fourth quarter of 2022, writes the Financial Times citing the EU statistical service Eurostat.
Housing became cheaper during the quarter for the first time since 2015. Prices fell in 15 of the 27 EU countries amid tightening standards and rising lending costs.
Denmark (6.5 percent) and Germany (5 percent) recorded the largest price declines.
“In the coming quarters, we expect further deterioration in the price dynamics in the housing market,” the newspaper quotes the words of economist Ani Heimann of S&P Global Market Intelligence.
Over time, a lack of investment by construction companies will limit supply and stabilize prices, Heimann believes.
Data on the state of the market in some countries suggest that in early 2023, housing continues to get cheaper, said FT. For example, in the Netherlands, its value decreased by 1.5% in January-February.

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