Business news from Ukraine

DTEK FOCUSES ON PLANS TO INVEST IN RENEWABLE ENERGY GENERATION IN EUROPE

DTEK Energy Holding has not abandoned plans to invest in the generation of electricity from renewable sources in Europe, and is now exploring opportunities for this in different countries, CEO of DTEK Renewables Maris Kuniсkis has said.
“Yes, this is in our focus. Plans to invest in Europe remain. As long as there is no stability in Ukraine, we focus on abroad,” he said during the 12th International Ukrainian Energy Forum of the Adam Smith Institute on Friday.
At the same time, he said that, since the market in Europe is also changing, the company has to reorient itself to other countries, abandoning the development of projects in those that were considered in 2020. In addition, Kuniсkis did not disclose the details of possible projects.

, , ,

UKRAINIAN PRIME MINISTER: MARKET GRADUALLY REORIENTING FROM RUSSIA TO EUROPE

The volume of trade between Ukraine and Russia has dropped by nearly 84% over the past six years, Ukrainian Prime Minister Denys Shmyhal said at a joint press conference with European Commission Vice-President for Interinstitutional Relations and Foresight Maros Sefcovic in Kyiv.
“In fact, the volume of annual trade from Russia has dropped over the past six years by nearly 84%, from $37 billion to $7 billion. Trade turnover between Russia and Ukraine is gradually declining. At the same time, the volume of trade [between Ukraine and] Europe has grown to over 40%, which means it has grown by more than fivefold. The replacement of markets is underway, and Ukraine is learning to manufacture goods of higher quality, in line with European standards, which meets the course of our development,” Shmyhal said, when asked by Interfax-Ukraine what share of Ukrainian exports has been affected by Russia’s recently-introduced ban on imports of certain products from Ukraine and how the Ukrainian government would respond to it.
Shmyhal insisted that he was talking not about “trade wars” but about the Ukrainian market’s natural reorientation toward the European and other markets.
As was reported earlier, the Russian government extended a list of products that cannot be imported from Ukraine on June 28, 2021.

, , ,

BELARUSIAN SEA SHIPPING COMPANY PLANS TO SHIP STEEL TO EUROPE VIA UKRAINIAN, SERBIAN PORTS

Belarusian Sea Shipping Company is planning to ship steel goods made by Belarus Steel Works (BSW) to Europe via Ukrainian and Serbian ports.
The shipping company is willing to organize “experimental shipments of metal goods to Europe via the ports of Odessa in Ukraine and Semderovo in Serbia with loading in Mozyr,” the Belarusian Transport Ministry said following a meeting between its head, Alexei Avramenko, and BSW management.
The ministry said the shipments would be a promising area for the shipping company’s development and make water transport more appealing or Belarusian industry in general.
OJSC Belarusian Sea Shipping Company was established in 2009 and carries export, import and transit cargo to and from CIS and non-CIS countries using river-sea ships.
Belarus is landlocked but most of its exports are carried out by sea, via the Baltic States. The shipping company had earlier been in favor of building a deep-water port on the Dnieper River in the Gomel region, 5 km from the border with Ukraine, then shipping cargo by sea from Odesa.
BSW produces steel, roll, tubular goods and hardware and exports to 66 countries.

, , , ,

TRADE REPRESENTATIVE: UKRAINE COULD LIFT MORATORIUM ON ROUND TIMBER FOR EUROPE

Ukraine may lift the ban on the import of unprocessed timber exclusively for the EU countries after it provides transparency in the domestic market, as it is suggested by bill No. 4197-1, Deputy Minister of Economy and Trade Representative of Ukraine Taras Kachka has said. “We informed them with a note that we would pass the law in six months. The bill we are putting on is No. 4197-1. This is the bill on the timber market. The logic is very simple: first, we ensure transparency in the domestic market so that there are no grounds for manipulation. As part of this bill, we will also consider lifting the moratorium exclusively for the EU – we have no reason to lift it for the rest,” Kachka told Interfax-Ukraine on the sidelines of the Ukraine 30 forum.
He stressed that trade with the EU will be possible only with transparent mechanisms.
“Now in the EU there are two initiatives on forest control – corporate due diligence and a ban on the import of unprocessed raw materials is even possible. So they have the same process going on, we will actively synchronize,” Kachka said.
As reported, the Verkhovna Rada on April 9, 2015 adopted a law, which banned the export of unprocessed timber and sawn timber (round timber) for 10 years.
In 2018, the parliament limited domestic consumption of unprocessed timber to 25 billion cubic meters per year for the duration of the export of round timber outside the customs territory of the country.
In January 2020, Ukraine and the EU created an arbitration group to consider a dispute over Ukraine’s ban on the export of raw timber. At the end of 2020, it issued a decision recognizing its right to restrict timber exports under certain circumstances, while at the same time recognizing the need to adjust the 2015 moratorium in cooperation with the EU.

, ,

BOLT RAISES EUR 20 MLN OF INVESTMENT TO DEVELOP SERVICES IN EASTERN EUROPE (INCLUDING UKRAINE) AND AFRICA

Bolt, a ride-hailing service, has raised EUR 20 million of investment from the International Finance Corporation (IFC), a member of the World Bank Group, to increase access to mobility services in Eastern Europe (including Ukraine) and Africa (Nigeria and South Africa), the press service of the company reported on Thursday.
“Technology can and should unlock new pathways for sustainable development… Our investment in Bolt aims to help tap in to technology to disrupt the transport sector in a way that is good for the environment… and provides safer and more affordable transportation access in emerging markets,” IFC Chief Operating Officer Stephanie von Friedeburg said in a statement.
“We are looking forward to partnering with IFC to further support entrepreneurship… and increase access to affordable mobility services in Africa and Eastern Europe. Together with the investment from the European Investment Bank last year, we are proud to have sizeable and strategically important institutions backing us and recognising the strategic value Bolt is providing to emerging economies,” Bolt CEO Markus Villig said.
In Ukraine, Bolt ride-hailing service was launched in summer 2018.

, , , , ,

METINVEST CUTS SALES IN EUROPE, CIS BUT RAISES SUPPLIES TO SOUTHEAST ASIA

Metinvest B.V. (the Netherlands), the parent company of the international vertically integrated mining and metallurgical group Metinvest, in 2020 reduced sales of products in Europe by 21% compared to the previous year, to $ 2.851 billion.
According to the audited consolidated financial results for 2020, sales in Europe fell mainly due lower sales prices for steel products. This was also affected by a decrease in sales of semi-finished products by 31% and iron ore products by 48%. As a result, the region’s share in total revenue decreased by 7 percentage points (p.p.) compared to the previous year, to 27%.
In 2020, revenue in Ukraine decreased by 7%, to $ 2.939 billion, mainly due to a decrease in the average price for metal products and coke, as well as a 26% reduction in pellet sales. The decrease in revenues was partially offset by an increase in the supply of long products by 23%, coke by 14% and iron ore concentrate by 43%. In general, the share of Ukraine in the consolidated revenue decreased by 1 p.p. compared to 2019, to 28%.
Revenue in the Middle East and North Africa region rose 9%, to $ 1.8 billion, mainly driven by an increase in slab (2.5 times) and flat products (12%) shipments. As a result, the region’s share in the consolidated revenue increased by 2 p.p., to 17%.
Revenue in Southeast Asia rose 56%, to $ 1.467 billion thanks to the resumption of sales by Metinvest to China amid strong demand in the country. During the reporting period, the group sold 862,000 tonnes of semi-finished products and finished metal products in the country. In addition, supplies of iron ore products to China increased 1.7 times. As a result, the market share of the region in total revenue increased by 5 p.p., to 14%.
Revenue in the CIS decreased by 23%, to $ 635 million due to a decrease in sales volumes and sales prices for flat products. The region’s share in the consolidated revenue decreased by 2 p.p., to 6%.

, , ,