Business news from Ukraine


Ukrainian importers in January-August fully used quotas for duty-free import of pork from the European Union, further import of chilled pork will be subject to a 12% duty, and frozen pork – 10%, this was reported on the website of the Pig Breeders of Ukraine association. “As of September 1, some 20,000 tonnes of chilled and frozen pork from the EU countries were brought to Ukraine. This corresponds to the quota for duty-free supply of pork from the European Union countries established under the economic part of the Association Agreement. Since these limits have been used this year, each next kilogram of European chilled pork will cost importers 12% more due to the duty, and frozen pork meat will rise in price by 10%,” the organization said.
According to the association, there has been some recovery in import activity this year, which confirms the use of the pork import quota in August, while in previous years the import quota was used in November-December.
It clarified that Ukrainian importers have similar agreements on duty-free supplies of up to 14,400 tonnes of pork from Canada (the quota was used by 9%) and up to 1,700 tonnes from the UK (no deliveries from this country were made in 2021).
“If the import of raw meat from these countries becomes economically attractive for the importer, the supply of frozen pork is unlikely to have a significant impact on the domestic pork market. In addition, the expected changes in exchange rates in the fall will also increase the entry barrier for imported raw materials,” the association concluded.

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The European Union has officially published its list of sectoral sanctions against Belarus.
In line with the decision of the EU Council, which was published in the EU’s official journal, the ban on import or transit from Belarus of highly significant export goods for the country, petroleum products and potash fertilizers, applies to contracts signed after June 25, 2021. The EU sanctions thus do not apply to current contracts for supplies of petroleum products and potash fertilizers.
“It shall be prohibited […] to transport petroleum products if they originate in Belarus, or are being exported from Belarus to any other country; to provide, directly or indirectly, technical assistance, brokering services, financing or financial assistance, including financial derivatives, as well as insurance and re-insurance […]. The prohibitions […] shall be without prejudice to the execution of contracts concluded before June 25, 2021, or ancillary contracts necessary for the execution of such contracts,” the document said.
Similar sanctions are envisaged for potash fertilizers from Belarus. “It shall be prohibited to import, purchase or transfer, directly or indirectly, potassium chloride (‘potash’) products […] from Belarus, whether or not originating in Belarus. The prohibitions […] shall be without prejudice to the execution of contracts concluded before June 25, 2021, or ancillary contracts necessary for the execution of such contracts,” it said.

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Exports of Ukrainian organic products to the countries of the European Union in 2020 decreased by 23.1% compared to 2019, to 217,210 tonnes. According to the June report of the European Commission, last year Ukraine ranked fourth in the world among suppliers of organic products to this market, its total share of supplies amounted to 7.8%.
Organic cereals (excluding wheat and rice cereals) became the main Ukrainian export crop to the EU organic market, their exports in 2020 sank by 44%, to 82,900 tonnes. Despite the decline, Ukraine remained the main supplier to the European Union, its share amounted to 74.4% of the total supply.
Exports of organic soybeans from Ukraine to the EU in 2020 increased by 67.8% compared to 2019, to 28.7% (21% of the world exports to Europe), organic oilseeds decreased by one third, to 19,300 tonnes (14.1%), oilseed meal – by 9.4%, to 7,400 tonnes (3.2%).
In 2020, Ukraine also exported 5.9% more fresh and dried organic vegetables to the EU than in 2019, 15,500 tonnes, while the export of fresh, chilled and dried organic vegetables decreased by 13.2%, to 5,400 tonnes.
As reported, the Ministry of Economy in April 2021 planned to allocate UAH 50 million for the development of organic production, the amount of state support may increase due to the redistribution of funds from other state programs.
The ministry intends to provide financial support to organic producers in the amount of UAH 5,000 per hectare of cultivated land (but not more than 20 hectares per farm), as well as for one animal (cattle). In addition, farmers will receive refunds of up to 30% of the cost of certification of organic production.

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Prime Minister of Ukraine Denys Shmyhal has said that integration with the European Network of Transmission System Operators for Electricity (ENTSO-E) will open up additional prospects for the development of “green energy” in Ukraine.
“Ukraine seeks to adapt the best policies of the European Union, and for this, over the past one and a half years, the government has been actively introducing and developing the gas and electricity market, and is also actively preparing for integration with ENTSO-E in 2023,” the government’s press service said, citing Shmyhal.
The prime minister said that Ukraine is integrating the System Value approach of the World Economic Forum (WEF) into economic planning, in particular, within the framework of this approach, energy efficiency improvements, modernization of distribution networks and an increase in the share of renewable energy sources will become important factors.
“The System Value approach, developed by the WEF, defines a set of solutions that contribute to the sustainable development of economic and power systems. It allows for a better and more complete assessment of the economic, environmental, social and technological results of implementing solutions in the power sector. This tool will also be used for “green” modernization of the economy,” the head of government said.
Shmyhal said that Ukraine has one of the most energy-intensive economies in Europe, and energy efficiency measures will help decarbonize Ukraine’s economy, increase investment in the technology sector and create new jobs.
According to the head of government, integration with the ENTSO-E, which is scheduled for 2023, will open up broad prospects for the development of renewable energy sources in Ukraine, while increasing the stability of the Ukrainian and European power systems.
The prime minister expressed confidence that in the next report of the WEF Energy Transition Index, Ukraine will rank higher thanks to the active development of smart grids, hydrogen economy and power storage systems.

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The European Union Aviation Safety Agency (EASA) has recommended that EU air carriers and non-EU airlines avoid Belarusian airspace, Western media outlets reported on Wednesday, citing the EASA.
Non-EU airlines authorized by the EASA when conducting operations to, from, and within the EU are advised to avoid operating in Belarusian airspace, it said.
The agency cited safety reasons following the May 23 Ryanair flight incident, which called into question the ability of the Belarusian authorities to provide safe air navigation services.
A Ryanair flight from Athens to Vilnius was forced to land at the Minsk airport while passing through Belarus’s airspace on May 23. It was reported that the plane landed after the Belarusian security services were warned of a bomb threat. Belarusian President Alexander Lukashenko ordered that a MiG-29 fighter jet be scrambled to shadow the passenger plane, which was carrying Roman Pratasevich, editor of the Telegram channel Belarus Golovnogo Mozga (Belarus of the Brain) and former editor of the Telegram channel Nexta, both designated as extremist in Belarus, and his girlfriend Sofia Sapega, a Russian citizen and student of the European Humanities University based in Vilnius. The Belarusian authorities have detained both of them.

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Ukraine expects the European Union to revise its Neighborhood Policy, and that this revision will affect all the countries of Eastern Europe, said Olha Stefanyshyna, Deputy Prime Minister of Ukraine for European and Euro-Atlantic Integration.
“We expect that in 2022 the European Union will start revising the Neighborhood Policy, and this revision will affect all Eastern European countries; that a specific new format of cooperation will be developed for Georgia, Ukraine and Moldova, countries aspiring to membership [in the EU]. And we expect that by 2027, when Lithuania assumes the presidency of the EU Council, it will be possible to come up with specific political decisions,” she said during an online discussion of Kyiv Forum, founded by the Arseniy Yatsenyuk Foundation entitled “Discover Ukraine.”
Stefanyshyna noted that Ukraine positively assesses the current situation of relations with the EU. “At the same time, we believe that the time has come to start revising the Neighborhood Policy. We hope that this work will begin in 2022. And I know that many in European capitals are ready to join this work, and Ukraine will be able to get the prospect of membership [in EU],” she stressed.
At the same time, she noted that “there is really fatigue from expansion, and we feel it in our capitals.”