Business news from Ukraine

8% OF EXPORTERS AND 19% OF IMPORTERS IN UKRAINE FACE OBSTACLES IN ACTIVITIES – SURVEY

Some 7.9% of Ukrainian exporting enterprises face obstacles in their activities, according to a survey by the Institute for Economic Research and Policy Consulting.
The rate in 2020 is the lowest since 2016, according to the study. In 2018, some 23.6% of exporters faced obstacles, while 19.3% in 2017 and 26.9% in 2016.
Large and small businesses (10.4% and 10.7%) more often report impediments to export compared to micro (8.1%) and medium (4.1%). Most often, they deal with obstacles in the implementation of exports by enterprises in the service sector (22.6%).
In Chernivtsi, Ternopil, Zhytomyr, Donetsk regions, there are no complaints about the presence of obstacles. Most often, such are reported by exporters from Rivne (22.2%), Ivano-Frankivsk (20%), Kirovohrad (20%), Sumy (20%), Poltava (18.8%) regions.
The main obstacles to export are the absence of simplified rules for determining the origin of goods (20.4%), a long wait for export clearance at customs (20.4%).
Among importers, 18.9% of the surveyed enterprises stated that they faced obstacles to their activities. This figure is also the lowest in all waves of the study since 2016. Some 28.4% of importers faced obstacles in 2018, some 29.3% in 2017 and 35.2% in 2016.
Cherkasy region is the only region where there are no complaints about import obstacles. Enterprises in Mykolaiv region most often point to impediments to imports (35.7%, every third respondent).
According to the respondents, the main obstacle to import is a lack of transparency in determining the customs value of goods that are imported (38.7%). Almost a third complain about the complexity of customs and tax legislation (32.4%). The third place in the rating of obstacles is taken by high rates of customs payments (27.5%).
The survey was conducted in 2020 by the civil society initiative “For Fair and Transparent Customs” with the support of the European Union, the International Renaissance Foundation and Atlas Network. More than 1,000 representatives of enterprises were interviewed: from micro-enterprises to large enterprises engaged in export and/or import. Most of the respondents are micro and small enterprises, representatives of industry and trade.

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UKREXIMBANK PROVIDES LOAN TO EXPORTER OF NUTS

The state-owned Ukreximbank (Kyiv) provided a EUR 500,000 loan to Nutsi LLC, which specializes in the sale of walnuts and pumpkin seeds, to export the 2020 harvest, the bank’s press service said on Thursday.
According to the bank, Nutsi has an extensive network of points to purchase nuts and seeds throughout Ukraine and exports raw materials throughout Europe.
According to the unified public register of legal entities and private entrepreneurs, Viacheslav Yanchiy is the ultimate beneficiary of Nutsi LLC, the size of the charter capital of the company is UAH 44,000.
Ukreximbank was established in 1992, the only owner is the state.
According to the National Bank of Ukraine, as of July 1, 2020, in terms of total assets, Ukreximbank ranked third (UAH 226.729 billion) among 75 banks operating in the country.

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AGRICULTURAL EXPORTER KERNEL AGAIN TOPS LIST OF LARGEST RECIPIENTS OF BUDGET VAT REFUNDS

Kernel-Trade, the agricultural exporter, tops the list of the largest recipients of budget value added tax (VAT) refunds for the third month in a row, having received UAH 1.03 billion in June against UAH 650 million in May and UAH 965 million in April.
According to the State Treasury Service, the second place on the list in June, as in May, was again occupied by ArcelorMittal Kryvyi Rih mining and metallurgical plant with almost UAH 977 million against UAH 501.45 million in April.
The top three recipients of budgetary VAT refunds also included Suntrade with UAH 681.8 million, while in April the company ranked fifth with UAH 359 million, according to the data of the State Treasury.
Mariupol-based Illich Iron and Steel Works affiliated with Metinvest Group improved its performance over the month with UAH 597.44 million against UAH 373 million in May. The top five largest recipients of budgetary VAT refunds also included Myronivsky Hliboproduct (MHP) with UAH 550 million (UAH 70 million in April).
The second five in June includes Poltava GOK with UAH 477.25 million (UAH 236.7 million). It is followed by Zaporizhstal steel plant from Metinvest Group with UAH 451.3 million (UAH 372.75 million), followed by Azovstal, which reduced its figure to UAH 289.4 million from UAH 336.45 million in May.
The top ten largest recipients of VAT reimbursement are closed by Pivdenny (Southern) GOK with UAH 283.2 million and Dniprovsky Iron and Steel Works with UAH 250.74 million.

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UKRAINE ENTERS TOP FIVE WORLD EXPORTERS OF POULTRY

Ukraine is one of the five world exporters of poultry, Minister of Economic Development, Trade and Agriculture Tymofiy Mylovanov has stated.
“Ukraine has entered the top five of the world’s poultry exporters. Brazil, the EU and Thailand are ahead of Ukraine,” he wrote on his Facebook page.
In addition, the minister said that the EU issued import permits for 58,000 tonnes of Ukrainian wheat as part of the first distribution of the tariff quota (TRQ) for 2020.
“Almost the entire quota was issued for duty-free supplies of Ukrainian wheat,” he said.
As reported, with reference to the ministry, Ukraine as of January 10, 2019 and since the beginning of the 2019/2020 marketing year (MY, July-June) has exported 32.08 million tonnes of grain, which is 7.8 million tonnes more than for the same period of the last marketing year.
In particular, the following amount was delivered to foreign markets: wheat in the amount of 15.1 million tonnes, corn some 12.8 million tonnes, and barley some 3.8 million tonnes.
Ukraine in the 2018/2019 MY exported a record 50.4 million tonnes of grain, legumes and flour, which is 23% more than in the previous MY. It is expected that 54 million tonnes will be exported in the current MY.

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UKRAINIAN STATE FISCAL SERVICE AUTHORIZES EXPORTER STATUS TO 239 ENTERPRISES THAT SUPPLY GOODS TO EU

The State Fiscal Service (SFS) has announced that authorized exporter status has been granted to 239 enterprises that supply goods to the European Union. “In Ukraine, 239 enterprises that export goods to the EU countries received authorized exporter status as of July 2, 2019,” the agency said on Facebook.
As explained by the SFS, these companies can process goods at customs, using a simplified procedure, that is, without issuing a EUR.1 certificate, they can independently declare the preferential origin of goods in commercial documents.
In addition, the SFS noted that a Finance Ministry order amending the procedure for granting and cancelling such status by the customs came into force on June 21 this year.

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FERREXPO STILL THE BIGGEST FSU IRON ORE PELLET EXPORTER

Ferrexpo plc, whose main assets are Ukrainian iron ore producers Poltava and Yeristovo mining and processing plants, exported 5.77 million tonnes of iron ore pellets in January-July 2018, retaining its leadership among FSU pellet exporters.
Ferrexpo, which exported pellets to Europe, Japan, South Korea and China in the seven months of 2018, said in a press release that the state UkrPromZovnishEkspertyza enterprise had published the data.
Poltava Mining exported 4.465 million tonnes of pellets and Yeristovo exported 1.303 million tonnes.
Russia’s Severstal, in particular its Karelsky Okatysh mining unit, exported 3.239 million tonnes of pellets in the seven months; Ukraine’s Metinvest holding exported 2.979 million tonnes, with Pivnichny (Northern) Mining exporting 1.631 million tonnes and Central Mining – 1.348 million tonnes; Russia’s Metalloinvest exported 2.326 million tonnes, of which Mikhailovsky Mining 1.753 million tonnes and Lebedinsky Mining – 600,400 tonnes; and Evraz Group, notably Kachkanarsky Mining, exported 339,000 tonnes of pellets.
Ferrexpo exported 10.407 million tonnes of pellets in 2017.
The London-listed Ferrexpo plc owns 100% of Ferrexpo AG, which owns the Ukrainian mines.

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