Business news from Ukraine

UKRAINE SIGNS COOPERATION MEMO WITH CROATIA

Ukraine and Croatia have signed a Memorandum of Cooperation between the Council of Exporters and Investors, Ukrainian Ambassador to Croatia Vasyl Kyrylych has said.
“Today we have signed a Memorandum of Cooperation between the Council of Exporters and Investors under the Ministry of Foreign Affairs of Ukraine and the Croatian Economic Chamber,” Kyrylych wrote on his Twitter on Thursday evening.
The next stage of the countries, he said, is expected to be a series of joint projects.

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EXPORTERS FROM UKRAINE WELL POSITIONED THIS YEAR WITH STABLE HRYVNIA EXCHANGE RATE

Ukrainian exporters of Ukrainian exchange-traded commodities in 2021 have no reason to complain about the external conditions of business due to favorable prices for these commodities and partly excellent harvest, so they should focus on adapting their business to possible future problems, a member of the board of bank Pivdenny (Odesa) Oleksandr Matiushenko has said.
“If we are talking about 2021 and a good harvest on the one hand, and on the other hand, a gorgeous price for us in the foreign market, then I think that this year absolutely all exporters associated with export commodities will not complain that they are not satisfied with something, because today we are witnessing a fairly stable hryvnia exchange rate, the consequences of which are good positions of our export and raw material base,” he said at the CFO Forum in Kyiv on Wednesday.
Matiushenko said that Ukrainian business is successfully coping with the situation that has developed in connection with a sharp rise in prices in the gas or coal market, and its representatives should adapt to possible difficulties in the future, such as problems arising under the terms of concluded contracts or reducing their internal costs.
The banker also said that he considers the hryvnia exchange rate this year adequate with the expected policy of the National Bank of Ukraine.

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AFRICA TO BE IN LIMELIGHT OF RENEWED COUNCIL OF EXPORTERS AND INVESTORS UNDER FA MINISTRY OF UKRAINE

Africa will be in the limelight of the renewed Council of Exporters and Investors under the Foreign Affairs Ministry of Ukraine, said Foreign Minister Dmytro Kuleba adding that development of cooperation with the African states was one of the priorities of the foreign policy of Ukraine. “Only few days ago, we launched the Council of Exporters and Investors at the Ministry of Foreign Affairs. It now unites 120 leading Ukrainian export-oriented companies. The purpose of this agency is to simplify trade and investment between nations, and Africa will be in the limelight of this Council,” he said in a video address on the occasion of Africa Day posted on ministry’s Twitter on Monday.
Kuleba said that Ukrainian companies were already exporting grain, drinks, meat, equipment and machinery to the African countries. “The IT sector is one of the most promising in our relations,” the minister added.
He emphasized that one of the priorities of Ukraine’s foreign policy was the development of cooperation with the African states.
“Good relations between us symbolize the great prospects of our cooperation and will lead our nations to prosperity and a better life,” he explained.
According to Kuleba, now 20,000 students from Africa are studying in Ukraine, and Ukraine will be glad to see more of them.
“I’m glad that more and more Africans are choosing Ukraine for higher education. Currently, 20,000 students from the African countries are studying in our country, and we welcome more,” said the foreign minister.

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UKRAINIAN EXPORTERS GET ADDITIONAL ACCESS TO SINGAPORE MARKET

The Singapore Food Agency (SFA) has decided that Ukrainian producers of thermally processed products from poultry, pork and eggs will be able to obtain permits for exporting products to the Singapore market, the Foreign Ministry of Ukraine said.
“Any crises also bring new opportunities. The access of Ukrainian goods to the Singapore market will help our entrepreneurs increase exports, despite the coronavirus [COVID-19] crisis,” the Foreign Ministry’s press service said, citing Foreign Minister Dmytro Kuleba on Friday.
The Foreign Minister said that global markets and chains of goods supply are currently being transformed due to a pandemic, and Ukraine is able to use the changes to its advantage, first of all, revealing the hidden potential of exports to Asian markets.
Detailed explanations of the terms of export to Singapore can be obtained from the State Service of Ukraine on Food Safety and Consumer Protection.
The Foreign Ministry said that Ukrainian exporters who use the new opportunities should fill the form of the Ukrainian exporter from the Embassy of Ukraine in the Republic of Singapore (it concerns only the export of Ukrainian goods to the markets of ASEAN countries: Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand) at the link: https://goo.gl/forms/wL5iAZEOk82bfv3n2.

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FERREXPO FROM UKRAINE INCREASES SHARE IN INTERNATIONAL MARKET OF PELLET EXPORTERS TO 8%

Ferrexpo mining company, with the main assets in Ukraine, increased its share in the international market of pellet suppliers to 8% in 2019 compared to 7% in 2018.
According to the company’s annual report released on the London Stock Exchange on Wednesday, March 17, Ferrexpo maintained its third position in the world ranking of pellet exporters with 10.3 million tonnes (10.2 million tonnes in 2018). Vale-group (Brazil-Oman) with the volume of 32.7 million tonnes takes the first place according to the results of the year, and the Swedish LKAB with 16.3 million tonnes takes the second place.
The Metalloinvest group (Russia) takes the sixth place with export deliveries of 7.2 million tonnes (4.2 million tonnes in 2018), the Metinvest group (Ukraine) takes the tenth place with supplies of 5 million tonnes (5.4 million tonnes in 2018), the Severstal Group (Russia) takes the eleventh place with supplies of 3.8 million tonnes (5.5 million tons in 2018).
In general, the international market for global pellet exporters at the end of 2019 is estimated at 135 million tonnes, decreased by 3% compared to 2018 (139.6 million tonnes).
The company predicted that, high barriers to entry, especially given relatively low pellet premiums, are unlikely to incentivise new pellet supply in 2020. Incumbent producers can balance supply by switching production from blast furnace to direct reduction pellets or from international export to domestic consumption. In 2020, pellet seaborne supply should not increase due to international prices moderating to historical levels and continued supply issues from Brazil. An extended period of low pellet premiums could result in some capacity reduction for producers with high pellet conversion costs. At the end of 2019, industry levels of pellet stocks were higher than the historical average and it may take some time for the market to absorb these, especially taking into account the impact of the COVID-19 virus. This could prevent pellet premiums from rising in the short term, the company said.
In 2019, Ferrexpo reduced the volume of pellet deliveries by key market regions to Central and Western Europe, as well as North East Asia (NEA), sharply increasing sales to China and Southeast Asia (SEA).
Thus, the share of pellets sales in tonnes to Central Europe is the largest one and amounted to 36% (47% in 2018). In 2019, the share of sales in Western Europe decreased from 16% to 13%, in Northeast Asia it decreased from 17% to 16%, in Turkey, the Middle East, and India sales decreased from 6% to 5%. Deliveries to China and South East Asia sharply increased from 13% to 30%. There were not any pellet deliveries to North America in 2019, while in 2018 it amounted to 1%.
In total, some 10.312 million tonnes of pellets were sold in 2019, compared with 10.227 million tonnes in 2018.
“Ferrexpo benefits from a diversified sales portfolio with leading steel mills throughout the world, while its logistics routes to customers provide a competitive advantage given Ukraine’s central geographic location. Ferrexpo’s average shipping duration to Asia is 30 days compared to its main pellet-producing competitors in Brazil (40 days), Canada (55 days) and Scandinavia (50 days). Ferrexpo is also very competitively placed in terms of shipment days to Europe and Turkey. This ensures that weakness in one region, can be compensated by sales into other regions,” the company said.

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ONE OF THE LARGEST EXPORTERS OF VEGETABLE OIL IN UKRAINE BOOSTS VEGETABLE OIL STORAGE CAPACITIES

Allseeds, one of the largest producers and exporters of vegetable oil in Ukraine, has expanded the oil storage facilities at a terminal in the Pivdenny port (Odesa region) by 2.4 times, to 100,000 tonnes, according to a posting on the website of the group on Tuesday. “Recently, the capacity of the tank farm here has increased from 42,000 tonnes to 100,000 tonnes for one-time oil storage. The company is ready to fill tankers at seven loading points from six berths belonging to TIS company with a speed of up to 1,200 tonnes/hour,” the company said.
The company said that such capabilities in logistics and active mutually beneficial cooperation with partners allowed Allseeds in April 2019 to set its own transshipment record of about 100,000 tonnes of vegetable oil which corresponds to 1.2 million tonnes per year.
“So far [1.2 million tonnes a year]… Because the development plan implementation of the company’s oilseed-processing and terminal complexes in Pivdenny and its infrastructure continues,” the company said.
Allseeds Group was founded in 2010.

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