Business news from Ukraine

PHARMACEUTICAL COMPANY FARMAK WANTS TO BOOST EXPORTS SHARE TO 33% THIS YEAR

PJSC Farmak (Kyiv), among top three leaders of the pharmaceutical sector of Ukraine, in 2018 plans to increase the exports share to 33%.
The company told Interfax-Ukraine that in H1 2018 Farmak’s exports grew by 13% year-over-year, in particular, thanks to supplies to Uzbekistan (a rise by 20%), Belarus (by 124%), Kazakhstan (by 13%) and Kyrgyzstan (by 16%).
Sales of products to Russia remained at the level of 2017.
“We want to increase the export potential of the company by retaining the leading positions in Ukraine. It would lead to an increase in production, creation of new jobs, an increase in the amount of taxes paid. For Farmak, the markets of the European Union and Asia remain a priority,” Farmak Executive Director Volodymyr Kostiuk said.
In general, according to him, in 2017, Farmak exported products for $70 million. In 2017, Poland, Uzbekistan and Russia dominated the structure of foreign sales. In particular, sales to Poland accounted for 28.3% of total exports, Uzbekistan – 20.9% and Russia – 16.7%.
In 2017, the share of Farmak’s sales in foreign markets was 31%.
Farmak is a member of the Association Manufacturers of Medications of Ukraine (AMMU).

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UKRAINE REVIEWS GRAIN HARVEST FORECAST TO 63.1 MLN TONNES, EXPORTS TO 42 MLN TONNES

The Agricultural Policy and Food Ministry of Ukraine has reviewed upwards the 2018 grain harvest forecast from over 60 million tonnes to 63.1 million tonnes, which is 1.1 million tonnes more than in the previous agricultural year, acting Agricultural Policy and Food Minister Maksym Martyniuk wrote on his Facebook page. “A group of late grain crops will contribute to the growth. Weather conditions were far from optimal, but losses were fragmentary, and as a result we have a decent ratio of bread wheat/coarse grains at 60/40,” he said.
The head of the agrarian ministry added that the export forecast was also increased, to 42 million tonnes.
“It is good news. The situation in the world (poor harvests in supplying countries, rising prices) raises its status to” magnificent,” Martyniuk said.
He also said that if the field works started late spring, the sowing campaign began almost a week earlier: as of September 10, 237,100 hectares were sown with grain, which is 3% of the forecast.
“Rain is a bonus,” the acting minister said.
According to the ministry, as of September 10, the harvest of grain and leguminous crops amounted to 35.4 million tonnes from 10.1 million hectares, or 68% of the forecast. These include early cereals: 34.3 million tonnes were harvested from an area of 9.9 million hectares, and 0.82 million tonnes of corn was harvested from 147,000 hectares (3% of the forecast).

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UKRAINE’S PROFITS FROM FERROUS METALS EXPORTS EXCEEDS $7 BLN IN JAN-AUG 2018

Ukrainian metal companies saw a growth of 27.7% in foreign currency revenues from exports of ferrous metals in January-August 2018 year-over-year, to $7.001 billion. According to customs statistics published by the State Fiscal Service, the share of ferrous metals of total income from exports was 22.65% compared to 19.93% from a year ago.
In August 2018 alone, receipts from ferrous metal exports amounted to $803.263 million.
In January-August 2018, Ukraine increased imports of similar products by 25.7%, to $896.765 million including imports reaching $144.565 million in August. In January-August 2018, Ukraine increased metal products exports by 32%, to $729.444 million including August deliveries being $91.404 million. During this period, imports of metal products grew by 19.9%, to $598.239 million, including August imports worth $94.603 million.
As reported, in 2017 Ukraine saw its forex earnings from ferrous metal exports rise by 20%, to $8.666 billion. Ukraine saw imports of these products increase by 42%, to $1.135 billion. Ukraine experienced a 30% rise in metal products exports, up to $896.7 million. Metal imports grew by 25% last year, to $806.8 million.

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ELECTRICITY EXPORTS FROM UKRAINE ESTIMATED AT $213 MLN, LEADING CUSTOMER – HUNGARY

Ukraine in January-August 2018 exported electricity worth $213.38 million, including $27.254 million in August alone. Hungary bought electricity worth $127.415 million, Poland $49.233 million, Moldova $31.397 million, other countries $5.335 million, Ukraine’s State Fiscal Service has said. Exports of Ukrainian electricity in monetary terms in January-August 2018 increased by 21.1% compared to the same period in 2017 ($176.241 million).
Over the period under review, Ukraine imported electricity worth $1.056 million, in particular, electricity imports from the Russian Federation were estimated at $1.005 million, from Belarus at $0.046 million, from Moldova at $0.006 million.
As reported, Ukraine plans in 2018 to increase exports of electricity to the EU and Moldova by 13.3% from 2017 to 5.855 billion kWh. According to the forecast for 2018, deliveries from the Burshtyn TPP energy island to Hungary, Slovakia, Romania will be 3.6 billion kWh, to Poland 1.2 billion kWh, and to Moldova 1.055 billion kWh.

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UKRAINIAN AGRICULTURE MINISTRY, GRAIN TRADERS SIGN MEMO TO SET WHEAT EXPORTS IN 2018/2019 MY AT 16 MLN TONNES

The Ministry of Agrarian Policy and Food and grain traders have signed a memorandum to fix forecasted volume of wheat exports in the 2018/2019 marketing year (MY, July-June) at 16 million tonnes against 16.5 million tonnes in the previous MY.
The memorandum was signed on Friday, August 10, an Interfax-Ukraine correspondent said.
According to the appendix to the memorandum, exports of food wheat, which can be exported this MY, is determined at 8 million tonnes, while coarse wheat exports were fixed at 8 million tonnes.
Such document has traditionally been signed since 2011 between the Ministry and the market operators at the beginning of the season.
First Deputy Minister of Agrarian Policy and Food Maksym Martyniuk said during the signing ceremony that the figures could be adjusted taking into account the quality and volume of wheat.
As reported, the ministry raised its forecast for wheat harvest by one million tonnes, to 24 million tonnes, including 13 million tonnes of food wheat. According to the ministry’s preliminary estimates, the ratio of food/coarse wheat in 2018 will be 55/45. The domestic market demand for food wheat is estimated at 4.5 -5 million tonnes.
Ukraine in 2017/2018 MY exported 39.4 million tonnes of grain, including 17.14 million tonnes of wheat.

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UKRAINE REDUCES ELECTRICITY EXPORTS BY 0.9%

Ukraine in January-June 2018 reduced electricity exports by 0.9%, or 28.602 million kWh, compared to the same period in 2017, to 3.135 billion kWh, Ukraine’s Ministry of Energy and Coal Industry told Interfax-Ukraine. However, electricity supplies from the so-called energy island of the Burshtyn thermal power station, towards Hungary, Slovakia and Romania grew by 8.4%, or 154.737 million kWh, to 2.008 billion kWh.
Electricity sales to Poland increased by 17.5%, or 107.779 million kWh, to 723.331 million kWh. Electricity exports to Moldova were 403.986 million kWh, which was 41.9%, or 291.111 million kWh, down on January-June 2017.
In June 2018 alone, exports of Ukrainian electricity stood at 481.772 million kWh, which was 11.6% down on June 2017 (545.058 million kWh). Ukraine did not sell electricity to Belarus and Russia in January-June of 2017 and 2018. In the first six months of this year, Ukraine imported 18.129 million kWh of electricity, namely 17.417 million kWh from Russia and 0.712 million kWh from Belarus. The imports are recorded in SE Energomarket’s contracts as in-process transfers.

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