Business news from Ukraine

PRESIDENT OF UKRAINE SIGNED LAW ON SIMPLIFYING IMPORT OF FERTILIZERS, ANIMALS, OBTAINING PHYTOSANITARY CERTIFICATES

President of Ukraine Volodymyr Zelensky signed law No. 2246-IX (previously bill No. 7264 on uninterrupted production and supply of agricultural products during martial law), adopted by the Verkhovna Rada as a whole on May 12.
The relevant information was published on the parliamentary website on Wednesday.
As reported, the Verkhovna Rada simplified the export, import and transit of agricultural products to Ukraine during martial law, which will expand farmers’ access to fertilizers and genetic material of farm animals, as well as support the Ukrainian organic industry.
“The task of the state is to simplify farming under martial law as much as possible and reduce the bureaucratic burden on business and government bodies. This applies, in particular, to the state registration of pesticides and agrochemicals, which is extremely important during the spring sowing campaign in 2022. Also it is important to support niche sectors of agriculture and organic production,” the explanatory note to the document states.
Law No. 2246-IX abolishes until the end of martial law and for 90 days after its cancellation the state registration of agrochemicals imported into Ukraine, including some types of nitrogen fertilizers, ammonium nitrates, ammonia in aqueous solution, thiosulfates, potassium, calcium and aluminum phosphates, borates, chelate zinc and a number of other mineral fertilizers.
In addition to the simplified import of such types of fertilizers, the bill cancels the state registration procedure for their production, sale, use and advertising.
The law also allows producers of organic products to use the label “organic”, “biodynamic”, “biological”, “ecological”, “organic” until July 1, 2024, even if they are not operators of organic products in accordance with law 2496-VIII on turnover organic products.
This initiative allows Ukrainian producers of organic products that were producing according to EU standards, but did not meet the status of an operator of organic products according to Ukrainian standards, to switch to Ukrainian production standards without an additional transition period. It also allows them to qualify for government support.
The document expands the list of entities that can take samples and conduct phytosanitary examination, in particular, introduces until the end of martial law and by 90 after its cancellation a simplified procedure for involving employees of private laboratories in the examination, and also authorizes agronomists-inspectors to conduct such inspections to conduct an audit on certification.
In addition, Law No. 2246-IX allows the import to Ukraine of cargoes with live animals in transit through countries where there are cases of disease from the list of the International Epizootic Bureau (OIE). This will allow the Ukrainian livestock industry to access modern breeding genetic material from the EU countries and expand the diversity of breeding material of agricultural animals in Ukraine.

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RADA SIMPLIFIES IMPORT OF FERTILIZERS, ANIMALS TO UKRAINE, OBTAINING PHYTOSANITARY CERTIFICATES – MP

During the period of martial law, the Verkhovna Rada has simplified the export, import and transit of agricultural products to Ukraine, which will expand the access of farmers to fertilizers and genetic material of farm animals, as well as support the Ukrainian organic industry.
Relevant bill No. 7264 on uninterrupted production and supply of agricultural products during martial law was adopted as a whole at a meeting on May 12 by the votes of 313 MPs, with the required 226 votes, MP Yaroslav Zhelezniak (the Holos faction) said on his Telegram channel on Thursday.
“The task of the state is to simplify farming under martial law as much as possible and reduce the bureaucratic burden on business and government bodies. This applies, in particular, to the state registration of pesticides and agrochemicals, which is extremely important during the spring sowing campaign in 2022. Also it is important to support niche agriculture and organic production,” according to an explanatory note to the bill.
The bill abolishes state registration of agrochemicals imported into Ukraine, including some types of nitrogen fertilizers, ammonium nitrates, ammonia in aqueous solution, thiosulfates, potassium, calcium and aluminum phosphates, borates, zinc chelate and a number of others mineral fertilizers until the end of martial law and for 90 days after its cancellation.
In addition to the simplified import of such types of fertilizers, the bill cancels the state registration procedure for their production, sale, use and advertising.
Bill No. 7264 also proposes, until July 1, 2024, to allow organic producers to use the label “organic,” “biodynamic,” “biological,” “ecological,” “organic,” even if they are not operators of organic products in accordance with law No. 2496-VIII on the turnover of organic products.
According to the explanatory note to the document, this initiative allows Ukrainian producers of organic products that produced according to EU standards, but did not meet the status of an operator of organic products according to Ukrainian standards, to switch to Ukrainian production standards without an additional transition period. It also allows them to qualify for government support.
The bill expands the list of entities that can take samples and conduct phytosanitary examination, in particular, introduces a simplified procedure for involving private laboratory employees in examination until the end of martial law and 90 years after it is canceled, and also authorizes agronomists-inspectors to conduct such inspections to conduct an audit on certification.
In addition, the bill allows the import of cargoes of live animals in transit through countries where there are cases of disease from the list of the World Organisation for Animal Health to Ukraine. According to the authors of the bill, this will allow the Ukrainian livestock industry to gain access to modern breeding genetic material from the EU countries and expand the diversity of breeding material of agricultural animals in Ukraine.
During the discussion of the document at the second reading, the MPs supported the amendment of MP Oleh Kulinich (the deputy group Dovira), specifying that state registration of pesticides is not required in cases where the active ingredient of the pesticide is marked in the EU Pesticides Database as permitted for use.

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EU INTRODUCES QUOTAS FOR IMPORT OF FERTILIZERS FROM RUSSIA

The European Union, as part of the next package of sanctions, has limited the import of fertilizers from Russia.
The restrictions do not apply to deliveries before July 10 under contracts concluded before April 9 this year, according to the Official Journal of the EU.
From July 10, the European Union introduces quotas on the import of a number of Russian fertilizers for a period of one year. The quota for the import of potassium chloride (code 3104 20) will be 837.57 thousand tons, complex and other fertilizers containing potassium (codes 3105 20, 3105 60 and 3105 90) – 1 million 577.807 thousand tons.
The size of quotas can be adjusted by the European Commission.
There are no restrictions on the import of other types of fertilizers.
Earlier on Friday, the European Commission announced that as part of a new package of sanctions against Russia, it would take “measures to counteract the supply of potassium chloride from Belarus” bypassing the sanctions.

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UKRAINIAN FARMERS PROVIDED WITH FERTILIZERS FOR SOWING BY 84%

The needs of Ukrainian farmers are met by 84% for the sowing season of 2022, by 55% in crop protection agents, by 78% in seed material, the most critical shortage of fuel for agricultural equipment, but the situation is already being resolved at the level of top officials.

This comment was given by Minister of Agrarian Policy and Food Roman Leschenko to Interfax-Ukraine on Monday.

“The total need for fertilizers for sowing is covered by 84%, in crop protection agents – by 55%. This indicator is unsatisfactory, but not critical, because the lack can be compensated for by imports from the EU countries, which are ready to provide us with all the necessary support. Especially that the agronomic deadlines for the introduction of crop protection agents fall mainly in May. The most critical problem is with fuel, it is solved at the level of top officials of the state,” the minister said.

He recalled that the agrarians begin preparations for the sowing season in the autumn of the previous year, so before the war they were able to prepare the necessary resources for the sowing season in approximately the same volumes.

Leschenko said that the need for seed material in Ukraine is provided by 78%. The vast majority of the material is already in the warehouses of agricultural producers.

“As for food security, it is too early to give any assessments – everything will depend on the military situation in the state. Ukrainian farmers are very courageous and ready to work in difficult conditions to ensure food security. There are no optimal calendar dates for sowing, they depend on weather conditions. We have a cold spring, so the start of the sowing campaign has been somewhat postponed. The main period this year will be in April-May,” the minister said.

According to him, the Ministry of Agrarian Policy is in constant contact with large distributors and producers of seeds and crop protection agents, which are doing everything possible to provide food and prevent a food crisis.

UKRAINE INTRODUCES BAN ON EXPORT OF FERTILIZERS

The Government of Ukraine introduces a ban on the export of fertilizers from Ukraine, Minister of Agrarian Policy Roman Leschenko said on Facebook.

“In connection with the martial law, in order to maintain balance in the domestic market of significant mineral fertilizers, the government introduces a zero quota for their export. That is, a de facto ban on the export of fertilizers from Ukraine,” he said.

Leschenko said that this applies to nitrogen (TN VED code 3102), phosphorus (TN VED code 3103) and potassium (TN VED code 3104) mineral or chemical fertilizers.

According to him, this list also includes complex fertilizers – containing two or three nutrients: nitrogen, phosphorus and potassium; other fertilizers; goods of this group in tablets, packages with a gross weight of not more than 10 kg (TN VED code 3105).

“I emphasize that this ban is of forced and temporary nature and is used to restore the balance of certain goods in the domestic market and ensure the sowing campaign, which is extremely important in order to prevent a food crisis in Ukraine and the world,” the head of the Ministry of Agrarian Policy said.

As reported, a few days earlier, the government added fertilizers to the list of critical imports, for the purchase of which it is allowed to buy foreign currency.

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SEVERODONETSK AZOT RAISES PRODUCTION OF FERTILIZERS IN Q1

PrJSC Severodonetsk Azot, part of Group DF of businessman Dmytro Firtash, in January-March 2021 increased the production of mineral fertilizers by 47.4% compared to the same period in 2020, to 265,620 tonnes, according to the company’s press release published on Tuesday.
During this period, the production of ammonium nitrate decreased by 9.2%, to 141,610 tonnes, urea increased by 3.7 times, to 119,600 tonnes, urea-ammonium nitrate (UAN) by 4.6 times, to 17,400 tonnes, and the production of ammonia water decreased by almost 94.7%, to 150 tonnes.
In addition, the enterprise produced 147,810 tonnes of ammonia; 1,590 tonnes of liquid carbon dioxide and 20,170 cubic meters of medical oxygen in cylinders.
“We managed to increase the utilization of the company’s production capacities from 30% to 50%. Further growth of production volumes will depend on the level of demand for mineral fertilizers and on how the ICIT [Interdepartmental Commission on International Trade] resolves the issue of limiting imports of nitrogen fertilizers in Ukraine,” Board Chairman of Severodonetsk Azot Leonid Buhayov said.
He said that the enterprise will be able to continue to load workshops and increase production if imports are limited due to quotas.
In May 2020, Severodonetsk Azot restored the full production cycle, it began production of its own ammonia and the production of ammonium nitrate, urea, and urea-ammonium nitrate, which made it possible to load production capacities by about a third. According to the company, all concluded contracts are fully implemented, despite the special working conditions during the quarantine period. The enterprise said that some workshops had been idle for more than seven years due to hostilities in the region, lack of reliable power supply and damaged infrastructure.
PrJSC Severodonetsk Azot is one of the largest Ukrainian chemical enterprises. It has been part of Dmytro Firtash’s Group DF since 2011. The core business of the enterprise is the production of mineral nitrogen fertilizers.

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