Business news from Ukraine

UKRAINE RAISES OIL IMPORTS BY 2.4 TIMES

Ukraine in January-June 2020 increased import of oil (according to foreign economic activity code 2709) by 2.4 times (or 453,817 tonnes) compared to the same period in 2019, to 773,515 tonnes.
According to the State Customs Service of Ukraine, in the first half of the year, $264.688 million worth of raw materials were imported, which is 1.6 times more than in January-June 2019 ($165.235 million).
Oil supplies from Azerbaijan totaled $170.783 million (a share of 64.52%), the United States some $48.338 million (18.26%), Libya some $45.555 million (17.21%), and other countries some $0.012 million (0%).
Ukraine did not export crude oil in January-June 2020 and in 2019.

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UKRAINE RAISES GAS IMPORTS

Ukraine increased natural gas imports to 70 million cubic meters (mcm) per day, which is the maximum figure since 2014 when natural gas was supplied from Russia, Head of the Gas Transmission System Operator of Ukraine LLC (GTSOU) Serhiy Makogon has said.
“Such a considerable increase in imports became possible due to the creation of virtual points on the borders with Poland and Hungary, as well as the launch of virtual reverse flow. Last year the maximum imports [from the EU] did not exceed 66 mcm per day and was limited due to the existing infrastructure. Due to virtual reverse flow today, imports could reach up to 170 mcm per day,” Makogon said on his Facebook page on July 11.
He also said that major part of imported gas is pumped into the underground gas storage facilities (UGS) and a significant volume of it is supplied by European companies.
“The introduction of European rules of work on the border is an important part of Ukraine’s integration into the European gas market. Independent imports is a guarantee of fair prices for Ukrainian consumers,” Makogon said.

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UKRAINE CUTS ALUMINUM ORE IMPORTS BY 9%

Ukraine reduced the import of aluminum ore and concentrate (bauxite) by 9% in January-May 2020 compared to the same period 2019, to 1.945 million tonnes.
According to statistics released by the State Customs Service, bauxite imports in monetary terms decreased by 8.2%, to $85.069 million during that period.
The import was mainly made from Guinea (67.77% of supplies in monetary terms), Guyana (15.02%) and Ghana (8.49%).
In January-May 2020, some 70 tonnes of bauxite worth $11,000 were re-exported to Poland, while in January-May 2019 Ukraine supplied 22 tonnes of bauxite worth $1,000 to Poland.

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UKRAINE RAISES OIL IMPORTS BY 22% IN Q1

Ukraine in January-March 2020 increased import of oil (according to foreign economic activity code 2709) by 22.7% (by 33,400 tonnes) compared to the same period in 2019, to 180,673 tonnes.
According to the State Customs Service, in the first quarter, $99.746 million worth of raw materials were imported, which is 41.3% more than in January-March 2019 ($70.581 million).
So, oil supplies from Azerbaijan totaled $37.884 million (a share of 37.98%), Libya some $31.745 million (31.83%), the United States some $30.118 million (30.19%).
Ukraine did not export crude oil in January-March 2020 and in 2019.

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UKRAINE MAY SAVE UP TO $6 BLN ON ENERGY IMPORTS IN 2020

Ukraine may save $5-6 billion on energy imports in 2020 due to a 50-60% reduction in prices for energy products, which account for 20% of the country’s imports, NBU Deputy Governor Dmytro Sologub has said.
“Our balance of payments shows that there are both positive and negative influence factors in our current account. First of all, this is a fall in oil prices, energy products, which account for 20% of our imports, compared to $12 billion in 2019. A fall in oil prices, a decrease in gas demand may lead to the fact that this year we will save $5-6 billion,” he said at an online briefing on Friday.
Sologub said that the epidemiological situation has led to a reduction in tourist travel.
“Last year, tourist trips of Ukrainian citizens amounted to $8 billion, and we can also expect a significant reduction,” Sologub said.
According to him, the National Bank expects a slight decrease in food prices, which account for more than 50% in Ukrainian exports. To date, the fall in food prices is much lower than for energy.
“As we understand it, even in a crisis, especially when sitting at home, people will consume food and this is the last thing they will refuse. Therefore, we expect that the demand for our export products will preserve, and if it decreases, then insignificantly,” the banker said.
He said that now there is a decrease in money transfers to the country from Ukrainian citizens working abroad. The National Bank expects that the reduction in the indicator will also be less than in energy products.
“Most likely, this influence will be temporary, as economic recovery in Poland, the Czech Republic, Italy will lead to the resumption of remittances,” he said.

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UKRAINE FROM MARCH 1 THROUGH MARCH 17 INCREASES IMPORTS OF FOOD BY 25%

Ukraine from March 1 through March 17, 2020 increased imports of food by 40,000 tonnes year-over-year, to 158,000 tonnes with the cost being $211 million, the State Customs Service said on Thursday. “Some 40,000 tonnes of food products more were brought to Ukraine during 17 days of March compared with the same period in 2019. In general, food imports amounted to 158,000 tonnes worth $211 million. This is almost 8,000 completely filled trucks carrying 20 tonnes,” the customs authority wrote on its page in the Facebook social network.
According to the authority, the supply of cheese, eggs, honey tripled and amounted to 3,177 tonnes worth $13.6 million, imports of finished products from grain, flour, flour confectionery products rose by 86%, to 6,166 tons worth $12.3 million.
Deliveries of vegetables, some edible roots and potatoes increased 138%, to 38,900 tonnes worth $20.4 million.
The milk and milk group of goods showed growth by 163%, to 921 tonnes worth $1.2 million, fish imports – by 73%, to 2,493 tonnes worth $14 million.
Deliveries of coffee, tea, mate and spices increased by some 33%, to 1,293 tonnes worth $4.3 million, extracts, essences and coffee concentrates, syrups, sauces, soups, etc. grew by 23%, to 3,854 tonnes worth $25.1 million.
Import of fruits and nuts also increased slightly, by 3%, to 45,837 tonnes worth $33.9 million.

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