Business news from Ukraine

Business news from Ukraine

Overestimated cost of products for army is not true – head of committee

The inflated cost of food products purchased for the Armed Forces, as reported in the media, does not correspond to reality, as evidenced by the contract of the Defense Ministry, with a copy of which the members of the parliamentary committee on national security, defense and intelligence have familiarized themselves, said its head Aleksandr Zavitnevych (Sluka Naroda faction).
“We have all seen the contract and the figure that was specified (in the media – IFU) does not correspond to reality. Therefore, to say that we buy chicken eggs two or three times more expensive than in the market is wrong. The contract has a completely different figure,” Zavitnevich said on the air of the national telethon on Monday.
He specified that all members of the committee at Monday’s meeting saw a copy of this contract.
According to Zavitnevich, it will be possible to draw any conclusions after an appropriate expertise and investigation by law enforcement agencies. He also believes that there is no need to rush with personnel changes in connection with the high-profile situation.
“Now to talk about personnel changes … I would not make such statements. When the NABU and other law enforcement agencies arrive at their conclusions and when the cases are sent to court, then we will be able to talk about some personnel decisions,” the head of the committee said.
He recalled that even before the publication in the media about possible abuses in the procurement of products for the AFU interested the National Anti-Corruption Bureau and other law enforcement agencies.
As reported earlier, Ukrainian Defense Minister Oleksii Reznikov denied information about the purchase of food for the Armed Forces at inflated prices.
Earlier, the ZN.UA publication asserted that under the agreement of the Defense Ministry on the services of catering in 2023 for military units stationed in Poltava, Sumy, Kiev, Zhytomyr, Chernihiv and Cherkasy regions, in a deal worth 13.16 billion UAH overpriced procurement by 2-3 times.

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Ukraine reduced exports of semi-finished carbon steel products by 70.6%

Ukraine in January-November this year, Ukraine has reduced the export of semi-finished products of carbon steel in physical terms by 70.6% compared to the same period last year – up to 1 million 824.586 thousand tons.
According to statistics released by the State Customs Service (SCS), in monetary terms, exports of semi-finished products of carbon steel during this period decreased by 69.4% – to $ 1 billion 147.436 million.
In addition, Ukraine imported 5,558 thousand tons of such products in January-November, which is 84.7% less than in January-November 2021. In monetary terms, imports decreased by 84.9% to $3.634 million.
As reported, Ukraine in 2021 decreased exports of semi-finished carbon steel products in volume terms by 9.5% compared to 2020 – up to 6 million 776.44 thousand tons. In monetary terms, exports of semi-finished carbon steel products for the year increased by 48.8% – to $4 billion 93.02 million. The main exports were shipped to Italy (30.90% of deliveries in monetary terms), Turkey (12.77%) and the Dominican Republic (8.02%).
In addition, Ukraine imported 38.97 thousand tons of such products in 2021, which is 2.6 times more than in 2020. In monetary terms, imports increased by 3.9 times – up to $25.95 million. Imports were from the Russian Federation (97.73% of supplies), Turkey (1.15%) and Uzbekistan (1.08%).

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Kokhavinskaya paper mill produced products for UAH 862.6 million

Kokhavinskaya paper mill (KBF, Lviv region), which produces sanitary and hygienic paper products (TM “Kokhavinka”), in January-September 2022, produced products worth UAH 862.57 million, which is 40.8% more than in the same period of 2021.
According to the statistics of the association “UkrPapir”, provided to the agency “Interfax-Ukraine”, thus, the factory has more than 40% increase in production volume of more than 40%, recorded on the basis of seven and eight months.
In physical terms, the production of base paper for sanitary and hygienic products increased by 1.3% – up to 30.2 thousand tons.
At the same time, the production of toilet paper in rolls increased by 16.1% – to almost 97 million pieces, which remains the second largest indicator after the Kyiv KBK (247.7 million pieces).
In general, the main enterprises of the industry during this period produced 429.2 million rolls (-17.2% compared to January-September 2021).
KBF, which has been operating since 1939, produces base paper for sanitary and hygienic products, as well as toilet paper and paper towels. The capacity of paper machines is 19 thousand tons per year, processing equipment is 90 million rolls per year.
The factory has practically not stopped production since the beginning of this year.
KBF in 2021, according to UkrPapir, increased the volume of production of marketable products by 13% compared to 2020 – up to UAH 673.7 million.

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Projects for construction of factories for production of float glass products worth hundreds of millions of dollars were presented in Ukraine

Projects for the construction of factories for the production of float glass products in the Zakarpattia and Kirovohrad regions for EUR195 million and $250 million, respectively, have been presented in Ukraine.
According to the presentation by Silverland Industrial Park, the project in the village of Klyucharki (Mukachevskiy district, Zakarpattia region) is estimated at EUR195 million, with 10% of the amount coming from the company’s own investments. The area of ​​the land plot for construction is 19 hectares. The capacity of the production line will be 750 tons/day.
“Before the start of a full-scale war, the demand for glass in the Ukrainian market was 28-30 million square meters per year. Our company will be able to cover at least 50% of this demand. Independent production will reduce dependence on external suppliers, contribute to the post-war reconstruction of Ukraine In the future, there is an opportunity to enter the international export market,” Silverland representative Matvey Isichenko said at the International Investment Fair from UkraineInvest on Thursday.
The project implementation period is two years, the expected payback period is 4 years. The internal rate of return is estimated by the company’s analysts at 10%, the EBITDA margin is 31%.
According to Isichenko, there are no competitors in this area on the Ukrainian market, and the proximity of the enterprise to the western border will allow establishing cooperation with the nearest European countries and reducing logistics costs.
The implementation of the Genesis Engineering float glass plant project in the Kirovograd region is estimated at $250 million, while the company’s own investments will amount to $80 million. The area of ​​land for the construction of the plant is 38 hectares.
“We are planning to build a plant in the central part of Ukraine, which gives us a good balance of access to high-quality raw materials and the target market, both domestic and export,” said Georgy Idiatullin, owner of Genesis Engineering.
The plant’s production capacity will be 510 tons/day, or 18 million square meters. m of glass per year. Products include clear glass 2-19 mm thick, with different finishes and shades. The production is planned to use equipment that will reduce emissions into the environment by 70%.
The implementation of the project will create 340 new jobs. The construction period is 3 years, the expected payback period of the project is 10 years. The internal rate of return is estimated by analysts at 11.28%, the EBITDA margin is 28%. According to the project implementation plan, in the first year of operation, the export income will be approximately $40 million.
Products will be certified according to European standards and export-oriented, Idiatullin said.
“There is a fairly large shortage of such products in the world, and the predicted growth of the world market is 8%, the European market is 6.5% annually. The volume of the world market today is $105 billion, the volume of the Ukrainian market for 2020 was $200 million and was completely dependent on imports “, – said the speaker during the presentation.
According to Opendatabot, Silverland IP LLC was established in May 2022. Among the founders are Andrey Isichenko and Alexander Popov (34% each), as well as Mikhail Lashin (32%).
Genesis Engineering LLC was established in 2014. Its owners are Georgy Idiatullin (50%), Konstantin Shcherban (33%) and Vladlena Kisilenko (16%).

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Export of products from Ukraine under “grain deal” reaches 3.7 mln tons

The departure of 10 ships with 169.3 thousand tons of agricultural products is scheduled from the ports of Greater Odessa to the countries of Africa, Asia and Europe on Sunday, the Ukrainian Sea Ports Administration (USPA) reports.
“By 10:00 am, 8 ships left the ports of Greater Odessa, and 2 more are waiting for their turn and favorable conditions,” the agency noted on Facebook.
In total, since the release of the first vessel with Ukrainian food, 3.7 million tons of food have already been exported, and the total number of vessels for the countries of Asia, Europe and Africa has reached 165.
As reported, in Istanbul on July 22, with the participation of the UN, Ukraine, Turkey and Russia, two documents were signed on the creation of a corridor for the export of grain from three Ukrainian ports – Chornomorsk, Odessa and Pivdenny.

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Zoom will provide its products for distance learning in Ukraine

Zoom Video Communications, Inc. will provide its products for distance learning, according to the Ministry of Education and Science.
“The Ministry of Education and Science of Ukraine and Zoom Video Communications, Inc. have agreed to grant a license for the unified communication platform Zoom Education and Large Meetings applications for organizing distance learning in educational institutions of Ukraine,” the ministry’s press service said.
It is noted that Zoom will provide a sufficient number of licenses so that every school and institution of higher education in Ukraine can carry out educational programs online.
The agency says that as of today, nearly 800 schools have licensed access to use Zoom tools, allowing millions of applicants to start the 2022-2023 school year on time.

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