Business news from Ukraine

SHARP SUSPENDS SHIPMENTS TO RUSSIA DUE TO SITUATION IN UKRAINE

Sharp Group is suspending shipments to Russia due to the situation in Ukraine, the Japanese electronics manufacturer said.
“Sharp Group is currently suspending shipping into Russia with the conflict’s impact. We will continue to monitor the situation carefully and make adequate measures based on the spirit of our Sharp Group Charter of Corporate Behavior,” the company said.
A day earlier, Japanese information technology company NEC also announced that it has suspended new sales of products and services, as well as investment in Russia.
Japan, along with a number of other countries, imposed sanctions against Russia over the events in Ukraine, after which a number of Japanese companies announced the suspension of shipments to and production in Russia, including due to logistics problems. They include Panasonic, Hitachi, Yamaha Motor Co., Tadano Ltd. and Komatsu Ltd.

, ,

PHILIP MORRIS SHIPMENT OF PRODUCTS GOES DOWN BY 3% IN 2021

Philip Morris International Inc. (PMI) in 2021 reduced the shipment of its products in Ukraine by 3.3% compared to 2020 due to an increase in excise tax on these products, followed by its rise in price and an increase in the volume of illegal trade in cigarettes.
According to the PMI report, in the fourth quarter of 2021, shipments of its products to Ukraine decreased by 7.4% compared to October-December 2020, mainly due to the overall contraction of the Ukrainian tobacco market, which was partially offset by the growth of tobacco products intended for use in heat-not-burn devices.
The overall contraction of the tobacco market in Ukraine in 2021 was 9.8% compared to 2020, mainly due to an increase in product prices caused by an increase in the excise tax and in illegal trade in cigarettes.
According to the report, in general, in Eastern Europe (including Russia) in 2021, the volume of shipments of tobacco products did not change compared to 2020 and amounted to 114.35 billion units, and in the fourth quarter of last year it decreased by 4.3% – to 27.99 billion units
As reported, Philip Morris International, which includes PrJSC Philip Morris Ukraine, is one of the world’s largest manufacturers of tobacco products. It produces cigarettes in more than 50 factories and sells them in 180 countries.
The company has been operating in Ukraine for more than 20 years, owns a factory in Kharkiv region. More than 1,300 people work at the company’s enterprises.

, ,

JAPAN POST STARTS EXPORT SHIPMENTS TO UKRAINE

JSC Ukrposhta announced the resumption of export shipments to Ukraine by Japan Post from February 26.
“Ukrposhta will deliver from Japan Express Mail Service [EMS] items ordered by Ukrainians and those that are delivered by plane,” the Ukrainian postal operator said on Friday.
The company recalled that until February 7, Japan Post had restrictions in its work and, accordingly, the shipment of postal items to other countries was limited.
At the same time, Ukrposhta notes that the export of Ukrainian goods to Japan did not stop even during the pandemic.
“In January, 95% of EMS items were delivered to the Japanese post offices within seven days, and 5% within two weeks,” the Ukrainian postal operator said.
Since the beginning of the quarantine, Ukrposhta has ensured the delivery of EMS items to 57 countries, now items are delivered to 120 countries, and after the stabilization of air traffic and the restoration of full-fledged work of national post offices, the service will be available for delivery to 195 countries.

, , , ,

UKRAINIAN GOVERNMENT APPROVES MEMO WITH U.S. COMPANY ON POSSIBLE LNG SHIPMENTS

The Cabinet of Ministers at a meeting on May 27 approved a memorandum with Louisiana Natural Gas Exports on possible LNG supplies from the United States to Ukraine and the development of gas infrastructure with Poland. “The Ministry of Energy and Environment Protection has worked out a draft memorandum of cooperation between Louisiana Natural Gas Exports and the Cabinet of Ministers of Ukraine on facilitating gas supplies to Ukraine and improving gas infrastructure, which provides for exploring the possibility of diversifying natural gas supply routes by ensuring long-term supplies of liquefied natural gas and developing cross-border gas infrastructure in Ukraine and the EU,” Olha Buslavets, the acting Minister of Energy and Environment Protection, said.
According to data released by MP Oleksiy Honcharenko (the European Solidarity faction) on Telegram, the document provides for an annual LNG supply of about 5.5 billion cubic meters, and its price will be determined in accordance with the prices on the American gas exchange Henry Hub.
The memorandum, in particular, provides for the construction of a new gas pipeline between the gas hub Hermanowice (Poland) and the Bilche-Volytsko UGS facility. Project funding may include support of certain U.S. and European government agencies.
Final agreements may include a long-term agreement for the supply of LNG from the United States to Ukraine, an agreement on gas storage in Ukrainian underground gas storage facilities, an agreement on the construction and operation of necessary infrastructure between Poland and Ukraine.

, , ,

PHILIP MORRIS INTERNATIONAL REDUCES CIGARETTE SHIPMENTS IN UKRAINE BY 8.8% IN 2018

Philip Morris International Inc. (PMI) Tobacco Company in 2018 reduced cigarette shipments in Ukraine by 8.8% from due to a decline in the overall market, which was partially offset by an increase in the total market share of heated tobacco products. The total volume of the cigarette market in Ukraine in 2018 decreased by 8.1% mainly due to an impact of rising prices and an increase in illegal trade, PMI said in an annual report. According to the company, the total volume of the cigarette market in Ukraine decreased by 8.7% in the fourth quarter of 2018 alone. Shipments of PMI cigarettes in October-December decreased by 10.4%.
Philip Morris International is one of the world’s largest manufacturers of tobacco products. It produces cigarettes in more than 50 factories, sells them in 180 countries.
In Ukraine, it has been working for more than 20 years. Its production facilities are based in Kharkiv region.

, ,