Business news from Ukraine

US INTENDS TO BUILD GRANARIES IN POLAND TO FACILITATE EXPORT OF UKRAINIAN GRAIN – JOE BIDEN

The United States intends to build granaries in Poland on the border with Ukraine to facilitate the export of Ukrainian grain to Europe by rail, US President Joe Biden said on Tuesday.
“We are going to build temporary granaries on the border with Ukraine – in Poland,” he said during a speech broadcast by the White House on Tuesday.
Biden noted that this plan, if implemented, would allow exporting grain from Ukraine to Europe, and from there to other parts of the world. He said that he is currently “working closely with European partners to release 20 million tons of wheat from Ukraine to world markets.”
The US President also acknowledged that the plan “will take time” to implement.

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US PLANS TO ALLOCATE $1.5 BLN TO UKRAINE MONTHLY IN COMING MONTHS

The United States authorities intend to send about $1.5 billion a month to Ukraine to support the work of the government, Dereck Hogan, the Principal Deputy Assistant Secretary in the Bureau of European and Eurasian Affairs, said.
He said at a seminar at the Woodrow Wilson Center in Washington they had already allocated $1 billion for these purposes through various mechanisms and intended to send about $1.5 billion more monthly during 4-5 months.
The official noted that direct support for Ukrainian authorities is one of the priorities of the administration of President Joe Biden.
He said that the US should take into account the medium and long term, and now the US efforts should be focused on ensuring the work of the government of Ukraine.
The United States and NATO allies are continuing massive arms and ammunition deliveries to Ukraine. Mykhailo Podoliak, the adviser to the head of the Ukrainian President Office’s, said earlier that Kyiv would like to receive 300 multiple launch rocket systems from the West.
At the same time, US officials, both former and incumbent, warn of the need to establish control over the use of aid provided by the United States to Kyiv.

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US DEPARTMENT OF AGRICULTURE IMPROVES ASSESSMENT OF CORN CROP IN UKRAINE

The U.S. Department of Agriculture (USDA), in its June report published on Friday, raised its forecast for Ukrainian corn this year by 5 million tons compared to a month ago, to 25 million tons, while maintaining export estimates at 9 million tons.
American experts increased the forecast for carry-over stocks for the upcoming 2022/2023 marketing year (MY) by 4 million tons – up to 12.07 million tons compared to 6.77 million tons for the current MY.
In addition, USDA raised the estimate of domestic consumption in the new MG by 1.5 million tons – up to 10.7 million tons.
According to the report, in general, the forecast for the feed grain harvest in Ukraine for MY 2022/23 has been increased by 5.2 million tons, to 31.76 million tons, although at the same time, the export estimate has been reduced by 0.2 million tons, to 10.83 million tons.
American experts have increased the forecast of feed grain carry-overs following the results of the upcoming MY by 3.9 million tons – up to 13.06 million tons compared to 7.77 million tons at its beginning.
In addition, USDA raised the estimate of domestic consumption of feed grains in the new MG by 1.5 million tons – up to 15.65 million tons.
The US Department of Agriculture recalled that in the past 2020/21 MY, the wheat harvest in Ukraine amounted to 25.42 million tons, and exports – 16.85 million tons. According to his estimates, in this ending MY, with a crop that has grown to 33.01 million tons, exports will increase to 19 million tons, and carryovers – from 1.51 to 5.61 million tons. In addition, American experts expect domestic wheat consumption in Ukraine to grow to 10 million tons in 2021/22 MY from 8.7 million tons in the previous MY due to livestock.
As for corn, according to the report, in the past 2020/21 MY, its harvest in Ukraine was 30.3 million tons, and exports – 23.86 million tons. According to USDA estimates, in this ending marketing year, with a corn crop that has grown to 42.13 million tons, its exports will decrease to 23 million tons, and carry-over stocks will jump from 0.83 to 6.77 million tons. In addition, American experts expect domestic corn consumption in Ukraine to grow to 13.2 million tons in 2021/22 MY from 7.1 million tons in the previous MY, also due to livestock.
In general, the feed grain harvest in Ukraine in 2020/21 MY, according to the US Department of Agriculture, was 39.59 million tons, and exports were 28.15 million tons. According to USDA estimates, in this ending MY, with a forage grain harvest that has grown to 53.51 million tons, it will increase only to 29.06 million tons, and carry-over stocks will jump from 1.65 to 7.77 million tons. In addition, American experts expect in 2021/22 MY an increase in domestic consumption of feed grains in Ukraine to 18.37 million tons from 12.41 million tons in the previous MY, also due to livestock.

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US SUSPENDS 25% DUTY ON UKRAINIAN STEEL FOR 12 MONTHS

The United States will temporarily suspend the 25% duty on Ukrainian steel imposed by President Trump under Section 232 of the Trade Expansion Act of 1962 for 12 months, U.S. Secretary of Commerce Gina M. Raimondo said.
“For steel mills to continue to be an economic lifeline for the people of Ukraine, they must be able to export their steel. Today’s announcement is a signal to the Ukrainian people that we are committed to helping them stand up in the face of Putin’s aggression,” the minister said on the ministry’s website. .
The report states that each of the 13 Ukrainians is employed in the steel industry of Ukraine, and their work is well paid.
“We are talking about stopping the 25% tariffs imposed in 2018 by the Trump administration,” Yulia Sviridenko, First Deputy Prime Minister and Economy Minister, commented on the decision of the US Department of Commerce.
According to her, the Ministry of Economy has been working on this project for several years.
“The abolition of these duties will be a turning point in trade relations between Ukraine and the United States,” she stressed.
According to the State Statistics Service, in 2021, the export of ferrous metals from Ukraine to the United States increased by 50.5% compared to the previous year – up to $70.76 million, and ferrous metal products – 11 times, up to $16.85 million. In total, these two articles accounted for 55.4% of all exports from Ukraine.
The US Department of Commerce also recalled that some of Ukraine’s largest steel mills have suffered the most from Putin’s barbarism, and Azovstal in Mariupol has become a symbol of Ukraine’s determination to resist Russian aggression. The agency added that many Ukrainian steel mills continued to pay workers, feed and shelter their employees during the fighting, and some resumed production despite nearby fighting.
“Creating export opportunities for these factories is essential to their ability to continue hiring and supporting one of Ukraine’s most important industries,” the statement said.
It also states that following the sanctions, U.S. exports to Russia of categories of goods subject to new U.S. export licensing requirements decreased by 97% in value terms compared to the same period in 2021 (February 24-April 29), and total exports fell by about 79%.

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HOUSE OF REPRESENTATIVES OF US CONGRESS PASSES LAW ON LEND-LEASE FOR UKRAINE

On Thursday evening, the US House of Representatives adopted a law on lend-lease and the protection of democracy in Ukraine, head of the Office of the President of Ukraine Andriy Yermak said.
“Lend-lease for Ukraine has finally been opened. The law has been voted on. Thanks to our allies,” Yermak wrote on his Telegram channel on Thursday evening.
The text of the document refers to granting the US President expanded powers to transfer or lease defense assets to Ukraine to “protect the civilian population from Russian military invasion” and for other purposes.
“After the adoption of the act, the chairman of the White House is obliged within 60 days to establish accelerated procedures for the delivery of products. The Lend-Lease Act allows us to significantly speed up the supply of weapons, transport, food and aid from the United States. And all this will allow us to drive the Russian army out of our territories” , – wrote the head of the OP.
He noted that Lend-Lease “means the US confidence in Ukraine’s victory over Russia.”
“This will be an important victory for our indestructible people, who were able to unite the civilized world around them in the fight against the Russian evil,” Yermak summed up.

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US PLANS TO ALLOCATE MORE THAN $322 MLN IN MILITARY ASSISTANCE TO UKRAINE

The United States intends to allocate more than $322 million in military assistance to Ukraine, the US State Department has announced following a visit to Ukraine by US Secretary of State Anthony Blinken and US Secretary of Defense Lloyd Austin.
“Secretary Blinken told President Zelensky that the United States intends to provide more than $713 million in foreign military financing (FMF) to Ukraine and 15 other allies and partner nations in Central and Eastern Europe and the Balkans. This includes $650 in funding million USD, provided in accordance with the Law on additional appropriations for Ukraine of 2022,” the statement on the website of the US State Department said on Monday.
It is noted that more than $22 million in this commitment is intended for Ukraine and will provide the capacity support that the country needs as Russian forces focus their attention on the Donbas. The State Department indicated that this assistance will also help the Armed Forces of Ukraine switch to more advanced weapons and air defense systems. In addition, the funding will also help NATO allies replenish the capabilities they have transferred to Ukraine from their own stockpiles.
“Additionally, Secretary Blinken told President Zelensky that the agency notified Congress on April 24 of a sale of up to $65 million worth of non-standard munitions to Ukraine,” the US State Department said.
At the same time, US Secretary of Defense Lloyd Austin informed the Ukrainian government that the US Department of Defense will expand military training for Ukrainian military personnel in the region on certain weapon systems.
“He highlighted US efforts to speed up the delivery of these weapons, which are now arriving within days of the announcement. And he stressed that, along with our allies and partners, the United States will continue to coordinate the delivery of additional heavy weapons, ammunition and spare parts from other countries.” , – noted in the message of the State Department.
Austin also presented Ukrainian leaders with the agenda for the Defense Consultative Meeting to be held this week in Germany. The consultative meeting, convened by the United States, will review the operational picture on the ground and review Ukraine’s short-term defense needs, as well as provide participants with an opportunity to explore ways in which Ukraine’s long-term national security interests can be best served.
“Saw the courage and resilience of the Ukrainian people during my visit to Kyiv with Secretary of Defense Austin. During our meeting with President Zelensky, we reaffirmed our unwavering support for Ukraine as it resists Russian aggression,” Blinken tweeted on Monday.
Since the start of Russia’s new invasion of Ukraine on February 24, the US has provided approximately $7 billion in security assistance and has provided more than $4.3 billion since the Biden administration came to power.

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