Grain exports are down 21% yoy, for the first seven months of the marketing year, reports the Ministry of Agriculture. Due to a poor corn harvest, wheat displaced corn as Ukraine’s top export. For the latest July 1 – February 1 period, the top three export grains are: wheat – down 18%, to 13 million tons; corn – down 30%, to 11.4 million tons; and barley – unchanged at 3.9 million tons.
Timothy Ash writes from London: “I love the optimism – but expecting three tranches this year? Good luck with that…They are good at talking their book, and I guess keeping the Eurobond market warm. As long as they keep the IMF engaged and don’t screw up too much in the policy/political front with global markets remaining very liquid then the Eurobond market should remain open and relatively cheap for issuers like Ukraine.”
The Finance Ministry lowered its average bond yield by 33 basis points, to 11.4%, in its weekly auction yesterday, the Ministry posts on Facebook. Selling the hryvnia equivalent of $189 million, the Finance Ministry sold: 3-month bonds at 9.29%; 2-year bonds at 11.88%; and 3-year bonds at 12.15 %.
Farming profits jumped 48% yoy, to $2.1 billion last year, according to the Agrarian Economics Institute. Boosting the sector, profits from crop production grew by 55%. Livestock production was down. Winners were: sunflower producers – profits were $753 million; wheat – $678 million; corn – $425 million; canola – $235 million; and milk – $135 million. From 2016-2018, farming profits averaged $2.6 billion. Losers were: egg producers down $175 million; cattle – $50 million; pigs — $25 million; and chickens
Due to higher commodity prices, grain exports were down 53% yoy in January, but export earnings were down only 41%, reports the Ukrainian Agricultural Business Club. Halfway through the marketing year, Ukraine has used up three quarters of its self-imposed 17.5-million-ton wheat export quota. Due to the poor harvest, this year’s export quota is 15% below the 2019/2020 quota.
This year, Ukraine expects to issue $2.4 billion worth of Eurobonds, to receive $2.2 billion in IMF loans and to receive $1 billion in net new foreign investment in the government bond market, Kyrylo Shevchenko, governor of the National Bank of Ukraine, told Reuters Monday. He said talks with the IMF continue and that the Rada may need to pass draft laws as conditions for more loans. On foreign purchases of Ukrainian bonds, he said: “There is a new optimism
Aiming to cut nonperforming loans in half by 2023, Ukraine is speaking with the IMF about creating a special financial court to settle bank loan disputes, Central Bank Governor Shevchenko told Reuters on Monday. The portion of bank loans judged non-performing is 42%. “That is why we are now discussing the option of creating a specialized court or chamber of the court in Ukraine, which will consider issues between creditors and borrowers, as well as between investors and recipients of
Zaporizhia’s Semiconductor Plant, once Ukraine’s largest producer of silicon components for electronic and solar energy, goes up for auction this month on ProZorro. Six years after bankruptcy proceedings started, Ukreximbank is selling the plant and equipment. Bids can be submitted until February 17 the bank said. The sale is expected to net around $17 million.
Foreign investment in solar and wind power dropped last year to €1.2 billion, one third the €3.7 billion of 2019, reported the State Energy Efficiency Agency. In 2019, investors from a dozen countries commissioned 4.5 gigawatts of renewables, racing to commission projects in time to win high green tariffs. But one year ago, the government started to fall behind on payments, running up an overdue bill now near $1 billion. Carryover projects accounted for most of the 2020 investment. Today,
With the payment delays and lowered rates, executives of the biggest US wind investment, EuroCape Energy, are talking to lawyers specialized in political risk insurance, two other foreign investors in wind energy tell the UBN. In 2019, the US Overseas Private Investment Corporation, now called the International Development Finance Corporation, provided a $150 million loan for the first phase of what was to be a 500 mw Zaporizhia Wind Farm. With 100 mw commissioned, the lowered rates undermine the project’s
DTEK Kyiv Grids, formerly known as Kyivoblenergo, plans to invest $23 million in 2021 to upgrade the capital’s electricity infrastructure, the company reports. The investment – a 35% increase over the level of recent years – will go for reconstructing substations, replacing overhead lines, as well as developing a system of ‘smart grids’ and introducing modern customer service featuring an online portal and chatbots.
Designed to draw Chinese container train traffic through Ukraine, a road-rail intermodal container terminal now under construction near the Hungary-Ukraine border will have the capacity to handle 1 million containers a year. This would be more than double the number of containers that moved on UZ tracks in all of Ukraine last year. “The implementation of this project will lead to a very significant increase in traffic and revenue for Ukraine,” Janos Taloshi, CEO of East-West Gate, tells the Center
One year from now, East-West is to open with an initial capacity of 300,000 containers. The terminal is located 25 km south of Chop, Zakarpattia, in Fényeslitke, Hungary, a city where Soviet broad gauge tracks end at a terminus parallel to European narrow-gauge tracks. In coming years, Hungary plans to build a rail bypass around Budapest, a construction project that will allow East-West to work at full capacity. The chairman of East-West is Ruslan Rakhimkulov, a member of one of Russia’s
After Ukraine imposed sanctions on Chinese companies seeking to assert control of Motor Sich, the aircraft engine maker, Wang Wenbin, spokesman for China’s Foreign Ministry, said Monday at a regular press briefing: “We noted relevant reports. China as always opposes unilateral sanctions on Chinese enterprises by foreign governments…We hope the Ukrainian side will uphold the legal rights and interests of Chinese enterprises and investors.”
Threatening Ukraine’s IMF accord and potentially its visa-free agreement with the EU, Ukraine’s Constitutional Court has ruled invalid the law on illegal enrichment and penalties for false declarations of assets and income, Sergii Leshchenko, a former Rada member, wrote last night on Facebook. The Court’s move comes as four judges are under investigation for potentially lying on their asset declarations. Earlier this month, in advance of President Zelenskiy’s visit to Brussels, several key members of the European Parliament said Ukraine’s
Separately, the Kyiv District Administrative Court, has ordered the dismissal of a Western-supported anti-corruption investigator that was investigating corruption in the Court. Justice Minister Denys Malyuska responded on Facebook that he would not dismiss the investigator, Artem Sytnyk, head of the National Anti-Corruption Bureau of Ukraine. The Bureau said of the Court ruling. “Its purpose is to block the work of an institution that has exposed large-scale violations and an attempt to usurp power by the Kyiv District Administrative Court’s
Concorde Capital’s Zenon Zawada writes of the Kyiv Court judge, Pavlo Vovk: “A critical battle is underway in the Zelensky administration that could mark a fatal rift in its relations with the IMF and the West…Not only does Zelensky need to keep Sytnyk in place (even as a mere symbolic gesture towards the West), but now he needs to get rid of Vovk, who is actively working to undermine Ukraine’s relations with the West.”
Vitaliy Shabunin, head of the Anti-Corruption Action Center, writes on Facebook that the ultimate goal is to cut off Western support for Ukraine: “Who is organizing this? [Zelenskiy Chief of Staff Andriy} Yermak and [Yermak’s deputies Oleh] Tatarov and [Andriy] Smyrnov. This trio is responsible for the attack through the Constitutional Court, covering up for the Kyiv Administrative District Court and assaults on the NABU and a lot of other stuff.”
Richard Peter Moore, the new head of Britain’s MI6 intelligence service, warned President Zelenskiy in a face to face meeting in London earlier this month that his chief of staff, Andriy Yermak, is a Russian agent, reports PolitUA. The news site bases the charge on an extensive interview with Andrei Piontkovsky, the Russian mathematician and dissident living in the US since 2016. One week after Zelenskiy’s Oct. 7-8 trip to London, it became public that Moore met with Zelenskiy and
State-owned Ukreximbank has offered to buy back up to $300 million its Eurobonds maturing in 2022 and 2025. The bank will use its own money to buy back the bonds in an operation designed to cut debt costs. Goldman Sachs International is the dealer-manager.
Piontkovsky tells PolitUA’s Ksenia Kirillova that his knowledge of Yermak’s code name and Russian ties comes from his own “insider information from Moscow, from people close to Putin’s ‘bunker.’” But, Piontkovsy adds, “the actions of Andriy Yermak speak about this much more than any operational pseudonyms. He consistently harms the national interests of Ukraine by fulfilling ‘the desires’ of Moscow.”
Appointed Presidential Aide for Foreign Policy Issues in May 2019, Yermak offered a series of concessions to Russia and Russia-controlled Donbas. These moves were blocked by protests from Ukrainian civil society. On Feb. 11, Zelenskiy promoted Yermak to Head of the Presidential Office. Three weeks later, Zelenskiy purged most of the prominent, Western-oriented cabinet members, including Prime Minister Honcharuk, who previously ran a thinktank funded by EU and Canada. Over the summer, Yermak was seen as behind the purge of
With skepticism growing about the IMF accord, the Finance Ministry managed yesterday to sell only 400 million in hryvnia bonds — about 7% of the volumes of the previous two auctions. After consulting with bidders, the seller decided not to put up for auction 6-month and 21-month bonds. After offering 4-year bonds, the seller rejected all six bids, for rates ranging from 11.4% to 12.5% per annum. In the only successful offer, the Ministry sold the equivalent of $14 million
Kyiv Mayor Vitaliy Klitschko narrowly won reelection on the first round, eliminating the need for a runoff vote in Kyiv on Nov. 15, Sonya Koshkina, editor of LB.ua reports on Telegram. With 99.5% of the vote tabulated, Klitschko, a former champion boxer, won 50.6%. In voting for City Council, Klitschko’s UDAR [Punch] and Maryna Poroshenko’s European Solidarity scored 20% each. Other party votes were: Yednist [Unity] – 8.6%; Opposition Platform — For Life – 7.7%; Yulia Tymoshenko’s Batkivshchyna – 7.4%;
Ukraine’s farmers have threshed 50.5 million tons of grains and legumes from 12.9 million hectares, or 84% of the projected area, reports the Ministry of Economic Development, Trade and Agriculture. Harvests of the big crops are: sunflower – 11.6 million tons from 92% of the planted land; soybeans – 2.2 million tons from 80% of the land; corn – 14.5 million tons from 56% of the land; and 3.7 million tons of sugar beets dug from 41% of the planted
In the first four months of the grain marketing year, Ukraine has exported 15 million tons, down 16% from this time last year, reports the Agriculture Ministry, citing Customs Service statistics. After drought slowed the corn harvest, wheat and barley accounted for 90% of exports. With Black Sea wheat prices strengthening, Ukraine exported 57% of its 17.5 million ton self-imposed annual export quota. Due to poor weather last summer, the National Bank of Ukraine has cut its total grain and
South Korea’s Posco International imported last week its first load of 41,000 tons of feed wheat from Posco’s new terminal at Mykolaiv. Last year, Posco completed construction in Mykolaiv of its terminal with an annual capacity of 2.5 million tons. At the time, Ju Si-bo, president and CEO of Posco International, said of his company, largely known as a steel maker: “In the face of growing instability in the global grain market, the company seeks to turn the food business