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
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.
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
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 %.
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.”
According to the State Statistics Service, animal farming fell by only 2.6%. Chicken were down 9.3%. Cows were down 6.2%. While pigs were up 2%, largely on the strength of investments in industrial piggeries.
With the declines in animals and birds, egg production was down 2.9% and milk production fell by 4.2%. Beef production was down by 17% and poultry was up 4%.
With the corn harvest down 15% yoy and prices at seven-year highs, Ukraine’s government decides this week on a request by pig and poultry producers to limit corn exports to 22 million tons – three times domestic needs. Traders fear this will create more turbulence in the Black Sea market. Russia, fearing unrest over rising food prices, plans to impose a higher export tax on wheat and corn in March.
China nearly tripled its purchases of Ukrainian corn last fall, to 3.6 million tons, according to APK-Inform. Compared to the same October-December period, the EU cuts its purchases by 39%, to 2.7 million. Egypt was the third largest importer of Ukrainian corn, 900,000 tons, down 19% yoy. Overall, China bought 40% of Ukraine’s corn shipments last fall.
Bangladesh will step up wheat purchases from Ukraine on the news that Russia imposing an export tax on wheat, Mosammat Nazmanara Khanum, the top civil servant at Bangladesh’s food ministry, tells Reuters in Dhaka. Russia has only supplied half of the 400,000 tons of wheat it had promised Bangladesh this year
Vietnam nearly doubled its imports of grain from Ukraine last year, Taras Kachka, Ukraine’s deputy minister of Economic Development, Trade and Agriculture, writes on Facebook. With two-way trade expected to hit $1 billion this year, Kachka writes: “We have agreed to resume work on the FTA agreement with Vietnam.” Kachka and Vietnam’s Ambassador to Ukraine also agreed to establish Vietnam House in Kyiv and a Ukraine House in Hanoi.
With Russia and Argentina imposing export restrictions on wheat, the export price of Ukrainian wheat has hit a six year high, reports APK-Inform. Deputy Economy Minister Kachka writes on Facebook: “Already, the number of requests for cooperation on food security from foreign partners has increased significantly.”
Fueling purchases of Ukrainian food, weather irregularities and Covid-19 supply chain disruptions pushed world food prices in December to the highest level in six years, according to the FAO Food Price Index. “Food around the world was 7.5% pricier than the 2014-2016 average,” reports the UN’s Food and Agriculture Organization.
Ukraine’s Kernel, the world’s largest producer and exporter of sunflower oil, crushed a record 1 million tons of oil seeds Oct-Dec, boosting oil sales by 23% yoy, to 425,340 tons. During the second half of last year, Kernel increased oilseed processing by 5%, to 1.7 million tons, and oil exports by 11%, to 721,580 tons. India and China are the two largest importers.
The EBRD is considering approving next month an $80 million loan to Kernel for the purchase, storage, processing, transportation and export of agricultural goods. As of last June, Kernel’s net debt was $980 million.
Ukraine’s overall exports of vegetables oils were up 5% to a record 6.6 million tons in the marketing year that ended last August. Vegetable oils accounted for 5% of Ukraine’s sea-borne exports, according to Stark Shipping’s Annual Report on the Export of Ukrainian Vegetable Oils.
Climate change poses an increasing challenge to Ukraine’s ambitions to become an agricultural superpower, Anna Ackerman writes in an Atlantic Council Ukraine Blog. “The single most striking and alarming factor about the changing weather conditions in Ukraine during 2020 was the scarcity of rain,” writes Ackerman, a board member at the Kyiv-based Ecoaction Centre for Environmental Initiatives The Ukrainian agricultural industry relies heavily on rainfall, but rain was irregular throughout the past year and fell 8% below annual norms.”
Due droughts and “unusually intense spring frosts,” Ukraine lost almost 800,000 hectares of crops this year, Ackerman writes. She warns: “While southern regions of the country slowly adapt to the lack of rainfall and develop sophisticated irrigation systems, droughts are now becoming an increasingly commonplace feature in the agricultural regions of northern and northeastern Ukraine, where such conditions were not previously an issue.”
Drought, frosts and poorly timed rains caused Ukraine to suffer the biggest drop in farm production in a quarter century – 11.5% yoy, reports the State Statistics Service. Crop farming was down 13.9%. The grain harvest is expected to be down 10%, to 64 million tons.
Oleh Bakhmatyuk, owner of Ukrlandfarming, reported last week that he has shut down 37 companies and let go 13,000 employees. He blamed “unprecedented legal pressure” from Artem Sytnyk, director of the National Anti-Corruption Bureau. Three years ago, he blamed his problems at Ukrlandfarming and Avangardco on then-governor of central bank Valeria Gontareva. It is unclear how real are the troubles of the group, Ukraine’s largest egg producer. However, ptichki.net website reports that wholesale prices of eggs have jumped 73% over
Dragon Capital writes: “The drop in agricultural production in 2020, which became the sharpest since 1994, was mainly caused by a lower harvest, as late-crop yields were hit by poor precipitation.”
Concorde Capital writes: Bakhmatyuk’s “scapegoating approach can only partially explain all the business troubles that Ukrlandfarming and its related Avangardco (AVINPU, AVGR LI) have had since late 2016…Conducting a clean business would help in that cause, as we don’t see Sytnyk’s campaign as being baseless.”
The USDA forecasts that Ukraine’s grain harvest will be down 8% this year, to 64.2 million tons. This will lead to an 8.5% yoy drop in total grain exports to 45.8 million tons, predicts the U.S. Department of Agriculture.
Ukrainian dairy producers charge that imported milk, butter and cheese are driving them out of business. Facing competition, largely from the EU, only 160 dairy producers survive – about one quarter the number of a decade ago, Vadym Chaharovsky, head of the Union of Dairy Enterprises, tells Interfax-Ukraine. According to the State Customs Service, cheese imports almost doubled last year in dollar terms to $210 million, butter imports increased 2.5 times to $41 million, and milk and cream imports more
Ukraine saved $3.4 billion last year on oil imports, cutting its import bill by 36% yoy, reports the State Customs Service. In volume terms, Ukraine cut imports by 5%, to 8 million tons. Top suppliers were: Russia – $1.2 billion; Belarus – $1.2 billion; Lithuania — $400 million.
Industrial production dropped last year by 5% yoy, reports the State Statistics Service. Manufacturing was down 7%. Other big drops were: coal mining down 13%; and electricity generation down 6.6%. On the upside, steel was up 6.5% and cement was up 7%. In 2019, industrial production was down 1.8%, cancelling out a 1.1% growth in 2018.
Net foreign direct investment in Ukraine was the worst in 20 years, Lenna Koszarny Founding Partner and CEO of Horizon Capital, said Friday at a discussion of the draft National Economic Strategy 2030. Looking at negative flows for first nine months, she said: “We hope that net FDI will go to zero.” To get Ukraine on a growth track, she said the government’s goal should be: judicial reform, capital market reforms and investment reforms.
Last year’s remittances from Ukrainian workers abroad totaled $12 billion — almost five times the net direct foreign investment of $2.5 million. In 2018, net FDI added up to $2.4 billion. Kyrylo Kryvolap, Executive Director of the Center for Economic Recovery, said that since independence, Ukraine’s economy has attracted $50 billion in FDI, while Poland attracted over the same period $240 billion.
Despite coronavirus travel controls, worker remittances are expected to be near last year’s level. Ukraine’s State Border Guard Service reports that 35% of the 11,250,000 border crossings out of Ukraine last year were to Poland. While Ukrainians were largely barred from visiting the EU for tourism in 2020, travel was permitted for work. Outbound crossings were: Poland – 4 million; Hungary – 1.6 million; Russia – 1 million; Turkey – 965,000; Egypt – 730,000; Romania – 626,000; Belarus – 496,000;
The sale of large state companies starts this year and will not be reversed, Prime Minister Shmygal vowed Friday at the meeting to debate the National Economic Strategy through 2030. He added: “Investors have liquidity today. Objects for privatization in Ukraine are extremely interesting.” He said planned companies for sale this year include: three regional power generators, five combined heat and power plants, the Bolshevik plant, the Odessa Port Plant, the United Mining and Chemical Company, and the President Hotel.
To promote investment into Ukraine, UkraineInvest is creating up to 70 information offices in Ukrainian embassies around the world, Serhiy Tsivkach, executive director of the Investment Promotion Agency, said at the National Economic Strategy meeting. The agency is working with the Foreign Ministry and the Ukrainian World Congress. Ukraine has 78 embassies and 45 consulates.
Turkish companies are interested in investing in Chornomorsk container terminal and railway and ferry complex, Infrastructure Minister Vladyslav Krykliy reports after meeting Thursday with executives of three Turkish companies: Busserk, Çalık Holding, and NIKO Group. One of Ukraine’s busiest black sea ports, Chornomorsk has a car ferry to Derince, near Istanbul.
DTEK Renewables plans to launch solar and wind projects in the EU as early as this year, DTEK Renewables CEO Maris Kunickis tells Bloomberg in an article headlined: “DTEK Looks Abroad After Ukraine Backtracks on Green Support.” Behind DTEK’s drive to diversify, Bloomberg writes: “In 2020, government only paid for 50% of produced energy to renewable producers. The retroactive cut jeopardizes Ukraine’s goal of having a 25% share of renewables in electricity production in 2035.”
Ukrainians bought two thirds of their long-distance train tickets online last year, reports Ukrzaliznytsia. By buying 12.9 million tickets through the Internet, at booking.uz.gov.ua, travelers had easy access to fares, seat selection and discounts. Two weeks ago, UZ launched ticket sales through Viber and Telegram, facilitated by chatbots. On the first day, 17,000 people took advantage of the new service.
The longest train ride in Ukraine is also one of its five most popular, reports Ukrzaliznytsia. Every day, Train No. 45 sets off from Uzhgorod or Lysychansk, Luhansk, ambling across Ukraine making at least 40 stops and averaging 53 km/hour (33 mph). The train takes 31 hours and 15 minutes to travel 1,653 km, slight longer that the distance from Marseilles to Berlin. Last year, 461,500 people rode the train, most for small segments.
Restaurants, gyms and shopping centers reopen in Ukraine today as the nation emerges from the coronavirus lockdown-imposed Jan. 8. Registered new infections are running at about 5,000 a day, about one third the peak of two months ago. “Epidemiologists record the stabilization of the situation,” Prime Minister Shmygal wrote Saturday on Facebook. “The number of occupied beds has decreased to less than 30%.” Kyiv city has a 32% occupancy rate of coronavirus beds and the nation’s fourth highest infection rate
Ukraine imported a record amount of wine last year — $180 million. Top supplying countries are: Italy – $ 29 million; France – $ 27.5 million; and Georgia – $26 million. Over the last decade, Ukraine’s wine production dropped in half, partly due to the loss of Crimea, partly to due to red tape blocking small producers, and partly due to imports. EU exports to Ukraine are expected to increase this year after duties dropped to zero on Jan. 1.
China’s imports of Ukrainian grain are soaring during this marketing year, the Ukrainian Grain Association reports, citing figures released Thursday at an Agro meeting at Ukraine’s Embassy in Beijing. In the first seven months of the grain marketing year, China has imported 6.9 million tons from Ukraine – more than the 6.3 million tons imported during the 2019/2020 marketing year. During the 2020 calendar year, China was the largest importer of Ukrainian grain, buying 20% of Ukraine’s total exports of
After the United States, Ukraine was the world’s second largest grain exporter in the marketing year that ended June 30, Taras Kachka, Deputy Minister of Agriculture and Economy, told the International Grains Council last week. Citing USDA figures, Kachka said Ukraine ranked 2nd in barley exports, 4th in corn exports and 5th in wheat exports. After a poor harvest this fall, Ukraine may fall behind. During the first seven months of the current marketing year, exports are down by 6.3
DHL and Ukrzaliznytsia plans to develop China-bound trade from UZ’s left bank rail wagon marshalling yard at Liski, Logistics Manager, an Asia-oriented logistics news site, reports in a story headlined: “Full Steam Ahead for Ukraine & China to Drive Rail Connectivity.” Freight from Ukraine’s neighbors can be consolidated in Kyiv for shipping east in container trains. “There is a lot of excitement for those watching trade developments between China and Ukraine,” says Steve Huang, CEO of DHL Global Forwarding Greater
Ukrzaliznytsia, the workhorse of Ukrainian logistics, carried 40 million tons of cargo between Ukraine and the EU last year, the state railroad reports. One quarter of that traffic was with Poland. Exports to the EU accounted for 28 million tons, imports 4 million tons, and transit 7.5 million tons. Other than to say that cargo between Romania and Ukraine increased by 21%, to 4 million tons, the railroad did not give comparative figures for 2019. The other three big destinations
Rail container traffic grew by 11%, to 425,000 TEUs in 2020, Ukrzaliznytsia reports. The portion of traffic carried in dedicated container trains jumped by 41%, to 230,000 TEUs. Direct container trains from China to Kyiv started June 8 and rose to the frequency of almost once a week. Next month, Chinese railway operator East Line starts sending container trains to Kyiv from two logistics centers in eastern China: Nanchang, and,1,000 km to the north, Jinan.
Chinese trains passing across Ukraine to the EU “significantly increased,” UZ said. Seeking to develop Ukraine as a transportation corridor, UZ is developing new EU routes with DHL Global Forwarding and with Ukrainian companies for a multimodal ferry-train route – Turkey-Ukraine-Poland.
Fueled partly by Chinese demand, Metinvest, Ukraine’s largest private company, rode strong steel prices to report steel output growth by 9% yoy last year, to 8.3 million tons. Its Inhulets mining and processing plant in Kryvy Rih, reported a 8% yoy growth in production of iron ore concentrate, to almost 12 million tons. Mariupol Illich Iron and Steel Works, in Donetsk region, increased production of rolled steel products, by 12.4% yoy, to 3.7 million tons.
Looking ahead, Concorde Capital’s Dmytro Khoroshun writes: “We expect Metinvest to continue producing steel at daily rates of at least 23-24 kt in January-February in order to make the most of the recently skyrocketed prices.”
Ukraine’ pig iron exports increased by 20% yoy last year to 3.1 million metric tons, reported Steelorbis news site. In value terms, exports rose 15% to $992 million. The biggest buyers were: US – 58.5%; China -22%; and Turkey – 6%.
Interpipe Steel said that it is the Ukraine’s first steel company to meet European Green Deal targets for 2050: its emissions do not exceed 250 kg of CO2 per ton of steel produced. This producer of steel pipes and railroad wheels in Dnipropetrovsk was built from scratch nine years ago involving $1 billion investments. Founded and owned by Viktor Pinchuk, the company made these announcements on the occasion of the arrival of the company’s new CEO, Artem Polyakov.
“Law enforcement agencies, former shadow owners and oligarchic groups” and attempting “to stop and roll back the privatization” of United Mining and Chemical Company, Ukraine’s state-owned titanium producer, the State Property Fund charged yesterday. If such attacks are not repelled, Ukraine could lose $430 million in budget revenues through aborted privatizations, says Dmytro Sennychenko, director of the Fund. Due to such resistance to privatization, Ukraine has about 3,000 state companies almost 30 years after the fall of communism. In the
Kyiv’s office vacancy rate grew to 12.5% in 2020, up from 9% in 2019, reports NAI Ukraine, the commercial real estate consultancy. At the same time, rents dropped by an average of 20%: to $20-30 per square meter in class A offices and to $12-23 per square meter in class B offices. In addition to the recession, the market took two hits: the addition of 80,000 new square meters and a massive shift to remote working. Largely fueled by IT
This year could be good for renters and tough for landlords. Plans call for developers to unleash 370,000 square meters of new space on the market – almost five times the 2020 amount. At the same time, coronavirus remains a factor. “In 2021, the remote work is likely to continue to prevail: this is fully true for the first half of the year, and from the second half of the year there is a high probability of a gradual return
The enhanced coronavirus quarantine – or lockdown – will not be extended after Sunday night, Prime Minister Shmygal told Interfax-Ukraine yesterday. On Monday, Ukraine returns to the milder ‘adaptive’ quarantine, a set of rules that will be in place until the end of March, he predicted. Noting high levels infection in the EU, he said: “So there is no reason to lift [Ukraine’s] quarantine. There is no need to prematurely indulge ourselves in illusions. I am sure that the quarantine
The government is negotiating with six vaccine manufacturers with the goal of starting vaccinations one month from now, Shmygal said. Separately, UIA has said it has prepared two Boeings to transport vaccines as cargo. Yesterday morning, 3,034 new coronavirus cases were registered, the lowest level since September. Since March, 20,869 Ukrainians have died of the virus.
With gas prices spiking during frigid weather in Europe, Ukraine is cutting household gas prices by 30% and capping them until the end of March, according to a decision posted yesterday on the Cabinet of Minister portal. The decision came after scattered protests across the nation.
In November, the pandemic’s peak in Ukraine, the number of people who died in Ukraine was up 35% yoy, to 63,440. In October, the deaths were up 17.5% reports the Civil Service. During the first 11 months of 2020, two Ukrainians died for every baby born. Deaths totaled 549,170, Births totaled 268,900.
This reintroduction of price controls is expected to rule out Ukraine receiving an IMF aid tranche during the first quarter. Timothy Ash writes: “Hard to see the IMF lending while this cap remains in place.”
Corporate farms suffered a 14% yoy drop in crop harvests in 2020, the State Statistics Service reported yesterday. While this export-oriented sector was hardest hit, Ukraine’s overall agricultural production fell by 11.5% last year. This includes: crops, animals, family farms and company farms. Northern regions had the smallest declines: Rivne minus 3%; Sumy minus 4%; and Chernihiv minus 5%. Due to drought, the biggest drops were in south and central Ukraine: Cherkasy minus 24%; Kirovograd minus 32%; and Odesa minus
Ukrzaliznytsia trains carried 61% of the Ukraine’s grain for export last year, the railroad reports. Overall, UZ moved 35.2 million tons of train last year – 87% for export. Grain accounted for 11.5% of the railroad’s cargo tonnage last year.
World prices are boosting Ukraine’s earnings from the export of food, the nation’s biggest foreign currency earner. World food prices rose in October and November, hitting their highest levels in six years, according to the UN Food and Agriculture Organisation. The FAO said that November world food prices are 6% higher than one year earlier. One major Ukrainian export, vegetable oil, jumped 14.5% in November alone, hitting the highest price since March 2014. Cereal prices are up 20% compared to one
Capital investment in farming dropped by 43% during the first three quarters, to just below $1 billion, reported the Institute of Agrarian Economics. Citing State Statistics Data, the Institute notes the investment collapse in farming came as overall capital investment in Ukraine fell by 35% yoy, to just under $10 billion for the January-September period.
The Finance Ministry raised all its hryvnia bond yields above 10% yesterday and succeeded in selling six times more paper than one week earlier. At yesterday’s auction, hryvnia bond yields went up by 11 basis points to 30 basis points, according to a Finance Ministry post on Facebook. To draw demand the Ministry also offered a full range of six hryvnia bonds — 3 months, 6 months, 1 year, 2 years, 4 years and 5 years.
Of the $560 million raised, about one third was from the sale of 1-year dollar bonds, which carried an average weighted yield of 3.79%. By contrast, 1-year hryvnia bonds carried a yield of 11.22% With the government short of money to cover the budget deficit, investors expect large bond sales — domestically and abroad.
ICU wrote of last week’s auction: “Foreigners are monitoring the market and watching the trend in rate increases, waiting for the optimal time to make new investments. That could be when the increase in rates stops and the hryvnia exchange rate appears to bottom out. We can expect foreigners to again purchase new issues, on the background of increase in the appetite of portfolio investors to EM assets.”
The Central Bank is expected to keep Ukraine’s prime rate at the historically low level of 6% at Thursday’s policy meeting. In a Reuters poll of 15 analysts, 14 predicted that the National Bank of Ukraine will keep the rate at 6%, the level attained last June. Since then, Ukraine’s inflation has fallen, hitting 2.6% yoy in October. The analysts predicted that more government spending and a high minimum wage will push up Ukraine’s to 4.2% at the end of this year,
Betting on the growth of e-commerce, Ukrposhta plans to start building a 600,000 square meters of mail and package sorting centers next year. Largely funded with EBRD and European Investment Bank loans totalling 93 million euros, the state post office plans to build 62 depots and eight 8 sorting hubs, in: Kyiv (on the left and right banks), in Lviv, Kharkiv, Dnipro, Khmelnitskiy, Odesa and Pokrovsk, the rail hub city in Donetsk region. The first tenders will go out in coming days,
Foreign tourists visiting Kyiv this year fell to 300,000 — 15% of the 2 million who visited last year. With national tourists not filling the gap, Kyiv’s tourism industry — hotel, restaurants, nightclubs and tour operators — lost $1 billion this year, estimated Maryna Radova, head of Tourism and Promotion of the Kyiv City Administration. Similarly, the hotel tourism tax revenues has fallen almost in half, to $1.2 million, she told a forum at Ukrinform, “Restoration of the Tourism Sector in Kyiv
Wizz Air restores this month many flights to the EU from Kyiv Sikorsly, Kharkiv and Lviv, reports the Hungary-based low-cost carrier. If a flight is cancelled due to coronavirus restrictions, Wizz Air says it will refund 125% of the paid fare. In coming days, these flights resume: from Kyiv to Copenhagen, Pardubice, Billun, Vienna, Krakow, Lisbon, Hamburg, Budapest, Naples, Poznan, Bratislava, Katowice; from Lviv to Berlin, Szczecin, Bratislava, Pardubice, Vilniusl; and from Kharkiv to Krakow, Dortmund, Vienna, Gdansk and Wroclaw.
Preparing to lay off 150 pilots, UIA appealed to President Zelenskiy yesterday,asking for a low interest loan and relief on debts owed to Ukraine’s air traffic control agency and to Boryspil Aiport, UIA’s hub. “UIA, like other air carriers of Ukraine, require immediate measures of state support, which will allow them to survive until the resumption of demand and opportunities for international air transportation,” the airline’s executives wrote in a letter to Zelenskiy. UIA said its passenger traffic is running
Since April, UIA has processed 60% of demands for ticket returns, refunding $22 million, the airline reports. Another 56,000 requests await processing. As part of personnel cuts at UIA, the airline’s telephone information center has been closed.
UIA’s sister airline, Windrose Airlines continues its expansion into the Balkans, starting flights this week from Kyiv Boryspil to Belgrade, Serbia, and from Boryspil to Skopje, North Macedonia. In recent weeks, Windrose started flights from Boryspil to: Ljubljana, Slovenia; to Zagreb, Croatia; and to Podgorica, Montenegro. Windrose uses its newly expanded fleet of commuter planes — Embraer 145s and ATR 72-600s.
With snow forecast for much of Ukraine tomorrow, 99% of the 2021 harvest is in, reported the Ministry of Economy, Trade and Agriculture. Harvested from 24 million hectares, an expanse the size of Britain, Ukraine’s harvest is expected to be well below last year’s bumper crop. Due to drought, the corn crop could be down by 25% and the sugar beet crop down by 30%.
Measured in volume, grain exports are down by 14% — to 20 million tons — since the marketing year started July 1. Corn exports are down 26% yoy, to 6 million tons. Wheat exports are down 11.5%, to 12 million tons. By June 2021, the government predicted that Ukraine’s grain exports could be down 17% over last year’s record exports of 57 million tons.