Page 53 - UKRRptSept18

automotive production in the country demonstrated a negative trend compared to the same period of 2017: in January-June the growth was 6.4%, while in the first quarter the rise stood at 43%.
9.1.3 Transport sector news
Air cargo is growing by 25-30% in Ukraine , Minister Omelyan, said Friday at Kyiv’s National Aviation University. Air passenger traffic is up by 17% through July, according to the Infrastructure Ministry. Omelyan said: "Ukraine’s transport strategy predicts that by 2030 there will be 50 airports in Ukraine, at least 40-50mn people will fly in Ukraine."
Toll roads in Ukraine will charge drivers between Chinese rates – 20 euro cents a kilometer – and European rates – 50 euro cents a kilometer , Minister Omelyan predicts. At these rates, the first toll road – from Lviv to the Polish border at Krakovets – would cost between $16 and $40 for a 1-hour, 70 km drive. If all goes to plan, a tender will be held this fall/winter and construction will start next year. He said: “In parallel with future toll roads, there should be free of charge [roads]. Then citizens will have a choice - to go by a four-or six-way highway or use an ordinary road.”
9.1.6 Agriculture sector news
Ukrainian farmers harvested 24.3mn tonnes of winter wheat from an area of 6.4mn ha, or 99.7% of total land sowed with this crop as of August 18, according to the Agrarian Ministry. The total harvested volume of winter wheat was 5.7% lower year-on-year. The average yield of winter wheat was 3.8 tonnes per ha, down 9.7% y/y. "The unusually warm weather of May and June accelerated crop growth, but the unusually wet weather in July hindered the harvesting campaign and wheat quality," Andriy Perederey at Kyiv-based brokerage Concorde Capital wrote in a note on August 20, citing the Ukrainian Hydrometeorological Centre."For that reason, the winter wheat yield and total harvest volumes were lower y/y." However, he added that the July weather conditions were favourable for the spring crop, which is the key indicator for the season's overall success. Concorde expects the spring crop harvest (especially corn and sunflower) will improve y/y, which will contribute positively to 2018 economic growth and the trade balance in the second half of 2018.
With the bulk of the harvest in, Ukraine is on course to harvest the same 60mn tonnes of grain that it brought in last year. The harvest of grain in Ukraine in 2017 was 61.3mn tonnes.
Ukraine’s maize harvest may hit a record 27-28mn tonnes this year and sales to China could rise by 10% due to the trade war between Washington and Beijing, acting agriculture minister Maksym Martyniuk said. China has accused the United States of triggering the “largest-scale trade war” with import duties, potentially giving a further boost to already booming grain and oilseed exports from the Black Sea region. “For some positions, such as soybean, we will get an increase in exports to new markets,” Maksym Martyniuk told Reuters in an interview on July 31. Ukraine exported 2.6mn tonnes of maize to China so far in the 2017/18 September-August season, out of total sales of 16.6mn tonnes. “Maize will traditionally go to China. We can increase (maize) exports to China by up to 10%,” Martyniuk said, adding that maize could hit a record 27-28mn tonnes this year, compared with 24.1mn
53 UKRAINE Country Report September 2018 www.intellinews.com