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blockade brought about by the war, stated Ukrmetallurgprom.
According to 2022 results, prices for rolled metal increased by 26%,
according to the Ukrainian Center of Steel Construction association. According to the head of the association, Hanna Gontarenko, the price increase occurred due to the occupation of the production facilities at the largest metallurgical plants in Ukraine, Azovstal and MMK, as well as a significant increase in the dollar exchange rate. From the beginning of last year to May, the price of most items in the rental assortment increased by at least 39%. But in August, prices began to decrease, and according to the year's results, they showed an overall 26% increase. The expert added that the trend to lower the price of rolled metal is seen worldwide and applies not only to Ukrainian steel producers but also to European enterprises.
There are still 18 Russian-controlled mining companies operating in Ukraine. Among them, according to NADRA.INFO, are companies supplying metallic titanium, hard coal, hydrocarbons, limestone, clay, etc. In addition, the Russian invaders stole 63% of the country's coal deposits, 11% of its oil deposits, 20% of its natural gas deposits, 42% of its metals, and 33% of its rare earth and other critical mineral deposits, including lithium, totaling more than $12 trillion. In addition, it is noted that several Ukrainian fields were controlled by the Russians directly or through nominal owners (especially in offshore jurisdictions) long before the Russian attack in February 2022. At the beginning of 2023, some mining enterprises have already removed Russian beneficiaries from their owner lists.
9.1.12 Other sector news
The Ukraine electronics market in 2022 decreased by 40%. As the CEO of the Allo group of companies, Maksym Raskin, said, when discussing physical retail, there was a drop in visitor traffic. For example, in December 2022 (during the traditional holiday shopping season), traffic was lower by 14% compared to the same month in the previous year. As for online sales, internet traffic fell by almost half in December compared to the 2021 New Year season. In addition, the blackouts had an additional impact, Raskin noted. In general, commenting on the fall of the market, he called the war and the deterioration of the economic situation related to it, the fall in solvency, migration, and evacuation of people, particularly abroad, as the main reasons for the decline.
Ukraine's fertilizer production has decreased by almost 70%.Chemical enterprises of one of the country's largest holdings, Ostchem, reduced fertilizer production to a third of previous levels in 2022 - from 5.3mn tonnes to 1.75mn tonnes, announced Group DF. The reasons are Ukraine’s loss of control over Severodonetsk Azot, the destruction of logistics and sales chains, a decrease in export volumes due to regulatory and logistics restrictions, power outages, high gas prices, and a drop in demand from farmers by at least 40%. Cherkasy Azot produced the most fertilizers last year, 1.12mn tonnes, Rivneazot had 0.59mn tonnes, and Severodonetsk Azot produced 0.05mn tonnes of fertilizers before the war. However, fertilizer demand in Ukraine began to recover in September-November, so Group DF predicts market growth of 15-20% per year.
60 UKRAINE Country Report February 2023 www.intellinews.com