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The results of the business meeting with the management of Odesa RSA: about the region’s economy, logistics, ports, the “grain agreement”

13/ 07/ 2023
    On July 13, 2023, at the joint meeting of the EBA Southern Ukrainian Office and the EBA Ukraine Recovery Committee with the leadership of the Odesa RSA were discussed new trends and working plans of the Odesa RSA new management, cooperation with business under martial law, the regional recovery plan and its most important aspects. The event was attended by the Head of Odesa RSA Oleg Kiper, deputy head of the Odesa RSA Roman Hrygoryshyn, deputy head of the Odesa RSA Dmytro Radulov, director of the Department of Ecology and Natural Resources of the Odesa RSA Iryna Shatokhina, director of the Department of Agrarian Policy, Food and Land Relations of Odesa RSA Alla Stoyanova, as well as representatives of member companies of the Association. Svitlana Mykhailovska, deputy director of the EBA, advocacy, asked the management of RSA what the needs in the region are and how we can be useful in meeting these needs. And she also expressed the readiness of EBA to promote cooperation with RSA in a number of areas. Kateryna Morozova, the head of the EBA Southern Ukrainian office, explained business activities in the region to the management of Odesa RSA, presented our projects (EBA Investment Map, Global Business for Ukraine, EBA Second Chance Bank) and research (EBA Investment index, Regional Index) . In addition, the Head announced that territorial communities of the Odesa region can place projects on the EBA Investment Map, as well as submit their needs on the EBA Second Chance Bank platform. Anton Basystyi, coordinator of EBA committees in Kyiv, shared information about the Ukraine Recovery Committee and its main developments. In particular, he noted the possibility of forming a vision and active working in the reconstruction of the country in all its manifestations within the framework of the Committee. Then the meeting participants held a B2G discussion of the current situation in the Odesa region by industry direction. Regarding the economy of the region and revenues to the state budget Dmytro Radulov informed that only 50% of revenues to the budget of the region were received from Odesa Customs compared to the pre-war years, many revenues to the budget have decreased, but there are some breakthrough, potential industries that currently fill the budgets of communities. Mr. Dmytro added that the service sector has reached the pre-war level, and enterprises engaged in the processing of plant and animal raw materials have a positive balance compared to the pre-war years. A special fact in this industry is that for the first time in many years the number of pigs in the Odesa region has increased. And this indicates interest in the development of this industry on the part of investors and in the potential development of the Odesa region in this direction. In addition, in the Odesa region existing the fields for growing tomatoes for their further processing. Therefore, the construction of new factories for the processing of tomato raw materials will provide jobs and additional revenues to the budget. Also, in the context of economic development of the region Alla Stoyanova highlighted the achievements in the reclamation development of the region. Potentially, 183 thousand hectares need to be irrigated, and with the implementation of this request, Odesa can become a leader of the total amount of vegetable raw materials entering the market of Ukraine and foreign markets. However, there is an important aspect in the implementation of this project, namely insufficient funding. The total amount required is approximately 15 billion hryvnias, so Odesa RSA invites Ukrainian companies and international partners to cooperation. Also, the agenda included questions about agricultural forecasts for 2023-24. Regarding Logistics, ports, grain agreement An important factor in the implementation of effective logistics has several aspects: Negotiations on the grain agreement. By the end of this week, there will be negotiations regarding the grain agreement, so we will know about their results soon enough. Implementation of the Danube Cluster development program. The management of RSA noted that investments in the Danube cluster are currently the largest in all the years of Ukraines independence, the volumes of goods and raw materials transported by this logistical route break all previous records. Therefore, this development creates a new alternative logistics path, which under these conditions can reduce the costs of logistics for companies and provide an opportunity to export a wider range of goods. The issue of improving the protection of ports and terminals in connection with recent events and shelling was also discussed separately. The Head of the RSA emphasized that this issue will be raised at a meeting with the military, and added that the state has allocated funds for additional protection of the port infrastructure. We thank the management of RSA for the openness of the dialogue and the opportunity for business to be heard. For its part, the European Business Association is ready to provide comprehensive assistance, advice and support in the restoration of our region!
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On July 13, 2023, at the joint meeting of the EBA Southern Ukrainian Office and the EBA Ukraine Recovery Committee with the leadership of the Odesa RSA were discussed new trends and working plans of the Odesa RSA new management, cooperation with business under martial law, the regional recovery plan and its most important aspects. The event was attended by the Head of Odesa RSA Oleg Kiper, deputy head of the Odesa RSA Roman Hrygoryshyn, deputy head of the Odesa RSA Dmytro Radulov, director of the Department of Ecology and Natural Resources of the Odesa RSA Iryna Shatokhina, director of the Department of Agrarian Policy, Food and Land Relations of Odesa RSA Alla Stoyanova, as well as representatives of member companies of the Association.

Svitlana Mykhailovska, deputy director of the EBA, advocacy, asked the management of RSA what the needs in the region are and how we can be useful in meeting these needs. And she also expressed the readiness of EBA to promote cooperation with RSA in a number of areas.

Kateryna Morozova, the head of the EBA Southern Ukrainian office, explained business activities in the region to the management of Odesa RSA, presented our projects (EBA Investment Map, Global Business for Ukraine, EBA Second Chance Bank) and research (EBA Investment index, Regional Index) . In addition, the Head announced that territorial communities of the Odesa region can place projects on the EBA Investment Map, as well as submit their needs on the EBA Second Chance Bank platform.

Anton Basystyi, coordinator of EBA committees in Kyiv, shared information about the Ukraine Recovery Committee and its main developments. In particular, he noted the possibility of forming a vision and active working in the reconstruction of the country in all its manifestations within the framework of the Committee.

Then the meeting participants held a B2G discussion of the current situation in the Odesa region by industry direction.

Regarding the economy of the region and revenues to the state budget

Dmytro Radulov informed that only 50% of revenues to the budget of the region were received from Odesa Customs compared to the pre-war years, many revenues to the budget have decreased, but there are some breakthrough, potential industries that currently fill the budgets of communities. Mr. Dmytro added that the service sector has reached the pre-war level, and enterprises engaged in the processing of plant and animal raw materials have a positive balance compared to the pre-war years. A special fact in this industry is that for the first time in many years the number of pigs in the Odesa region has increased. And this indicates interest in the development of this industry on the part of investors and in the potential development of the Odesa region in this direction. In addition, in the Odesa region existing the fields for growing tomatoes for their further processing. Therefore, the construction of new factories for the processing of tomato raw materials will provide jobs and additional revenues to the budget. Also, in the context of economic development of the region Alla Stoyanova highlighted the achievements in the reclamation development of the region. Potentially, 183 thousand hectares need to be irrigated, and with the implementation of this request, Odesa can become a leader of the total amount of vegetable raw materials entering the market of Ukraine and foreign markets. However, there is an important aspect in the implementation of this project, namely insufficient funding. The total amount required is approximately 15 billion hryvnias, so Odesa RSA invites Ukrainian companies and international partners to cooperation. Also, the agenda included questions about agricultural forecasts for 2023-24.

Regarding Logistics, ports, grain agreement

An important factor in the implementation of effective logistics has several aspects:

  1. Negotiations on the grain agreement. By the end of this week, there will be negotiations regarding the “grain agreement”, so we will know about their results soon enough.
  2. Implementation of the Danube Cluster development program. The management of RSA noted that investments in the Danube cluster are currently the largest in all the years of Ukraine’s independence, the volumes of goods and raw materials transported by this logistical route break all previous records. Therefore, this development creates a new alternative logistics path, which under these conditions can reduce the costs of logistics for companies and provide an opportunity to export a wider range of goods.
  3. The issue of improving the protection of ports and terminals in connection with recent events and shelling was also discussed separately. The Head of the RSA emphasized that this issue will be raised at a meeting with the military, and added that the state has allocated funds for additional protection of the port infrastructure.

We thank the management of RSA for the openness of the dialogue and the opportunity for business to be heard. For its part, the European Business Association is ready to provide comprehensive assistance, advice and support in the restoration of our region!

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