This is evidenced by a recent “borshch index” from BRDO experts. When calculating the index, we use official data from the Ministry of Finance on average monthly food prices. Unfortunately, at present we cannot confirm the relevance of the index for the regions of Ukraine that are in the zone of active hostilities.
How did the war affect the prices of basic products?
UAH 92.49 – that is how much a portion of borshch for four people, prepared according to a traditional recipe, will cost on April 15, 2022. Compared to March 1, 2022 – UAH 81.84 – the price increased by 13.02%.
All borshch ingredients, except white cabbage, rose in price to varying degrees: from a slight 3% to a significant 21%.
The price of meat has risen the most. Next on the price scale – potatoes, carrots, sour cream.
The only vegetable whose price decreased was cabbage (-5.38%). Beets did not rise in price (+ 3.01%).
What does this data say?
According to Yulia Korneeva, chief economist of BRDO, the main reasons for the rise in meat prices in Ukraine include the increase in production costs: there is a rising price dynamics for feed and veterinary drugs, and transport costs have increased significantly.
Due to low profitability, it is becoming unprofitable for producers to raise pigs, while it is also extremely difficult to cover the shortage of products with imports. The rupture of logistics supply chains will lead to shortages in some areas, which will certainly cause further price increases.
At the moment, a dramatic drop in the purchasing power of the population, which is forced to save by giving up meat, is a deterrent to even higher pork prices.
What happens next?
The market is saturated with products that producers will not be able to export at the moment, which will have a positive effect on price dynamics in the short term.
However, in the long run, inflationary pressures will increase. The loss of export revenue will lead to a significant reduction in the profitability of producers, who will later try to compensate for losses. Prices will also be affected by rapid growth in logistics costs, energy costs, seeds and fertilizers.
This publication was produced with the financial support of the European Union. Its contents are the sole responsibility of BRDO and do not necessarily reflect the views of the European Union.
Ukraine is calling on Valve Corporation to unblock payments to video games developers in Ukraine.
Russia continues its large-scale and unprovoked attack on Ukraine using heavy weapons. Ukrainian cities and villages are still under missile attacks from the territories of both the Russian Federation and Republic of Belarus. It is obvious that Russia is trying to destroy Ukraine.
We thank Europe and the USA for sanctions against the aggressor. We also thank all private companies who decided to limit business activities in aggressor states and ceased providing consumer services for their citizens. But we ask you not to punish the victims.
Lives and livelihoods of thousands of Ukrainian video games developers depend on timely payments from Steam, a digital distribution platform, owned by Valve Corporation. On March 17th Steam support announced that payments to developers from Russia, Belarus and Ukraine were suspended. Ukrainian developers, many of whom were forced to live under temporary occupation or leave their homes to seek safety, were left without income. This income is especially important for them in these trying times.
Steam has explained that their bank requires intermediary bank information for all transfers to Russia and Ukraine. This goes beyond any logic. Ukrainian banks are neither under sanctions, nor are they funding a war of aggression, unlike banks of the Russian Federation. No other digital distribution platform has suspended payments to Ukrainian creators since the onset of the war.
Ukraine calls for immediate continuation of payments to Ukrainian developers or, at least, a transparent and clear communication on the root cause of the problem and expected time of resolution. The communication should also include the name of the institution requiring additional information and legal basis for their demands.
Ukraine is grateful for the support of the whole civilized world in these hardest times. We hope that all issues will be resolved as soon as possible.
Yesterday, on the 44th day of the war, the United States eased telecom sanctions against Russian companies.
From now on, the sanctions will not apply to the supply of services, software, equipment and technologies related to Internet communications from the United States to Russia.
This list includes, in particular, instant messaging, video conferencing, e-mail, chat, social networking, photo, film and document distribution, web browsing, blogging, web hosting, domain name registration.
We emphasize that electronic communications are the lifeblood system of the economy. However, the telecom sector of the aggressor country has hardly suffered from sanctions, and the sanctions imposed on it have already been eased.
In essence, the United States has decided in favour of the occupant, which will contribute to the functioning of its economy and sponsor further war crimes.
As a result, companies close to the military sector, top Russian officials and others will be able to purchase communications services, software, and equipment directly from the United States. This may apply to personal computers, server hardware, etc.
Source of information: US Office of Foreign Assets Control, General License for Russia # 25
We are grateful to all foreign partners who stand with Ukraine during this difficult time. But it is obvious that the previous efforts of the entire civilized world are not enough to stop the war that Russia is waging against Ukraine. It is necessary to continue to put pressure on Russia with economic sanctions and strengthen them, not soften them.
Henkel is a chemical company that produces household and hygienic products under the brands Persil, Pril, Bref, Taft, Schwarzkopf, Shauma, Fa, Brillance, Glisskur and Dial.
The company recently announced that it will continue its business in Russia, although it will follow the imposed international sanctions. In particular, it will freeze future investments in Russia and stop advertising in Russian state media.
BRDO experts have repeatedly stressed that continuing to do business in the aggressor country, no matter how it is limited by the sanctions, still means paying taxes in Russia, which uses the money to finance its further terrorist attacks in Ukraine.
According to Forbes, in 2020 Henkel received $1.13 billion in revenue, of which all taxes were paid to the Russian budget. And Reuters reports that Henkel is going to achieve all the financial indicators that were planned by the company’s management for 2022, in full.
As we can see, Henkel, cynically hiding behind public allegations of international sanctions, continues to do business as usual. And perhaps it even politically supports Russia’s war crimes. If in the 21st century a rally of neo-Nazis and supporters of genocide in Ukraine is possible in Berlin, it is reasonable to assume that the German company Henkel also has pro-Russian and pro-Nazi views.
While Russia is preparing for the next attack on Ukraine and plans to repeat its atrocities committed by Russian soldiers in Bucha, Irpen, Gostomel, Borodyanka and other satellite towns of Kyiv, each product purchased from a collaborationist company is a financial contribution to the future terrorist actions of the RF in Ukraine. Therefore, we call on all activists and Ukrainian supporters to boycott Henkel products and hold rallies in European cities against the company’s actions.
#StandWithUkraine #BoycottHenkel
Ukraine will be able to increase industrial efficiency and reduce energy consumption. What should be the plan for the post-war reconstruction of our economy in order to achieve these goals?
For more than a month now, Russia has been bombing Ukraine, destroying industrial facilities, infrastructure and residential buildings. On the one hand, the devastation caused by the war is a huge loss for our economy, but on the other hand, during the post-war recovery we will have a unique chance to take the economy to a new technological level.
European countries are increasingly implementing energy efficiency policies and programs as part of a broader process of decarbonizing the economy. One of the main indicators in determining the energy efficiency of each country’s economy is the energy intensity of its GDP. The higher this figure, the higher the cost of energy per unit of output, the more expensive these products and the lower the competitiveness of both individual enterprises and the economy as a whole.
Before the war, Ukraine had the most energy-intensive economy in Europe. This was connected to several factors:
To reduce the energy intensity of Ukraine’s GDP and increase the competitiveness of the Ukrainian economy on the world market, it is necessary to carry out radical modernization in all sectors of the economy. It is also a necessary condition for the further European integration of our country, as the recently approved new EU environmental policy provides for increasing the energy efficiency of the economies of all member states.
In 2020, the European Parliament supported a set of policy initiatives called the European Green Deal. Their common goal is to make Europe a climate-neutral continent by 2050, to protect biodiversity, and to green the economy. The foundations and directions of the development of Green Deal are laid down in the communiqué. By synchronizing its policy with the EU, Ukraine intends to achieve climate neutrality by 2060.
It is obvious that the post-war plan for Ukraine’s reconstruction should be based on certain principles, the observance of which will allow bringing our economy to the level of advanced countries of the world, in particular, reduce its energy intensity and increase energy efficiency.
What should be the principles of Ukraine’s economic recovery after the war?
First of all, it is a question of observance of such principles of the European green course as refusal of fossil fuels (first of all, coal), reduction of CO2 emissions, increase of energy efficiency of economy and reduction of energy losses. The state should support the development of high value-added sectors and new industries, such as:
As a basis for the reconstruction and further sustainable development of the modern “green” economy, Ukraine needs to build its own new industrial base and means of production that will not rely on fossil fuels. In general, the reconstruction program of the affected regions should include:
At the restored and newly built enterprises it will be necessary to implement the main energy saving measures:
Comprehensive implementation of investment, innovation and organizational measures during the post-war reconstruction will allow Ukraine to reach a new level of efficiency in all sectors of the economy. This will increase the competitiveness of both the products of individual enterprises and our economy as a whole. Today our main task is to win.
Source: Delo.ua
This publication was produced with the financial support of the European Union. Its contents are the sole responsibility of BRDO and do not necessarily reflect the views of the European Union.
Ukrainians will be able to receive compensation for damaged or destroyed property as a result of Russian military aggression. This is provided by Bill #7198, which was adopted by the Parliament in the first reading today. BRDO experts participated in the development of the document.
What is important to know?
Compensation will take place according to the turn in each settlement and territorial community and the type of compensation. In this case, the citizen will have the right to refuse the housing offered to him by the state and redirect the amount of compensation to purchase housing in another construction site.
In addition, the bill creates a State Register of property damaged and destroyed as a result of hostilities, terrorist acts, sabotage caused by military aggression of the Russian Federation.
Today, Ukrainians can already report through the “Diia” portal about damaged and destroyed real estate. According to the President of Ukraine, more than 25,000 Ukrainians have already done so. Information messages through “Diia” are equated to claims for compensation as soon as the law enters into force. So we are waiting for the prompt adoption of Bill # 7198 in the second reading!
This publication was produced with the financial support of the European Union. Its contents are the sole responsibility of BRDO and do not necessarily reflect the views of the European Union.
Ritter Sport is another collaborationist company that has stated that it will not leave the Russian market. The company produces chocolate and is based in the German city of Waldenbuch.
According to company representatives, Russia is a large market, accounting for about 7% of total sales. “Stopping supplies will mean that production will have to stop abruptly, and therefore have a serious impact on us as an independent medium-sized family company.” Instead, the company promises not to invest further in the Russian market and stop advertising there. A decision that was very difficult for them.
We sincerely hope that evacuating their family when a Russian rocket hits them will not be as difficult for Ritter Sport as the decision to stop advertising their chocolate to the killer nation. And we remind you again that continuing to work in a terrorist country means supporting its military action against Ukrainians – because the taxes paid by Ritter Sport in Russia are quickly turning into cruise missiles, tanks, and jets that kill Ukrainians.
Therefore, we call on our international readers and the Ukrainian diaspora to boycott the products of the collaborating company Ritter Sport around the world. The company’s representatives are not interested in people’s lives; only bloody money is essential for them to, which tends to run out quickly. We can advise the German businesspeople of Ritter Sport to follow the example of proactive Ukrainians, who, since the beginning of the Russian aggression in 2014, have reoriented their family businesses from the Russian market to the European one and increased profits. Lost money can be earned back. Lost lives – can’t.
#StopRussianWar
We call on the international community to boycott French retailers that have refused to suspend operations in Russia and continue to operate there, despite sanctions and the continued genocide of Ukrainians by the RF. These include Leroy Merlin, Auchan, and Decathlon, which are owned by the Association Familiale Mulliez.
More than a month has passed since the beginning of the full-scale war of Russia against Ukraine. More than 450 companies have already stopped cooperating with the terrorist country (https://bit.ly/3uwzMJP). However, some companies not only do not stop working in Russia, but also officially declare that they will not leave the Russian market.
We, like many other Ukrainian organizations, ordinary citizens and high-ranking officials, appealed to Auchan (https://bit.ly/3uzgoMb) and Leroy Merlin (https://bit.ly/3tIoPFS) to stop cooperating with the Russian aggressor. Needless to say, we did not receive any answers.
While Ukrainian offices of Leroy Merlin and Auchan (https://bit.ly/3IPWUbg) immediately began to help Ukrainian Armed Forces, volunteers and ordinary residents in difficult situation with the beginning of the war, there is information that the parent offices of these French companies hinder the volunteer activities of their colleagues in Ukraine. Thus, according to the latest reports of Leroy Merlin Ukraine employees (https://bit.ly/3LCZkfp), the French office blocked the possibility of corporate communication for Ukrainian colleagues, opportunities to communicate with customers who have paid for their orders and can not receive them, and hacked the Ukrainian office pages on social networks to prevent the spread of positions that do not coincide with the views of French owners.
And all this in addition to the official statements (https://bit.ly/3iJkVWN) of some representatives of these companies that they will continue to work in Russia, because they have to feed and take care of their Russian workers. To feel the special cynicism of the French owners regarding the situation in Ukraine and to continue their “business as usual” course, you can read the official letter to the staff of the Ukrainian office of Leroy Merlin from the CEO of the managing company (https://bit.ly/3tKzmAp).
Even the death of a Leroy Merlin employee from a Russian missile in Kyiv did not affect the opinion of the French owners of the company (https://bit.ly/3IKBkFg).
We, the experts of the independent think tank BRDO, believe that the time has passed for appeals and letters to companies that turn a blind eye to the murders of Ukrainians and continue to earn bloody Russian money under the guise of empty words of support. It is time to fight such collaborators of the occupying power in methods they can understand – to boycott their goods and services. In Poland, active citizens have already begun this process – in Lodz, activists went to the shops Leroy Merlin, Auchan, Decathlon with a call to boycott these networks (https://bit.ly/3tJR2Mi). The Minister for Foreign Affairs of Ukraine Dmytro Kuleba has already called for a boycott of these companies (https://bit.ly/35fKBHs).
We urge all our readers abroad to join these campaigns, boycott the products of collaborating companies and disseminate this information.
Ukraine will prevail! #StandWithUkraine
The sowing campaign is a critical issue for Ukraine. At present, the food security of our state depends on whether domestic farmers will be able to get the harvest during the war.
In order to ensure the maximum intensity of agricultural production, despite Russia’s military aggression, the Parliament of Ukraine yesterday passed a bill #7178.
Its adoption will make it easier for farmers to acquire the right to use certain land plots, in particular:
Why it is important
The procedures established today for peacetime for the use of state and communal land, unclaimed, unallocated land, as well as land remaining in collective ownership, are durable, require a number of successive decisions by land managers, organization and holding of land auctions, etc.
In addition, under martial law, when the State Land Cadastre, the State Register of Real Estate Rights and Encumbrances do not function, and administrative services are not provided, the provision of state and communal land to agricultural producers is virtually impossible. Areas prepared for transfer to land auctions remain unallocated.
The document was developed with the participation of BRDO experts. Thank you to everyone involved in the prompt adoption of this crucial document!
Ukraine’s joining the EU roaming space is an important step that BRDO experts call to make now. In March 2022, Ukraine became a member of the European Energy Union. As the next step, we propose to temporarily abolish roaming charges for Ukrainians and connect Ukraine to the EU roaming market.
Why is this important?
Since the beginning of the RF’s war against Ukraine, more than 3 million Ukrainians have arrived in the EU, and this figure continues to grow. According to the most conservative estimates of BRDO experts, roaming migrants currently generate more than 49 million minutes of voice traffic and more than a petabyte of data traffic per month. It costs migrants tens of millions of euros a month.
Ukraine’s joining the EU roaming market will reduce the cost of communication abroad for Ukrainians, as well as bring Ukraine closer to the EU Digital Single Market.
What are the preconditions for Ukraine on this road?
The policy “The Eastern Partnership beyond 2020: Reinforcing Resilience” envisages that the EU will support the implementation of roaming agreements between partner countries and, if necessary, with the EU.
Since 2017, Ukraine has repeatedly raised the issue of abolishing roaming charges in the EU for Ukrainian citizens. This document provides for such a possibility.
But the EU has suggested as the first step to create a common roaming space between the Eastern Partnership countries, and only then to connect them to the EU’s roaming space.
However, we believe that with the beginning of the Russian war against Ukraine, this approach has become obsolete for several reasons:
During the war, Ukrainians are in dire need of assistance in joining the “roaming European Union”.
And such initiatives are already being voiced:
What should be done next?
Ukraine’s joining the EU’s roaming space requires a roaming agreement between Ukraine and the EU. Moreover, the Association Agreement with the EU provides for Ukraine’s acquisition of the internal market status in the telecommunications services sector.
“Millions of Ukrainians and the EU citizens will be able to feel Ukraine’s joining to the “roaming European Union”. This will allow people in roaming to make more calls between the EU and Ukraine, and to use the Internet abroad freely. It will be another “visa-free regime”, but now in the field of communication between countries,” said Ihor Samokhodskyi, the Head of ICT sector of BRDO.
Therefore, BRDO experts call on the European Union to initiate and ensure as soon as possible the following:
For information:
Now Ukraine is a member of the “European energy Union”: on March 16, our energy system officially joined the EU energy system. Experts from the Energy Sector of the BRDO congratulate Ukrainians on the implementation of a crucial project for the future of the state and explain the benefits of this event for domestic consumers and producers. The World Bank estimates that the economic benefits of synchronization will be about $ 1.5 billion annually.
Synchronization with the continental European energy network ENTSO-E has been planned for the last 5 years as an integral part of the EU-Ukraine Association Agreement. This winter, as part of the integration process, the domestic energy system had to work for at least three days in isolated status. There was a risk of failure of these tests due to low coal stocks at Ukrainian power stations. No one expected the war to break out on February 24, at the same time as the isolated operation of the United Energy System (UES) of Ukraine.
In spite of all the risks and complications, the Ukrainian energy system has withstood the test. They did not affect the reliability and sustainability of its work.
Already on February 27, the operators of energy systems of continental Europe received a request from Ukrenergo for emergency synchronization, which was supported by the EU energy ministers. On March 11, the EU energy system operators concluded that the conditions for emergency synchronization had been met by Ukraine, and completed the emergency synchronization on 16 March.
Our power engineers have been working since 2017 to ensure the technical readiness of Ukrainian power system for synchronization. Since the beginning of Russia’s war against Ukraine, i.e. for 20 days in a row, Ukrainian energy system has stably operated in isolation. Despite the military aggression and critical operating conditions, the frequency in the network did not exceed the normative values.
What joining the “energy EU” would mean for Ukrainians?
Synchronization of Ukraine’s UES with ENTSO-E provides new perspectives in terms of balancing the power system, increasing the capacity of solar and wind power plants, operational security and unification of electricity markets, and reduces Ukraine’s dependence on the occupying country.
Ukrainian consumers will notice the benefits of ENTSO-E synchronization in their electricity bills when the first cheaper kilowatt-hours flow from Europe to Ukraine.
Ukrainian manufacturers will benefit when the first kilowatt-hours are sold to European consumers.
In general, Ukraine will now be able to trade electricity freely with Europe, which will help to avoid shortages and significant price fluctuations.
As a rule, Ukraine sells more electricity than buys. The World Bank estimates that the annual economic benefits of synchronizing Ukraine’s energy system with ENTSO-E will be approximately $ 1.5 billion.
Ukraine’s accession to ENTSO-E will ensure that energy market participants comply with fair rules of conduct. Therefore, for foreign companies, this will be a significant signal to invest in the development of Ukraine’s energy sector and industry after winning the war.
We appeal to companies that sell billing systems and other equipment to Russian telecom operators to stop their business in russia.
Billing (BSS / OSS system) is a system that allows to automatically keep track of consumed services, write off money, create accounting based on this data, manage networks and processes. Good billing (modern, flexible, with constant support from the manufacturer) allows you to quickly launch new products. Billing is a network of different modules (often from different manufacturers) for different products.
The following companies still operate in Russia:
We call on these companies to stop all business with Russia, a terrorist country that has cynically and viciously attacked Ukraine without declaring war and without any pretext, and is now killing civilians with missiles and airstrikes.
We also appeal to our subscribers – please feel free to copy this text and share among your networks. The more appeals there are, the greater the chance that we will be heard.
During the war, the food security of the state becomes critical. To ensure the maximum intensity of agricultural production in these conditions, the Parliament of Ukraine registered a bill #7178.
The bill will allow Ukrainian farmers to quickly gain full access to agricultural lands of our state for a successful sowing campaign.
Why is this important?
The procedures established today for peacetime for the use of agricultural land for state and communal ownership, unclaimed, unallocated land, as well as land remaining in collective ownership, are long in time, require a number of successive decisions by land managers, organization and holding of land auctions, etc.
In addition, under martial law, when the State Land Cadastre, the State Register of Real Property Rights and Encumbrances do not function, and administrative services are not provided, the provision of state and communal land to agricultural producers is virtually impossible. Areas prepared for transfer to land auctions remain unallocated.
About 724 thousand hectares of agricultural lands are in constant use of state enterprises, institutions and organizations in Ukraine, which due to unsatisfactory financial and economic condition of a significant part of these land users, lack of sowing material, logistics, etc. may not be used or used with low efficiency in 2022.
What would the results of adopted bill be?
The adoption of the bill will simplify the acquisition of rights to use land, in particular:
The document was developed with the participation of BRDO experts.
We hope that the document will be approved by the Ukrainian Parliament as soon as possible.
BRDO continues to call on international companies that have not yet left the Russian market to stop cooperating with the occupant.
We call on the management of French multinational retail group Auchan to stop cooperating with the occupant. French translation is below.
Auchan, a French company, is one of the few international companies still active in Russia, and states that it will continue to operate despite the sanctions. Under the pretext of “our responsibility as an employer towards our employees in Russia”, the company continues to earn money in the killer country and to pay taxes in it, thus financing the continued military invasion of Russia in Ukraine and the murder of Ukrainians.
We, the experts of the independent analytical center BRDO, are convinced that the company’s management is aware of the link between the taxes the company pays to the Russian government and the number of missiles fired by the RF that fall on the heads of Ukrainian civilians.
We urge you to join the boycott of Russia, the aggressor country. Although now you can lose income from the Russian market, you will lose both the Russian (due to its rapid insolvency) and Ukrainian markets, if you continue to work in the aggressor country. After all, today the whole world sees such corporate actions as supporting terrorism, supporting war in the heart of Europe.
We hope that Auchan’s business reputation is important to the company’s management and that they will make a morally correct decision.
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BRDO continue d’appeler les entreprises internationales qui n’ont pas encore quitté le marché russe à cesser de coopérer avec le pays occupant.
Nous faisons appel à la direction d’Auchan à cesser de coopérer avec le pays occupant.
Auchan, une entreprise française, est l’une des rares entreprises internationales encore actives en Russie et affirme qu’elle continuera à fonctionner malgré les sanctions. Sous prétexte de “votre responsabilité en tant qu’employeur envers vos employés en Russie”, vous continuez à gagner de l’argent dans le pays tueur et à lui payer des impôts, finançant ainsi l’agression armée continuée de la Russie contre l’Ukraine et le meurtre d’Ukrainiens.
Nous, les experts du centre analytique indépendant BRDO, sommes convaincus que vous êtes conscients du lien entre les impôts que vous payez au gouvernement russe et le nombre de missiles tirés par la Fédération de Russie qui tombent sur des civils ukrainiens.
Nous vous exhortons à rejoindre le boycott de la Russie, le pays agresseur. Certes, vous pouvez perdre des revenus du marché russe, mais si vous continuez à y travailler, vous perdrez à la fois les marchés russe (en raison de son insolvabilité rapide) et ukrainien. Après tout, aujourd’hui, le monde entier considère des telles actions des entreprises comme le soutien du terrorisme, le soutien de la guerre au cœur de l’Europe.
Nous espérons que la réputation de votre entreprise est importante pour vous et que vous prendrez une décision moralement correcte.
Ukrainian state authorities will be able to use cloud services abroad for the secured operations of information and communication systems and public electronic registers.
Parliament has already approved draft law #7152, developed by BRDO experts in cooperation with the Ministry of Digital Transformation of Ukraine supported by the EU4Digital project, funded by the European Union.
Cloud services could also be used by local governments and state and municipal enterprises, institutions and organizations.
State information and its backup copies can be hosted on servers located outside the administrative-territorial borders of Ukraine. This will protect Ukrainian state information systems from Russian cyberattacks, and Ukrainian citizens will receive better protection of their data and better-protected state electronic services.
It should be noted that the range of states and entities which could provide such cloud services is limited. Thus, it is prohibited to use cloud services and data processing centers located in the temporarily occupied territory of Ukraine, owned or located in Russia, as well as in countries or entities whose activities fall under the Law of Ukraine “On Sanctions”.