January: Business News from Ukraine

International Investments

Significant investment news in Ukraine for 2024-2025

In addition to the ongoing investment projects in the implementation stage in 2023, many investors have announced their ambitious investment plans for the coming years in Ukraine. Some of them:

• EFI Group, led by Igor Lisky, will build a new Feednova plant in the Cherkasy region for €22.75 million
• Triosan Holding will invest €63.7 million in Ukraine's first geothermal energy-powered greenhouse complex
• In Dnipropetrovsk, Biosphere will invest €18.2 million in tea production, while Interpipe will implement three projects
• Madoqua Renewables intends to invest €819 million and build a waste processing plant in Ternopil
• German building materials manufacturer Fixit will receive investment and a €10.92 million loan for a new plant in Ukraine
• Australian company European Lithium aims to invest €910 million in lithium extraction in Ukraine
• Veon plans to invest €546 million in the infrastructure of Kyivstar
• Two reactors by Westinghouse will be constructed, each with a cost of €4.55 billion.

Acknowledging the current challenges in Ukraine, these investments represent a collaborative push for a future marked by stability and prosperity.

// inventure.com.ua //

Foreign investors are interested in the Ukrainian mining industry

In 2023, a huge interest of foreign investors emerged regarding subsoil utilization and extraction among companies and entrepreneurs exploring new business avenues in Ukraine. Notably, the Turkish Onur Group revealed intentions to invest €45.5 million in developing a graphite deposit north of Khmelnytskyi, alongside acquiring the Rokytniv Special Quarry in the Rivne region.

Simultaneously, BGV Group Management, with a history of over €91 million in mining investments since 2015, heightened its engagement in 2023. Their focus includes initiating sand mining in Zhytomyr and exploring uranium deposits in Mykolaiv. Dragon Capital also expanded its presence in the mineral water market by acquiring T.S.B. Firm's assets, securing nine permits for mineral water extraction in the Lviv Region.

// gmk.center //

?€910 million for Ukraine's private sector reconstruction from IFC

The World Bank's IFC has successfully raised approximately €910 million for Ukraine's private sector reconstruction, with €560 million from its balance sheet and €350 million externally sourced. In an interview, IFC Managing Director Makhtar Diop expressed concern about Ukraine's political situation and the need for continued resource mobilization.?

With €364 billion in urgent reconstruction funds sought by Kyiv amid donor fatigue, the IFC addresses this challenge by providing guarantees for external investor confidence. Diop highlighted the corporation's commitment, already securing €274 million in guarantees for critical sectors. Looking ahead, the IFC is exploring plans to aid Palestinian territory rebuilding post-violence. Diop disclosed a strategic shift towards increasing equity investments, particularly focusing on African markets to deepen their liquidity. The 2023 annual report reveals a portfolio composition of 71% loans, 21% equity, and the remainder in guarantees and other products.

// reuters.com //

Kyivstar will receive €910 million within five years

VEON, the Dutch parent company of Ukraine's leading operator Kyivstar, disclosed plans to invest €910 million within five years, surpassing the initially announced €551 million over three years, according to VEON CEO Kaan Terzioglu.

Initial funds will target the restoration of vital network infrastructure, data processing centers, and fiber optics, facilitating efficient deployment of 5G and open technologies. When questioned about the timeline for Kyivstar's 5G launch in Ukraine, Terzioglu noted it depends on various factors but mentioned the groundwork through international partnerships, focusing on Open RAN for research and development.

// ubn.news //

European Bank for Reconstruction and Development (EBRD) will secure €4 billion increase for Ukraine’s investments

This marks the third capital increase in the EBRD's history, raising its capital base to €34 billion. The added capital, supported by shareholders, aims to power sustained investment in Ukraine's real economy during both wartime and reconstruction, aligning with the EBRD's commitment to prioritizing Ukraine since Russia's invasion in February 2022.

EBRD President Odile Renaud-Basso called it a historic moment, emphasizing confidence in the Bank's mission. The capital infusion enables continued annual investment of around €1.5 billion in Ukraine during wartime, rising to €3 billion in reconstruction. Shareholders can subscribe to additional shares starting in early 2024, with payments commencing in early 2025.

With 72 national shareholders, including Iraq since November 2023, the EBRD, founded in 1991, has invested over €190 billion in 6,800 projects, fostering competitiveness, governance, sustainability, inclusivity, resilience, and integration in its regions.

// www.ebrd.com //

Business in Ukraine

A logistics center is for sale in the Khmelnytskyi region

Scheduled for January 19, the government aims to auction a comprehensive property complex spanning 4,329 square meters online. Situated in the Khmelnytskyi region, the logistics center occupies a 1.1230-hectare land, strategically positioned 20 km from Khmelnytskyi city. According to the parliamentary financial committee, Ukraine garnered approximately €79.2 million from privatization in 2023 and anticipates exceeding €96 million this year.

A substantial pool of 1,470 objects has been earmarked for privatization, featuring prominent entities like Odesa Port Plant, Centrenergo, United Mining and Chemical Company, Ukrainian Energy Machines, Elektrovazhmash, and Sumykhimprom.

// ubn.news //?

New investment projects in Dnipro region

Minister of Economy Yulia Svyridenko has outlined significant investment projects in the Dnipropetrovsk region. Among these, Interpipe is at the forefront with three initiatives. The most substantial involves a $40 million investment in constructing a new production section dedicated to the heat treatment of pipes.

In Dnipro, within the railway division of Interpipe NTZ, two additional projects are progressing. Centravis is set to modernize the pipepress line with a $3.5 million investment. Simultaneously, ArcelorMittal Kryvyi Rih aims to boost production capacity utilization from 30% to 50%, injecting $150 million into the enhancement.

In another domain, Biosphere, a leading Ukrainian producer of household goods, is diversifying into tea production. Having utilized the 5-7-9 state credit program, Biosphere has invested $20 million in a new facility scheduled to commence operations in January 2024.

// ubn.news //?

Real estate in Chernivtsi and other cities in the West of Ukraine

In 2022, Intergal-Bud, a Ukrainian real estate development company,? experienced a significant surge in sales in Chernivtsi. Following this success, the company implemented price adjustments for its apartments in Chernivtsi in 2023, leading to a remarkable overachievement of sales plans by 100-200%.

The western region of Uzhhorod witnessed a notable increase in housing demand, prompting attention from the real estate developer. Zhytomyr is also on the radar, with plans to construct several new facilities to meet growing housing needs. Vinnytsia's eastern and central regions emerge as attractive prospects for major developers, as land costs are considerably lower than in Kyiv or Lviv, while construction expenses remain relatively consistent across regions, according to the company director.

// ubn.news //

Astarta Agroholding secures EUR 55M loan for soybean processing plant construction

Astarta Agroholding, Ukraine's leading sugar producer, has secured a EUR 55 million loan from state-owned Oschadbank for the construction of a soybean processing plant in the Poltava region. The credit line, spanning seven years, will fund the project over the next three years. Astarta intends to primarily finance the venture using free cash flow. The new plant aims to produce around 100,000 tons of concentrated soy protein annually.

// ubn.news //

Economy

Ukrainian GDP in 2024: Expectations

Ukraine's 2024 GDP growth expectations are ranging between 3-5%. The state budget-2024 sets growth at 4.6%, down from the initial 5%. Dragon Capital and ICU Investment Group revised projections due to the prolonged war, reducing forecasts from 8% to 4% and 6.4% to 5%, respectively. Logistical normalization is vital, with analysts expecting sea corridors to potentially add €9-10 billion to exports, contributing up to 5% to GDP growth.

Drivers of growth include consumption, defense, exports, and infrastructure investments. Projected at approximately €189.96 billion, the 2024 GDP may reach nearly €185.52 billion, compared to an estimated €154.7 billion in 2023.

// gmk.center //

Finnish-Ukrainian news

Finland's dual commitment: financial aid and a national reconstruction plan for Ukraine

Finland and Belgium are actively supporting Ukraine's recovery, with Finland pledging €50mn through its Export Credit Agency, Finnvera. This contribution is part of Finland's broader plan to aid Ukraine's reconstruction, emphasizing a focus on short-term credit insurance. The move showcases Finland's dedication to assisting Ukraine during challenging times, aligning with other European nations reconsidering support amid ongoing conflict.

Simultaneously, Finland unveils a comprehensive national reconstruction plan, ensuring favorable conditions for Finnish businesses in Ukraine. Minister Ville Tavio affirms Finland's steadfast support for Ukraine, emphasizing that assistance will continue as long as needed. A powerful step forward in both financial and strategic backing.

// Gtreview // Linkedin //

EastCham Finland hiring in Kyiv

EastCham Finland is extending its footprint to Kyiv, Ukraine, offering a unique opportunity for a Senior Business Advisor/Head to spearhead operations. This strategic move aims to assist Finnish companies entering Ukraine, contributing to reconstruction efforts. The ideal candidate should possess a proven track record in international business, a relevant education background, a deep understanding of Ukraine's business landscape, and strong networking skills.

Key responsibilities include business advisory tasks, market analysis, project evaluation, stakeholder communication, and event organization. This exciting role signifies EastCham's commitment to fostering international collaboration and economic growth.

Apply by January 22: https://lnkd.in/dmgbiV8q

// Linkedin // EastCham Finland //

Ukrainian entrepreneurs thrive in Finland: a tale of resilience and integration

Ukrainians arriving in Finland aren't just settling in; they're showcasing their entrepreneurial spirit. Many, eager to contribute to their new home, swiftly transition from language studies to actively working within months. In a testament to resilience, some newcomers started entrepreneurial ventures just six months after arriving.

The journey of these dynamic Ukrainian entrepreneurs, and the support provided by Startup Refugees, notably Kovalenko Oleksiy, is featured in Helsingin Sanomat. Noteworthy corrections: In 2023, Startup Refugees offered business advisory services to over 1000 individuals of diverse nationalities, with 292 Ukrainians actively participating in entrepreneurship courses – an impressive feat! Read the full story here.

// HelsinginSanomat // Linkedin/KatiL. //

Polish-Ukrainian News

“Ukraine and Poland should already be contemplating a partnership within the European Union”, says the Minister of Foreign Affairs of Ukraine

Ukraine and Poland ought to contemplate forging a strategic alliance within the European Union, according to Dmytro Kuleba, the Minister of Foreign Affairs of Ukraine. In an interview with Uk?ad Si?, Ukrinform reports, Kuleba emphasized the need for both countries to collaborate within the EU framework, envisioning a mutually beneficial partnership. "I believe we should initiate discussions and begin considering a Ukrainian-Polish alliance within the European Union. The synergy of our strengths will not only fortify Poland but also enhance our own capabilities," he expressed.

// ukrinform.ua //

Carolers from the Materynka School in Warsaw visited the Embassy of Ukraine in Poland

Carolers from the Materynka School Educational Center named after D. Pavlychka in Warsaw visited the Embassy of Ukraine in Poland. Ukrainian students sang festive carols and expressed wishes for a swift victory for Ukraine in the New Year. Ambassador Vasyl Zvarych and diplomatic representatives expressed gratitude to the school's students for upholding Ukrainian traditions and commended the teachers for fostering the proper upbringing of the native youth.

// ukrinform.ua //

Prime Minister Tusk vowed that anti-Ukrainian sentiments would not be tolerated in his government

Newly appointed Prime Minister Donald Tusk pledged to act decisively on crucial decisions concerning the war in Ukraine. He assured that Warsaw will firmly reject any discrediting statements about aid to Ukraine. Currently, in his role as prime minister, Tusk is conveying Poland's relevant position to European partners.

// tsn.ua //

Lviv News

The business community and the city council have collaborated to assist veterans in Lviv in securing employment opportunities

On Wednesday, January 10, the Lviv City Council formally endorsed a significant memorandum of collaboration among City Hall, the UNBROKEN charitable foundation, and the professional HR community of Lviv, focusing on the employment of war veterans.

While 18 major enterprises from Lviv participated in the memorandum's signing, it is worth noting that this document remains open for other companies to join in the cooperative effort.

// city-adm.lviv.ua //

The center of Lviv recently hosted a Ukrainian Winter Folk Festival

The "New Joy Has Become" festival recently unfolded in Lviv, as announced by the press service of Lviv OVA. Around 25 artistic and amateur choirs from the region actively participated in the event. Festive activities included singing carols, exchanging congratulations, presenting nativity scenes, Malanka, and Goat performances, all while celebrating the birth of Jesus.This marked the second occurrence of the regional festival dedicated to Ukrainian winter folklore.

// tvoemisto.tv //

Residents of Lviv are encouraged to lend assistance to the homeless

Amidst the harsh winter weather, the St. Egidius Community in Lviv has initiated the #warmwinter campaign. The community is intensifying support on the city streets, providing hot tea, food, and warm essentials to the homeless, particularly in the central areas of Lviv. They have also compiled recommendations on assisting homeless individuals in extreme cold, along with an information sheet detailing addresses where they can access hot meals. Additionally, weekly food distributions for the poor and homeless take place.

// city-adm.lviv.ua //

Events and conferences

Ambassador of Ukraine to Finland on business insights, Jan 24, 2024

Scheduled for January 24, 2024, from 9:00-10:30 AM at Etel?ranta 10, Helsinki, or online, this exclusive session invites professionals to meet Her Excellency Ambassador Olga Dibrova. Hosted by EastCham Finland, the event offers updates on Finnish-Ukrainian business and the reconstruction situation in Ukraine.

The agenda includes insightful presentations from RTL-Inductives Oy and KONE Oyj. Jaana Rekolainen, CEO of EastCham Finland, will moderate the discussion. This members-only opportunity is open to companies with no ties to Russia. Limited spots are available, and interested parties can register through the website or contact Elena Niininen.

// EastCham Finland //

Online training: Starting the business operations in Ukraine, Jan 30, 2024

Join on January 30th, 2024, 9:00-10:30 AM online for a valuable training session on company establishment in Ukraine. The agenda covers essential topics such as company forms, corporate governance, legal entity registration, mergers and acquisitions, decision-making authorities, administrative specifics, and temporary martial regulations. Presented by EY, the discussion will be moderated by Jaana Rekolainen, CEO of EastCham Finland.

Questions can be sent in advance to elena.niininen@eastcham.fi. The training is complimentary for EastCham member companies, and others can attend for an admission fee of €150 + VAT. Secure your spot by registering by January 25 through our website or by contacting Elena Niininen. The webinar will be conducted in English and is available exclusively online.

// EastCham Finland //

Second Future of Ukraine: Nordic conference, 15-16 Feb, 2024

Gear up for the upcoming 2nd FoU conference, presented by Region Stockholm, focused on unveiling business prospects in Ukraine. This event, slated for February 15-16, 2024, invites participants from all Nordic countries. Embrace the chance to connect with leading innovators and influencers in the innovation sector.

The conference showcases 24 Ukrainian startups spanning drones, health tech, deep tech, and sustainability, offering attendees a platform to establish valuable networks. Don't miss out on this opportunity to explore Ukraine's business landscape and secure discounted tickets by visiting the webpage. Seize the chance to dive into Ukraine's business potential and foster collaboration across the Nordic region.

// Ukrainerebuildnews //

Ongoing tenders

Invitation for tenders – housing for internally displaced persons (IDPs) and recovery of liberated cities in Ukraine – Zhytomyr

Opening Date: 15 Jan 2024

Closing Date: 31 Jan 2024

Link: Nefco

General procurement notice – EU programme: repair of critical infrastructure – Ukraine

Opening Date: 4 May 2023

Closing Date: 31 July 2024

Link: Nefco

Invitation for Tenders – Design, survey, supply, construction and installation works for the new wastewater treatment plant in Dymer village, Vyshgorod district, Kyiv Region

Opening Date: 11 Dec 2023

Closing Date: 25 Jan 2024

Link: Nefco

Request for quotations for supply gate valves and check valves for East and South regions of Ukraine

Opening Date: 16 Jan 2024

Closing Date: 29 Jan 2024

Link: IOM

Request for quotations for supply and delivery of steel pipes

Opening Date: 12 Jan 2024

Closing Date: 2 Feb 2024

Link: IOM

Request for quotations for the establishment of a long-term agreement for the provision of water purification supplies

Opening Date: 3 Jan 2024

Closing Date: 26 Jan 2024

Link: IOM

Stay informed on the latest news by subscribing to this newsletter. Explore in-depth insights on the latest investments, business developments, and events unfolding in Ukraine each month!