Current news on Rebuild Ukraine topic

The USAID AGRO program offers 50% co-financing for 15 projects aimed at developing the processing of agricultural products in Ukraine.

It is expected that these projects will improve the processing of agricultural products, contribute to import substitution, satisfy domestic demand and increase exports.

The projects provide for the creation of modern hubs, the infrastructure of industrial parks, as well as the development of the market for frozen, dried, canned products and ready-to-eat products. This will attract investment in infrastructure (refrigeration chambers, storage equipment) and create additional jobs.

The focus will be on restoring and strengthening processing capacity for the production of value-added products from vegetables, root crops, fruits, berries, legumes, corn, greens, meat (except chicken), milk and honey.

Program participants must be ready to co-invest at least 50% of the total project budget.

In September, the Government of Ukraine will present to its partners a list of investment projects for 2025 and expects to receive €4.1 billion from the EU.

Prime Minister Denys Shmyhal announced that the Cabinet of Ministers plans to hand over the developed list of public investment projects to partners in September. This will help to efficiently allocate limited financial resources to achieve the best results for the state and communities.

The portfolio of potential financing for public investments includes projects at both the state and local levels. A Strategic Investment Council was created to determine priorities and prepare a single portfolio of projects, which will facilitate effective communication with partners providing financial resources for the implementation of these projects.

Shmyhal also noted that the government expects to receive a tranche from the EU in the amount of €4.1 billion already this September. Ukraine successfully fulfilled the indicators of the second quarter of 2024 for the Ukraine Facility program and received a positive assessment from the European Commission regarding reforms in the budget, customs, anti-corruption and energy spheres.

The European Investment Bank (EIB) will soon approve a €250 million support package for Ukraine's energy sector and allocate another €200 million for the modernization of the capital's public transport.

The EIB systematically supports Ukraine in priority areas. The total volume of EIB initiatives in the public sector is 26 projects worth €5.3 billion, as noted by Minister of Finance Serhii Marchenko.

The volume of the portfolio of joint projects in the public and private sectors is the largest in all years of cooperation and reaches more than €7 billion. Since the beginning of the full-scale war, the volume of investments provided by the EIB in all directions is about €2 billion. The financial support of the EIB is aimed at ensuring the priority needs of the country, in particular for restoration of critical infrastructure and power system.

The EIB will also increase the financing of the "Kyiv City Electric Transport" project from €100 million to €300 million. The funds will be used until 2029 for the purchase and renewal of trolleybuses and subway cars.

The market for mergers and acquisitions (M&A) in Ukraine grew to $510 million in 2024.

After a significant recovery in 2023, activity in the Ukrainian M&A market continued to grow in the first half of 2024.

The number of deals increased by 4.2% compared to the same period in 2023, reaching 25 deals. Total deal value increased by 31% to $510 million, and average deal value increased from $28 million to $43 million.

The growth of the market was due to two large deals, the value of which exceeded $100 million. This is a round of financing of the IT company Creatio in the amount of $200 million and the acquisition by NJJ Capital of the telecommunications company "Datagroup-Volya" for $120 million.

Foreign investors concluded seven M&A deals (compared to nine deals in the first half of 2023) with a total value of $410 million. Six of these deals were related to innovation and technology.

Deals involving Ukrainian investors accounted for 9% of the total value of deals and 40% of the total volume of deals in Ukraine. Notable domestic deals include Biosfera's acquisition of Service Pro, a major home goods distributor.

We would like to remind that in the pre-war year 2021, merger and acquisition agreements were concluded in Ukraine in the amount of $3.2 billion.