Current news on Rebuild Ukraine topic
The Ministry of Reconstruction of Ukraine is developing a comprehensive set of measures to address the issue of construction waste based on the principles of the circular economy, announced Deputy Minister Natalia Kozlovska.
According to local authorities, as of the end of 2023, over 450,000 tons of construction waste have been accumulated across the country due to demolitions.
"Managing and processing such large volumes will require significant financial, human, and technological resources. Currently, Ukraine lacks a tradition of deep processing of construction waste, with the processing rate standing at 6% of the total quantity. However, in our vision for the country's recovery, these waste materials have the potential to become a future resource for the construction industry," emphasized Kozlovska.
The solution to this problem is envisaged comprehensively along the following main directions:
- Creating necessary regulatory framework regarding waste sorting and processing technology and implementing corresponding technological processes.
- Developing a catalog of construction products made from materials based on recycled waste.
- Further development of manufacturing standards for such construction products.
In the future, these targeted indicators should be considered in community development strategies.
In the second quarter of this year, Ukraine plans to launch insurance against war and political risks.
The Export Credit Agency (ECA) plans to commence investment insurance against war and political risks in the second quarter of this year, as reported by the European Business Association (EBA). This is related to the fact that this year a law came into force expanding the ECA's scope of activity to include insurance of direct investments and investment loans aimed at the development of export-oriented enterprises.
The list of war and political risks, as well as the terms and procedures for insurance and reinsurance, will be determined in a resolution of the Cabinet of Ministers of Ukraine, currently being developed by the Ministry of Economy of Ukraine and the National Bank. This document will be published in the coming months.
The ECA is already preparing several products that businesses are expected to be able to use this year:
- Insurance of international and national direct investments in Ukraine and dividends;
- Insurance of loans related to investments.
Compensation can be obtained in case of a complete cessation of activity on the principle of "business interruption" (the difference between the value of investments before and after the event is compensated).
The European Commission has announced the signing of an agreement with the International Finance Corporation (IFC) regarding the provision of financial guarantees to attract investments for the recovery of Ukraine.
According to the agreement, the European Union will provide the IFC with financial guarantees of up to €90 million to support investments in Ukraine under the IFC's Better Futures Program (BFP). It is expected that private investments under this program will exceed €500 million and will cover various sectors such as infrastructure, manufacturing, decarbonization, and resource conservation.
The European Fund for Sustainable Development Plus (EFSD+) is part of the EU's investment structure that supports public and private investments in partner countries worldwide. The financial guarantees provided under the EFSD+ are legally binding agreements under which the EU commits to pay a corresponding amount in case of financial losses that may occur to creditors.
The European Bank for Reconstruction and Development (EBRD) will provide a €200 million loan for the modernization of facilities of the company "Ukrhydroenergo".
The credit, guaranteed by the state, will be divided into two parts: up to €150 million for the purchase of critically important equipment for the Dnipro and Middle Dnipro Hydroelectric Power Plants, and up to €50 million for emergency financial support to ensure the liquidity of "Ukrhydroenergo".
This loan will be divided into two tranches of €100 million each. The first tranche will be financed by the EBRD, and the second one - by funds provided by Italy. With the help of these funds, four worn-out hydro turbines of the Dnipro Hydroelectric Power Plant will be replaced, and gantry cranes at the Middle Dnipro HPP will be restored.
It is expected that after the replacement of hydro turbines, the total production capacity of hydroelectric power plants will increase by 16%. This project will also contribute to improving the financial position of "Ukrhydroenergo" and help strengthen its liquidity, especially in the conditions of increasing liabilities for communal services.
Ukraine is launching the Ukraine Development Fund and expects $30 billion in investments over four years through the Ukraine Facility.
Minister of Economy Yulia Svyrydenko announced at the World Economic Forum in Davos that work is underway on the Ukraine Development Fund and other instruments to attract investments.
"War is not an embargo for investment. In 2023, the total volume of foreign direct investment in Ukraine increased, and we plan to increase their volume this and next years to reach pre-war levels," emphasized Svyrydenko.
As the Minister clarified, Ukraine continues to improve the investment climate.
"We are expanding the architecture of insurance against political and military risks. We have launched ship insurance. Work is underway to improve air defense," the Minister noted.
Ukraine is continuing reforms crucial for the effective operation of businesses and creating additional investment opportunities.
"The investment mechanism within the Ukraine Facility will facilitate attracting at least $30 billion in additional investments over the next four years by providing guarantees to international financial organizations. Additionally, we are working on launching the Ukraine Development Fund aimed at implementing significant capital-intensive investment projects for Ukraine's recovery," added Svyrydenko.
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