The European Parliament will vote on the proposal of the European Commission to provide Ukraine EUR 1.2 billion to combat the economic consequences of the coronavirus COVID-19 pandemic on May 13 on a request for an urgent procedure. The corresponding item is recorded on the agenda of the session, which will be held from May 13 to May 16.
The issue of macro-financial assistance to enlargement and neighbourhood partners in the context of the COVID-19 pandemic crisis was recorded first in the section on voting on a request for an urgent procedure.
Due to the restrictive measures taken in connection with the COVID-19 pandemic, the majority of EP deputies will vote remotely without discussion. The vote result is expected to be positive.
Ukraine is one of ten partner and neighboring countries that will receive a total of up to EUR 3 billion in aid. Moreover, Kyiv will be provided with the largest amount of funds. Thus, Albania will receive EUR 180 million, Bosnia and Herzegovina – EUR 250 million, Georgia – EUR 150 million, Jordan – EUR 200 million, Kosovo – EUR 100 million, Moldova – EUR 100 million, Montenegro – EUR 60 million, Northern Macedonia – EUR 160 million and Tunisia – EUR 600 million.
Earlier, on May 5, this proposal of the European Commission, which was adopted on April 22, was supported by the ambassadors of the member states of the European Union, thus giving a green light for the further procedure – voting in the European Parliament with subsequent final decision within the framework of the EU Council.
These funds will be provided within 12 months in the form of loans on “highly concessional terms to help these countries cover their urgent financing needs.”
The funds will be available for twelve months and will be paid in two installments. The maximum average loan maturity is 15 years.
Explaining the details of the allocation of money, Ukraine’s representative to the EU Mykola Tochytsky has said that the macro-financial assistance (MFA) of the European Commission to Ukraine in the amount of EUR 1.2 billion will be provided in two tranches: first EUR 600 million will be provided at once after the approval of the decision by the European Parliament and the Council of the European Union unconditionally, and the second tranche of EUR 600 million will be provided under conditions, the negotiations on which will take place soon.
National bank of Ukraine’s official rates as of 07/05/20
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of May 07
One troy ounce=31.10 grams
Ukraine’s FX reserves in April 2020 tentatively grew by 3.1% or $800 million, to $25.695 billion, the National Bank of Ukraine (NBU) said on its website on Thursday.
“Transactions of the National Bank to manage reserves and transactions on the FX market first of all contributed to the increase in FX reserves,” the central bank said.
The European Bank for Reconstruction and Development (EBRD), together with Ukrenergo, is developing a project of building a 200 MW energy storage system to regulate frequency in the energy system, Olga Yeriomina, the EBRD senior banker for power and energy projects, said.
“The EBRD, together with Ukrenergo, is really working on a project to build an energy storage facility that would not need a feed-in tariff and that could solve the issue of regulatory capacities and reduce the price of electricity in the market. We are considering the possibility of financing a 200 MW construction,” she said at an online meeting at the Energy Club.
She clarified that the matter concerns a project, which is to be financed through an EBRD loan under state guarantees.
“With regard to regulation, Ukrenergo is obliged to provide system services, and these 200 MW will not participate in trading in the market, this will be a system service. An increase in the current tariff of the operator will not be required,” she added.
At the same time, she noted the growing need of the Ukrainian energy system for balancing capacities, which causes the need for the fastest government decisions in this direction.
“We see the situation with the shutdown of nuclear power plants. It’s hard for us now to figure out where the technical necessity is, where repairs are needed, and where administrative intervention is. But the faster the Ukrainian government structures would support our project idea, the faster the issue of flexible generating capacities would be resolved. There are a lot of distortions in the market, and we need to make up for time, take quick and decisive steps,” the banker said.
Kyivshliakhbud road construction company from RDS group of road construction companies intends to participate in tenders for the completion of the N-14 Mykolaiv-Kirovohrad road and the construction of the M-05 Kyiv-Odesa road in Odesa region, company CEO Oleksandr Raschupkin has said.
“There was information that it is planned to build a concrete road that will connect the ports of Kherson and Mykolaiv. We will also be interested in this project. We have already made large investments in concrete laying technologies, and in this segment we are very competitive,” he said in an interview with the Interfax-Ukraine agency.
Speaking about the current work, he noted that Kyivshliakhbud operates at seven sites in Kyiv, therefore, it is in strict compliance with quarantine restrictions. In particular, antiseptics, masks were purchased at all bases and dormitories, sanitary treatments were carried out, rapid tests that are used for the most minimal colds were purchased, 20 medical staff conduct daily temperature measurements for all employees. According to the director, at the end of April there were no COVID-19 patients from the company.
He also said that under a “moderately optimistic” scenario, involving the passage of the peak of the pandemic in the first half of the year, the company will be able to additionally employ about 300 people by the end of the year.
According to the head, despite the quarantine, there is no shortage in the supply of goods and services from contractors.
He also expressed hope that the company will act as a consultant on the further infrastructure development of Kyiv and other cities.
“I see a strategy in that the general plan for building the city is coordinated with Kyivavtodor and it would be possible to lay the replacement of all networks there. We also need studies regarding traffic, this is what you lay for 5-7 years in advance depending on the construction of residential and non-residential buildings,” he said.
The CEO added that despite the pandemic, the company and the group remain interested in entering neighboring markets.
“We constantly monitor announced tenders in Bulgaria, Moldova, Romania, Poland, these countries are close to us, although they have their own nuances. If we meet the qualifications of the organizers of tenders, of course we will file bids, we have ambitions and skills,” he said.
Speaking about new technology, Raschupkin expressed the opinion that in Kyiv concrete roads can be built on large avenues or on circular highways.
RDS Group is included in the top three road building companies of Ukraine. Its structure includes Kyivshliakhbud and Rostdorstroy. The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
