Almost 15 percent of Ukrainian producers of building materials suffered as a result of Russia’s aggression, but the sector is capable of providing up to 90 percent of the materials needed to rebuild the country, the USAID press service said.
These are the results of a study conducted by specialists from the public organization Institute for International Economic Research and the state enterprise Ukrpromvneshekspertiza with the assistance of the USAID Economic Support for Ukraine Project (USAID Project).
As reported, in 2022 the USAID project supported a study of the Kyiv School of Economics to assess the extent and cost of damage to infrastructure and residential buildings in Ukraine. According to data as of November 2022, destroyed facilities needed construction materials and equipment worth about $62.8 billion.
“Experts from Ukrpromvneshekspertiza and the Institute for International Economic Research studied the state of production capacity of Ukrainian construction material factories during wartime. They learned that about 15% of these plants were damaged or destroyed, but this sector retains high production capacity for a wide range of building materials and can provide up to 90% of the materials needed,” said USAID Deputy Project Director Brian Milakowski.
In addition, local production of building materials would save about 100,000 jobs, generate $5.6 billion in wages and $4.4 billion in tax revenue.
The results of the study show that the production of sheet glass or electrical switchboard equipment has been virtually eliminated. These materials are imported from EU countries, which affects their cost. At the same time, the construction of factories, including the production of glass, aerated concrete, dry construction mixtures, continues.
Among the problems named in the study were power outages due to damaged energy facilities, difficulties in accessing finance for working capital and capital investment. Some manufacturers pointed to accounts receivable from builders and the potential loss of key engineering personnel due to conscription into the Armed Forces.
For investment activities, the main barriers are recognized high military risks, the inability to obtain loans, the lack of understanding of the market in the long term, the high cost of connecting to the power grid. At the same time, investment activities continue. This concerns the construction of new facilities for the production of glass, gas concrete, dry mixes, cement, mineral wool.
“Ukraine and its partners can be confident in the ability of the domestic construction materials sector to meet most of the needs of the country’s post-war reconstruction. Donors and lenders to Ukraine can focus on this domestic production potential when planning their assistance,” Volodymyr Vlasyuk, director of Ukrpromvneshexpertiza SE, was quoted in the release.
The survey results also highlight opportunities for technical assistance and improved access to financing to overcome specific limitations for further recovery and growth of the sector. For the international community, the construction materials sector can be viewed as a priority for investment and assistance to the war-torn economy.
The USAID Ukraine Economic Support Project (USAID Project) was created to strengthen Ukraine’s economy affected by the Russian invasion.
Turkish citizens living abroad have begun the voting process in the second round of presidential elections. A total of 156 polling stations were opened in 73 countries around the world.
Note that only in Germany there are about one and a half million registered Turkish voters.
In the second round of elections, Turkey’s incumbent president Recep Tayyip Erdoğan and a single opposition candidate Kemal Kılıçdaroğlu are represented. Turkish citizens at overseas polling stations can cast their votes until May 24.
In Rome, the Italian capital, Turkish voters lined up in front of the embassy despite inclement weather. Voting points will be available from May 20 to 22 at the embassy in Rome and at the consulate general in Milan.
Votes cast in favor of candidates in Madrid and Barcelona will be delivered to Turkey on regular Turkish Airlines flights under the supervision of diplomatic couriers, Turkish media reported.
In Turkey itself, the second round of elections is scheduled for Sunday, May 28. In the first round, Recep Tayyip Erdogan won four and a half percentage points more than his main rival Kemal Kılıçdaroğlu.
Earlier, the Club of Experts analyzed the chances of the candidates in the Turkish elections and gave a forecast of the development of the situation. The video is available at the link:
Germany’s largest manufacturer of military equipment, Rheinmetall, intends to open production of armored vehicles in Ukraine, in particular Fuchs armored personnel carriers, Rheinmetall CEO Armin Papperger said in an interview with Bild.
“We will start with the maintenance and repair of emergency vehicles and want to produce armored vehicles such as Fuchs armored transport vehicles as soon as possible,” Papperger said.
According to him, Ukraine is also interested in combat tanks of modern modifications.
“Ukraine is also interested in a modern Panther battle tank and Lynx infantry fighting vehicle. However, the first step is to provide for the country’s urgent needs in its defensive struggle,” Papperger noted.
The world’s leading manufacturer of custom microchips Taiwan Semiconductor Manufacturing Co. regained the title of Asia’s most expensive company, overtaking TencentHoldings Ltd.
Since the beginning of this year, shares of TSMC gained 18.4% and 7.2% over the last five days. The company is now capitalized at NT$13.8 trillion ($450 billion), according to Market Watch.
TSMC increased net income in the first quarter of 2023 by 2.1% over the same period last year and revenue by 3.6%. The figures, however, were 30% and 19% lower than in the previous quarter.
Nevertheless, experts expect that the active development of the sphere of artificial intelligence will contribute to the growth on advanced chips produced by TSMC.
The capitalization of Tencent, which recently held the first place in the list of the largest Asian companies, increased by 7.4% this year and remained virtually unchanged over the past month amid the slow recovery of the Chinese economy. Tencent is now capitalized at HK$3.17 trillion ($405 billion).
Energy companies will periodically transfer information about household customers’ debts to the Ukrainian Bureau of Credit Histories, the press service of energy holding DTEK said.
“YASNO and the Ukrainian Bureau of Credit Histories have begun cooperating. Accordingly, the bureau will now receive information about YASNO customers who have accumulated debts for consumed electricity, and this information will be displayed in their credit history,” the statement said.
As it is noted, as of May 1, 2023, household consumers have accumulated arrears of more than one month for consumed electric power in the amount of more than 1.7 billion UAH.
“In order to encourage customers to be more responsible in paying for used electricity, YASNO will periodically transmit information about household customers’ debts to the bureau,” the department explained.
So, if a client has debts on utility bills, but wants to get a loan from a financial institution, the lender will be able to see his credit history and then make a decision on this issue.
At the same time, disciplined clients who pay on time for the services they consume will be able to build a positive credit history. This step will allow them to improve their credit reputation, receive more favorable loan terms and ensure their financial stability in the future, YASNO said.
“There are customers who don’t pay for used electricity and other utilities, but take out loans, such as for another new iPhone. It is precisely for such clients that such activity is designed,” said Sergey Kovalenko, YASNO general director.
Internal and external debt of Ukraine in 2009-2023
Source: Open4Business.com.ua and experts.news
