The International Financial Corporation (IFC) has announced a new $2 billion bailout package to help boost the vitality of the Ukrainian private sector and support the well-being of Ukrainians in response to Russia’s invasion of the country.
“The $2 billion response package includes $1 billion from IFC’s own account, as well as additional funding that depends on guarantees from donor governments,” the IFC said on Friday.
IFC notes that the contribution of the private sector to Ukraine’s GDP was almost 70%, according to NBU estimates for September 2022, 11% of enterprises completely stopped working, and more than half did not work at full capacity, and the Ministry of Economy indicated that at least 5 million workers were lost places.
“During the war and initial reconstruction stage, the Program will focus on ensuring access to critical goods and services with emergency liquidity support for agribusiness and trade finance, including for fuel imports,” the IFC said in the press release said.
Other priority areas of the Program at this stage include the maintenance of economic activity; critical economic infrastructure such as agricultural trade routes and logistics; and providing for the needs of displaced persons and war-affected municipalities.
It is indicated that IFC financing will be provided directly to current and new clients in the real sector, as well as through financial intermediaries for further lending to micro, small and medium-sized enterprises and agribusiness, as well as through trade finance guarantees.
IFC said it has refocused its advisory program to support clients as they adapt to war and prepare for reconstruction.
“The Ukrainian private sector has shown unprecedented resilience in the face of this war. Our top priority is to maintain this resilience and continue to develop the potential of the private sector,” IFC Managing Director Makhtar Diop said.
A dry cargo ship with more than 71,000 tons of wheat left a Ukrainian port on Thursday, the Joint Coordination Center (JCC) reported.
“On December 15, the vessel Star Emerald left the port of Pivdenniy, it is carrying a total of 71,400 tons of wheat to Indonesia as part of the Black Sea Grain Initiative,” the report said.
Two dry-cargo ships Sea Bridle and Tuo Fu 8, which passed through the sea humanitarian corridor on December 15, are heading to Ukrainian ports.
69 vessels capable of exporting about 2.5 million tons of food are awaiting permission to enter Ukrainian ports, while 21 loaded vessels are preparing to be inspected to proceed further to their destinations.
“As of December 15, the total tonnage of grain and other agricultural products exported from the three Ukrainian ports is 13,990,897 tons. A total of 1,106 vessels have been allowed to move so far: 551 to arrive at Ukrainian ports and 555 to leave them,” the JCC summarized.
The ninth package of European Union sanctions on Russia for the war it is waging against Ukraine will be approved in writing on Friday.
The Czech Presidency announced this on its Twitter page.
“Ambassadors agreed in principle on a sanctions package against Russia as part of the EU’s ongoing support for Ukraine. The third Russia sanctions package negotiated under the Czech Presidency of the Council of the European Union should be confirmed via written procedure tomorrow,” it said.
In accordance with the practice of the EU, initially the decisions that must be further approved by the leaders of the EU are agreed upon at the level of ambassadors of the EU member states. So in this case, before the leaders approved the ninth package of sanctions for Russia, they were agreed upon by the ambassadors, whose Committee meetings were held almost simultaneously with the meeting of the European Council.
DTEK Energy Holding announced the use of emergency blackouts in Kyiv due to the attack by the Russians.
“Kyiv: emergency blackouts introduced due to missile attack,” according to DTEK’s telegram channel on Friday.
Oil prices are declining in trading on Friday, continuing to fall after a drop in the previous session.
The cost of February futures for Brent at London’s ICE Futures Exchange was $80.91 per barrel by 7:14 a.m. (approx. 0.37%), down $0.30 (approx. 0.37%) from the close of previous session. Those contracts fell by $1.49 (1.8%) to $81.21 per barrel at the close of trading on Thursday.
The price of WTI futures for January at electronic trades of the New York Mercantile Exchange (NYMEX) is $75.75 per barrel by that time, which is $0.36 (0.47%) lower than the final value of the previous session. The contract fell by $1.17 (1.5%) to $76.11 per barrel at the end of last session.
However, both grades may gain more than 7% during the week.
The market was buoyed this week by the International Energy Agency raising its 2022 oil demand growth estimate by 140,000 barrels per day (bpd) to 2.3 million bpd. The 2023 demand growth forecast was also raised by 100k bpd to 1.7 million bpd.
On the other hand, tighter monetary policy of the world’s major central banks has put pressure on oil quotations. On Thursday, the European Central Bank (ECB) and the Bank of England decided to raise key rates – by 50 basis points. The day before, the Federal Reserve (Fed) also raised rates by 50 bps to 4.25-4.5% per annum.
Investors are concerned that tight monetary policy may cause an economic slowdown and, consequently, a decline in demand for oil.
As a result of damage to the energy infrastructure, there are water supply interruptions in the capital, Kiev mayor Vitaliy Klitschko said.
“There are water supply interruptions in all parts of the capital due to damage to the energy infrastructure. Specialists are working to stabilize the system. Just in case, prepare a supply of drinking and technical water,” Klitschko wrote in his Telegram channel on Friday.
