Despite the war in Ukraine, bank lending to businesses is growing, consortium lending is reviving, but the issue of war risk insurance remains in limbo. Vladimir Mudry, Chairman of the Board of OTP Bank JSC and Chairman of the Board of the Independent Association of Banks of Ukraine, spoke about trends and challenges in the economy in general and the banking sector in particular during the conference “Finance for Business During War 2.0.”
“This year, new areas of work have emerged that no one was talking about last year. For example, syndicated lending, which allows for the financing of large-scale infrastructure projects. We see that banks with private and state capital are joining forces to finance initiatives aimed at developing the economy. I believe that the banking sector and business should look for new areas for cooperation. This will allow banks to refine their internal programs in line with the current needs of business, and entrepreneurs to understand which ideas can already receive financing from banks today,” said V. Mudryi.
He emphasized that bank lending to businesses is growing in Ukraine, with the hryvnia corporate portfolio growing by 9.5% in the first quarter of 2025 and 28.4% year-on-year. At the same time, there are a large number of state programs for financing SMEs, including the state program “Affordable Loans 5-7-9%” and compensation for loans for domestically produced machinery and equipment. The share of total loans to small and medium-sized businesses in the banking system as a whole has already exceeded 60%.
“At the same time, other indicators, which currently remain quite low, are cause for concern. According to the results of 2024, the loan portfolio of banks amounted to only 23% of total assets. And if we take GDP, the total loan portfolio is only 19%. For comparison, in Poland this figure is 33%. This means that there is considerable potential for growth,“ emphasized V. Mudry.
Separately, V. Mudry drew attention to the challenges common to both business and banks. ”Unfortunately, no concrete results have been achieved in the area of war risk insurance over the past year. The law is still being considered by members of parliament. We also do not see an increase in financing programs from international partners,” emphasized the head of OTP Bank.
As a reminder, the credit rating agency S&P Global raised the rating for OTP Bank (Hungary) from BBB-/A-3 to BBB/A-2. This level is higher than Hungary’s sovereign credit rating.
OTP Group is the fourth most stress-resistant banking group in Europe based on the European Banking Stress Test 2023 conducted by the European Banking Authority. OTP Group also tops the Ranking of the 100 Best Banks in Central and Eastern Europe for 2023 and 2024.
Value added tax (VAT) refunds for January-May 2025 reached UAH 70.9 billion, which is 23.8%, or UAH 13.3 billion, more than in the same period of 2024, and 15% (UAH 9.3 billion) more than in 2023, the State Tax Service of Ukraine (STS) reported on Wednesday.
According to a statement on the agency’s Telegram channel, taxpayers were reimbursed UAH 15.5 billion in May 2025.
“This is 22.3% (+2.8 billion UAH) more than in May 2024. Compared to May 2023, the figure increased by 55.9% (+5.6 billion UAH),” the service emphasized.
As reported, on May 27, Kravchenko denied the growth of VAT refund arrears, as as of May 1, the figure reached UAH 30.4 billion. He explained that these funds are “in progress” as audits are being conducted.
Kyivstar, Ukraine’s largest telecommunications operator, has received permission from the National Commission for the State Regulation of Electronic Communications (NCCEC) to conduct test trials of Direct to Cell (D2C) satellite technology.
“During the testing, initial research will be conducted on the operation of SpaceX Direct to Cell technology, in particular the possibility of receiving text messages on 4G smartphones in Ukraine,” the company said in a press release on Wednesday.
Kyivstar notes that it is the first electronic communications operator in Europe to launch a new format of direct satellite communication with smartphones, alongside the US, Australia, Japan, and New Zealand.
The company notes that thanks to Direct to Cell, it plans to provide connectivity in so-called “white spots,” i.e., regions without traditional terrestrial mobile coverage, particularly in remote mountainous and rural areas.
This is especially important in times of war, when infrastructure may be damaged or power is unavailable.
It is noted that in the initial phase of implementation, the technology will allow subscribers to send text messages: users’ 4G/LTE phones will connect directly to a satellite in orbit without the need for additional equipment or software. The technology will work in open areas with a clear view of the sky.
“With this step, we are confirming our technological leadership and are proud to be among the first in the world to launch such an innovation… Our task at the testing stage is to take into account all technical aspects and make the service as convenient and accessible as possible for subscribers,” said Kyivstar CEO Alexander Komarov in the release.
It is noted that the company’s specialists will begin the first beta testing of the service in the summer of 2025 in selected regions of Ukraine, with wider access in test mode for subscribers expected in the fourth quarter of 2025.
Kyivstar recalled that the first registration of a Kyivstar SIM card in a satellite network was successfully completed in the US at the Starlink laboratory. This allowed the compatibility of the networks to be tested and technical readiness for pilot testing in Ukraine to be confirmed.
At the end of 2024, Kyivstar was the first in Europe to sign an agreement with Starlink, a division of SpaceX, to begin the implementation of Direct to Cell satellite communications in Ukraine.
As of March 2025, Kyivstar served approximately 22.7 million mobile subscribers and over 1.1 million Home Internet subscribers. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, cyber security services, digital TV, etc., and has announced investments in new telecom technologies of $1 billion during 2023-2027.
Exports of timber and timber products from Ukraine since the beginning of 2025 amounted to 1.42 million tons, worth $671.8 million, which is 6% or 81.7 thousand tons more than in the same period of 2024, according to the State Customs Service (SCS). The State Customs Service (DMS) press service reported this.
The agency noted that pine products accounted for the largest share of exports (68.6% of the total), followed by spruce (19%) and oak (6.6%).
At the same time, since the beginning of 2025, customs authorities have detected violations amounting to more than UAH 31.4 million. In early May 2025, in cooperation with the State Forestry Agency, a whole scheme of illegal export of 2.9 thousand cubic meters of timber worth UAH 13.6 million was uncovered. In all 98 cases, business entities from one of the country’s regions submitted certificates of origin for timber issued for other consignments of goods to the customs authorities for the export of timber. In all cases, reports on customs violations were drawn up against the entrepreneurs, according to the State Customs Service.
To systematically eliminate the conditions for such violations, the State Customs Service, together with the Ministry of Environmental Protection and the State Forestry Agency, is preparing proposals for legislative changes that will provide customs authorities with automatic access to information submitted by exporters to obtain certificates.
The State Customs Service added that since the start of the full-scale invasion, confiscated timber worth UAH 14.2 million has been transferred to the defenders of Ukraine.
On Tuesday, the European Commission (EC) put forward a proposal to integrate Ukraine into the EU roaming zone from January 2026.
“We want Ukrainian citizens to stay connected with their loved ones across the EU, as well as in their home country. That is why we are offering Ukraine to join our roaming family. We reaffirm our unwavering commitment to supporting Ukraine and its citizens,” said EC President Ursula von der Leyen.
According to the European Commission’s press release, the implementation of its proposal will allow Ukrainians to call, send text messages, and use their mobile data from Ukrainian phone numbers in 27 EU countries at no extra cost. The same benefits will apply to Europeans who may be in Ukraine.
“Roaming is the first sector in which the EU will extend the internal market regime to Ukraine. In practice, this means that travelers from Ukraine visiting the EU and travelers from the EU visiting Ukraine will not pay any additional roaming charges. All mobile services, including calls, text messages, and data, will be charged at domestic rates,” Brussels explained.
The EC has sent its proposal to the EU Council for approval. According to the proposal, Ukraine will effectively join the EU’s “Roam Like at Home” zone on January 1, 2026, the European Commission said.
Ukraine is preparing to announce a tender for the development of the Dobra lithium deposit, which could become the first project within the framework of cooperation with the US, according to the head of the President’s Office, Andriy Yermak.
“Ukraine is preparing to announce a tender for the development of the Dobra lithium deposit in the Kirovohrad region. This could be the first project within the framework of cooperation with the US. I am glad to see that the process is moving forward and that the results of our meetings in Washington a week ago are turning into concrete actions,” Yermak wrote on Telegram on Wednesday.
For more details on the prospects for rare earth element mining in Ukraine, see the video from the Experts Club analytical center – https://www.youtube.com/watch?v=UHeBfpywpQc&t
