The Cabinet of Ministers of Ukraine has sent UAH 400 million for the implementation of the Ukraine residential energy efficiency financing program in 2018, and 48% of which will be sent to homeowner associations. “The effectiveness of using 1 USD of state budget expenditures in one- and two-apartment houses is 10 times higher than in individual apartments in multi-apartment houses,” the explanatory note to the resolution says.
According to the document, out of UAH 400 million provided by the energy efficiency program for 2018-2020, the government allocated UAH 190 million for residential energy efficiency loans for homeowner associations and housing construction cooperatives. Another UAH 202 million will be used to “stimulate the population to introduce energy efficient measures,” and the remaining UAH 7.7 million will be used to recover part of the funds used to purchase boilers (except for gas and electric boilers).
In addition, the resolution provides for state support for the introduction of electric heating in high-rise buildings in cities where this is provided for by heat supply schemes.
Deputy Prime Minister, Regional Development, Construction, Housing and Utilities Economy Minister Hennadiy Zubko reminded that UAH 1.6 billion is provided for financing energy efficiency of homeowner associations this year within the framework of the Energy Efficiency Fund, the press service of the government said.
Exports of grain crops and flour since early 2017/18 agricultural year (July-June) as of March 14, 2018 reached 28.36 million tonnes, which is 2.83 million less than a year ago, the Agricultural Policy and Food Ministry of Ukraine has reported.
According to the report, a total of 28 million tonnes of grain was exported, including 13.44 million tonnes of wheat (530,000 tonnes less than a year ago), 10.33 million tonnes of corn (1.7 million tonnes less) and 4.04 million tonnes of barley (664,000 tonnes less).
Exports of rye accounted for 18,200 tonnes (18,100 tonnes more) and flour – 320,800 tonnes (54,000 tonnes more).
Canada’s Black Iron with assets in Ukraine has pointed out the increase in the attractiveness of the Shymanivske Iron Ore Project. The company said in a press release that since publishing the re-scoped Preliminary Economic Assessment, benchmark iron ore prices have rallied from $62 per tonne to $70 per tonne as of March 9, 2018.
The company said that based on prevailing iron ore prices and adjustments for product quality mainly related to iron content, Black Iron’s construction capital is estimated to have an estimated $1.4 billion Net Present Value (NPV), assuming 60% debt financing, 10% discount rate and an initial capital cost of $436 million. “Even under highly pessimistic long-term iron ore prices of $50 per tonne, the project generates Internal Rate of Return (IRR) in excess of 20%,” the press service said.
The company said that since releasing the revised project economics, the company has accelerated its efforts to secure the necessary land surface rights for the mine and plant. The leases related to three parcels of land that are required to begin construction are currently held within two Ukrainian government groups. The first parcel of land is held by the Kryvy Rih City Council who have been very supportive. Black Iron’s team and specialist consultants have completed more than 50% of the land allotment study to date.
The final parcel of land is held by Ukraine’s State Forestry, who have submitted the required documents for this land to be re-zoned and transferred to the Kryvy Rih City Council, who will in turn, lease the property to the company. The acquisition of these land packages will represent a significant milestone in beginning construction of the project and the company expects this process to be completed prior to year end. The company continues to pursue various financing options for construction of the project and has received significant interest from multiple groups which are currently conducting due diligence. The potential financiers include several multi billion-dollar steel mills, global trading houses and other mining companies.
Finance Minister of Ukraine Oleksandr Danyliuk expects that the European Commission (EC) would approve macrofinancial assistance to Ukraine early autumn of this year. “The European Commission initiated the new program on February 28 and on March 9 the legislative proposal on the new program was finally approved. Now the proposal is in the European Parliament and the Council of the European Union… We are waiting for the final approval [of the program] early autumn. We will do our best to have it approved as soon as possible,” the finance minister said at a press conference in Kyiv.
He said that this concern the provision of EUR 1 billion. Danyliuk said that due to the non-implementation of the previous program the Finance Ministry had to replace insufficient payments in the budget at the end of 2017.
Earlier Danyliuk said that the key condition for the fourth macrofinancial assistance of the European Union to Ukraine is the launch of automated verification of e-declarations. “Meetings were held at the level of the Minister of Finance and the Prime Minister. The task to introduce this system before May 1 is clearly set,” the minister said.
The finance minister said that the program may contain additional conditions, but its key focus is the fight against corruption. “Now there is a dialogue with the EC. Sometime before May 1, they should coordinate all the issues and sign a memorandum,” he said.
Austria invested over $1.3 billion in the economy of Ukraine by 2018.
“Austria had invested $1.345 billion in the economy of Ukraine as of the end of last year, which was 3.4% of the total amount of foreign direct investment injected in our country’s economy,” the Ukrainian Cabinet’s press service said in a statement following a meeting between Ukrainian Prime Minister Volodymyr Groysman and Federal President of the Republic of Austria Alexander Van der Bellen.
During the meeting, Groysman stressed that European integration is Ukraine’s irreversible foreign policy choice, therefore Kyiv looks forward to intensifying the dialogue on a wide range of issues, taking into account Austria’s chairmanship of the EU in the second half of this year. The two officials touched on the situation in Donbas. “The annexation of the Crimea and the occupation of the east are illegal. This is a vivid violation of international law. Russia thinks everything will go unpunished. But we must prevent such opinions from existing,” the Cabinet’s press service quoted the Austrian president as saying.
As reported, Alexander Van der Bellen says Austrian investors are highly interested in Ukraine and underscores the need for a more intensified fight against corruption.
