This year, the largest investment forum FIT for Ukraine: Annual Meeting.
The goal of the forum is to attract private investment to rebuild Ukraine.
Everyone who wants to invest in Ukraine and take part in its reconstruction received the most up-to-date analytical data on investment incentives, regulatory changes, practical aspects of project implementation, and discussed the most important issues facing investors in Ukraine.
On the agenda
Private sector financing for the transformation of the Ukrainian economy
Restoration of Ukrainian regions and industry with the participation of the private sector: government support and incentives
Successful cases, investment plans for 2024
The event was held as part of ReBuild Ukraine, the largest exhibition for the reconstruction of Ukraine.
FIT for Ukraine is a series of investment forums for businesses interested in rebuilding Ukraine. In 2023, more than 7,000 people from 65 countries attended FIT for Ukraine events.
Key messages of the speakers
– the war is not an obstacle to investment activity in Ukraine, on the contrary, those businesses that start planning their projects now will be among the first to start implementing them after the victory – David Arakhamia – Member of Parliament of Ukraine (faction leader); Chairman of the Supervisory Board of UkraineInvest
– Italy wants to see Ukraine become an EU member as soon as possible, and in 2025 it wants to host the Ukraine Recovery Conference – David La Cecilia – Special Envoy for Ukraine’s recovery; Ambassador Extraordinary and Plenipotentiary of Italy to Ukraine 2016-2021
– Norway plans to provide long-term support for Ukraine’s recovery and reforms. Recently, the Government of Norway made a grant contribution to the World Bank’s Ukraine Recovery, Rehabilitation and Transformation Trust Fund (URTF) in the amount of $190 million to support Ukraine’s capacity to rebuild and reform. Christian Søse – Special Representative for Ukraine, Ministry of Foreign Affairs of Norway, to support the Government of Ukraine’s capacity to deliver services, including investments in repairing damaged infrastructure
– The EBRD cannot finance the state budget, but we can and should support the real economy of Ukraine. Since the beginning of the full-scale Russian aggression, together with international donors, we have created a program that envisages investments of three billion euros in Ukraine this year and next year – Matteo Patrone, EBRD Director for Eastern Europe and the Caucasus
– The U.S. Corporation for International Development (DFC) is helping the government of Ukraine attract public and private investment to rebuild the country. To provide support, DFC uses several instruments at once: direct lending, risk coverage, and war risk coverage. Currently, DFC is interested in financing and insurance in key sectors of Ukraine’s economy, including energy projects – Agnes Dasiewicz, Chief Operating Officer, DFC
– IFC’s Board of Directors has approved a $2 billion financing program to help strengthen the resilience of Ukraine’s private sector. The response package includes financing from IFC’s own account and leveraged funds from donor governments over the years 2023 and 2024 – Marcelo Castellanos, Senior Sector Manager, Europe, IFC
– BlackRock is advising on the creation of a special fund for economic recovery in Ukraine. The fund aims to attract billions of dollars of private investment to help with the reconstruction. It will serve as a risk mitigation mechanism and create the potential for large-scale private capital mobilization,” said Matthias Wirwall, Managing Director, Financial Markets Advisory (FMA) Group, BlackRock
– Oschadbank is expanding its business support. 15% of the Ukrainian economy is currently financed by Oschadbank. Examples of international cooperation include the guarantee program with the European Investment Bank and the grant program of the German government company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH – Serhiy Naumov, Chairman of the Management Board of Oschadbank
– Ukraine can count on full international support in its reconstruction efforts. Investments will go hand in hand with reforms that will support Ukraine on its European path – Adrian Stone – Head of Private Finance, Ukraine’s Early Recovery and Reconstruction Department (UERRD)
– CSIS initiated the creation of the Commission for Economic Reconstruction of Ukraine. The main goal is to attract private sector investment. To this end, CSIS is convening a number of working groups that will address specific issues critical to the modernization of the Ukrainian economy, including agriculture, energy, transportation and logistics – Daniel Rand – Senior Vice President, Center for Strategic and International Studies (CSIS)
– Ukraine needs at least USD 400 billion for recovery and reconstruction. To accelerate the access of private capital to rebuild infrastructure, we are developing an effective legal mechanism, following the example of the existing British PPP model – Ihor Marchuk, Member of Parliament of Ukraine
– Attracting investment and energy-efficient technologies to Ukraine should be the basis for reconstruction. We are talking about saving millions of hryvnias in community budgets, competitive business, new jobs, and the well-being of every family – Hanna Zamazeyeva, Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine
– PPPs are perhaps the only tool for attracting large companies to reconstruct cities to perform socially important functions. It would be more interesting for investors to invest in projects such as heat generation and distribution, and waste recycling. PPPs in the development of industrial parks are also promising. Dnipro is a city that will accompany every investor and provide all possible conditions in its industrial parks, allocate land plots, and connect to city communications – Volodymyr Miller, Deputy Mayor of Dnipro
– The Business Ombudsman Council is designed to ensure an open and transparent dialog between business and the state. We need formal and informal incentives to be the same, so that development opportunities are a priority – Roman Vashchuk, Business Ombudsman in Ukraine
– Poland has created a program to restore Ukraine with the participation of Polish business. The insurance covers a wide range of risks, in particular, it protects Polish companies from losses caused by non-payment for goods delivered or services rendered. It also includes reinsurance of transport insurance and a guarantee that protects banks issuing letters of credit – Dariusz Szymczykha, First Vice President of the Polish-Ukrainian Chamber of Commerce
– France has allocated €40 million in recovery assistance to Ukraine in 2023. France’s goal, in addition to bank guarantees and support for initiatives, is to help the private sector and build partnerships with Ukrainian companies. We have also committed ourselves to assisting in the reconstruction of Chernihiv region. We are very pleased to have been able to provide support for several specific projects: six bridges and assistance in demining the territories – Matilde Arjakovski, Deputy Head of the Financial Department, French Treasury
– We see a renewed interest from the French commercial sector in working in Ukraine, so France’s decision to provide guarantees for companies interested in rebuilding Ukraine is a signal that it is worth entering the Ukrainian market more actively. The insurance covers up to 95% of the loss of investor’s assets or receivables – Emma Hooper, Head of Export Development in the International Expertise Coordination Department, Bpifrance Assurance Export
– Among the advantages for investors who will come to Ukraine even before our victory are cheaper entry, which is associated with undervalued assets and a larger selection of investment objects; greater openness and flexibility of local partners; systemic support from the authorities and maximum assistance in work; lower operating costs; the opportunity to take a significant market share and increase their presence before other players come,” said Sergiy Gaidachuk, founder and president of CEO Club Ukraine and CEO Club London.
– Kingspan, with the support of UkraineInvest, is implementing a large investment project in Ukraine worth more than USD 300 million, in accordance with the law on state support for investment projects with significant investments. An important element of the project is the creation of more than 700 jobs. Kingspan is a world leader in the production of high-tech energy-efficient building materials. Ukraine will need them to rebuild destroyed housing, industrial facilities, and other infrastructure. This will also help raise the standards of production processes in Ukraine to the level of the best international practices,” says Anthony Dougherty, Kingspan’s In-House Legal Counsel
– For Ukraine, the woodworking and furniture industry is an engine of revival. We did not stop our investment activities during the war. We built and launched a logistics center in Kalynivka, Kyiv region, worth more than EUR 20 million. We invested over EUR 100 million in a plant in Rivne region. We are also developing the first private industrial park in the region. As part of our long-term goals, we are working to develop Ukrainian woodworking as one of the leading clusters for the production of furniture and building structures in Ukraine. Ukraine should become one of the world leaders in the production of high value-added wood products and furniture – Natalia Pokinska, CEO of Kronospan Ukraine
– Long before the full-scale war, Bayer invested about 200 million euros to set up corn seed production at a plant in Zhytomyr region. With its plant, Bayer is one of the largest investors in the region, with taxes accounting for about 25% of the local community’s budget. During 2022, our company decided to continue investing in the expansion of seed production, and in April 2023 announced its decision to increase it to 60 million euros,” Oliver Hirlichs, CEO of Bayer Ukraine
– “Astarta will resume construction of an additional deep soybean processing line at its Globinsky processing plant in Poltava region. The project was announced in 2021 at a cost of USD 50 million, and is now estimated at around USD 60 million, adjusted for inflation. The investment will be spread over three years. The plant is capable of producing approximately 160,000 tons of high-protein soybean meal, 40,000 tons of soybean oil and 9,000 tons of pelletized shell annually – Yulia Bereshchenko, Director of Sustainable Business Development and Investor Relations, Astarta-Kyiv Agro Holding
– Our Chicago Atlantic impact investing strategy supports international efforts to rebuild a prosperous Ukraine. The strategy invests in projects, companies, and organizations that create measurable social impact and promote development, focusing on residential and industrial real estate. Chicago Atlantic plans to implement a number of investment projects aimed at rebuilding Ukraine. UkraineInvest supports these projects under a bilateral Memorandum of Understanding,” says Matthew Taylor, Partner and CEO of Chicago Atlantic Trident
– Even during the war, retailers EVA and Varus have ambitious business development plans – a large project to build 1 million square meters. These are four hubs in Ukraine – Lviv, Odesa, Dnipro, and Kyiv. Their construction is scheduled to be completed in 2028. Approximately 200,000 square meters of logistics sites are currently under construction. At the same time, we are negotiating with Western investors who want to enter the project as partners,” says Olena Zubarieva, Director of Strategic Communications and Development, TerWin Group
– In 2003, Studiopack was the first company in the Ukrainian market to launch aluminum foil packaging, an environmentally friendly packaging that is 100% recyclable. Since the beginning of Russia’s full-scale invasion of Ukraine, the company has withdrawn from the Russian and Belarusian markets. Recently, the company was approved for a grant from the Ministry of Economy of Ukraine to purchase equipment to expand into a new market niche – the production of biodegradable packaging – the equipment has been purchased and partially commissioned,” says Vadym Gurzhos, Chairman of the Board of Directors, co-founder of StudioPack Group, Chairman of the Association of Ukrainian Aluminum Producers “Ukraluminiy”
– Ukrainian business is leading by example and encouraging foreign partners to invest in the Ukrainian economy. Total modernization of the infrastructure after the war, free and fast connection to electricity and gas networks when investing in new production, conditions for fair competition and business cooperation, and investment attraction are the fundamental principles of the new state economic policy of Ukraine – Andriy Dligach, Doctor of Economics, Founder and Chairman of Advanter Group, Founder of the international business community Board, Chairman of the Board of the Coalition of Business Communities for the Modernization of Ukraine
The article summarizes and analyzes the main macroeconomic indicators of Ukraine. In connection with the entry into force of the Law of Ukraine “On Protection of the Interests of Business Entities during Martial Law or a State of War”, the State Statistics Service of Ukraine suspends the publication of statistical information for the period of martial law and for three months after its termination. The exception is the publication of information on the consumer price index, separate information on statistical indicators for 2021 and for the period January-February 2022. The article analyzes open data from the State Statistics Service, the National Bank, and think tanks.
Demographic indicators of Ukraine
According to Ella Libanova, Director of the Ptukha Institute for Demography and Social Studies. Ella Libanova, depopulation is an inevitable scenario for Ukraine. A labor shortage is absolutely inevitable.
According to the estimates she presented at the Regional Economic Forum, as of the beginning of this year, the population in the government-controlled areas was 31.6 million people, and now it has slightly increased.
Libanova pointed out that the population forecast for the beginning of 2033 within the borders of 1991 Ukraine ranges from 26-35 million people.
According to her, the potential for demographic growth has been exhausted, and this is compensated for by migration.According to her, the potential for demographic growth has been exhausted, and this can be compensated for by migration.
Economic recovery
Ukraine’s gross domestic product (GDP), after declining by 10.5% in the first quarter of 2023 compared to the first quarter of 2022, started growing in the second and third quarters.
“At the same time, the World Bank forecasts Ukraine’s GDP to grow by 3.5% in 2023 and 4.0% in 2024, which is 1.5 percentage points (p.p.) and 0.5 p.p. higher than the June estimates, respectively,” said Maksim Urakin.
The key risk for our economy remains a longer duration and intensity of the war, as well as a decrease in the volume or loss of rhythm of international assistance, the resumption of a significant electricity shortage due to further destruction of the energy infrastructure and other risks.
Analysis of Ukraine’s foreign trade
Maksim Urakin also drew attention to the factor of the growing negative foreign trade balance, which has been observed since the beginning of the war.
“The negative balance of Ukraine’s foreign trade in goods in January-September 2023 increased by 3.2 times compared to the same period in 2022 – to $19.402 billion from $6.026 billion. This means that the cost of purchasing the goods Ukraine needs is almost $19 billion higher than the income from exporting Ukrainian goods to other countries. “, emphasized Urakin, PhD in Economics.
Ukraine’s financial situation in 2023
According to the expert, the main factors that characterize the state of the Ukrainian economy are public debt, international reserves and inflation.
“According to the calculations made during the preparation of the draft state budget, the projected amount of public debt calculated in national currency will amount to UAH 8,183,862.1 million and will be 104.6% of GDP. The state-guaranteed debt will amount to UAH 476,671.9 million and will be 6.1% of GDP,” said Maksim Urakin.
According to the expert, the main source of funding for Ukraine’s budget is still related to foreign aid.
“Half of the budget is financed through taxes and fees, while the other half is financed through international grants and loans,” he emphasized.
“Ukraine’s international reserves as of October 1, 2023, according to preliminary data, amounted to $39 billion 708.2 million,” the analyst added.
As for inflation, it continues to decline.
“Consumer prices in Ukraine increased by 0.5% in September 2023 after a decline of 1.4% in August and 0.6% in July, according to the State Statistics Service. At the same time, inflation was recorded at 1.9% in September 2022, so in annual terms in September 2023 it decreased to 7.1% from 8.6% in August and 11.3% in July,” Urakin said.
Thus, the economic situation in Ukraine, according to the founder of the Club of Experts, continues to require close monitoring and adaptation of strategies in response to changing conditions.
High levels of stress caused by the war can provoke bouts of overeating and endocrine disorders, says Anastasia Sokolova, a dietitian and endocrinologist at the Leleka Medical Center.
“The war in Ukraine prolongs and increases the level of stress and its negative impact on body weight. According to statistical forecasts, the number of people with diagnosed anxiety-depressive disorder and bouts of overeating against this background, and, consequently, possible endocrine disorders, is constantly growing. There are no exact figures yet, but stress levels are still high. Therefore, the issue of overweight or obesity on the background of prolonged stress is an extremely diverse and large problem in modern Ukraine, which cannot yet be fully resolved, because controlling hormone levels is not enough,” she said.
According to Sokolova, this problem requires a comprehensive approach.
“It is necessary to approach the problem in a comprehensive manner: to deal with the root cause of the condition – a prolonged feeling of stress – with a psychotherapist, to support the work of endocrine organs – with an endocrinologist, and to follow recommendations for establishing a healthy lifestyle – with a nutritionist,” the expert noted.
At the same time, she noted that stress is a normal and vital reaction of the body to negative environmental or internal factors.
“Evolutionarily, the reaction to stress was acute and short-lived: to escape from a predator and quickly run to a safe cave. Nowadays, our lives are full of chronic stress, which our body is not physiologically ready for. In contrast to the necessary beneficial effects of short-term stress, long-term and chronic stress can lead to hormonal dysfunction, which can affect health and lead to the development of various diseases, including obesity. “The ‘stress response’ or ‘reactive stress response’ is realized precisely through an increase in stress hormones in the adrenal glands, which force all body systems to work harder to save themselves,” she explained.
In particular, adrenaline increases the heart rate, raises blood pressure, and increases the body’s readiness for physical activity. This makes it possible to respond more quickly to a stressful stimulus. Norepinephrine increases attention, improves concentration and readiness for action, and plays an important role in preparing to fight or flee during stressful situations.
Cortisol is the main hormone that regulates the long-term stress response, increases blood glucose levels, increases fat metabolism, prepares muscles for action, and supports the function of the immune system. At the same time, elevated levels of cortisol in the body over a long period of time can have negative health consequences, including increased appetite and weight gain.
“During prolonged stress, it is important to monitor your health in order to respond in a timely manner and prevent chronic conditions. Controlling all of the above stress hormones is impractical because, unfortunately, it is extremely difficult to reduce their levels with medication,” Sokolova emphasized.
She noted that during prolonged stress, against the background of prolonged high cortisol levels, the level of other hormones will increase, which can already affect body weight, appetite, and cause chronic diseases and pathological conditions, such as diabetes mellitus, hypothyroidism, obesity, and hyperandrogenism. Therefore, the level of these hormones should be monitored.
In particular, we are talking about thyroid hormones, which affect the immune system, which in turn can lead to various thyroid disorders, and reduced thyroid function contributes to weight gain. In addition, it is necessary to control the level of sex hormones, which can increase testosterone levels and decrease estrogen levels, leading to reproductive system disorders (in case of prolonged stress) and weight gain. Insulin levels should also be monitored, as high levels of insulin over a long period of time can impair cellular sensitivity to it, which affects sugar levels, increases appetite, disrupts eating habits, and can lead to weight gain.
On the other hand, as the expert emphasized, it has been proven that constant stress can lead to anxiety disorders: generalized anxiety disorder (GAD), clinical depression, or panic attacks. And this can stimulate overeating, “storing” negative emotions, and the desire to improve mood with high-carbohydrate and sugar-rich foods. The process of overeating can turn into binge eating disorder (BED), which is a psychological disorder associated with excessive food consumption in a short period of time, usually without control over consumption, and guilt afterwards. At the same time, hormone levels remain within normal limits.
On November 18-19, the national squash competition “Ukrainian Squash Cup 2023” took place on the courts of the capital’s Sport Life fitness club in Teremky.
Representatives from Kharkiv, Dnipro, Poltava, Odesa, Kherson, and Lviv came to Kyiv. In total, more than 130 athletes took part in the competition, which is an absolute record for the number of players among national squash tournaments held under the auspices of the Ukrainian Squash Federation. The tournament was attended by 16 women, 74 men and 42 juniors.
Anastasia Kostiukova and Ruslan Sorochinsky became the champions in the adult categories, defeating Anastasia Krykun and Nikita Panov in the final matches.
List of winners of the Ukrainian Squash Cup 2023 tournament:
Children under 9 years old:
1st place Tomenchuk David
2nd place Kostiukov Artem
3rd place Zakharchenko Danylo
Girls under 11 years old:
1st place Orlenko Alexandra
2nd place Krasnokutska Daria
3rd place Lysenko Polina
Boys under 11 years old:
1st place Hutsaylyuk Andriy
2nd place Schneider Artem
3rd place Matyukhov Yegor
Girls under 13 years old:
1st place Syvoplias Victoria
2nd place Daria Gerya
3rd place Kukushkina Maria
Boys under 13 years old
1st place Doroshenko Gleb
2nd place Tomenchuk Mykyta
3rd place Tymoshchuk Ivan
Boys under 15 years old:
1 place Shcherbakov Yegor
2nd place Roman Shkarupylo
3rd place Klymenko Mykyta
WOMEN:
1st place Kostyukova Anastasia
2nd place Krykun Anastasia
3rd place Vlasenko Daria
MEN:
1st place Sorochinsky Ruslan
2nd place Panov Nikita
3rd place Petrovych Ruslan
The honorary guests of the Ukrainian Squash Cup were acting Minister of Youth and Sports of Ukraine Matviy Bidnyi, world judo champion, chairman of the NOC of Ukraine’s athletes commission Georgiy Zantaraya, two-time Olympic champion in canoeing Yuriy Cheban, two-time NBA champion with the Los Angeles Lakers Stanislav Medvedenko.
The main organizer of the tournament is the NGO Squash Federation of Ukraine, the main fitness partner of the event is the Sport Life fitness club network, and the main media partner of the tournament is Interfax-Ukraine, Experts club analytical center, prize partners – REIMA, TECNIFIBRE and EYE, medical partner of the tournament – ADONIS clinic network, tournament water – KRAINA, tournament hotel – FAVOR, awarding partner – SHEF restaurant. Thermopab and Lukashuk Dental Clinic were also partners of the tournament.
ADONIS, EXPERTS CLUB, kostiukova, sorochinsky, squash cup, SQUASH FEDERATION
In January-October 2023, Ukrgasvydobuvannya JSC paid UAH 19.85 billion in rent payments, the company’s press service reports.
According to the press service, UAH 992.26 million, or 5%, of this amount went to the budgets of the local and regional levels where the company operates.
From January to October 2023, the budgets of Kharkiv and Poltava regions received the largest deductions – UAH 484.96 million and UAH 415.32 million, respectively.
As reported, in 2023, Ukrgasvydobuvannya set a goal to increase natural gas production by 1 bcm to 13.5 bcm. In 2022, UGV produced 12.5 bcm of natural gas (commercial), which is 3% less than in 2021.
NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.
