Since the beginning of the full-scale war, the European Bank for Reconstruction and Development (EBRD) has invested approximately EUR5bn in Ukraine, of which approximately EUR2bn is aimed at energy projects, including in the field of renewable energy, said Olga Yeremina, associate director, senior banker in the bank’s energy department.
“Since the beginning of the war, the bank has invested about EUR5 billion in Ukraine, of which roughly EUR2 billion is aimed at energy projects,” Yeremina said during the ReBuild Ukraine international conference in Warsaw, quoted in a release on the European-Ukrainian Energy Agency’s website on Tuesday.
According to her, the EBRD is open for new investments in the RES sector in Ukraine, noting the improvement of the regulatory environment and harmonization of reforms with EU requirements, but there are problems with the sustainability of projects, including in terms of guaranteed buyback of electricity, uncertainty of revenue streams and instability of the electricity market.
For his part, as noted in the release, EUEA board member, GOLAW partner Oleksandr Melnyk presented the concept of the Market Risk Guarantee Fund initiated by the agency together with the Ukrainian Wind Energy Association.
“The Fund, which will be established by international financial institutions, will protect private RES companies from fluctuations in the electricity market by ensuring a minimum electricity price,” Melnyk explained.
According to Yeremina, the Fund could become the main driver of investment, contributing to the sustainability of Ukraine’s energy system and accelerating the implementation of projects from RES.
The release points out that according to the National Energy and Climate Plan, by 2030 Ukraine should double the current 10 GW of RES capacity, which will be facilitated, among other things, by the Market Risk Guarantee Fund.
As reported in September 2024, the EBRD has provided EUR4.6bn to the Ukrainian economy since the start of Russia’s full-scale invasion of Ukraine, including at least EUR1bn to energy companies Ukrenergo, Naftogaz and Ukrhydroenergo.
In June, it was reported that the German company GOLDBECK SOLAR Investment and the EBRD are creating a joint venture GOLDBECK SOLAR Investment Ukraine to implement projects for the construction of 500 MW power plants in Ukraine over the next three to five years.
GOLDBECK SOLAR Investment was to receive a EUR5 million loan from DEG (Deutsche Investitions-und Entwicklungsgesellschaft) for its commitment in Ukraine through the ImpactConnect program initiated and financed by the German Federal Ministry for Economic Cooperation and Development (BMZ). Planning for the construction of the first solar park is due to start in the fall of 2024.
This is the EBRD’s first equity agreement in Ukraine’s energy sector since the full-scale invasion by the Russian Federation.
A network of Shell filling stations in Ukraine could cost $105-132 million, according to Sergiy Kuyun, director of A-95 Consulting Group.
“In my opinion, Shell stations can cost $0.8-1 million. The network has 132 filling stations, of which about 120 are currently operating, so we are talking about $105-132 million. This is assuming that Shell itself claims to invest $460 million. But we are at war, so we don’t know what the final price might be,” he wrote on his Facebook page.
The expert reminded that the State Property Fund (SPF) of Ukraine officially became the owner of 49% of the network operator Alliance Holding LLC and announced its intention to sell this share.
At the same time, in the current war conditions, according to Mr. Kuyun, the chances of selling this asset are slim. “Either Shell will decide to buy the stake from the SPF or decide to sell its own. There is no other option,” he said.
As reported, a joint venture between Shell and Musa Bazhaev’s Russian Alliance Group to manage a network of gas stations in Ukraine was launched in August 2007. Shell held a 51% stake in the joint venture, while Alliance held 49%. Alliance transferred about 150 filling stations to the joint venture, while Shell contributed cash, licenses and a brand.
In 2014, it became known that a sanctioned Russian businessman, Eduard Khudainatov, had bought out Bazhaev’s oil assets. In June 2022, he was sanctioned by the European Union, and in October 2022, he was sanctioned by Ukraine.
In October 2023, the Ministry of Justice of Ukraine filed a lawsuit with the High Anti-Corruption Court of Ukraine to recover Khudainatov’s assets for the state.
As a result of the proceedings, 49% of Alliance Holding was recovered by the state. In April 2024, this share was transferred to the SPF.
In November 2024, Overseas Investments, a member of the Shell group of energy and petrochemical companies, registered 51% in the authorized capital of Alliance Holding pursuant to the decision of the HACC Appeals Chamber.
“Metinvest, Ukraine’s largest mining and metals holding, increased steel production by 5% year-on-year to 1.610 million tonnes and pig iron production by 2% to 1.367 million tonnes in January-September this year, but reduced total coke production by 11% to 846 thousand tonnes.
According to the press release of the parent company Metinvest B.V. on the operating results for 9M2024, due to the start of Russia’s large-scale military aggression against Ukraine on February 24, 2022, the group’s Ukrainian enterprises (except for those located in Mariupol and Avdiivka) continue to operate at different levels of utilization due to security, staff availability, electricity supply, as well as logistical and economic factors.
At the same time, in the third quarter of 2024, pig iron and steel production at Kametstal remained almost at the level of the previous quarter and amounted to 483 thousand tons and 568 thousand tons, respectively.
In the first nine months of 2024, steel production increased due to an increase in the order book for steel products.
In the third quarter, production of finished products decreased by 19% quarter-on-quarter to 491 thousand tons. In particular, flat products production decreased by 29% to 185 thousand tonnes, which was driven by several factors: first, the irregular operation of Ferriera Valider (Italy), which depends on marginal orders amid unfavorable European market conditions; and second, the scheduled overhaul of the rolling mills in Italy and the UK in August.
Production of long products decreased by 11% to 306 thousand tons due to the scheduled shutdown of Promet Steel (Bulgaria) for overhaul in August.
In January-September 2024, production of finished products decreased by 3% compared to the same period in 2023, to 1.678 million tons. In particular, flat products production decreased by 14% to 729 thousand tonnes over the nine months due to unfavorable conditions in the European market, which resulted in the absence of marginal orders for hot-rolled coils and a decrease in the order book for hot-rolled plates. At the same time, production of galvanized cold-rolled coils increased by 65% as Unisteel’s 4th inductor in Ukraine resumed operations after it was shut down for overhaul in Q2 last year.
Production of long products increased by 8% to 949 thousand tons due to an increase in the order book for Kametstal and Promet Steel products.
In the third quarter of 2024, coke production remained at the level of the previous quarter and amounted to 282 thousand tons.
In 9M2024, coke production decreased by 11% year-on-year due to the shutdown of some coking chambers at Kametstal’s coke oven battery No. 1 in early 2024.
“Metinvest comprises mining and steel production facilities located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
Poninkivska Cardboard and Paper Mill-Ukraine (PKPF-Ukraine, Khmelnytsky region), a major Ukrainian corrugated cardboard producer, increased its corrugated packaging output by 18.7% in January-October 2024 compared to the same period in 2023, to 80.9 million square meters.
As reported, in the first nine months of the year, the increase in production was 19.1% compared to the same period in 2023.
According to Ukrpapir Association statistics provided to Interfax-Ukraine, the mill continues to be one of the top three producers of this product after Kyiv Cardboard and Paper Mill and Trypillia Packaging Mill.
Over 10 months, the company also increased its production of containerboard (including corrugated paper) by 4.1% to 65.7 thousand tons, and paper by 29.5% to 0.82 thousand tons.
In monetary terms, in January-October, PCPF-Ukraine produced products worth UAH 2 billion 237 million (+18.7%).
As reported with reference to the data collected by the association from the main enterprises of the industry, in January-October, the production of paper and cardboard in Ukraine increased by 2.8% compared to the same period in 2023 – to almost 496 thousand tons, cardboard boxes – by 15.1%, to 490 million square meters.
Poninkivska Paper Mill (formerly Poninkiv Cardboard and Paper Mill), once the largest producer of school notebooks, now has one main production line – paper and cardboard, producing mainly corrugated cardboard and corrugated packaging, as well as wrapping and waste paper.
The factory is part of the United Cardboard Company-Ukraine (UCK, Lutsk) owned by businessman Mykola Lobov, whose production assets include, among others, Lutsk KPF-Ukraine (Volyn region), which produced 52.7 thousand tons of various cardboard (down 3%) and 40.5 million square meters of corrugated boxes in ten months (according to Ukrpapir), compared to 10 million square meters a year earlier.
As reported, in 2023, PCPF-Ukraine produced products worth almost UAH 2 billion 450 million, up 3% year-on-year. Net profit increased 2.7 times to UAH 27 million.
In January-September 2024, PZU Ukraine Insurance Company (Kyiv) collected UAH 1.645 billion in insurance premiums, which is UAH 331 million, or 25.2%, more than in 2023.
According to the insurer’s information, the largest increase in payments for the period under review occurred in the VHI (+41%), MTPL (+39%), Green Card (+19%) and hull insurance (+18%) segments.
In the first nine months of the year, UAH 307 million of premiums were collected under motor hull insurance contracts, which is 19% of the insurer’s total payments, UAH 411 million (25%) under the Green Card, and UAH 462 million (28%) under MTPL.
In turn, the share of VHI in the company’s portfolio amounted to 15%, with UAH 165 million of premiums collected under VHI policies.
In the first half of 2024, the volume of revenues of IC “PZU Ukraine” under other insurance contracts amounted to UAH 220 million.
IC “PZU Ukraine” is a part of one of the largest insurance groups in Central and Eastern Europe – PZU Group (which includes the parent company of PZU Ukraine – PZU S.A.).
A Development is resuming the implementation of its flagship project, Richert & Park, in the Podil district of the capital, and is expected to sign a memorandum with the city to fix investment commitments, the company’s press service told Interfax-Ukraine.
According to the updated concept, the construction area within Nyzhnyoyurkivska, Kyrylivska and Mylniy Lane streets will be reduced by almost 40 thousand square meters. A 5.85-hectare park with a cultural and sports center will be built on the newly formed site.
The implementation of the Richert & Park project in its rethought concept will provide the local community with relevant infrastructure functions, open a new page in the history of the monument complex after the completion of their restoration, and the 5.85-hectare park area, in addition to our patronage initiative to create a vertical park, will become the property of the entire city, providing local residents with landscaped green areas that are so lacking in Podil,” said A Development owner and CEO Oleksiy Baranov.
Currently, A Development is at the final stage of signing a memorandum with the city represented by Podil District State Administration, which sets out the developer’s obligations in relation to the territory.
The obligations include compliance with the height limits agreed with local residents during public hearings on the project; investment of UAH 40 million in the renovation of a school chosen by the local community; a set of restoration works on architectural monuments for which the developer has signed protection agreements; and improvement of the territory adjacent to the construction site.
The company undertakes to finance a project to create a public park on the slopes of Mount Yurkovytsia with an area of 6.5 hectares. UAH 40 million has been allocated for this purpose.
This vertical park will include walking areas and viewing terraces and will remain on the balance sheet of Kyivzelenbud for the care, preservation, and development of the green zone. The urban analysis and development of the park concept are currently being finalized. The team of Vlodko Zotov’s GA Initiative Architecture Bureau is working on the project. The next step will be to submit the concept for public discussion.
A Development also reported that, pending the signing of the memorandum, construction work has already resumed, but only within the queues where the maximum height of buildings does not exceed 27 m, for which the developer has a full package of permits. The team of Andriy Pashenko’s architectural studio is updating the concept of the fifth and sixth stages. Its presentation will be announced later.
A Development was established in 2017. Among its completed projects are the multifunctional residential complexes Smart Plaza Obolon, Smart Plaza Polyteh, and the Smart Hub Obolon business center. As of 2024, the company continues to build a shopping mall in the White Lines project, the residential sections of which were completed and put into operation during the full-scale invasion. A Station is among the completed projects of renovation of historical real estate.
