Business news from Ukraine

Netherlands allocates additional EUR1 bln for military aid and EUR400 mln for reconstruction to Ukraine

The Netherlands has allocated an additional EUR1 billion in military aid and EUR400 million for reconstruction to Ukraine in addition to the commitments under the bilateral security agreement, President Volodymyr Zelenskyy said after a phone conversation with Dutch Prime Minister Mark Rutte.

“In a telephone conversation, Prime Minister Mark Rutte has just announced that the Netherlands has allocated another EUR 1 billion for military assistance to Ukraine and EUR 400 million for reconstruction. This is in addition to the obligations under our bilateral security agreement,” Zelenskyy wrote on his Telegram channel.

The Head of State expressed gratitude to the Prime Minister and all the people of the Netherlands.

According to him, during the conversation, they also discussed joint work with partners to accelerate the supply of artillery shells, ammunition and air defense systems.

I thanked him for the effective Justice for Ukraine conference in The Hague and the launch of the Register of Damages as a result of it. He spoke about the preparations for the Peace Summit in Switzerland and invited the Netherlands to join. We also discussed the necessary efforts to ensure that this event is supported by as many countries as possible,” Zelenskyy wrote.

For his part, Rutte said that his country would provide Ukraine with additional military assistance worth EUR1 billion in 2024 and allocate EUR3 billion in defense support for 2025.

“The Netherlands will provide an additional EUR1 billion in military support this year. This is in addition to the EUR2 billion already approved by the authorities. We have also decided that we will allocate EUR3 billion for military support for the next year,” Rutte wrote on social network X.

In addition, according to the Prime Minister, the Netherlands is using EUR400 million “to support the Ukrainian economy and repair vital energy infrastructure.”

Rutte reminded that the Netherlands continues to make efforts to deliver more ammunition and air defense equipment to Ukraine faster, together with international partners, including Denmark and the Czech Republic.

In early March, the Netherlands signed a 10-year bilateral security agreement with Ukraine. According to Rutte, his country will provide Ukraine with assistance and support “across the entire spectrum of defense cooperation, as well as in the areas of reconstruction, sanctions support, and the fight for justice.”

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Slovakia may start construction of highway on border with Ukraine

Slovakia may begin construction of a highway leading from Kosice to the Uzhhorod-Vysne Nemecke checkpoint on the border with Ukraine, the press service of the Ukrainian Ministry of Finance reported on Friday.
The project of building a new highway was discussed at bilateral talks on improving cross-border communication in Slovakia with the participation of Deputy Finance Minister of Ukraine Oleksandr Kava as part of a government delegation headed by Prime Minister Denys Shmyhal.
“The meeting also discussed the project of building a highway from the Uzhhorod-Vysne Nemecke checkpoint to the suburbs of Kosice. This is part of Slovakia’s main highway, the D1, which connects the country’s two largest cities, Bratislava and Kosice, and is also part of the pan-European network of expressways,” the statement said.
The parties also discussed the issue of opening the Uzhhorod-Vysne Nemecke checkpoint not only for cars, but also for pedestrians and cyclists. The checkpoint will be accessible by public transport from both sides of the border without the need to use a car.
“This is especially important for residents and guests of the regional center of Zakarpattia Oblast, as it will provide them with more opportunities for movement,” the press service adds.
In addition, it is planned to expand the automobile part of the checkpoint from four to five lanes, which will increase its capacity.
Kava, quoted in the report, noted that the agreements reached are a step towards creating a smooth and dynamic cross-border connection.
“They will not only improve the daily lives of our citizens, but will also contribute to overall economic growth together with partner countries,” the deputy minister said.
Earlier, Deputy Minister of Communities, Territories and Infrastructure Development Serhiy Derkach said that a passenger terminal with several lines of traffic for passenger buses would be built at the Uzhhorod-Vysne Nemecke checkpoint on the border with Slovakia by the end of 2024.

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Cabinet of Ministers of Ukraine has simplified electricity imports

On Saturday, the Cabinet of Ministers of Ukraine invalidated Resolution No. 775 of July 7, 2022 “On Imposing Special Obligations on Electricity Market Participants Engaged in Electricity Export Operations to Ensure Public Interests in the Functioning of the Electricity Market During Martial Law.”
According to the government’s representative in parliament, Taras Melnychuk, this was done “in order to create preconditions for increasing electricity exports to the unified energy system of Ukraine.”

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European Commission may allocate almost EUR 3.5 bln to Ukraine

The European Commission expects Kyiv to fulfill the conditions agreed upon earlier and the European Council to approve the Ukraine Plan, which will allow it to disburse another EUR1.5 billion in April and EUR1.9 billion in May under the Ukraine Facility, said Valdis Dombrovskis, the European Commission’s executive vice president.
“The next disbursement (for the Ukraine Facility) of EUR1.5 billion is scheduled for this month, if the policy conditions are met,” he said in a press statement following the meeting of the EU Council of Ministers (ECOFIN) held on April 12 in Luxembourg.
According to Dombrovskis, the European Commission is currently assessing Ukraine’s plan to draw up quarterly indicators of reforms and investments that need to be made to unlock future disbursements.
“In the near future we will finalize this work and submit the assessment to the (European) Council. Once the approval is received, it will pave the way for Ukraine to receive the pre-financing of EUR1.9 billion, most likely in May,” the Executive Vice President said.
He emphasized that the EUR50 billion Ukraine Facility until 2027 is a lifeline from the EU at an extremely difficult time to help Ukraine maintain key public services and keep the state functioning while Russia wages a brutal war, and recalled that the first tranche of EUR4.5 billion in transitional financing was disbursed in March.
Speaking about the Ukraine Plan, Dombrovskis noted that it will be the main instrument for the implementation of the Ukraine Facility, and it focuses on structural reforms to remove barriers to growth, investments in key sectors, and measures to facilitate Ukraine’s convergence with EU rules and standards as part of its accession path.
As reported, Ukraine expects to receive a total of EUR 2024 billion under the Ukraine Facility, with a total need for external financing of this year’s budget deficit of EUR 37.3 billion.

Ukraine sowed 1.26 mln ha with spring grains and legumes

As of April 11, Ukraine planted 1.26 million hectares with spring grains and pulses, up 72.2% year-on-year, the press service of the Ministry of Agrarian Policy and Food reported on Friday.

According to the report, 173.9 thousand hectares were planted with wheat (118.3 thousand hectares a week earlier), 683.4 thousand hectares with barley (543.2 thousand hectares), 147.7 thousand hectares with peas (119.0 thousand hectares), and 117 thousand hectares with oats (62.4 thousand hectares).

Over the past week, Ukrainian farmers sowed grains and legumes on the area of 408.6 thou hectares, a week earlier the figure was 375.4 thou hectares, and 262.2 thou hectares – a week earlier.

According to the Ministry of Agrarian Policy, Kyiv region is the leader in terms of sowing rates, having planted 23 thou hectares of wheat, 39.3 thou hectares of barley, 4.7 thou hectares of peas and 3.6 thou hectares of oats; Ternopil region – 18.9 thou. hectares of wheat, 63.6 thousand hectares of barley, 3.6 thousand hectares of peas and 5.1 thousand hectares of oats; Khmelnytsky – 14.5 thousand hectares of wheat, 63.6 thousand hectares of barley, 3.6 thousand hectares of peas and 5.1 thousand hectares of oats; Khmelnytsky – 14.5 thousand hectares of wheat. Khmelnytsky – 14.8 thousand hectares of wheat, 59.1 thousand hectares of barley, 2.6 thousand hectares of peas and 2.5 thousand hectares of oats; Zhytomyr – 13.7 thousand hectares of wheat, 15.9 thousand hectares of barley, 2.6 thousand hectares of peas and 2.5 thousand hectares of oats; Zhytomyr – 13.7 thousand hectares of wheat, 15.9 thousand hectares of barley, 2.6 thousand hectares of peas and 2.5 thousand hectares of oats. Zhytomyr region – 13.7 thou hectares of wheat, 15.9 thou hectares of barley, 2.6 thou hectares of peas and 17.9 thou hectares of oats; Vinnytsia region – 11.5 thou hectares of wheat, 52.3 thou hectares of barley, 6 thou hectares of peas and 1.1 thou hectares of oats.

Farmers in Poltava region have completed sowing early grains and pulses. They have planted 6.5 thou hectares of wheat, 73 thou hectares of barley, 8.5 thou hectares of peas and 2.3 thou hectares of oats.

Sunflower was sown on 470.1 thou hectares. Soybeans are being sown in 9 regions. Farmers in 15 regions have started sowing corn, which has already been planted on 120 thousand hectares.

Sugar beet was sown on 157.6 thou hectares. The largest area under this crop is in Vinnytsia region – 42 thou hectares.

Farmers in Mykolaiv, Odesa, Khmelnytsky and Kherson regions have started sowing buckwheat and millet.

The Ministry of Agrarian Policy reported that 70% of respondents plan to increase soybean acreage by an average of 21% compared to 2023, according to a survey conducted by the State Agrarian Register on farmers’ preparations for the spring crops sowing campaign for the 2024 harvest.

The survey also showed that during the spring sowing campaign, Ukrainian farmers will prioritize pulses, which will increase by 11%, and spring barley – by 7%. The area under spring rapeseed is expected to increase by 24%, sugar beet by 17%, and corn by 9%. The area under sunflower may potentially decrease.

In general, in 2024, the area under spring crops may decrease by 0.5 million hectares or 3.7% compared to last season, according to the Ministry of Agrarian Policy.

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Auction for sale of Ocean Plaza shopping mall is being prepared

The Auction Commission has set the starting price of privatization of the state share (66.65%) in the authorized capital of LLC Investment Union Lybid, which owns Ocean Plaza shopping mall, at UAH 1.65 billion, the press service of the State Property Fund (SPF) reported.
According to the report, the starting price and terms of sale should be approved by the Cabinet of Ministers of Ukraine, FGI will prepare a draft of the relevant decision.
After the government approves the starting price, the date of the auction will be set, the agency said. The state share in the authorized capital will be put up for electronic auction in the system “Prozorro.Sales”.
As reported, the FGI plans to hold an auction on privatization of shopping mall Ocean Plaza in the second half of the year.
Ocean Plaza shopping mall was opened in Kiev in December 2012 on Antonovycha Street, 176. Its total area is 165 thousand sq. m. Investments in the facility amounted to about $300 mln. UDP Company and K.A.N. Development LLC acted as partners in the development of the project.
The mall was sold to Arkady Rotenberg’s Russian TPS-Nedvizhimost in 2012. Later, in 2019, Ukrainian businessman Vasyl Khmelnytsky indirectly through UPD Holdings Limited acquired a 33.5% stake in Ocean Plaza mall. In 2021, he sold his stake to entrepreneur Andrey Ivanov. The deal was finalized in summer 2023.
In June 2023, the Cabinet of Ministers transferred to the FGI a 66.65% stake in the authorized capital of Investment Union Lybid LLC, which owns the shopping mall, for further privatization.

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