Austria has pledged to provide additional humanitarian support to Ukraine in the amount of EUR 8 million and will also provide EUR 2 million for the Ukrainian initiative Grain from Ukraine, Austrian Foreign Minister Alexander Schallenberg said.
“And today I can announce that we have committed to provide additional humanitarian support to Ukraine in the amount of EUR8 million: EUR5 million for the World Food Programme’s mine action program and EUR3 million for humanitarian assistance through international organizations working in Ukraine and Moldova,” said Schallenberg at a joint press conference with his Ukrainian counterpart Andriy Sibiga on Wednesday.
He also announced the allocation of additional funds for the Grain from Ukraine initiative.
“And I am pleased to announce that we will provide EUR2 million in addition to the EUR2 million allocated by the Austrian Development Agency for the Grain from Ukraine initiative, which I believe is important to reduce the impact of Putin’s war on global food security,” the minister said.
The foreign minister noted that at the bilateral level alone, his country provided EUR264 million in support to Ukraine, which was directed to humanitarian and financial assistance.
From mid-May, the Austrian Ministry of Finance and the Austrian export credit agency OeKB (Oesterreichische Kontrollbank Aktiengesellschaft) will start accepting applications for export and investment insurance in Ukraine at the expense of a special fund for Ukraine created by the Ministry of Finance in OeKB through the budget law.
According to the Austrian agency’s press release, it is expected that EUR500 million will be allocated to cover operations in Ukraine over the next five years, and the attraction of funds from international financial institutions could make it possible to receive up to EUR1 billion.
“Approximately EUR100 million per year is earmarked for new business. This will also open up opportunities for Austrian exporters in the process of Ukraine’s recovery,” the Ministry of Finance said in a release.
It is indicated that as part of the existing and proven export promotion procedure, the Ministry of Finance is already facilitating export transactions worth EUR 3-5 million in Ukraine with payment terms of up to three years through OeKB.
It is noted that since funds are limited and the goal is to achieve a wide diversification of risks, in particular in the supported sectors, small and medium-sized public sector transactions based on a state guarantee will be possible at the first stage.
“This will allow us to make vital investments for Ukraine. These include the supply of drinking water and heat, the provision and rehabilitation of the transport sector with roads, bridges and rail infrastructure, as well as supply agreements and investments such as joint repair shops for buses, trams and trains,” commented Finance Minister Magnus Brunner.
Austria is preparing for a possible cessation of Russian gas if its transit through Ukraine is stopped, Federal Chancellor Karl Nehammer told reporters in Chisinau.
“We are constantly preparing for serious challenges. That is why our storage is already 75% full. And we are also negotiating with those who have new volumes of gas. If Russian gas runs out completely, OMV is already working on that,” he said.
Asked whether he would talk to Ukrainian President Zelensky about it, Nehammer said: “This is not the main topic today. It’s about the war in Ukraine. But it’s always an issue of security of energy supply, which is on Austria’s agenda. So it is always a topic that is taken into consideration.”
Ukraine is counting on Austria’s assistance in restoring infrastructure and humanitarian demining, Ukrainian Prime Minister Denys Shmygal said.
“Austria is among the countries that helped Ukraine overcome this winter and Russia’s energy terror. In a conversation with Federal Chancellor Karl Negammer thanked for 10 million euros to restore energy, help with equipment and generators,” Shmygal wrote in the Telegram channel.
According to the prime minister, the sides also discussed support in the reconstruction of Ukraine.
“We count on Austria’s help in the reconstruction of infrastructure and humanitarian demining. Separately, we paid attention to the situation at the ZNPP and the strengthening of sanctions against the aggressor, in particular the impossibility of circumventing the restrictions already imposed by Russia,” he summed up.
The Cabinet of Ministers offers the Verkhovna Rada to ratify the framework agreement between the governments of Ukraine and Austria on economic cooperation in the development of projects.
As the representative of the Cabinet of Ministers in the Verkhovna Rada Taras Melnychuk said in Telegram on Friday, the corresponding decision was made at a government meeting on Friday.
Approved, in particular, the draft law “On the ratification of the framework agreement between the government of Ukraine and the government of the Republic of Austria on economic cooperation in the development of projects.”
It is noted that the ratification of the framework agreement will create a legal basis for economic cooperation between countries in the development of priority projects, in particular, for the construction (reconstruction) and equipping of the National Children’s Specialized Hospital “Okhmatdet” in Kyiv, the construction and equipping of a clinic in Kyiv, the creation of a National Rehabilitation Center in Lvov.
First Deputy Prime Minister of Ukraine and Minister of Economy Yulia Svyrydenko and Federal Minister of Labor and Economy of Austria Martin Kocher signed a framework agreement between the governments of the two countries on economic cooperation in the development of projects.
According to the press service of the Ministry of Economy of Ukraine on Sunday, the signing of the agreement took place on Sunday, September 4, in Krakow during Yulia Svyrydenko’s visit to Poland.
“We hope that the economic cooperation agreement signed today will allow us to launch a number of important projects, in particular, in the healthcare sector. Among the priorities are the construction and equipping of the Okhmatdyt National Children’s Specialized Hospital and a modern university clinic in Kyiv, as well as the creation of the National Rehabilitation Center in Lviv. The estimated cost of these projects will be more than EUR 500 million,” Svyrydenko said.
According to her, for the implementation of these projects, concessional long-term financing will be attracted under the guarantees of European export credit agencies. It is expected that the effective rate of attraction of funds will not exceed 3% per annum, and the borrowing period will be up to 14 years. Such concessional targeted financing of socially significant projects is a good alternative and addition to more expensive and short-term obligations, usually borrowed to replenish the working capital of the state budget.
According to the agreement on economic cooperation in the development of projects, the governments of Ukraine and Austria agreed to promote the development of modern social and educational infrastructure, in particular, a network of modern medical and vocational educational institutions, to promote the development of the medical insurance market in Ukraine, and to intensify bilateral economic relations in the field of investments, innovations and implementation of economic projects, especially in the field of medical technologies and healthcare institutions.
Svyrydenko also expressed her gratitude to the Austrian partners for financial and humanitarian assistance to Ukraine and for the initiative of Austria to take patronage in the restoration of Zaporizhia region.
