Business news from Ukraine

Business news from Ukraine

EBRD Approves EUR15 Mln Loan to Restore Heating in Kharkiv

The European Bank for Reconstruction and Development (EBRD) has approved a EUR15 million senior loan for Kharkiv to restore its centralized heating system, backed by a EUR17 million grant from the European Union, the bank announced on its website.

“The loan is part of a broader financing package that also includes a EUR17 million investment grant from the European Union. Given the risks posed by the war, the loan will also receive a partial guarantee from the EU based on first-loss coverage,” the statement said, noting that the project is awaiting final approval.

The loan and EU grant funds will finance the purchase of up to 22 small and medium-sized modular natural gas-fired boiler plants, along with cogeneration units, as well as five small cogeneration units in existing boiler plants.

The project’s implementation will restore centralized heat supply services, which were interrupted in February 2026 following critical damage to Kharkiv Combined Heat and Power Plant No. 5. The total annual reduction in greenhouse gas emissions from the project is estimated at 19,091 metric tons of CO2-eq.

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Polish President Says Ukraine’s EU Accession Would Pose Threat to Polish Agriculture

Polish President Karol Nawrocki stated that Ukraine’s accession to the European Union would pose a threat to Polish agriculture.

“I acknowledge that Ukraine’s accession to the EU poses a threat to Polish agriculture. As President of Poland, and while understanding Ukraine’s aspirations, I will always advocate for fair treatment of Polish farmers and Polish agricultural products, particularly in the context of the ‘Green Deal’ and EU decisions,”

Navrotsky said, according to a press release from the Office of the President.

He also added that Poland has “land that is far too beautiful” to “surrender Polish agriculture to either ideology or someone else.”

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Romania became the EU’s anti-leader in inflation, Bulgaria — the eurozone’s — Experts Club

Inflation in the eurozone in May 2026 accelerated to 3.2% year-on-year against 3.0% in April, according to Experts Club. data.

In the European Union as a whole, annual inflation amounted to 3.3%. The highest indicator among all EU countries was recorded in Romania — 9.7%. However, Romania is not part of the eurozone, therefore it is not taken into account in the ranking of the countries of the currency bloc.

Among the eurozone countries, Bulgaria became the anti-leader, where annual inflation in May reached 6.3%. Bulgaria joined the eurozone on January 1, 2026, and became the 21st country of the monetary union.

Second place in the eurozone was taken by Lithuania with inflation of 5.1%, third place — Greece with 5.0%. The lowest indicators among eurozone countries were recorded in Malta — 2.1%, Germany — 2.7%, and France — 2.8%.

Thus, in May two different rankings were formed. For the EU as a whole, the main anti-leader was Romania, which remains outside the eurozone. For the eurozone, Bulgaria became the leader in price growth.

Inflation anti-leaders in the EU in May 2026:

Romania — 9.7%
Bulgaria — 6.3%
Lithuania — 5.1%

Inflation anti-leaders in the eurozone in May 2026:

Bulgaria — 6.3%
Lithuania — 5.1%
Greece — 5.0%

According to the analytical center Experts Club, the difference between the EU ranking and the eurozone ranking is important for the correct interpretation of the data. The eurozone reflects the situation in countries with a single currency and the common monetary policy of the ECB, while the EU also includes countries with national currencies, including Romania, Poland, the Czech Republic, Hungary, Denmark and Sweden.

“Romania cannot be included in the eurozone ranking, but it also cannot be ignored. It is the main inflation anti-leader of the entire EU. For business, this means that inflation risks in Europe differ greatly not only between countries, but also between currency zones. In the eurozone, the most problematic case now is Bulgaria; in the EU as a whole — Romania,” said Maksym Urakin, founder of Experts Club.

The main contribution to eurozone inflation in May came from services, energy carriers, food products, alcohol and tobacco, as well as industrial goods excluding energy. Energy prices rose by 10.9% year-on-year, services became 3.5% more expensive, and food products, alcohol and tobacco — by 2.0%.

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European social services may temporarily remove children from their families if their safety is at risk

According to Relocation, it is important for Ukrainian families living in EU countries to be aware of local child protection regulations: social services may initiate an investigation into living conditions if they receive reports of a potential threat to a child, and in serious cases, may temporarily remove the child from the family until the circumstances are clarified or a court decision is made.

As reported by Ukrainian media, citing materials for families abroad, social services do not intervene automatically due to a single domestic conflict, a bruise from a fall, or being late for school. However, repeated reports, complaints from the school, or concerns raised by neighbors, doctors, or the police can serve as grounds for an investigation into the family.

In different countries, these services have different names: Jugendamt in Germany, Aide Sociale à l’Enfance in France, and child protection services in Poland, the Czech Republic, Italy, the Netherlands, and other countries. Their underlying logic is similar: the state is obligated to intervene if it believes a child may be in danger or that the child’s interests are being violated.

Reasons for an investigation may include suspicions of physical or psychological abuse, systematic neglect of the child’s needs, lack of medical care, leaving a young child unsupervised, inadequate living conditions, truancy, aggressive behavior by the child, family conflicts, or parental failure to fulfill their duties.

For Ukrainian families, differences in legal systems remain a particular risk. What might be perceived in Ukraine as a domestic conflict or a “parenting method” may be considered unacceptable behavior in EU countries. Physical punishment, shouting, threats, leaving children home alone, or lack of contact with the school can lead to intervention by social services.

According to the 2023 annual report of the Ukrainian Parliament Commissioner for Human Rights, as of December 31, 2023, the competent authorities of host countries had removed 255 Ukrainian children from their parents or legal guardians abroad. Of these, 64 were orphans or children deprived of parental care, and 191 were children with parents.

The highest number of such cases was recorded in Germany—71 children—followed by Poland—33, Italy—25, the Czech Republic—24, and Sweden—17. Cases were also recorded in the Netherlands, France, Norway, Denmark, Spain, Switzerland, Finland, Austria, Lithuania, Luxembourg, Greece, Portugal, Slovakia, and other countries.

Among the most common reasons for the removal of Ukrainian children abroad, the Ukrainian ombudsman cited the failure of local authorities to recognize Ukrainian documents issued to guardians and adoptive parents, inadequate fulfillment of parental responsibilities, low levels of material and living standards, truancy, aggressive behavior by children, as well as the consequences of psychological trauma suffered by parents and children due to the war.

European statistics show that intervention by social services is a widespread and systematic practice, but reporting methods vary by country. In Germany in 2024, youth welfare authorities temporarily took approximately 69,500 children and adolescents into protective custody. Of these, 44% of such measures were related to the arrival of unaccompanied minors from abroad, 42% to an immediate threat to the child’s well-being, and 13% to children seeking help on their own.

In Poland, as of the end of 2024, 77,300 children were in the foster care system, of whom 59,800 were in family-based care and 17,500 were in institutional care. In Italy, as of the end of 2023, 42,000 children were in alternative care: 15,992 in foster care and 26,010 in residential care. In Sweden, according to Socialstyrelsen, 3,486 children were placed in compulsory care under the LVU Act in 2020.

These figures cannot be directly compared with one another as “removed children” because countries use different categories: temporary removal, foster care, institutional care, emergency protection, voluntary placement, compulsory placement, and care for unaccompanied minors. Nevertheless, they demonstrate the scale of the work carried out by European child protection systems.

There are no separate pan-European statistics available in an open, comparable format on how many children are removed specifically from families based on the parents’ “ethnic origin.” Some countries publish data on citizenship, migration status, ethnicity, or unaccompanied children, but these indicators vary in methodology and often do not allow for distinguishing family cases from migration and guardianship cases.

For Ukrainians, the most specific publicly available statistics are data from the Ukrainian Ombudsman’s Office on 255 children removed abroad as of the end of 2023. More recent comparable data for all EU countries is currently limited in open access.

Lawyers and human rights advocates advise Ukrainian parents abroad to carefully study the rules of their country of residence, not to ignore requests from schools, doctors, and social services, keep documents regarding the child’s legal representation, have translations of custody or adoption decisions, contact the Ukrainian consulate in a timely manner, and not attempt to “resolve” the conflict with child protection authorities on their own without legal assistance.

If social services initiate an investigation, it is important to cooperate, provide explanations, submit documents, engage an interpreter, and document all communications in writing. In most countries, the goal of initial intervention is not the automatic removal of the child, but rather a risk assessment and the search for a solution that will be considered safe for the child.

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Ukraine Has Implemented About 15% of Its Priority Reform Plan for EU Accession – The Guardian

Ukraine has implemented about 15% of the reforms outlined in the 10-point plan agreed upon with the European Union as part of its preparations for accession negotiations, The Guardian reports, citing an assessment by EU officials.
According to the publication, the plan was agreed upon in December between European Commissioner for Enlargement Marta Kos and Ukrainian Deputy Prime Minister Taras Kachka. It includes priority steps in the areas of the rule of law, anti-corruption policy, the judicial system, and the prosecutor’s office.
Specifically, the program calls for measures to strengthen the independence of Ukraine’s National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO), the adoption of an anti-corruption strategy, and reforms to the procedures for appointing judges and prosecutors.
The Guardian notes that European officials acknowledge the efforts of Ukraine and Moldova to carry out reforms under difficult circumstances; however, in the case of Ukraine, this assessment is accompanied by disappointment over the insufficiently rapid implementation of agreed-upon priorities.
The publication appeared against the backdrop of the start of the first phase of Ukraine and Moldova’s EU accession negotiations. This stage concerns the so-called first cluster of negotiations—issues of the rule of law, democracy, the functioning of institutions, and fundamental reforms.
For Ukraine, these areas are key, as without progress in the anti-corruption and judicial spheres, further advancement through the negotiation clusters will be difficult. The EU traditionally views the independence of anti-corruption bodies and the quality of the prosecution service and judicial system as the foundation for all other reforms.
Ukraine applied for EU membership in February 2022 following the start of Russia’s full-scale invasion. In June 2022, the country received candidate status, and in 2024, the EU formally opened accession negotiations. However, practical progress in the negotiations depends on the implementation of reforms and the unanimous support of all EU member states.
The Guardian reports that EU accession requires a candidate country to adopt thousands of European laws and decisions, as well as approval from all current EU members. Therefore, even with political support for Ukraine, the integration process could take years.
Source: The Guardian – “Ukraine and Moldova to enter first phase of EU membership negotiations”.

 

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North Macedonian President Criticizes EU Approach to Accession Negotiations

According to Serbian Economist, North Macedonian President Gordana Siljanovska-Davkova stated that the European Union needs to revise its methodology for accession negotiations, as the current format, in her words, should not be based on the principle of “shut up and listen.”

Siljanovska-Davkova emphasized that North Macedonia does not accept such an approach to dialogue with the EU. According to her, the negotiation process should be based on equality, respect, and clear criteria, rather than on political demands that go beyond the classic conditions for accession.

The criticism came amid a protracted deadlock in North Macedonia’s European integration. The country received candidate status back in 2005, but its path to the EU was blocked for many years, first by a dispute with Greece over the country’s name, and then by disagreements with Bulgaria regarding history, language, and the rights of the Bulgarian minority.

Following the 2018 Prespa Agreement, the country changed its name from Macedonia to North Macedonia, which paved the way for NATO accession and was intended to accelerate European integration. However, the negotiation process later stalled again due to demands related to the inclusion of Bulgarians in the country’s constitution.

In 2022, the EU agreed on the so-called French proposal, which was intended to lift the Bulgarian veto and unblock the negotiations. However, in Skopje, this formula sparked heated political controversy: some political forces believe that bilateral historical and identity issues should not become part of European criteria.

Siljanovska-Davkova has previously criticized the EU’s approach, stating that enlargement must return to the Copenhagen criteria, the principles of meritocracy, reforms, and the rule of law, rather than depend on additional bilateral requirements.

Formally, the country remains on the European path; however, without constitutional changes and a political compromise with Bulgaria, the opening and advancement of negotiation chapters remain complicated.

Currently, the official candidate countries for EU membership are Albania, Bosnia and Herzegovina, Georgia, Moldova, Montenegro, North Macedonia, Serbia, Turkey, and Ukraine. Kosovo is viewed by the EU as a potential candidate, but its status is complicated by the fact that five EU member states do not recognize Kosovo’s independence.

Turkey’s history shows that candidate status alone does not guarantee accession.

Turkey applied for membership in the then-European Economic Community as far back as 1987, received candidate status in 1999, and accession negotiations began in 2005.

However, Turkey’s negotiations with the EU have effectively reached an impasse and have not progressed for many years. The main reasons are the EU’s concerns regarding the state of democracy, human rights, the rule of law, and media freedom, as well as political disagreements with certain EU member states. While Turkey formally remains a candidate country, its EU membership is not considered a realistic scenario in the near future.

For North Macedonia and other candidate countries, the Turkish example serves as a reminder that the accession process can take decades. Therefore, Skopje is pushing for a more predictable and politically balanced methodology, under which progress toward the EU would depend primarily on reforms rather than on new bilateral blockages.

https://t.me/relocationrs/3030

 

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