Business news from Ukraine

Business news from Ukraine

FRANCE TO FINANCE 85% OF EUR 300 MLN CONTRACT FOR SUPPLY OF FIREFIGHTING CAR LIFTS TO UKRAINE

The framework agreement signed on Thursday by the governments of Ukraine and France, providing for the supply of 370 rescue vehicles-car lifters for the State Emergency Service of Ukraine in the amount of up to EUR 300 million, provides for the provision of financing by the French side in the amount of EUR 255 million (85% of the contract amount). According to the text of the framework agreement at the disposal of the Interfax-Ukraine agency, the support will consist of a treasury loan of up to EUR 100 million provided by the French government represented by Natixis, and a bank loan of up to EUR 155 million, which will be provided by a bank or consortium banks from the EU. Bpifrans Assurance Export will act as a guarantor for it.
The agent bank will be Ukreximbank (Kyiv), the equipment supplier will be the French company Desautel SAS.
According to the agreement, financial support is provided for the purchase of goods and services from France, and also provides for the purchase of Ukrainian or foreign goods for the implementation of the contract in the amount of up to 50% of the amount of financial support.
The maturity of treasury and bank loans is no more than 10 years.
The terms of the agreement stipulate that in order to receive financing through a loan, the contract must be accepted for implementation no later than December 31, 2023, and the loan must be selected by the end of 2028.
The supply of goods and services from French suppliers, as well as the import and use of related goods for their production will be subject to VAT, other taxes and duties at a “zero” rate.
As reported, within the framework of the contract, the production of firefighting car lifts to provide extinguishing fires and rescue people from high-rise buildings will be partially concentrated in Ukraine. The first samples will be made in France.
According to Mykola Chechetkin, chairman of the State Emergency Service, at the present time, the service units have only 290 units of high-altitude lifts at their disposal, of which 260 have worked out their resource.

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FRANCE AND UKRAINE TO SIGN 4 STRATEGIC INTERGOVERNMENTAL AGREEMENTS TOTALING EUR 1.3 BLN

During the visit of French Finance and Economy Minister Bruno Le Maire to Kyiv on Thursday, four strategic intergovernmental agreements will be signed totaling EUR 1.3 billion.
“Indeed, during my visit, France will sign four strategic intergovernmental agreements with Ukraine for a total of EUR 1.3 billion. This is very significant! And I want to emphasize one key point: these projects will help improve the living conditions of Ukrainians. We are talking about drinking water, mobility, security and civil protection,” Le Maire said in an exclusive interview with Interfax-Ukraine.
He said that he was happy to come to Kyiv, meet with the Ukrainian authorities and have the opportunity to strengthen economic ties between the two countries.
“France and Ukraine have a lot in common: we are both industrial countries, we are countries with an important part of agriculture, we are European countries fully committed to strengthening Europe’s place in the international arena,” the minister said.
Le Maire also said that in 2020, the total trade volume between France and Ukraine reached EUR 1.6 billion.
“Our economic relationship is very dynamic and we are on the right track. I want to give you one single figure: in 2020, the total trade volume between France and Ukraine reached EUR 1.6 billion – a very important amount that remains stable despite the COVID-19 recession. Now we want to strengthen and accelerate economic cooperation between our two countries. This is the purpose of my visit to Kyiv,” he said.

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PRESIDENT OF UKRAINE: WE OFFER FRANCE TO SIGN DECLARATION OF OUR SUPPORT TO ACCESS EU

President of Ukraine Volodymyr Zelensky offered French President Emmanuel Macron to sign a declaration of support for Ukraine’s accession to the European Union.
“We have made a declaration that we conclude with partner countries, member states of the European Union, in which this or that country signs a declaration with us, indicating its support of Ukraine in striving to be a member of the European Union. Frankly speaking, several countries have already signed this declaration. There are countries that are now reviewing this declaration. I told the details of this declaration. I suggested that France also support Ukraine. I believe that President Macron will get acquainted with this declaration and give his answer,” Zelensky said at a briefing on the results talks with French President Macron in Paris on Friday.
Zelensky also said the Declaration on the European Perspective of Ukraine is an initiative of our state, which “does not want to wait until everything is done for us.”
“We are very proactive in Ukraine. We do not wait for everything to be done for us. We ourselves are taking concrete steps,” Zelensky said.
As reported, on March 18, a meeting of the presidents of Ukraine and Lithuania took place, during which they signed a Declaration on the European perspective of Ukraine.

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PRESIDENT OF UKRAINE TO VISIT FRANCE

President of Ukraine Volodymyr Zelensky will visit France on Friday, April 16, where he is to meet with President Emmanuel Macron, Le Figaro reported. It is noted that the visit is associated with an increase in tension in Ukraine due to the military buildup of the Russian Federation on its borders. The presidents of the two countries will meet during a working lunch at the Elysee Palace.
As reported, Zelensky may meet with French President Emmanuel Macron to discuss escalation in Donbas and reforms in Ukraine.
“The main purpose of the visit is to meet with Macron tête-à-tête,” French Ambassador to Ukraine Etienne de Poncins said in an interview with KyivPost.

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FRANCE AND UKRAINE TO PRODUCE HIGH-RISE LIFTS FOR FIRE TRUCKS

Ukraine together with France will produce high-rise elevators for fire trucks, Interior Minister Arsen Avakov said during the signing of the Memorandum of Understanding between the State Emergency Service of Ukraine and the French company Echelles Riffaud. According to the press service of the Ministry of Internal Affairs of Ukraine on Tuesday, the document was signed by the head of the State Emergency Service Mykola Chechotkin, General Director of Echelles Riffaud Benjamin Coustillier and export director of the company Mark Larov.
According to Avakov, a critical situation has developed in the fire and rescue units with modern technical means to extinguish fires and rescue people from high-rise buildings. The minister said that the existing equipment has been in operation for more than 40 years, and 90% of it have already worked out all the established terms of operation.
“Unfortunately, Ukraine has not produced and does not produce such equipment. Therefore, the Ministry of Internal Affairs, together with French partners, agreed on the production of modern firefighting equipment for Ukrainian rescuers,” the Minister of Internal Affairs said.
In particular, we are talking about the production of complexes with lifts up to 33 and 42 meters.
“However, an important aspect of bilateral cooperation is the condition when French-made cars will be assembled at Ukrainian factories. In addition, our specialists will be trained by their French colleagues,” the minister said.

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FRANCE AND UKRAINE MAY SIGN AGREEMENT ON COOPERATION WITH ALSTOM

Ukraine and France may soon sign an intergovernmental agreement on cooperation with ALSTOM for the implementation of a project for the supply of electric locomotives to a company with partial localization of their production and maintenance in Ukraine.
This was announced by Interior Minister Arsen Avakov, who is the head of the the Ukrainian-French Intergovernmental Commission on Economic Cooperation, during negotiations with Ambassador Extraordinary and Plenipotentiary of France to Ukraine Etienne de Ponsen and head of Ukrzaliznytsia JSC Volodymyr Zhmak on Friday, the website of the Ministry of Internal Affairs said.
“We have been working on the details of a common project with the French side for a long time and in the near future we can reach the signing of an intergovernmental agreement that will fully meet the needs of Ukraine,” the press service quoted Avakov as saying.
Zhmak, in his turn, said during the negotiations that Ukrzaliznytsia has a very old park and it needs to be strategically updated. At this stage, according to him, Ukrzaliznytsia is interested in 50 two-system electric locomotives capable of transporting from 5,500 to 6,000 tonnes of cargo.
“We need these locomotives with a long-term system of maintenance and localization of production in Ukraine. At the second stage, we are interested in getting single-system locomotives,” he said.
CEO of ALSTOM Henri Poupart-Lafarge assured that it could be a reliable and long-term partner for Ukrzaliznytsia and Ukraine.
“We have been working in the market for many years and we can satisfy the needs of Ukrzaliznytsia. ALSTOM has experience in working in markets with the localization of production and service capacities. This strengthens our cooperation and creates new jobs. In particular, we work in this way in Kazakhstan and South Africa,” he said.
The ministry also notes that this project was founded in September 2018, when ALSTOM and Ukrzaliznytsya signed a memorandum of understanding, which formalizes cooperation in the provision and maintenance of electric locomotives. The financial model of the project involves the attraction of credit funds from the French State Treasury and other sources.
As reported, President of Ukraine Volodymyr Zelensky on October 27 met with CEO of ALSTOM Henri Poupart-Lafarge and discussed with him the prospects for the implementation of joint projects in the railway sector.
The French machine building company ALSTOM is one of the world leaders in the production of power equipment and railway transport.

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