Business news from Ukraine

SWITZERLAND WILL INVEST IN UKRAINIAN PROJECTS TO MITIGATE IMPACT OF CLIMATE CHANGE

Switzerland will invest in public and private projects to reduce greenhouse gas emissions in various fields of activity of Ukraine: infrastructure, construction, transport, energy.
The relevant agreements were reached between Minister of the Environment of Switzerland Simonetta Sommaruga and Minister of Environmental Protection of Ukraine Ruslan Strilets during the Ukraine Recovery Conference in Lugano (Switzerland).
“We have made the first practical step for Ukraine to introduce market mechanisms of the climate agreement, create new climate financing channels in Ukraine and incentives for green development for Ukrainian business… I am convinced that the agreement between our governments is a good start for the ‘green’ post-war reconstruction of Ukraine and the achievement of climate goals under the Paris Agreement,” the minister said on Facebook on Monday.
Strilets clarified that Ukraine had pledged to provide Switzerland with verified results of reducing carbon emissions into the atmosphere in return for the investments received.

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UFUTURE PLANS TO INVEST $20 MILLION IN CREATION OF INDUSTRIAL PARKS IN LVIV, VINNITSA AND BUCHA

The holding company UFuture intends to invest $20 million in the creation of industrial parks in Lviv, Vinnitsa and Bucha, UFuture founder Vasily Khmelnitsky said in an exclusive interview with Interfax-Ukraine.
“I am considering plots for industrial parks, meeting with mayors. In Lvov and Vinnytsia, plots of 15 hectares, in Bucha – 20 hectares. In total (estimated investment) may be $ 20 million,” Khmelnitsky said.
In his opinion, these starting areas are too compact.
“Why is this not enough? What is 15 hectares? This is approximately 8-10 factories. And when you have built 10 factories and everything is fine there, then every year the place becomes even more attractive. An investor comes there who is satisfied with security and benefits, wants to build plant, and you already have nothing. Therefore, industrial parks need to be produced on areas of 100-200 hectares, but, unfortunately, there are not very many such sites, “Khmelnitsky said.
Regarding the sources of capital in the conditions of war, he said that he was counting on his own and credit resources.
“Today, almost nothing works for me, but I still have something, because I’m a rather big businessman. I met with a bank, which also has a difficult situation, we agreed that I would pay 50% on loans. “I’ll take some more loans from the bank. There are programs of 5, 10, 7%, this is set for economic growth, I think we need to give some soft loans,” Khmelnytsky said.

The full text of the interview with Vasily Khmelnytsky is published on the main page of the website of the Interfax-Ukraine agency

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IRISH MANUFACTURER OF THERMAL INSULATION TECHNOLOGIES KINGSPAN INTENDS TO INVEST EUR200 MLN IN CREATION OF CONSTRUCTION TECHNOHUB IN UKRAINE

The Irish manufacturer of heat-insulating energy-efficient technologies Kingspan intends to invest EUR200 million in the creation of a construction technology hub in Ukraine.
“This investment is at the crossroads of three crises: the climate crisis, the energy security crisis, and the crisis caused by the Russian war against Ukraine. The new construction technology hub that we plan to create will make a positive contribution on all three fronts: support Ukraine rebuilding its economy, meet demand in Central and Eastern Europe on energy-efficient buildings and help Europe reduce dependence on oil and gas imports,” Jean Murtha, CEO of Kingspan Group, was quoted in a press release from the Ukrainian Ministry of Foreign Affairs.
According to him, the company expects to immediately start developing the project. It is assumed that the hub will be located in the west of Ukraine, its construction will be completed within five years. The implementation of the project will create 600 new jobs.
“Our goal is not only to rebuild the facilities destroyed by the Russian invaders, but also to create a modern innovative economy using the leading experience in urban development and the application of green technologies,” Foreign Minister Dmytro Kuleba said, welcoming Kingspan’s decision to invest in Ukraine.
Kingspan, founded in 1972, specializes in building solutions for building envelopes (roof, walls, facades), as well as protective walls, cold storage doors, high-tech solid urethane and solid phenolic thermal insulation for roofs, walls, floors and pipelines. Kingspan operates 198 manufacturing facilities worldwide.
As reported, in April, Kingspan announced the completion of the exit from the Russian business. Russia accounted for less than 1% of Kingspan’s global operations. The company also donated $750,000 to UNICEF to set up five Blue Dot centers to help refugees on the Ukrainian border.

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POLISH COMPANIES PLAN TO INVEST IN ELECTRICITY IMPORTS FROM UKRAINE

Orlen Synthos Green Energy, established by the Polish PKN Orlen and Synthos Green Energy, plans to implement an investment project that will allow importing electricity from Ukraine, according to a statement on the PKN Orlen website.
“Electricity that could be transferred to Poland will come from the Khmelnytsky NPP in Ukraine. Its import based on the modernized infrastructure will help meet the needs of the Polish industry and reduce Poland’s dependence on hydrocarbon-based energy sources,” the company informed.
At the same time, Orlen Synthos Green Energy is called upon to carry out the process of technical measures necessary for the implementation of this project.
“This is another project that Orlen Synthos Green Energy plans to invest in,” PKN Orlen emphasized.
In particular, the company will also be responsible for the preparation and commercialization of micro and small nuclear reactor (MMR and SMR) technologies in Poland.

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LARGEST SUGAR PRODUCER IN UKRAINE TO INVEST $15 MLN IN NEW SILO CONSTRUCTION

Agroholding Astarta, the largest sugar producer in Ukraine, is investing $15 million in the construction of a new silo in the city of Chernihiv. The decision of the board of directors of the group of companies was published on the Warsaw Stock Exchange (WSE) on Wednesday evening.
According to Astarta, the construction of this facility will will further strengthen the company’s network of seven grain and oilseeds handling facilities and expand its reach to Chernihiv region.
The total capacity of simultaneous storage of grain and oilseeds will be 70,000 tonnes. Commissioning of the first stage of the silo with a capacity of 58,000 tonnes is scheduled for July 2022.
Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine.

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BAYKAR PLANS TO INVEST IN DRONE PRODUCTION IN UKRAINE

The Turkish manufacturer of drones Baykar is developing an investment project to build a research center for advanced technologies in aerospace engineering and a production center for drone assembly in Ukraine, Deputy Director General for Investments Natalya Ozden has said.
“Baykar intends to invest in Ukraine, and is currently developing a corresponding investment project,” she said during the International Defense Investment Forum in Kyiv.
According to her, the project provides for 100% investment by Baykar in the creation of a new research and development center, the creation of production facilities and drone assembly, as well as maintenance and repair shops with accompanying services.
At the same time, according to Ozden, there is a need for discussion about the incentives existing in Ukraine to support investors, in particular, those provided for by the laws on supporting projects with significant investments (the law on investment nannies) and on industrial parks.
“Investors want to come to Ukraine, and there are laws on supporting projects with significant investments, on industrial parks. But they do not work yet, we expect mechanisms for their implementation, and if we compare these projects, we see that the law on industrial parks provides more advantages than the law on investment projects,” she said.
She recalled that the law on investment nannies provides up to 30% of assistance from the state, but stressed that a foreign investor, when choosing a country for investment, compares several countries and opportunities, and chooses the most appropriate incentives for him.
Baykar was founded more than 30 years ago, and during this time has gone from a manufacturer of car parts to the world’s leading manufacturer of drones with 1,600 employees.

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