President of Ukraine Volodymyr Zelensky and Austrian Chancellor Sebastian Kurz discussed the issues of vaccination, European integration of Ukraine, as well as joint investment projects.
“Discussed the Ukrainian-Austrian cooperation with Sebastian Kurz by phone, in particular joint investment projects. Informed him about the security situation in Donbas. Exchanged views on the course of vaccination and support for Ukraine’s European integration aspirations,” Zelensky wrote on Twitter on Tuesday.
According to the head of the Ukrainian state, he invited Kurz to visit Ukraine.
An investment project for the construction of a soda ash plant in the suburbs of Kramatorsk (Donetsk region) involves investments in the amount of $575 million, head of the Donetsk regional state administration Pavlo Kyrylenko said.
“We are ready to offer, with ready-made conceptual design solutions, a project for the construction of a plant for the production of soda ash […] earlier there were plants in Sloviansk and Lysychansk (Luhansk region), but the capacities have been lost, and another such plant is in Krasnoperekopsk in Crimea,” Kyrylenko said at the forum “UkraineInvest Talks: Dnipro” on Thursday, May 27.
According to him, this plant will solve the problem of import substitution and will allow talking about export.
According to the presentation of the investment project, the construction of a plant with a capacity of 600,000 tonnes per year is designed for three years, it is planned to create about 2,000 jobs there. The area of the land plot is 50 hectares in the village of Raihorodok, stocks of raw materials will provide for 100 years of work. It is assumed that the implementation of the project will allow the supply of soda ash for export and will provide an inflow of foreign currency to Ukraine in the amount of at least EUR 75 million.
The head of the region also presented a project idea for the production of paper from chalk, a model of which was developed by the regional state administration. According to the presentation of the project, its cost is $10 million, the capacity is 9,000 tonnes of paper per year, the implementation period is ten months with the creation of 100 jobs.
According to the authors of the project, chalk paper can be 10-15% cheaper than traditional types of paper, it can decompose completely under the influence of sunlight within 6-18 months. The project is assessed as promising for a dry and ecologically loaded region with forest plantations and numerous chalk deposits.
Kyrylenko said that these projects are well developed and realistic.
The Ministry for Development of Economy, Trade and Agriculture of Ukraine and PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) signed a memorandum for the implementation of new investment projects: the company plans to invest about $1 billion in new projects for environmental modernization and production development.
According to a press release from the ministry, the memorandum was signed on Wednesday by Minister Ihor Petrashko and ArcelorMittal Kryvyi Rih CEO Mauro Longobardo.
The Steel Billion, a new investment program of ArcelorMittal Kryvyi Rih, will focus on environmental impact reduction, company sustainable development and introduction of circular economy principles: efficient use of resources, recycling and waste utilization.
“ArcelorMittal is a large investor, exporter and employer. Today we agreed that the company would significantly increase investments in Ukraine, and introduce advanced, environmentally friendly technologies in steel making, which is one of our strategic economy sectors. We expect that investment activity in our country will recover gradually after the crisis of 2020, and cooperation with the global largest steel producer will become an incentive for investors to contribute to Ukraine,” Petrashko said
Longobardo said that during 15 years of operation in Ukraine, the company has invested over $5 billion in production development, and now offers the new program Steel Billion, according to which about $1 billion will be invested into environmental modernization.
“We continue to implement large investment projects and are gradually transforming ArcelorMittal Kryvyi Rih into a modern European production. Steel Billion is our new program for Ukraine. By this program, we will finance green steel-making technologies and de-carbonization projects. This fully complies with ArcelorMittal Group’s strategy to become carbon-neutral. Actually, steel already has a lower carbon footprint compared to other materials: no other material has the same recovery and reuse capacities. The initiatives to be confirmed under the Memorandum today are a step forward in Ukraine’s industry. We count on cooperation and comprehensive support of the government on this way,” Longobardo said.
On April 14, Prime Minister of Ukraine Denys Shmyhal met with ArcelorMittal Kryvyi Rih Board Chairman Lakshmi Mittal. The meeting was attended by Deputy Prime Minister of Ukraine, Minister for Strategic Industries of Ukraine Oleh Urusky, Petrashko and representatives of ministries.
The head of the Ukrainian government welcomed the signing of a memorandum between the Ministry of Economy and the enterprise to support investment projects for the period 2022-2032. Shmyhal said that the signing of the memorandum was made possible thanks to the law initiated by President of Ukraine Volodymyr Zelensky on state support for projects with significant investments.
“Together with the President and Parliament, we launched effective tools that enhance the investment attractiveness of Ukraine. Today’s memorandum is one of the first successful examples when the large international company plans to use the appropriate tools and increase investments and the number of jobs in Ukraine,” Shmyhal said.
The head of government added that according to the memorandum, a significant part of the investments will relate to projects that reduce the negative impact on the environment. At the same time, the Prime Minister thanked the company’s management for socially important initiatives, the development of medicine and the support of the communities where the enterprise is located.
“The government calls on socially responsible business to join state initiatives in Ukraine, when investors become not only business partners of the state and communities, but also actively participate in the development of the region where they work. The government, for its part, is ready to comprehensively contribute to the further development of mutually beneficial relations and will continue work to improve the investment climate,” the Prime Minister said.
The Memorandum provides for the following areas of development and investment: green metallurgy, which contributes to less pollution and reduced carbon footprint; sustainable development of iron ore mining – continuation of mining activities for 30 years; creation of new industries, in particular rolling and bar mills; modernization of existing facilities; circular economy and waste management (utilization of biomass, streamlining of CO2 emissions, processing of slags and sludge).
The Cabinet of Ministers has identified as a priority a project for production of ventilators, two waste incinerators and an air launch space rocket complex, a total of 103 priority investment projects in the approved list until 2023.
As the correspondent of the Interfax-Ukraine agency reports, the government approved the relevant order with a three-day revision at a meeting on Wednesday, November 18.
According to the draft decree, four out of 103 projects provide for financing entirely from the state budget, and another 43 projects partially from the state and/or local budget.
As indicated in the document, among the priority investment projects are the organization of the production of ventilators at the expense of the investor, the state budget and other sources, as well as the construction of a plant for solid household waste processing (ensuring environmental safety in Kyiv) at the expense of an investor.
In addition, among the priority projects is the construction of a waste sorting line in Drohobych (Lviv region) at the expense of the state budget and the local budget.
Among the investment projects that are planned to be implemented at the expense of the state budget and international technical assistance are the modernization of the An-124-100 and An-225 aircraft families at Antonov State Enterprise, an air launch rocket and space complex, the Observatory International Scientific Center on the Pip Ivan mountain – a platform for the development of the Carpathian region.
In addition, it is planned to implement a project to prepare the production of an infrared homing head for guided air missiles, as well as to expand the Yahodyn international checkpoint – exclusively at the expense of the state budget.
Also, at the expense of the investor, local budgets and the state budget, it is planned to implement the construction of waste incinerators in Kramatorsk and Mariupol, the construction of the tourist and transport infrastructure of the Shatsk National Natural Park (plus international technical assistance funds), and to build the H2O Nova Kakhovka Olympic Sports Center.
President of Ukraine Volodymyr Zelensky submitted to the Verkhovna Rada a bill of Ukraine on government support for investment projects with significant investments – the so-called law on “investment nannies,” Deputy Head of the Presidential Office Yulia Kovaliv has said.
“I want to debunk the myths and memes about the ‘nannies’ that have flooded the media space and emphasize that this bill is primarily about providing a number of stimulating instruments of government support for investment projects,” she wrote on her Facebook page on Wednesday.
In particular, according to her, the bill provides for: securing investor guarantees by concluding a direct agreement with the Government of Ukraine for 15 years, appointing an investment manager authorized to accompany the investor in the process of preparing and implementing the project; providing tax benefits – exemption from income tax, exemption from payment of duties and VAT when importing new equipment into Ukraine; facilitating the provision of land necessary for the implementation of the project; building/reconstructing related infrastructure at the expense of the state (roads, electric and gas, heating networks, water networks, utilities, etc.).
“I want to note that the total amount of government support will be up to 30% of the amount of investment in the project,” Kovaliv said.
She said that this bill will support Ukrainian and foreign investors, whose investment amount should be at least EUR 30 million. They should create at least 150 new jobs with an average salary of workers at least 15% higher than the average salary in the relevant field in the region. Projects must be implemented in five years, and the duration of the special investment agreement with the government of Ukraine is 15 years.
The State Agency on Energy Efficiency and Energy Saving of Ukraine and the Ministry of Energy and Industry of the United Arab Emirates (UAE) have signed a memorandum of understanding on energy efficiency and renewable energy. “By cooperating, we will exchange experience and promote the implementation of joint investment projects in the field of energy efficiency, clean energy and garbage processing,” the press service of the Ukrainian agency on Saturday quoted its head, Serhiy Savchuk, as saying.
The State Agency on Energy Efficiency and Energy Saving of Ukraine says that the UAE is one of the most developed countries of the Persian Gulf, which has set the task to achieve at least 44% of “clean” energy in the country’s overall energy balance by 2050.
In addition, the International Renewable Energy Agency (IRENA) whose charter Ukraine has joined is located in Abu Dhabi, the capital of the UAE. What is more, the world’s largest solar park is being built near Dubai. Its projected capacity by 2020 is 1 GW, and 5 GW by 2050.
ENERGY EFFICIENCY, INVESTMENT PROJECTS, UNITED ARAB EMIRATES
