On December 20, 2024, the International Finance Corporation (IFC) of the World Bank Group signed documents to provide a $53.87 million loan to Concern Galnaftogaz to finance the construction of a 147 MW wind farm in Volyn region and technical support.
According to the IFC website, the total cost of the project is estimated at EUR261 million (including VAT), with a 16-year loan provided to the established project companies Wind Power G&I Volyn LLC and Wind Power G&I Volyn 3 LLC, controlled by GNG Retail Limited and its subsidiary Concern Galnaftogaz (together – GNG Group).
It is noted that the project involves the attraction of mixed financing, in particular from the UK-FCDO and EC-UIF, as well as the Clean Technology Fund.
Earlier, on December 4, participation in the project was also approved by the European Bank for Reconstruction and Development (EBRD), which has also already signed documents to provide the above-mentioned LLCs with a long-term loan of EUR 60 million for the construction of a 147 MW wind farm in the Volyn region.
The wind farm is expected to produce about 380 GWh (380 million kWh) of renewable electricity with zero carbon emissions annually.
In February 2024, the Antimonopoly Committee of Ukraine (AMCU) allowed GNG Retail Limited (Cyprus) to buy more than 50% of the authorized capital of Wind Power G&I Volyn LLC and Wind Power G&I Volyn 3 LLC. According to open registers, GNG Retail Limited owns 89.5% of the two LLCs, and JSC ZNVKIF Rimini (in which Vitaliy Antonov owns 83.19%) owns 10.5%.
OKKO CEO Vasyl Danyliak announced the start of construction of a wind farm in Volyn region in the fall of 2024. He explained the group’s plans to work in the renewable energy sector by the need to diversify its business, as the fuel market no longer foresees growth.
“Galnaftogaz operates one of the largest networks of OKKO filling stations, which includes more than 400 complexes with a network of catering facilities. The group also includes other businesses.
Vitaly Antonov’s GNG Retail Limited owns 90.25% of Concern Galnaftogaz shares. In October 2024, Avalia Investments Limited (Cyprus) of the founder and chairman of Concorde Capital, Igor Mazepa, became the owner of another 7.35% of the shares.
State-owned Oschadbank (Kyiv) has entered into a 5-year loan agreement with the Lviv City Council for UAH 840 million, of which UAH 718 million will be used to complete the construction of a waste processing plant.
According to the bank’s press release, the rest of the funds will be used to implement four more projects: the construction of an alternative bridge on Kovcha Street, the arrangement of two centers for veterans, and the reconstruction of the power supply system of the Pivnichna shopping center (CHP-2).
“Despite the fact that Oschadbank’s share in financing municipalities is more than 60% of the market, this loan agreement is the first in our cooperation with the Lviv City Council during a full-scale war. As a conscious bank that adheres to ESG principles, we are pleased to participate in the implementation of such an important environmental project for one of the most European cities in the country,” said Yuriy Katsiyon, Deputy Chairman of the Board of the state-owned bank in charge of corporate business, as quoted in a press release on Friday.
In turn, the Lviv City Council’s website states that the volume of construction work at the facility has reached 70%.
According to the release, once launched, the municipal waste recycling facility will be able to process more than 250 thousand tons of waste per year using mechanical and biological methods. This volume is expected to fully meet the city’s solid waste disposal needs.
The Oschad press service added that the Lviv Waste Recycling Plant construction project is also being implemented with the financial support of the European Bank for Reconstruction and Development (EBRD) and the Eastern European Energy Efficiency and Environment Partnership (E5P). The waste processing plant covers an area of 9.66 hectares.
The Lviv City Council website specifies that UAH 46.2 million of the total amount of approved funding will be used to build an alternative bridge on Omelyana Kovcha Street, and the remaining UAH 75.8 million will be used to equip two centers for veterans and reconstruct the power supply system of the Pivnichna shopping center (CHP-2).
According to the National Bank of Ukraine (NBU), as of November 1, 2024, Oschadbank ranked 2nd (UAH 340.77 billion) among 62 banks in the country in terms of total assets. The financial institution earned UAH 12.78 billion in net profit for 10 months of this year, compared to UAH 14.58 billion in the same period last year.
On Wednesday, the Board of Directors of the European Bank for Reconstruction and Development (EBRD) approved a loan of up to EUR80 million to Ukrnafta under state guarantees for the construction of about 100 MW of small gas-fired distributed power plants and cogeneration facilities. According to the bank’s website, the loan will help solve the problem of electricity shortages and ensure uninterrupted power supply to households and businesses.
The total cost of the project will be EUR103.8 million, and it will also be financed by a grant of up to EUR22 million expected to be provided by the Netherlands, the United States and other donors through the EBRD’s Special Crisis Response Fund, as well as a technical support grant of EUR1.8 million from other donors.
“Ukrnafta is Ukraine’s largest oil producer and operator of the national network of filling stations. In March 2024, the company took over the management of Glusco’s assets and operates 547 filling stations – 462 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, the company has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
“Ukrnafta holds 92 special permits for commercial development of fields. It has 1832 oil and 154 gas production wells on its balance sheet.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.
State-owned Ukrgasbank (UGB, Kyiv) has provided a UAH 226.6 million loan to Silpo supermarket chain to purchase more than 60 diesel generators, according to a press release from the financial institution.
“Uninterrupted power supply to supermarkets will contribute to their stable operation and, most importantly, guarantee the country’s food security,” the press service quoted Tetyana Parchevska, Director of Corporate Banking and Transaction Business at Ukrgasbank, as saying.
The state-owned bank did not disclose the rate at which the financing was provided or its term, citing the terms of the agreement.
According to the National Bank of Ukraine, as of October 1 this year, Ukrgasbank ranked 30th (UAH 199.05 billion) among 62 banks operating in the country in terms of total assets. The financial institution’s net profit for the first nine months of this year amounted to UAH 4.67 billion, while in the same period last year it was UAH 2.92 billion.
Silpo-Food LLC was established in early August 2016. According to Opendatabot, the founder of the company is PJSC Closed Non-Diversified Venture Corporate Investment Fund Retail Capital (100%, Kyiv), with Volodymyr Kostelman as the ultimate beneficiary. The chain’s total revenue in 2023 amounted to UAH 84.73 billion, which is 21% higher than in 2022.
According to its website, Silpo has 306 supermarkets in 60 cities of Ukraine and four Le Silpo delicatessens in Kyiv, Dnipro, Kharkiv and Odesa.
The International Finance Corporation (IFC) of the World Bank Group is considering a $40 million loan and a $40 million parallel loan to Ukraine’s largest sugar producer, Astarta, for the construction of a soy protein concentrate plant in Poltava region.
“The proposed investment is an IFC A loan of up to $40 million and a parallel loan of up to $40 million to Astarta Agro Protein Ukraine LLC, a subsidiary of Astarta Holding PLC, to finance the capital expenditures for a prospective soy protein concentrate (SPC) plant in Central Ukraine,” IFC said on its website.
It is noted that IFC has already assisted the agricultural holding in conducting market research, preparing a business plan for the project, and assessing its commercial viability in order to interact with potential investors.
It is specified that the IFC Board of Directors plans to consider this project on December 20 this year.
As reported, in 2024, Astarta began investing in the construction of a plant for processing soybean meal into soy protein concentrate with a capacity of 500 tons per day (about 100 thousand tons per year) in the Globinsky Industrial Complex (Poltava region). The agricultural holding will invest over EUR76 million in equipment and technology and create 110 new jobs.
“Astarta and its structural unit Astarta Agro Protein signed the first investment agreement with the Ukrainian government to receive compensation from the state for significant investments. As part of the agreement, the government will provide the agricultural holding with a number of incentives, including exemptions from import duties on new equipment, import VAT on new equipment and income tax for up to 5 years.
IFC recalled that Astarta commissioned a soybean processing plant in Globyno in December 2013. In 2023, it processed 232 thousand tons of soybeans, 73% of which were grown by the agricultural holding, and produced 172 thousand tons of soybean meal. In the first half of 2024, the share of the plant’s own raw materials increased to 90%.
Soy concentrate is produced by processing soybean meal with higher added value. It is used as a raw material for animal feed production.
If approved, this will be IFC’s fifth investment in Astarta since 2012.
“Astarta is a vertically integrated agro-industrial holding company operating in eight regions of Ukraine. It includes six sugar factories, agricultural enterprises with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, an oil extraction plant in Globyno (Poltava region), seven elevators and a biogas complex.
In 2023, the agricultural holding reduced its net profit by 5.0% to EUR 61.9 million, and its EBITDA decreased by 6.1% to EUR 145.77 million, while revenue increased by 21.3% to EUR 618.93 million.
“In January-September 2024, Astarta increased its net profit by 35.1% to EUR75.60 million, EBITDA by 12.8% to $131.56 million, with revenue up 12.6% to EUR441.46 million.
The Japanese government will provide Ukraine with a loan of 471.9 billion yen ($3.08 billion at the current exchange rate) under the G7’s Emergency Revenue Assistance (ERA) initiative, Kyodo news reported on Monday.
It is noted that as of October 28, the G7 countries reached a final agreement to start providing assistance to Ukraine in the amount of about $50 billion and to distribute these funds, in particular, the EU will provide a loan of EUR 18.115 billion.
It is specified that each G7 country will conclude an individual loan agreement with Ukraine, distributing loans in installments from December 1, 2024, to the end of 2027. The loans will be repaid from the proceeds of Russia’s frozen assets, and Ukraine will not actually pay them back.
As reported, on October 25, the G7 in Washington announced that it had reached a consensus on a collective loan of $50 billion to Ukraine. Earlier, the United States said it would provide $20 billion under the ERA. Then, the EU confirmed plans to provide Ukraine with about EUR18 billion in 2025 in the form of new macro-financial assistance, the terms of which are tied to the Ukraine Facility.
On October 22, the UK also announced that it was providing Ukraine with a GBP2.26 billion (almost $3 billion at current exchange rates) military loan to purchase the necessary military equipment under the ERA.
Back in June, immediately after the G7’s decision on the ERA initiative, Canada announced the allocation of CAD5 billion ($3.6 billion at the current exchange rate) under the initiative.
The European Commission recalled that the consensus among G7 members was facilitated by the creation of a special Ukraine Loan Cooperation Mechanism (ULCM) by the EU, which will receive extraordinary revenues from frozen Russian sovereign assets and other voluntary contributions made by member states or third countries. These resources will then be used to repay the principal and interest under Ukraine’s relevant bilateral loan agreements with creditors.
The IMF, in its updated EFF program following the fifth review, noted that if the war ends at the end of 2025, Ukraine will need $33.1 billion of the $50 billion to support its budget: $19.1 billion next year, $9.2 billion in 2026, and $4.9 billion in 2027.
In a negative scenario, if the war continues until mid-2026, Ukraine’s budget will need all $50 billion to cover the deficit.
