Business news from Ukraine

Concorde Capital to carry out large-scale reconstruction of Kyiv Bus Station

Investment company Concorde Capital is implementing a project to reconstruct the Kyiv Bus Station, located near the Central Railway Station (Vokzalna Metro Station), better known as the Yama, Concorde Capital founder Igor Mazepa said on Wednesday.

“My colleagues and I came up with an idea, why don’t we go in… take a closer look at the transportation market from the investment point of view… At Concorde, we decided to enter this market through infrastructure projects… (to start) with the reconstruction of the well-known Kyiv bus station, which is located in the city center near the railway station,” Mazepa said during a video presentation at the conference “Reforming Passenger Bus Transportation in Ukraine.”

According to the investment company, the passenger flow of this station is about 10 thousand people per day, plus or minus 400 bus trips.

Mazepa noted that the central bus station, in fact, was “in a terrible state” until recently.

“Now our task, our mission, is to carry out a human reconstruction in accordance with European standards. I can assure you that you will soon see the changes that will take place there,” Mazepa said.

At the same time, the founder of the investment company noted that the reconstruction would require significant capital investments.

“We are not afraid of this and we can guarantee that our customers and passengers will soon receive the highest quality service. Of course, we will ask that such services be paid for fairly,” Mazepa said.

According to Igor Sotnyk, director of Concorde Capital’s investment banking department, the reconstruction of the bus station is planned in two stages. The first stage, which separated bus and car traffic, has already been completed. The second stage involves work on the improvement of the bus station building in accordance with the concept that is currently being developed.

“We are now finalizing the mix of tenants who will be present there according to the needs of passengers. There will be a waiting area, a food court, a high-comfort zone, a children’s room, a first-aid post, and commercial premises,” Sotnyk said, adding that a working draft will be prepared after the concept is finalized.

In addition, the possibility of creating services for carriers – service stations and car washes – is being considered. The technical possibilities for their placement are being studied.

Sotnyk also said that the exact timing of the start of work will be known after the working documentation is ready, but expressed hope that this could happen in early 2025.

Mazepa estimated the legal road transportation market in Ukraine at almost UAH 7 billion. According to him, taking into account illegal transportation and those from which taxes are not paid, the real size of the market is “many times larger.”

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Denmark to allocate additional EUR380 mln to rebuild Ukraine’s infrastructure

The Danish government has decided to allocate additional EUR380m for the reconstruction of Ukraine’s infrastructure and construction of wind farms, Danish Business Minister Morten Bedskou said at a meeting with Ukrainian President Volodymyr Zelensky in Kiev.

According to the press service of the President, during the meeting, the Danish Minister of Entrepreneurship noted the opportunities for strengthening cooperation between the countries and informed about the decision of his government to allocate additional funding for the Ukrainian mechanism of the Danish Export and Investment Fund.

As noted, this mechanism fully covers the risks of Danish exporters and investors, as well as provides financing to Ukrainian private companies and state institutions.

For him, the Danish government will allocate almost EUR380 million more for the restoration of critical infrastructure and construction of wind farms.

At the meeting, Zelensky and Bedskou paid special attention to the prospects of expanding Danish business and attracting new investments in Ukraine.

In turn, the President of Ukraine emphasized the importance of the fact that the Minister of Entrepreneurship of Denmark during his visit to Kiev is accompanied by the heads of Danish companies – the largest investors in the economy of Ukraine.

“Your activity in the Ukrainian market is striking. With your investments you set an example for other partners and investors”, – emphasized Zelensky.

As reported, during the recent visit of the First Lady of Ukraine Olena Zelenska to Denmark, she asked Danish partners for additional funding for the Danish Export and Investment Fund, the funds from which come to help Ukraine.

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Netherlands allocates additional EUR1 bln for military aid and EUR400 mln for reconstruction to Ukraine

The Netherlands has allocated an additional EUR1 billion in military aid and EUR400 million for reconstruction to Ukraine in addition to the commitments under the bilateral security agreement, President Volodymyr Zelenskyy said after a phone conversation with Dutch Prime Minister Mark Rutte.

“In a telephone conversation, Prime Minister Mark Rutte has just announced that the Netherlands has allocated another EUR 1 billion for military assistance to Ukraine and EUR 400 million for reconstruction. This is in addition to the obligations under our bilateral security agreement,” Zelenskyy wrote on his Telegram channel.

The Head of State expressed gratitude to the Prime Minister and all the people of the Netherlands.

According to him, during the conversation, they also discussed joint work with partners to accelerate the supply of artillery shells, ammunition and air defense systems.

I thanked him for the effective Justice for Ukraine conference in The Hague and the launch of the Register of Damages as a result of it. He spoke about the preparations for the Peace Summit in Switzerland and invited the Netherlands to join. We also discussed the necessary efforts to ensure that this event is supported by as many countries as possible,” Zelenskyy wrote.

For his part, Rutte said that his country would provide Ukraine with additional military assistance worth EUR1 billion in 2024 and allocate EUR3 billion in defense support for 2025.

“The Netherlands will provide an additional EUR1 billion in military support this year. This is in addition to the EUR2 billion already approved by the authorities. We have also decided that we will allocate EUR3 billion for military support for the next year,” Rutte wrote on social network X.

In addition, according to the Prime Minister, the Netherlands is using EUR400 million “to support the Ukrainian economy and repair vital energy infrastructure.”

Rutte reminded that the Netherlands continues to make efforts to deliver more ammunition and air defense equipment to Ukraine faster, together with international partners, including Denmark and the Czech Republic.

In early March, the Netherlands signed a 10-year bilateral security agreement with Ukraine. According to Rutte, his country will provide Ukraine with assistance and support “across the entire spectrum of defense cooperation, as well as in the areas of reconstruction, sanctions support, and the fight for justice.”

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Ukraine can raise EUR 200 mln in grants from France for infrastructure reconstruction

The Cabinet of Ministers of Ukraine has approved attracting EUR200 million in grants from France for the reconstruction and restoration of critical infrastructure.

According to Taras Melnychuk, a representative of the Cabinet of Ministers in the Verkhovna Rada, who posted on Telegram, the decision taken at a government meeting on Tuesday approved a draft grant agreement between the governments of Ukraine and France to help restore and maintain critical infrastructure and priority sectors of Ukraine’s economy.

The agreement provides for the attraction of grant funds from the French government in the amount of EUR 200 million. They will be used to reconstruct and restore critical infrastructure in sectors such as healthcare, infrastructure, energy, agriculture, water supply and sanitation, waste management, demining, and digital technologies.

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Japan plans to give Ukraine more than $100 mln for reconstruction

Japan plans to donate 15.8 billion yen (about $106 million) to Ukraine for the country’s post-war reconstruction, particularly in the areas of demining, agriculture, bio- and information technology, Kyodo News reports.

“Japan will pledge 15.8 billion yen ($106 million) to help rebuild Ukraine after war damage in seven areas, such as infrastructure reconstruction and demining,” the agency wrote on Sunday, citing sources familiar with the situation.

It is expected that “at the Japan-Ukraine Conference on Promoting Economic Reconstruction to be held on February 19 in Tokyo, the two governments will agree on Japan’s participation in the post-war reconstruction of Ukraine and sign more than 10 memorandums of cooperation.”

The conference will be attended by the prime ministers of the two countries, Fumio Kishida and Denys Shmyhal, as well as representatives of industry and business.

According to the agency, the aid “will be used to provide demining equipment and temporary bridges, as well as other resources urgently needed to help rebuild the war-torn country… The seven areas of cooperation also include agriculture, humanitarian relief, biotechnology and industrial development, information technology, as well as governance and anti-corruption measures.”


Ukrainian cement should become key material for reconstruction – Ukrcement

Ukrainian-made cement should become a key material for reconstruction, and at the peak of reconstruction the market could reach 15 million tons of products, or more than $1 billion a year, according to Ukrcement.

“In the production of building materials, we can really compete with foreign producers by taking advantage of logistics. In addition, the average price of cement in Ukraine is more than 30% lower than in other Central and Eastern European countries. Tales of “cheap imports” are just private interest,” the association said.

At the same time, the cost of cement has increased significantly over the past three years. According to Ukrcement, since 2020, the cost of energy has increased by more than 200%, coal by 280%, and transportation by 317%. At the same time, energy and logistics account for 72% of the cement production cost structure.

The association believes that the state has two main tasks in managing the recovery: maximum transparency in the selection of contractors and localization.

The potential of Ukraine’s cement industry is 13.6 million tons of cement annually, said Lyudmyla Krypka, executive director of the Ukrcement Association. At the same time, companies are preparing for consumption growth and are planning to expand their capacities.

“The cement industry is probably the only heavy industry in Ukraine where players have modernized their production facilities to meet the quality and ensure the required production volumes. We are preparing for a possible increase in cement consumption. At least two companies already have plans to build additional clinker kilns,” the expert told Interfax-Ukraine.

Ukrcement Association was established in January 2004 through the reorganization of the Ukrainian Concern of Cement Industry Enterprises and Organizations Ukrcement.

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