Business news from Ukraine

Government of Republic of Korea may allocate $52 bln for Ukraine’s reconstruction

The government of the Republic of Korea plans to support the public and private sectors in the implementation of Ukraine’s reconstruction projects worth $52 billion, The Korea Herald reported, citing South Korean Presidential Secretary for Economic Affairs Choi Sang-mok.
“In May, through the channel of intergovernmental cooperation, Ukraine asked Korean companies to participate in about 5,000 construction projects estimated at $20 billion,” The Korea Herald quoted the secretary as saying on Friday.
He said the Korean government will begin evaluating construction sites where modular units will be built to quickly build infrastructure such as schools, housing and hospitals. The sites will be inspected with official development assistance funds.
In addition, the Republic of Korea plans to provide technical assistance for the rehabilitation of water infrastructure, and to supplement the humanitarian aid offered for the Kakhovka hydroelectric plant, which was undermined by Russian occupiers.
The secretary also added that support will also be provided for the private sector-led reconstruction project, which is currently estimated to cost about $32 billion.
“The project covers various sectors, including: nuclear power plants with small modular reactors, airport reconstruction, construction equipment, rail transportation and information technology,” the statement said.
“Although the war continues and the reconstruction work is in its early stages, we will prepare for our role in the reconstruction project as diligently as the Ukrainian government wishes,” Choi Sang Mok emphasized.


Borodyansk Center for Social and Psychological Rehabilitation of Population to Receive UAH 200.6 Mln for Reconstruction

The Cabinet of Ministers of Ukraine has allocated 200.6 million UAH for the reconstruction of the Borodyansk social and psychological rehabilitation center.
According to the representative of the Cabinet of Ministers in the Verkhovna Rada Taras Melnychuk in Telegram, the relevant decision was made at the government meeting.
In particular, the Ministry of Veteran Affairs allocated 200 million 633.87 thousand UAH from the fund to eliminate the effects of the armed aggression on the budget program “Measures for psychological assistance, social and professional adaptation, provision of sanatorium treatment and development of sports of war veterans, those who have rendered special services to the homeland, the family members of such persons, victims of the Revolution of Dignity, family members of the deceased (deceased) war veterans, family members of deceased Defenders and Defenders of Ukraine and production for them forms of certificates
As reported, in May the Cabinet of Ministers reallocated UAH 100 million to provide funding for the reconstruction of the Borodyansk center of social and psychological rehabilitation.

Ukraine’s reconstruction will be more effective if funds used transparently

Ahead of a conference on Ukraine’s reconstruction, G7 Ambassadors met with the Association of Ukrainian Cities, representatives of Transparency International, DEJURE Foundation, Anti-Corruption Action Centre and RISE Network Ukraine to discuss the importance of autonomous local governance, strengthening anti-corruption institutions and transparency of reconstruction funding, the G7 Reform Support Team in Ukraine said in a statement.
“Decentralization has been a major reform success for Ukraine, and autonomous local government has become a key part of Ukraine’s resistance and sustainability. It is important that local governments are empowered and equal partners in reconstruction planning,” the microblogging Twitter stresses.
It is noted that in order to get the most out of reconstruction funding, transparency and accountability are key. Citizens, civic organizations, and the media must have access to data on reconstruction plans, funding allocations, and implementation, and journalists, civic organizations, and anti-corruption agencies must be able to investigate the use of funds.
“Empowered local authorities, transparent and accountable funding, and strong anti-corruption institutions will all be needed to ensure that Ukraine’s reconstruction proceeds as quickly and effectively as possible,” the G7 Ambassadorial Group emphasized.

“Metinvest” plans to supply steel for Ukraine’s reconstruction together with Italian companies

Mining and Metallurgical Group Metinvest intends to participate in the post-war reconstruction of Ukraine together with the Ukrainian government and Italian business, the company’s CEO Yuri Ryzhenkov said at the April 26 conference on the reconstruction of Ukraine held in Rome with the participation of Ukrainian Prime Minister Denis Shmygal and Italian Council of Ministers Chairman Giorgi Meloni.
According to a press release Friday, during the discussion, Denis Shmygal noted that Ukraine looks forward to Italy’s participation in joint infrastructure, logistics, manufacturing and commercial projects to restore Ukraine from the effects of the war.
“The hundreds of Italian and Ukrainian companies, businesses, associations that are here today are a signal that we have a common interest in the reconstruction projects that, in particular, the president of Ukraine described today. We invite Italian companies to invest in Ukraine and implement reconstruction projects today”, – he said.
The Prime Minister added that Ukraine counts on 1 billion euros from the Italian agency SACE to urgently finance the reconstruction of energy, housing, humanitarian demining, critical and social infrastructure, support for small and medium businesses.
In his turn Yuriy Ryzhenkov said at the specialized metallurgical panel during the conference that Metinvest as a potential steel supplier considers the issues of strategic partnership with Italian companies in Ukraine. In particular, we are talking about cooperation in transport infrastructure (roads, bridges, seaports), energy infrastructure (production and supply of energy), social infrastructure (schools, hospitals, other public institutions).
“Ukraine has lost production of rails and slabs because of the destroyed factories in Mariupol. On the one hand, this is a problem because Italy was a major consumer of Ukrainian slabs. But on the other hand, it is an opportunity for Ukraine’s recovery, as these are the most obvious areas that require investment. One of the first drafts of Ukraine recovery plan, published last year, already contains initiatives in which Italian business may take part. And this is where Metinvest is ready to cooperate with it to implement the plan for Ukraine’s recovery,” the top manager, as quoted by the press service, stressed.
Moreover, Metinvest, in partnership with Italian companies, seeks to improve the technological level of metallurgical production in Ukraine and become part of the green transformation of the European industry. In particular, the matter concerns expansion of DR-okatysh production, the basic raw material for more environmentally friendly metallurgical production with the usage of electric arc furnaces. “Metinvest is considering a partnership with DRI d’Italia, a joint project of InvItalia and CEIP Scarl, a consortium of electric arc furnace steel producers.
However participation in these projects will require additional investments in production capacities. For example, modernization of some of the enterprises and construction of new facilities will require about $6 billion according to the National Recovery Plan developed and presented in mid-2022. Promising investment projects include modernization of iron ore processing technology and construction of DR-forming lines, construction of electric arc furnace facilities and new rolling mills.
In his speech at the conference, Ukrainian President Vladimir Zelensky emphasized that Ukraine has significant potential for the development of green metallurgy. “From iron ore to lithium and other resources that are in maximum demand by the world – all of it is Ukraine. From natural gas to titanium… We can give – and we will! – all that to global markets. In many ways we can replace companies from Russia – those who have chosen to work for war rather than for global development,” he said.
“Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Lugansk, Zaporozhye and Dnipropetrovsk regions, as well as in European countries.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it together.
Metinvest Holding LLC is the management company of Metinvest group.

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Germany to provide Ukraine with 111 mln euros for reconstruction

Secretary of State for Development, German government coordinator for international aid to Ukraine Jochen Flasbart, who arrived in Kiev yesterday, agreed on another aid package with Deputy Prime Minister Irina Vereshchuk and Ukrainian Finance Minister Serhiy Marchenko, the German Federal Ministry for Economic Cooperation and Development reported.
According to the report, the development ministry will invest an additional 111 million euros in housing for displaced people and in support for Ukrainian municipalities, such as renovating and equipping kindergartens, schools and hospitals.
“Rebuilding Ukraine will be a gigantic task for the country, its people and for us as an international community. And it is already beginning now, even if, unfortunately, there is no end in sight to the war. This long-term perspective and early planning is important. We want to show the people of Ukraine that we will continue to stand with them in solidarity. And we need to make sure that our short-term support matches the long-term recovery,” the secretary of state said.
He stressed that “this is also about investing in Europe’s future, because a strong economic Ukraine will also be an important pillar of our shared European prosperity.”
Flasbart is in Ukraine from April 18 to 19 as the federal government’s commissioner to coordinate international reconstruction efforts. In addition to talks with the Ukrainian government on expanding bilateral cooperation, the trip includes talks with Ukrainian civil society on strengthening anti-corruption measures and transparency, as well as an exchange of views with Ukrainian entrepreneurs. Flasbart is also holding talks with parliamentarians, the Ukrainian Association of Cities and Municipalities and the United Nations.
According to information, Berlin has provided 3.6 billion euros in civilian support to Ukraine since the start of Russia’s full-scale invasion last February.


Italy will continue to support Ukraine and will present plan for reconstruction of country

Italy will continue to support Ukraine and will present a reconstruction plan for the country on April 26, Italian Foreign Minister Antonio Tajani said.
“In a telephone conversation with Dmitry Kuleba, he confirmed his support for Ukraine,” he wrote on Twitter on Tuesday.
“On April 26, we will present a plan for the reconstruction of Ukraine. We will perform together with our best companies,” he specified.
Tajani said he is in constant contact with IAEA head Rafael Grossi and stressed the importance of protecting the occupied Zaporizhzhia NPP. “It is extremely important to protect the Zaporizhzhya power plant,” he wrote.
As reported, Ukrainian Foreign Minister Kuleba held a conversation with Tajani on Tuesday, during which the sides discussed new possible assistance that Italy could provide to ensure Ukraine’s victory over Russian aggression.
It was also reported earlier that a conference on reconstruction and rehabilitation of Ukraine will be held in Rome at the end of April.

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