Business news from Ukraine

Canada to provide expert support for restoration of 19 tergromads

Canada will provide expert support on social and economic recovery to 19 Ukrainian communities under the Community-Led Inclusive Recovery (CLIR) initiative, the press service of the Ministry of Community Development, Territories and Infrastructure said.

“The assistance of the CLIR initiative will allow communities to better understand the priorities of recovery, get the necessary knowledge and tools to develop effective inclusive recovery projects taking into account the needs of all groups of residents,” the press release quoted Deputy Prime Minister for Recovery – Minister of Community Development, Territories and Infrastructure Oleksandr Kubrakov as saying.

Communities in Kyiv region (Baryshevka, Glevakha, Boyarka, Velyka Dymyrka), as well as in Dnipropetrovsk region (Sofiyivska, Pershotravenska, Apostolivska, Zelenodolska) have been selected to participate in the program, Nikolaev (Bashtanka, Berezneguvatoe), Odessa (Shabovka, Belgorod-Dnestrovska), Chernigov (Kholmska, Korpska, Menska), Donetsk and Kharkiv (Bliznyukivska, Saventsy, Balakleya) oblasts.

The experts will provide the selected communities with support in strategic management and planning, building partnerships with international organizations and attracting external investments, developing social services, implementing sustainable development principles, and developing recovery plans and strategies.

The CLIR initiative is implemented by the SURGe Project, an international technical assistance project “Supporting Government Reforms in Ukraine” funded by the Government of Canada.

SURGe is a project on inclusive governance in Ukraine, implemented by Alinea International and funded by the Ministry of Foreign Affairs of Canada.

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Japan acquires large-sized equipment for Ukraine as part of support for energy sector

Japan has purchased large-sized equipment for Ukraine with a total capacity of about 200 MW, including 5 gas turbines and 7 large transformers, as part of its support for the energy sector.

The announcement was made during a meeting in Kyiv on Sunday between Ukrainian Energy Minister Herman Galushchenko and Japanese Foreign Minister Yoko Kamikawa. The equipment was purchased and delivered by the Japanese government in cooperation with UNDP and the Japanese International Cooperation Agency Jica.

“This is very important equipment. Some of it is still on the way, but two autotransformers have already been installed, and now we are talking about two more similar ones, as well as five gas turbine units and seven large transformers. We are talking about decentralization of the power system and an additional 200 MW of capacity,” Galushchenko said at a briefing after the meeting.

According to him, the equipment provided by Japan will be distributed throughout the country.

“This fully coincides with the goals of our national energy strategy aimed at decentralizing the energy sector,” the minister added.

In her speech, Yoko Kamikawa categorically condemned Russia’s ongoing attacks on civilian objects and the population and assured of full support for Ukraine.

“It is very important to support Ukrainians to protect them this winter. The equipment that Ukraine receives from us will benefit about 5 million of its citizens,” she said.

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USAID triples grant support for Ukrainian processing companies

The United States Agency for International Development (USAID) has tripled its grant support under the Competitive Economy of Ukraine program to $11 million, the Ministry of Economy reported on its website on Thursday.

It is noted that the decision was made taking into account the large number of applications and significant interest from processing enterprises.

The increase in funding will also increase the number of grants by about three times, to about 75.

It is specified that the grants will support businesses in the production of innovative products, modernization of production, reduction of manual labor, import substitution and export growth to fill niches previously occupied by Russian and Belarusian products, and localization of production of goods necessary for recovery.

USAID’s Competitive Economy Program supports Ukrainian businesses to improve their competitiveness in Ukraine’s domestic and international markets, helps build a simplified and transparent business climate, and provides Ukrainian companies with opportunities to take advantage of international trade.

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Sweden allocates $133 mln to Ukraine to support the population in winter

Sweden is donating 1.4 billion kronor ($133 million) to Ukraine, which will be used, among other things, to support the population in the winter.

According to the website of the Swedish public broadcaster SVG, the new support package was presented by Prime Minister Ulf Kristersson and Aid Minister Johan Forsell on Monday.

“This is the largest support so far in Sweden’s bilateral assistance to Ukraine,” Kristersson said at a press conference.

Of this package, 900 million kronor will go to the World Bank’s Ukraine Recovery Fund, which supports Ukraine’s energy, housing, healthcare and transportation infrastructure. In addition, money taken from Sweden’s aid budget will be used to purchase heaters and energy equipment. According to Forsell, this was the request made by the Ukrainian side to Sweden.

He also accused Russia of conducting “energy terrorism” against Ukraine. “Russia is deliberately targeting civilian infrastructure to ensure that civilians, who are already under severe pressure, will have an even harder time. With this package, we want to help Ukraine both build new and rebuild what has been destroyed,” Forssell said.

At the same time, Kristersson warned of the consequences if the EU countries fail to agree on an expanded long-term budget at this week’s summit in Brussels. “I still hope that everything will work out. But I want to emphasize that we are not talking about the usual European disagreements that we sometimes have, because then you just have another meeting later, and that would have huge consequences if we don’t agree,” he said.

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Ukrzaliznytsia will receive UAH 11 bln of budget support

Direct budgetary funding for Ukrzaliznytsia (UZ) in 2023 will amount to UAH 5 billion, of which UAH 3.5 billion has already been allocated over 10 months, and the government provides state guarantees for another UAH 6 billion for loans that the company takes out from international financial institutions, the Ministry of Finance of Ukraine has reported.

In particular, according to the Ministry of Finance, it is UAH 3.9 billion from the European Investment Bank (EIB) and UAH 2.1 billion from the European Bank for Reconstruction and Development (EBRD).

It is specified that out of the UAH 3.5 billion already allocated this year, almost UAH 3 billion has been allocated for the purchase of new passenger railcars, including the completion of payment for 100 passenger railcars ordered in 2021 and 44 railcars in 2023.

“The prepayment for the purchase of 44 new passenger cars was made on October 28 this year, including the supply of 9 new reserved seats. These will be the first new second-class cars purchased over the past 15 years and the first Ukrainian-made second-class cars,” Deputy Finance Minister Oleksandr Kava said in a release. He recalled that Russian second-class cars were previously purchased.

According to the Ministry of Finance, work is also underway to implement international projects aimed at restoring railway infrastructure: attracting a loan from the EBRD of up to EUR 200 million under the Emergency Support to Ukrainian Railways Project, a $25 million World Bank grant under the Restoration of Critical Infrastructure and Network Connectivity (RELINC) project, a EUR 37.6 million loan from France, and grant assistance from Switzerland for CHF 14 million.

As reported, this fall UZ signed a contract with Kryukiv Carriage Works (KVSZ, Poltava region) for the manufacture of 44 passenger railcars for UAH 1.951 billion with delivery by December 31, 2025.

By the spring of 2023, KVSZ had completed fulfilling Ukrzaliznytsia’s order for 100 passenger railcars under the contract signed in 2021 for more than UAH 3 billion, but pointed to late payment.

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Cabinet approves $1.2 bln to support social sector

The Cabinet of Ministers of Ukraine has approved attracting $1.2 billion from the International Bank for Reconstruction and Development (IBRD) to support the social sector, Prime Minister Denys Shmyhal said.

“Today we are making a decision that will allow us to attract $1.2 billion from the World Bank Group (IBRD) to support the social sector,” Shmyhal said at a government meeting on Friday.

According to him, these are funds under the guarantees of the Japanese government, which Ukraine will use for social protection of Ukrainian families and children, social protection of people with disabilities and other important social programs.

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