Business news from Ukraine

USAID delivers autotransformers to Ukraine

Samantha Power, Administrator of the U.S. Agency for International Development (USAID), has announced the delivery of seven autotransformers to Ukraine, which will help provide electricity to millions of people.

“Following Russia’s brutal attacks on Ukraine’s power grid, Ukraine needs critical assistance to keep electricity flowing to millions of Ukrainians across the country. USAID recently completed the delivery of seven autotransformers, a step toward expanding their energy capacity,” Power wrote on social media site X.

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USAID allocates $60 million to support Ukrainian agriculture

The United States Agency for International Development (USAID) is allocating 60 million dollars to support Ukrainian agriculture, USAID Deputy Administrator Isobel Coleman has said, Radio Liberty has reported.

According to Coleman, the aid package is aimed at implementing a new Harvest program to mitigate the impact of Russian aggression on agricultural production in Ukraine.

“The program aims to help Ukrainian agrarians improve production efficiency, make it more resilient and competitive in times of war, and along with that lay the groundwork for long-term sustainable development of the Ukrainian agribusiness sector. Under Harvest, USAID will help create a regulatory and business environment in Ukraine that unlocks the potential for innovation and helps leverage private business resources to help Ukrainian agribusinesses continue to feed their country and many other countries around the world,” USAID said.

Coleman noted that the Ukrainian agricultural sector remains one of the main drivers of the Ukrainian economy – in particular, it contributed more than 60 percent of export revenues in 2023. USAID adds that the Harvest program will be part of the Agriculture Sustainability Initiative in Ukraine (AGRI-Ukraine). Since July 2022, the Agency has invested more than $350 million in it, attracting another more than $370 million from other donors.

USAID Launches Two Healthcare Infrastructure Rehabilitation Projects in Ukraine

The USAID Health Reform Support (HRS) Project has launched two projects to restore medical infrastructure in 45 communities in Kharkiv and Zaporizhzhia oblasts.

According to the Ministry of Health, the project partners will be KBS Start LLC in Kharkiv Oblast and the Alliance for Public Health in Zaporizhzhia Oblast.

The projects will be implemented by December 2024.

In addition, within the framework of the project “Restoring Public Access to Health Care”, it is planned to cooperate with 36 primary health care centers.

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USAID launches program for 20 Ukrainian agricultural enterprises to develop exports

The USAID Rural and Agricultural Development Program has announced the launch of a program to co-finance 20 Ukrainian agricultural processing enterprises that intend to restore and develop their export potential, the press service of the Ministry of Agrarian Policy and Food reports.

According to the report, the competition is open to non-state (private) enterprises/companies that have export-oriented development strategies and are regular exporters.
The companies can receive co-financing to increase the volume of purchases and processing of raw materials, in particular, by attracting micro, small and medium-sized agricultural producers for long-term partnership. Grant recipients will also be able to introduce new grain processing technologies to increase productivity by at least 25%.

It is expected that with the grant funds, the companies will be able to develop a long-term export strategy and increase sales by 20% through 5 new export channels and markets for processed products and increase sales in foreign markets.

The USAID AGRO program will focus on restoring and strengthening processing capacities to produce value-added products for export, such as corn for feed and food; wheat for food, industrial and feed purposes; rye for industrial and feed purposes; industrial sunflower seeds; high oleic sunflower seeds; soybeans for industrial and feed purposes; varietal and regular cycle seeds.

The donor organization has drawn the attention of applicants to the fact that projects aimed at storing grains, oilseeds and pulses, including receiving, cleaning, drying, storing, and shipping grain by rail and road, are not eligible.

The application deadline is May 31, 2024.

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Ministry of Health of Ukraine and USAID have launched all-Ukrainian online patient survey

The Ministry of Health of Ukraine and the USAID Healthcare Reform Support Project have launched an all-Ukrainian online sociological survey of patients called “Patient Voice”.

According to the Ministry on its website, the survey will allow to explore the experience of Ukrainian patients with the medical system to assess the perception of changes in the healthcare system.

The Ministry of Health reminds that in March-September 2024, the Voice of Healthcare Workers survey will also be conducted.

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First factoring agreement signed under joint program of OTP Bank and USAID

OTP Bank and SVD-Development LLC have signed the first agreement on provision of factoring services under the joint program to support financing of Ukrainian business between OTP Bank and the USAID Project “Investments for Business Sustainability” (formerly USAID Financial Sector Reform Project).

The factoring agreement provides for financing in the amount of UAH 20 million for the supply of products by SVD-Distribution LLC to the network of a Ukrainian retailer of household appliances and electronics.

“Our company was established in difficult times – in November 2022. We decided not to postpone the implementation of the new project. Given our experience, the project is developing, creating jobs (16 people), gaining momentum, and we plan to grow in 2024, including through the OTP Bank and USAID program. Providing financial support, namely factoring on special terms, which we receive under the OTP Bank and USAID program, will help us replenish working capital for the supplied household appliances to the chain of stores and provide additional resources and opportunities for further development. Given the lengthening of logistics chains, our project needs just such a financing instrument,” said Natalia Teslenko, Managing Director of SVD-Distribution LLC.

Olga Volkova, Director of the Sales Department for Medium and Small Corporate Clients of OTP Bank, said that a significant number of corporate clients, especially large companies, when concluding agreements with suppliers, ask for a certain delay in payments for the delivered goods, which can reach 90 days and significantly increases the need for working capital for their partners. “Factoring allows the supplier to receive funds for its goods in the form of a tranche from the Bank immediately after delivery, without waiting for the buyer to pay. This is an effective means of quickly replenishing working capital, which, I emphasize, does not require collateral. It is especially beneficial and convenient for MSMEs, and partial compensation of the interest rate under the OTP Bank’s program with USAID makes it even more economically attractive. Therefore, companies that provide deferred payments for the supply of their goods and need working capital to finance such cash gaps are welcome to apply to the Bank and receive financing at a reduced interest rate,” she emphasized.

The USAID Project “Invest for Business Resilience” increases the supply of financing for businesses by working with a wide range of financial intermediaries, including banks, leasing, insurance companies and others, who raise funds and channel them into effective investments. “We help to unlock access to financial products for MSMEs on acceptable terms to support their businesses. As part of our joint program with OTP Bank, we facilitate access to affordable factoring financing, as this tool has been successfully used in Europe and other parts of the world. It improves business cash flow and frees up funds associated with unpaid invoices. The Business Resilience Investment Project expects to increase the number of factoring transactions and will continue to support the development of the factoring market in Ukraine,” said Yulia Vitka, Acting Chief of Party of the USAID Business Resilience Investment Project.

To learn more about SME factoring financing under the joint program of OTP Bank and USAID, as well as to apply for the service, please follow the link.

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