Business news from Ukraine

Ukraine to receive $1.5bn loan from WB under Japanese government guarantees, Ukrainian Prime Minister Denys Shmygal has said

Ukraine will receive a $1.5 billion loan from the World Bank (WB) under the guarantees of the Japanese government, Ukrainian Prime Minister Denis Shmygal said.

“Only the relevant agreement was signed by the World Bank and the Ministry of Finance during our meeting with World Bank Vice President Antonella Bassani,” Shmygal wrote in Telegram on Thursday.

According to him, the funds are envisaged to strengthen social protection, help people during the war and restore the economy.

The head of the Ukrainian government said that in total, the WB group together with partners mobilized $34 billion to help Ukraine, of which more than $22 billion has already entered the budget.

“We are especially grateful for PEACE in Ukraine, the largest investment project in the Bank’s history, which helps finance social payments and pensions. We appreciate our close cooperation and look forward to further joint projects for the reconstruction and development of Ukraine,” Shmygal wrote.



The World Bank will consider providing EUR 300 million to Ukraine for improving energy efficiency, First Deputy Prime Minister, Minister of Economy Yulia Svyrydenko has said. “The good news is that on December 17, the World Bank Board will consider providing EUR 300 million for Ukraine within the framework of the second tranche under the Second Economic Recovery Development Policy Loan for Ukraine. These funds will be used primarily to finance the presidential project Energy Independence,” Svyrydenko wrote on her Facebook page.
The large-scale program of thermal modernization of housing is designed to significantly reduce the energy consumption of Ukrainians and, accordingly, reduce energy costs. Program participants will be able to reduce energy consumption and utility bills by 60%. Already in 2022, it is planned to cover up to 5,000 apartment buildings throughout the country.
The minister of economy also said that at the meeting with World Bank Regional Country Director for Eastern Europe (Belarus, Moldova and Ukraine) Arup Banerji key issues of deepening the partnership were discussed.
“We are jointly preparing a systemic document on the areas of cooperation. This is Partnership Strategy for 2022-2026. The focus is on the economic development of Ukraine, macro-financial sustainability, the introduction of e-governance and digitalization, the expansion of export markets and the strengthening of the competitiveness of Ukrainian green technologies,” Svyrydenko said.
It is also expected that the World Bank will implement investment projects in the fields of mechanical engineering, energy, information technology, agriculture and construction.
As the minister of economy said, an important area of cooperation is increasing the competitiveness of foreign trade. The Ministry of Economy is working to legislatively strengthen and improve the efficiency of the Export Credit Agency (ECA). The institution’s activities should contribute to increasing the presence of Ukrainian exporters in foreign markets.
Another priority, according to the minister, is the expansion of public-private partnerships and the overall improvement of the business climate. Cooperation with the World Bank is important for Ukraine not only due to financial support of important projects, but also as expert assistance in the implementation of reforms. Strengthening national economic institutions is the way to strengthen the Ukrainian economy, she said.



The Ministry of Health of Ukraine has asked the World Bank to increase the amount of funds previously considered for Ukraine in order to purchase vaccines, according to the agency’s website.
“Now the Ministry of Health has two priority areas in the fight against COVID-19 from the point of view of the healthcare system. The first one is to ensure maximum testing with PCR tests. Therefore, in addition to our large laboratories, it is important to consider the possibility of equipping laboratories for 200-250 PCR tests directly in hospitals. The second priority is the vaccine. We turned to the World Bank with a request to increase the amount of funds that were previously considered for allocating to Ukraine for the purchase of vaccines,” Minister of Health Maksym Stepanov said.
He expressed hope that these two areas will become the basis for new strategic projects between the Ministry of Health and the bank.
Arup Banerji, the World Bank Regional Country Director for Eastern Europe (Belarus, Moldova and Ukraine), in turn, promised “to cooperate with the ministry’s team to provide all the resources necessary to implement these directions.”

, , ,


Ukraine’s Minister of Finance Serhiy Marchenko has pointed to the delay in the $ 350 million tranche from the World Bank, in general expects to receive $700 million in two tranches, and is also finalizing the social support project.
“We expect them. On September 1, we made the largest payment of $2 billion and did it on our own, without financial support from international partners, which we expected. We are ready for different scenarios, but we count on the support of our international partners,” he said in an exclusive interview with the Interfax-Ukraine agency.
The minister stressed that Ukraine expects to receive these funds this year, as this will allow timely financing of the accumulated expenses.
He explained that initially it was about $1 billion.
“At first we talked about $1 billion through DPL, but due to the significant burden on the World Bank budget due to the significant number of requests from all member countries, this amount was reduced to $700 million, and a separate social assistance project, which we are now finalizing,” Marchenko said.



The World Bank has provided recommendations to the National Strategy for the Development of Broadband Access to the Internet in Ukraine for 2020-2025.
According to a posting on the website of the Ministry of Digital Transformation of Ukraine, the World Bank’s vision is that high-speed broadband access should be countrywide, reliable and financially affordable to every citizen of Ukraine.
The consultants recommend providing in Ukraine until 2025: 4G coverage for 95% of the population; full 5G coverage along major road and rail routes; connection to broadband access at a speed of 1 Gbps for all social infrastructure facilities providing services to the population; and availability of high-speed broadband access (at least 100 Mbit per second) for all households.
According to the calculations of the World Bank, $350-450 million is needed to cover all settlements with high-speed networks, which includes both funds from private companies and government aid, which should be about half of the mentioned amount.
When developing the National Strategy for the Development of Broadband Access, the specialists of the Ministry of Digital Development regularly consulted with the World Bank. After all, this authoritative organization, which is a project of the European Union, already has experience of such work, for example, in Georgia.
The World Bank recommended that smart technology can reduce road deaths by 8-10%, reduce travel time by 15-20%, and speed up the response time of ambulances by 25-30%.
In addition, according to the World Bank recommendations, raising Internet penetration in all developing countries allowed more efficiently settle 75% of the economic losses that occurred due to COVID-19.
The World Bank also said that in implementing the 5G communications standard, the government’s role in defining requirements and maintaining network security at the national level will be paramount. It is recommended that a 5G certification framework be defined and established, which should include the minimum security requirements implemented in operators’ networks, as well as measures to implement certification procedures for the various defined network elements. It is also recommended that the National Cybersecurity Center be involved in developing the certification.
Implementing and using certified equipment and procedures for 5G is important from a cybersecurity perspective and therefore should be continuously encouraged, the World Bank said.
The World Bank recommended covering 90% of territories with 4G networks by 2023, and increasing coverage to 99% by 2025. Also, by 2023, it is recommended to ensure uninterrupted coverage of 50% of main roads and railways with 5G communication, and by 2025, increase the coverage to 90%.
The penetration of broadband Internet coverage for households at a speed of at least 100 Mb per second by 2023 should be at least 80%, and by 2025 it should reach 100%.
The implementation of this strategy, taking into account the recommendations of the World Bank, will be a positive step in the partnership between Ukraine and the EU, the bank said.
The ministry said that the calculations of the World Bank coincide with the ministry’s own calculations, carried out in the preparation of the National Strategy for the Development of Broadband Access in Ukraine for 2020-2025.



The World Bank by February 2019 plans to launch the project entitled “Accelerating Private Investment in Agriculture Program,” the press service of the Agricultural Policy and Food Ministry of Ukraine has reported. “The project will be implemented in many sectors by the Agricultural Policy and Food Ministry, Infrastructure Ministry, Ecology and Natural Resources Ministry, Economic Development and Trade Ministry. The approximate cost of the project is $753 million, including the World Bank’s commitment of $200 million,” the ministry said.
According to the ministry, the project is aimed at harmonizing Ukrainian legislation in accordance with EU requirements, improving the government agricultural support system, diversifying the production of the agricultural sector, developing rural areas, strengthening the capacity for food safety, solving logistical issues, improving land use quality, and improving management of water resources, improving access to agricultural resources, improving access to financial resources and risk management tools.
The project coordinator is the Finance Ministry, which will receive a previously agreed loan amount and distribute it among the implementing ministries.

, , , ,