Business news from Ukraine

EIB TO ISSUE EUR40 MLN TO UKRAINE TO FIGHT CORONAVIRUS

The European Investment Bank (EIB) plans to provide Ukraine with a loan of EUR40 million to fight coronavirus, the press service of the Ministry for Communities and Territories Development of Ukraine reports.
“Last week, Ukrainian Minister for Communities and Territories Development Oleksiy Chernyshov held an online meeting with the European Investment Bank. The parties discussed raising a loan of EUR40 million for a quick response and necessary measures to overcome the coronavirus in Ukraine,” the report says.
This loan will be provided within the framework of the ongoing Ukraine Municipal Infrastructure Program opened in 2014.
“On March 23, the ministry received an action plan from the EIB to provide the agreed loan. Now the parties are agreeing on the details and terms of cooperation,” according to the report.
It is noted that EIB representatives said they supported the strategy of the Ukrainian government and confirmed that for the whole world, and for Ukraine, it is also currently extremely important to use enough modern medical equipment to combat COVID-19.

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EIB READY TO REDIRECT SOME FUNDS ISSUED TO UKRAINE FOR FIGHT AGAINST COVID-19

The European Investment Bank (EIB) is ready to redirect funds issued for programs in Ukraine for fight against coronavirus, Foreign Minister of Ukraine Dmytro Kuleba has said.
“I spoke with the European Investment Bank, which is ready to redirect certain funds allocated for programs in Ukraine to measures to overcome the coronavirus,” he said in an interview with Interfax-Ukraine.
In addition, Kuleba said that at a meeting with the head of the mission of the International Committee of the Red Cross (ICRC) in Ukraine, Florence Gillette, he discussed the question of what kind of help the ICRC can provide to Ukraine in preventing the spread of coronavirus.
“We are ready to receive something as humanitarian aid, to purchase something, but this search is being conducted at all levels, in international organizations, in business contacts,” the minister said.
According to him, the entire system of the Foreign Ministry of Ukraine is now working on two fundamental tasks: the return of Ukrainians from other countries and the search for humanitarian assistance and procurement.

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UKRAINIAN PARLIAMENT RATIFIES AGREEMENT WITH EIB TO IMPROVE ROAD SAFETY

The Verkhovna Rada has ratified a financial agreement between Ukraine and the European Investment Bank (EIB) to improve road safety. Some 334 deputies voted on Thursday for corresponding draft law No. 0014 of December 13, 2019, the parliament’s website said.
According to the text of the explanatory note, the agreement stipulates the provision by Ukraine of the EIB state guarantee to ensure the implementation of the project “Improving Road Safety in Ukrainian Cities.”
It is expected that the project will reduce the number of accidents and the severity of their consequences; increase the share of travel by bicycle, on foot or by public transport in the total volume of traffic and, accordingly, reduce the number of trips by private transport. In addition, the project will reduce the time spent by passengers at public transport stops, as well as the operating costs of road transport owners and emissions of harmful substances into the air.
According to Minister of Infrastructure Vladyslav Krykliy, the estimated cost of the project is EUR 177 million, of which an IEB loan is EUR 75 million (the agreement was signed on July 9, 2018), a loan from the European Bank for Reconstruction and Development (EBRD) is estimated at EUR 75 million (it is planned to sign the agreement in 2020 year), and own funds of cities and technical assistance totaling EUR 27 million.
“Improving safety for the cities of Lviv, Odesa, Dnipro, Kharkiv, Kyiv, Kamenetz-Podilsky includes improving the infrastructure of road intersections, infrastructure for cyclists and public transport, arranging facilities to reduce speed in settlements and near schools, etc.,” he said on his Facebook page on Thursday evening.

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EPICENTER K NEGOTIATING EUR 100 MLN LOAN WITH EIB TO EXPAND AGRICULTURAL EQUIPMENT FLEET

Epicenter K LLC (Kyiv) is negotiating the financing of a project to expand grain storage infrastructure, purchase of agricultural machinery and grain hoppers for the amount of over EUR 100 million with the European Investment Bank (EIB).
“The Epicenter K company is in the negotiation process with the European Investment Bank regarding obtaining a loan of more than EUR 100 million, but the company has not yet made a final decision on obtaining it,” the company said.
As reported, the EIB board of director on November 14, 2019 approved a project to provide financing for the expansion of grain storage infrastructure, the acquisition of new agricultural machinery and equipment, as well as railway cars for grain transportation.
The bank expects that, thanks to the project, 1,100 additional permanent jobs will be created for new operations, 300 workers will be hired for the construction period and 15-20 local subcontracting small and medium-sized enterprises will be involved.
The EIB also indicates that this operation is covered by the political risk guarantee of the European Union for EIB loans outside the EU.
Epicenter K has been developing the agricultural business since 2016. The agricultural division of the Epicenter K group of companies cultivates over 120,000 hectares of land in Vinnytsia, Khmelnytsky, Ternopil, Cherkasy, and Kyiv regions. The group also includes 20 livestock farms and six silos. Epicenter K plans to reach one million tonnes of grain storage capacity.

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EBRD AND EIB READY TO PROVIDE EUR 900 MLN LOAN TO UKRAINE FOR ROADS IN 2020

The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are ready to provide a targeted loan in the amount of EUR 900 million to Ukraine to develop the road sector, acting Head of the State Automobile Roads Agency of Ukraine (Ukravtodor) Slawomir Nowak has said. “I have already held negotiations with the EBRD and the EIB. A new credit line will be opened for Ukraine in the amount of EUR 900 million,” he said.

According to Nowak, the negotiations were very difficult, but trust in the state and its managers ultimately allowed for a positive solution.

“Within the framework of this new credit line, we will also offer to finance the Weight-in-Motion system at the next stage,” the acting chief of Ukravtodor said.

Nowak also said that he recommended that Minister of Infrastructure Vladyslav Krykliy eararks funds from the Road Fund allocated for road safety to the installation of the Weight-in-Motion (WiM) system.

As reported, Ukravtodor launched in test mode the first two WiM points on the Kyiv-Chop highway.

On September 11, the Rada adopted at second reading a bill allowing automatic recording of violations during weight monitoring on roads.

Weight-in-Motion (WiM) systems will fulfill a function of pre-selection for inspectors of the State Service of Ukraine for Transport Safety until a law allowing automatic weight and weight control on roads is passed.

Ukravtodor previously planned in October to launch the first six WiM points at the entrances to Kyiv. In general, it is planned to install up to 100 WiM points.

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EUROPEAN INVESTMENT BANK ISSUES EUR 200 MLN LOAN TO UKRAINE

The European Investment Bank (EIB) has issued a long-term low-interest loan in the amount of EUR 200 million to the Cabinet of Ministers of Ukraine within the Early Recovery Program, Head of the EIB Representation in Ukraine Jean-Erik De Zagon has said, when opening six repaired medical facilities in Kharkiv.
According to him, the funds are used to invest in the restoration of key infrastructure objects in Donetsk and Luhansk regions, as well as to ensure adequate living conditions for internally displaced persons.
He noted that the purpose of the loan is to improve the living standards of people in Eastern Ukraine.
“Our Early Recovery Program was specifically developed to help people of Eastern Ukraine, including thousands of IDPs, deal with tough challenges they are facing following the armed conflict. This EUR 200 million program is part of our overall EUR 5.8 billion portfolio in Ukraine. It aims at improving living standards for people in terms of housing, healthcare and education. And it is a convincing proof that as an EU Priority Partner, Ukraine can greatly benefit from EU support and financing. We are happy to provide help where it is needed most and that it will directly impact the lives of ordinary citizens,” the banker said.

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