The board of directors of British-based Ferrexpo Plc, which controls in Ukraine, in particular, the Poltava and Yeristovo mining and processing plants (GOK), has approved an increase in the level of financing for the company’s humanitarian fund by $5 million, to $12.5 million.
“The decision to approve additional funding has been made to ensure that the group’s management team is able to continue to respond in an effective and timely manner as the humanitarian crisis unfolds in Ukraine, with assistance being provided to communities across the country,” the group said on its website.
“More recent projects that the group has assisted through the fund, as well as additional funding via the group’s operating subsidiaries, have included the following: the purchase of power generators, fuel, water tanks, and food supplies; purchasing of ambulances for hospitals, as well as equipment for the treatment of wounds; renovation work and provision of facilities in local communities that are being used for accommodation; assisting in the delivery of humanitarian goods from Europe to Ukraine, and the relocation of animals from zoological parks in eastern Ukraine; and the purchase of electronic equipment to assist in documenting the damage being inflicted on communities across Ukraine,” the report says.
“Our efforts through our humanitarian fund are focused on providing direct and relevant financial support to a number of initiatives as we become aware of them, utilizing our experience of operating in Ukraine, and our wide and diverse business network to source goods and services for those in need. The nature and scope of the projects requiring assistance varies from day to day, and we are proud to be able to support communities across Ukraine at this difficult time,” Jim North, the CEO of Ferrexpo, said.
Great Britain, Canada, Sweden, Switzerland and the United States are planning to create a fund at the end of January 2022 to help Ukraine with financing of GBP 35 million over three years.
“We are talking about the creation of an international fund ‘Partnership for a Strong Ukraine.’ This is a common initiative of Great Britain, Canada, the United States, Switzerland and Sweden. The official start of the work of the fund is planned this month. The agreement is to be signed on January 31,” the Ministry for Reintegration of the Temporarily Occupied Territories of Ukraine press service said.
The goal of the fund is to support long-term sustainable development and increase the resilience of the communities affected by Russian aggression, prevent further escalation and prepare for a smooth and unhindered social, economic and political reintegration of the temporarily occupied territories.
According to the statement, the main projects to be implemented in 2022 with the help of the Fund will be: projects on energy efficiency, strengthening and viability of communities.
US Eximbank has tentatively agreed on the total amount of financing for construction of two new power units using AP1000 technology of the American company Westinghouse, further negotiations are underway, Head of Energoatom Petro Kotin has said.”Financing is provided through the US Eximbank. The total amount of financing for two power units has been preliminary agreed, but there is still a long procedure to make a final decision in order to receive this money,” Kotin said at a briefing at the international conference Atomic Opportunities for National Development, held in Kyiv on Monday.At the same time, he specified that “both the American and Ukrainian shares are being financed.” At the same time, he did not name the amount of funding.In the Energoatom’s presentation on nuclear power development, presented at the conference, the amount of construction of one power unit is indicated approximately in the range of $5 billion.At the same time, Energy Minister Herman Haluschenko noted that conditions for provision of financing that are favorable for Ukraine, are being considered.”I would not like to specify anything before making a final decision, but I will say: we are talking about the use of funds for 18 years at very low interest rates,” he said, adding that “now we are talking about the first tranche of financing for two units.”As reported, Westinghouse (USA) and Energoatom signed two cooperation agreements providing for the start of projects for construction of two new power units at Khmelnytsky nuclear power plant (KhNPP) using AP1000 technology.As part of the September visit of the President of Ukraine to the United States, Energoatom and Westinghouse Electric signed a memorandum on construction of five nuclear power units in Ukraine. The cost of the project will be about $25 billion.
JSC Ukreximbank did not find any facts of terrorist financing when issuing a loan of $60 million to companies whose beneficiary is a citizen of Ukraine with the status of an internally displaced person, Serhiy Briukhovetsky, acting chairman of the bank’s board Serhiy Yermakov said. “At the time the loan was issued, the borrower, Mr. Briukhovetsky, went through the proper KYC verification procedure, within which the bank did not reveal information that would indicate the existence of criminal cases and proceedings in connection with the fact of holding shares in the company, including registered in uncontrolled territories,” he said at a press briefing at the Interfax-Ukraine agency.
For clarification, the bank received the client’s consent to disclose information that may constitute banking secrecy, Yermakov added.
According to the bank, as part of the check of the borrower, it was revealed that Briukhovetsky owns the corporate rights of three companies registered in the territory not controlled by Ukraine: Gorspetslift (50%, Horlivka), Dikon LLC (24%, Bakhmut), Spetsremmash LLC (16.6%, Horlivka). He also owned 45% of Eastern Donbas LLC (Horlivka), which ceased operations in 2011.
According to Yermakov, in April 2021 Ukeximbank provided a loan of $60 million to the companies Wholesale Network 2011 LLC and Slavian LLC, the beneficiary of which is Briukhovetsky. The loan was issued for the acquisition of corporate rights and the completion of the transaction for the purchase of the Sky Mall trade center in Kyiv. The total sum of the purchase is $80 million.
Thus, $39 million of the loan was used to refinance the Wholesale Network 2011 loan obligations in two Ukrainian and one European banks. Another $21 million was used to complete the acquisition of Sky Mall. In addition, Briukhovetsky contributed $20 million at the expense of his own funds and the funds of a related company – Sky Finance LLC.
“At the request of the bank, the borrower provided the conclusions of professional lawyers, including the British, registered with the Solicitors Regulation Authority, on the settlement of corporate conflicts and lawsuits … The availability of an arbitration award in the case of Estonian businessman Teder Hillar did not jeopardize the borrowers’ ownership of Sky Mall,” Yermakov said.
According to him, the entire complex of structures and the parking space of the Sky Mall shopping center are pledged on the loan. In addition, the bank received a guarantee from Briukhovetsky.
Kyiv Mayor Vitali Klitschko met with a delegation from the European Bank for Reconstruction and Development (EBRD) headed by Odile Renaud-Basso, where the sides discussed further cooperation in the implementation of environmental and infrastructure projects in the Ukrainian capital.
“This year, we plan to complete the repayment of loans under the 2007 loan agreements, which allowed us to purchase 202 new trolleybuses, some 185 buses and 50 metro cars,” Klitschko said on the klichko.org website on Tuesday.
In addition to the urban transport renewal program, the meeting also discussed a project worth EUR 140 million to modernize the heating system of the Ukrainian capital. The EBRD provided a loan for the implementation of the project to the city within the Green Cities program.
Renaud-Basso stressed the interest of the EBRD in cooperation with the municipality of Kyiv.
She said the EBRD officials see the same priority areas of cooperation: roads, bridges, transport and environmental infrastructure. They are ready for closer cooperation, as well as they are ready to continue to provide support and attract investments to contribute to the sustainable development of the city in the face of global challenges.
In the period from May 1 to May 12, 2020, state-owned banks issued UAH 67 million of energy efficiency financing to those who plan to improve energy efficiency of their homes in 2020, according to the Energy Reform Internet portal.
State Agency of Ukraine on Energy Efficiency and Energy Saving said on Wednesday, May 13, that last week financing was received by another 1,544 households and some 122 associations of multi-apartment block co-owners took advantage of the program, namely, more than UAH 35 million for thermal insulation of apartment buildings, about UAH 32 million for energy efficient measures in private households, UAH 900,000 for solid fuel boilers.
“In fact, more energy efficiency financing was issued for a week than for the entire month of April, which amounted to UAH 63 million. More than UAH 130 million of financing for energy efficiency purposes has been issued to the population and the associations of multi-apartment block co-owners since the beginning of the program,” the agency said.