The Government of Canada has offered to provide a loan of up to CAD 120 million to support the economic stability and development of Ukraine.
“Today, the Honourable Harjit S. Sajjan, Minister of International Development and Minister responsible for the Pacific Economic Development Agency of Canada, and the Honourable Mélanie Joly, Minister of Foreign Affairs, announced that Canada has offered to provide a loan of up to CAD 120 million to the Government of Ukraine to support the country’s economic resilience and governance reforms,” the Government of Canada said in a statement on Friday.
In addition, Canada has also offered to provide a technical assistance grant of up to CAD 6 million to support the implementation of the loan. Canadian and Ukrainian officials are already meeting to discuss the potential terms of the loan and a timeline for its implementation.
“Ukrainians can always count on Canada to be there for them when needed. By working together, we can strengthen the economy and help advance governance reforms. I authorized this proposed loan to support Ukraine’s ability to respond to its population’s needs amid Russia’s aggressive actions. This is just one step in helping build a secure future for Ukrainians, and I will continue to look at ways to support Ukraine,” Sajjan said.
The Government of Canada also said that in 2014 and 2015, the country provided a CAD 400 million (CAD 200 million per year) loan to Ukraine to the then new government to support its economic recovery and development goals, and this loan was fully repaid with interest as scheduled in 2020.
The new assistance is provided under the CAD 620 million sovereign loan program approved in 2018. According to it, the maximum loan term is up to ten years. Principal and interest payments must be made at least once a year, with a possible grace period in certain circumstances, and a fixed rate of interest equal to the cost of the Canadian government loan.
The total amount of loans to the country under this program cannot exceed CAD 120 million.
On January 20, the National Bank of Ukraine said that due to the military threat from Russia, Ukraine’s eurobond rates rose to double-digit stress levels, and the country temporarily lost access to the market for external commercial loans. According to the NBU, in such conditions, the role of financing from international financial organizations such as the IMF and the World Bank, as well as partner countries, increases.
Ambassador of Ukraine to the United Kingdom Vadym Prystaiko, on behalf of the Cabinet of Ministers, signed a Ukrainian-British framework agreement providing for the allocation of funds for the construction of eight missile boats, the acquisition of two minesweepers from the United Kingdom, and the creation of two naval bases in Ukraine, the ZN.UA publication said on Saturday.
The signed agreement details the financial side of the agreements, that is the loan totaling GBP 1.7 billion provided to Ukraine by the U.K. for ten years.
Thanks to the U.K., Ukraine covers the primary needs of the country’s naval forces, which must be ready to contain Russia’s aggression from the Black and Azov Seas, ZN.UA said.
Agreements on the development and strengthening of the Ukrainian Navy were reached a year ago. During the last year’s visit of Ukrainian President Volodymyr Zelensky to London, a memorandum on strengthening cooperation between Ukraine and the United Kingdom in the military and military-technical sectors was signed. The memorandum stipulated the raising of financing from the UK’s export credit agency in the amount of GBP 1.25 billion. In the summer 2021, in Odesa, a memorandum on maritime partnership projects between the consortium of British industry and the Ukrainian Navy was signed.
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.
Some 54.6% of Ukrainians consider it harmful for Ukraine to receive a loan from the EU in the amount of EUR 1.2 billion under obligations to allow huge salaries for members of the supervisory boards of state-owned companies, which include many foreigners, to give foreigners an opportunity to procure medicines for Ukraine, to appoint approved people as heads of the tax, customs and judicial system, according to the results of the monitoring survey of the population of Ukraine “Dynamics of socio-political attitudes and assessments of the population of Ukraine” by the Social Monitoring Center. According to the survey presented at the Interfax-Ukraine agency on Tuesday, 19.3% of respondents consider this to be neither useful nor harmful. Some 13% called it useful, and 13.1% did not answer the question.
Some 75.5% of respondents do not support the obligations that the Ukrainian authorities undertook in the agreements with the International Monetary Fund (IMF) on the introduction of market prices for gas and heat for the population. Some 14.7% support the initiative, and 9.8% found it difficult to answer the question.
Some 82.7% indicated that they do not agree that the Ukrainian authorities, within the agreements with the IMF, undertake an obligation to reduce the number of schools and teachers. Some 9.4% agree with this and 7.9% did not answer the question.
Some 65.8% of respondents noted that they do not agree with the fact that, within the agreements with the IMF, the Ukrainian authorities undertake obligations to continue the reform of the health care system, known as the “Ulana Suprun Reform.” Some 20.4% of those surveyed agree with this and 13.8% found it difficult to answer.
Some 7.7% of respondents believe that the Ukrainian government is completely independent in its economic policy, 42.6% – “in some issues – independent, in others – it is influenced by other countries and international organizations,” 42.8% – “completely dependent on the influence of other countries and international organizations.” Some 6.9% found it difficult to answer.
Some 15.2% answered that inviting foreign citizens to work at Ukrainian authorities (Cabinet of Ministers, regional heads) and to manage Ukrainian state-owned companies (Ukrzaliznytsia, Naftogaz, etc.) was useful (15.2%). Some 28.4% indicated that neither useful nor harmful and 46.6% – harmful. Some 9.8% did not answer the question.
The survey was conducted from August 2 to August 11, 2021. Some 3,012 respondents took part in it. The method of collecting information is a personal interview at the place of residence of the respondent, the standard deviation is from 1.1% to 1.9%.
Ukroliya LLC (Chernechy Yar, Poltava region) on August 10 agreed with the European Bank for Reconstruction and Development (EBRD) that the company will raise a loan of EUR 16 million to finance its capital expenditures, working capital requirements, as well as to restructure existing debt, according to a press release from the EBRD.
“The main objective of the project is to support the company’s growth plans and its strategy to expand further in more profitable, premium (organic and high-oleic) and value-added (bottled and refined) sunflower oil sub-segments,” the bank said in the press release.
In addition, as part of the project, Ukroliya, will set up an accredited in-house training centre, in collaboration with local education partners, which will support the company in meeting its skills needs and provide training opportunities for people in Poltava region.
According to the EBRD, the project will support modernisation of the company’s production facilities, including the installation of a biomass boiler and processes to reduce oil content in wastes and reprocess materials for filtering, as well as the increase in production of organic vegetable oil and purchases of organic oilseeds.
The EBRD said that the total cost of this project is EUR 16 million, of which Ukroliya will receive the total required amount.
The press release does not contain other details of the transaction.
Ukroliya LLC was founded in 2001. It is engaged in the production and sale of packaged and bulk sunflower oil, sunflower cake, and husk. Its production facilities are located in the townships of Dykanka and Zinkiv (both in Poltava region).
The European Investment Bank (EIB) has provided EUR 49 million investments to carry out a comprehensive energy-efficient modernisation of the majority of their buildings of six Ukrainian universities under the Ukraine Higher Education project and they will also receive the E5P grant in the amount of EUR 10 million.
“Six Ukrainian universities will carry out a comprehensive energy-efficient modernisation of the majority of their buildings with the support of EUR 49 million investments of the European Investment Bank (EIB) and the E5P grant in the amount of EUR 10 million,” the EIB and the Ministry of Education of Ukraine said in a press release on Tuesday.
Chernihiv Polytechnic National University, Lviv Polytechnic National University, National Technical University Kharkiv Polytechnic Institute, National University Yuri Kondratiuk Poltava Polytechnic, Sumy State University and Vinnytsia National Technical University actively participate in the Phase I of the Ukraine Higher Education Project to improve their teaching and research facilities and dormitories.
“They will soon be joined by eight more higher education establishments, which were selected on a competitive basis to take part in the Phase II of the Project,” the bank and the ministry said in the press release.
The implementation of thermal modernisation works at the Phase I universities is expected to start in the fall of 2022.
The EIB is investing EUR 120 million in a comprehensive thermal refurbishment of six Ukrainian universities in the framework of the Ukraine Higher Education Project, which is an integral part of the joint EIB and EU support provided to Ukraine in the field of energy efficiency. The project is also co-financed by the Nordic Environment Finance Corporation (Nefco) in the amount of EUR 30 million.