Business news from Ukraine

54% OF UKRAINIANS CONSIDER IT HARMFUL TO RECEIVE LOAN FROM EU UNDER NUMEROUS OBLIGATIONS

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%.

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UKROLIYA TO GET LOAN FROM EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

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).

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EUROPEAN INVESTMENT BANK TO GIVE EUR 49 MLN LOAN FOR ENERGY-EFFICIENT MODERNIZATION OF UNIVERSITIES

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.

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BLACK SEA TRADE AND DEVELOPMENT BANK INTENDS TO ISSUE O $ 20 MLN LOAN TO OWNER OF ARAKS SHOPPING CENTERS

The Black Sea Trade and Development Bank intends to issue a loan of up to $ 20 million to a group of companies that owns two Araks shopping centers in Kyiv.
“The loan will support the modernization and upgrade of the commercial property owned by the group and located in Kyiv and Khmelnytsky substantially for the purpose of improving their energy efficiency and reducing energy consumption, as well as the refinancing of the group’s existing credit portfolio, Asters, a legal company acting as a loan advisor, said.
The network of Araks shopping centers in Kyiv includes two objects: the object opened in Kiltseva Street in 2009 (27,000 sq m) and the one launched in the village of Khodosivka in September 2019 (Kyiv region, 15,000 sq m).
The group also owns the Oasis shopping and entertainment center (30,000 sq m), opened in Khmelnytsky in 2008.

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EBRD PROVIDES EUR 25 MLN LOAN TO PROCREDIT BANK

The European Bank for Reconstruction and Development (EBRD) has provide ProCredit Bank (Kyiv) with a four-year amortising senior unsecured loan of up to EUR 25 million equivalent for on-lending to eligible micro, small and medium-sized enterprises (MSMEs).
According to the EBRD’s report to the Interfax-Ukraine agency on Friday, the agreement was signed by EBRD Managing Director for Financial Institutions Francis Malige and Board Chairman of ProCredit Bank Viktor Ponomarenko.
In addition to long-term financing, eligible sub-borrowers will receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their investment projects.
At least 70% of all financed sub-loans are expected to be compliant with EBRD Green Economy Transition (GET) approach.
ProCredit Bank was founded in 2001. Its only shareholder at the beginning of 2021 was ProCredit Holding (100% of shares).
According to the National Bank of Ukraine, as of March 1, 2021, ProCredit Bank ranked 16th in terms of total assets (UAH 27.413 billion) among 73 banks operating in the country.

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EBRD TO PROVIDE EUR 10 MLN LOAN EQUIVALENT TO UKRAINIAN ELECTRICITY AND GAS SUPPLIER ERU TRADING

The European Bank for Reconstruction and Development (EBRD) will provide a EUR 10 million two-year committed local currency-denominated working capital loan to the Ukrainian electricity and gas supplier ERU Trading LLC.
As stated in a report of the bank, the decision was made by the board of directors on June 9.
“EBRD funds will be used to support growing gas trading operations of ERU Trading in order to secure low cost gas from EU during summer season and store it in Ukrainian gas storages with further sale in Ukraine,” the EBRD said.
According to EBRD, the proposed project supports a private, independent trader in competing with the dominant player, Naftogaz, in an increasingly liberalised market, and facilitates increased liquidity and competition on the private energy exchange UEEX following the MoU signed by the EBRD in July 2020.
The EBRD will become the first international financial institution in the existing loan portfolio of ERU Trading.
ERU Trading LLC, established in 2016, belongs to Yaroslav Mudry and Dale Perry. According to the information on the company’s website, gas supplies to the population are an important part of its strategy. In February of this year, the company received the license from the energy regulator.

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