Category: Events

The First Investment Forum organized by the Ukrainian Bar Association on June 6-7, 2024, provided a platform for discussing promising investment opportunities and addressing legal challenges in sectors vital for the sustainable development of Ukraine.

Each session of the Forum served as a venue for fruitful discussions, where interesting and valuable ideas and insights were shared. Given the importance of the information received from the event’s speakers, the UBA has prepared conclusions and recommendations for the government and business based on the outcomes of the First Investment Forum. You can review these recommendations below.

Session 1. Ukraine’s Accession to the European Union: What Does It Mean for Business?

The government should clearly regulate the interaction process between business and the authorities during the negotiations for EU accession. Specifically, it is necessary to clearly stipulate:

• How businesses are involved in the negotiation process (for example, if working groups are formed for each negotiation chapter, this should be clearly stated);
• Who from the business community will be involved in the working groups — associations (which ones — nationwide, regional, those that unite a certain percentage of enterprises in a specific industry) or individual companies (again, clear criteria for such companies should be outlined); equal access should be ensured for all associations and companies;
• The role of businesses/associations — whether it is simply to participate in the working group/submit a position or whether businesses/associations will have at least an advisory voice (obviously, the latter is essential, at least on certain strategic issues);
• The government should inform businesses/associations of our negotiation positions and the positions of the EU and agree on them with businesses.

Session 2: Reforms During Wartime — What Working Conditions Should Businesses Expect?

1. Partnership Expectations: Businesses anticipate forming partnerships with authorities and seek effective interaction mechanisms to resolve issues arising during economic activities. This includes matters such as reserving employees and ensuring that rules do not change unexpectedly.
2. Presumption of Innocence: Government bodies should move away from assuming business guilt or malicious intent. Instead, they should focus on prior consultations with businesses to prevent inadvertent or unintentional violations, rather than immediately imposing penalties.
3. Effective Administrative Appeals: Implementing a robust administrative appeals process is crucial for fostering a partnership between business and government. Authorities should not hesitate to make decisions in favor of businesses if mistakes are found during inspections.
4. National Revenue Strategy 2030: This strategy could pose an investment barrier if fully implemented. Before doing so, it’s vital to restore taxpayer trust in tax, customs, and law enforcement agencies. Only then should additional powers be considered for these entities.
5. Adapting European Tax Rules: Transferring European rules and concepts (like progressive taxation and limiting simplified tax systems) into the Ukrainian tax framework must account for national specifics. Failing to do so could lead to adverse effects.
6. Disproportionate Fines: Imposing excessive fines on officials of importing companies for errors in customs documentation, without the possibility of appeal in higher courts, significantly reduces the state’s investment attractiveness.
7. Risk Insurance: Currently, the state does not provide accessible insurance for business risks related to war and political instability, despite ongoing efforts. Insurance costs are high and not always feasible. An effective state solution in this area would undeniably boost the country’s investment appeal.
8. Law Enforcement and Investment Protection: To enhance investment protection, the state must first ensure the enforcement of laws, rather than their distortion to impose sanctions on businesses.

Session 3.1. Challenges and Opportunities in the Agricultural Sector

The session’s outcomes indicate that the industry’s issues are receiving sufficient attention overall. Notably, there are rather positive reviews regarding the start of a state program compensating farmers for 80% of the cost of demining contaminated lands. The number of mine action operators (including agro-holdings) has doubled to about 30 companies since the beginning of the year. It is recommended not to lose focus on this critical issue for many farmers. Emphasis should continue on developing and seeking new technological solutions. Support for such research from the government is expected.

Overall, there are positive reviews regarding the support of farmers in frontline zones (tax exemptions, discounts on rail transport, etc.). Experts encourage farmers to invest in bioenergy projects (bioethanol) and processing. There is significant potential for attracting both loan and strategic financing for such projects in Ukraine and abroad. This is one of the EBRD’s focus areas in Ukraine.

Understanding the need for mobilization, farmers are calling for the approval of the so-called “economic reservation,” which is critical in certain segments. Currently, there are many different support programs for enterprises in the agricultural sector, and there is a substantial demand from institutional and private investors. At the same time, there is an insufficient level of preparation of investment projects and many enterprises are not ready to attract investments.

Session 3.2. Challenges and Opportunities in the Extraction of Natural Resources

• Production Sharing Agreements (PSAs):
  • Adoption of regulatory legal acts regarding the implementation of PSAs;
  • Regulation of the functions of the state-authorized body regarding the oversight of PSA implementation; and
  • Appointment of an authorized entity for the sale of oil and condensate under PSAs.
• Implementation of the EU Regulation on Integrity and Transparency in the Wholesale Energy Market (REMIT):
  • Conducting training for businesses on REMIT; and
  • Establishing a transition period during which sanctions for violations will not apply and clarifying the legislation’s terminology.
• Improving the mechanism for reserving land for subsoil users.
• Extending the application of industrial parks and benefits for projects with significant investments to the extraction sector.
• Development of a long-term strategy for the extractive industry and corresponding state support programs.
• Providing grounds for amending the work program due to changes in production volumes due to the wartime state.
• Amending the Code of Ukraine on Subsoil to include definitions of basic concepts and removing outdated provisions from the Mining Law of Ukraine.
• Regulating waste management in the extractive industry by adopting the bill “On Management of Mining Waste” and amending the Law of Ukraine “On Waste Management”.

Session 4.1. Challenges and Opportunities in the Defense Sector

Comments on Improving Legislation in the Defense Sector

1. Prohibition on Exporting Military GoodsCurrently, this de facto prohibition significantly restricts the development of the Ukrainian defense industry, particularly due to the inability to attract resources from foreign client orders that could be directed towards developing new weaponry and expanding production.The export ban forces Ukrainian manufacturers to move production abroad to fully operate in the international market. This situation is undesirable for both the Ukrainian defense industry and the economy as a whole.Lifting the export ban will be a crucial step for the development of the Ukrainian defense sector, creating conditions for the defense industry to remain one of the drivers of the Ukrainian economy even after the cessation of active hostilities.
2. Regulation of Employee Reservation in the Defense-Industrial ComplexRecently, the list of criteria for designating enterprises in the defense-industrial complex as those of significant importance to the national economy has been expanded. However, the list does not fully meet current needs. Specifically, there is a need to amend it to include enterprises that are at the stage of developing new weapons and military equipment but do not yet have contracts with state customers.It is also necessary to regulate the reservation of individuals whose military registration data need clarification. As of today, the practical inability to reserve such individuals creates significant obstacles to the work of defense industry enterprises.Such changes will allow defense industry enterprises to properly reserve all critical personnel, which is essential for the stability of their operations in the face of a labor shortage.
3. Conclusion of Long-Term Defense Procurement ContractsThe intensity of hostilities creates the need for a systematic and timely supply of the Ukrainian military with the relevant military goods. Defense industry enterprises need predictability from state customers regarding the volume and nomenclature of procurements to consistently meet this need.Stable operations of defense enterprises require the ability to plan long-term to properly expand production, purchase necessary consumables and components, and attract a sufficient number of qualified personnel. This can be achieved only if the volume and nomenclature of procurements are agreed upon for a long-term period.Additionally, the existence of long-term obligations from state customers creates conditions under which foreign manufacturers may start setting up production in Ukraine, as a guaranteed volume of orders from the state is critical for entering the Ukrainian market.Thus, the creation of mechanisms for guaranteed long-term (at least up to three years) procurements can provide a significant impetus for the development of the Ukrainian defense sector.

Session 4.2. Challenges and Opportunities in the Energy Sector

Issue: Lack of a PPA Market

The main obstacle to the development of new power generation capacities is the lack of any state support (which was previously provided by the green tariff), and the absence of a formed market of off-takers under long-term power purchase agreements, which could fill the gap left by the green tariff. This was noted by panel participants, including representatives from Goldbeck Solar and Notus Energy.

Proposal: Initiate the creation of a fund (following Argentina’s example), which would act as a virtual off-taker. The fund should be guaranteed by international partners and financial institutions. It could be self-sustaining and profitable, as renewable energy producers would contribute a portion of their revenue to the fund. This proposal has received broad approval in preliminary discussions with international financial institutions.

Issue: Lack of State Support

Currently, the state supports industrial projects through the mechanism of industrial parks and also supports projects with significant investments (so-called investment nannies). Renewable energy projects do not fall under the scope of the laws on industrial parks or investment nannies (except for biogas and biomethane, which are considered waste processing).

With the abolition of the green tariff, energy generation projects from alternative sources do not receive any economic incentives from the state.

Proposal: Extend the scope of the law on state support for investment projects with significant investments to projects for the development of renewable energy and green hydrogen, as well as the construction of balancing capacities (storage and accumulation systems, flexible systems).

Issue: Hydrogen Strategy

Despite Ukraine’s plans to become a green hub and exporter of green electricity and green gases to the EU (the EU in its Green Deal expects half of the imported green hydrogen to come from Ukraine), very little has been done to develop hydrogen energy to date.

Proposal: Establish a separate department within the Ministry of Energy of Ukraine to implement the hydrogen strategy and coordinate this work with key partners in Ukraine.

Source: https://uba.ua/eng/news/visnovki-ta-rekomendaci-dlja-urjadu-jj-bznesu-za-rezultatami-pershogo-nvesticjjnogo-forumu

On March 22, the European Business Association met with Markiyan Kliuchkovskyi, Executive Director of the International Register of Damage Caused by the Aggression of the russian federation against Ukraine. On the same day, the Register of Losses Office was opened in Kyiv to improve its efficiency and coordinate certain activities on the ground.

The final preparations for the launch of the Register – acceptance of the first applications – are currently underway. The first category to be opened in the Register will be applications from individuals regarding damage or destruction of residential property. Further, over the next 12 months, other categories will be launched, the full list of which will be available on the Register’s website in the near future.

In general, individuals, companies and the state will be able to submit claims to the Register. Applications may relate to damage on the internationally recognized territory of Ukraine and territorial waters caused since February 24, 2022. The period from 2014 to the beginning of the full year is not yet within the mandate of the Register. Foreign citizens and legal entities will also be able to submit applications to the Register.

The total number of applications that the Register will receive is estimated at 6 to 8 million, and in the category that will be launched first – applications from individuals regarding the destruction of housing – from 300 to 600 thousand.

Applications will be submitted digitally through the Diia portal, and legal entities will be able to do so through the Diia web portal with the connection to the Unified State Register. Later on, it will be possible to submit an application through the network of ASCs. It is assumed that most of the application items will be filled in automatically by the system, pulling data from state registers. Given the large number of potential applications, various automated analysis tools, including artificial intelligence, will be used to process them.

In addition to damages caused to Ukrainian citizens, the Register’s priorities will also include processing claims for damages resulting from the destruction of critical infrastructure that also affects businesses. Applications from businesses regarding the destruction or destruction of property and other losses will be accepted by the Register a little later. Several categories will be provided for legal entities: claims related directly to compensation for property damage and claims for business losses (economic consequences, lost profits, etc.).

The next steps are to establish a compensation commission and a compensation fund. Mr. Kliuchkovskyі expects that the establishment of the compensation commission may take another year or so. The tools to ensure compensation payments will still be developed, as well as separate decisions on the sources of these payments will be made. Conceptually, it should be war reparations.

The full recording of the meeting can be viewed here.

Earlier, the EBA has already spoken about the tasks of the Register and the prospects for creating an international compensation mechanism.

We are grateful to Mr. Kliuchkovskyi for his ongoing dialogue with business and regular updates on the work of the Registry and answers to numerous business questions about the future of the compensation mechanism for affected businesses and citizens of Ukraine!

Source- https://eba.com.ua/en/reyestr-zbytkiv-zavdanyh-agresiyeyu-rf-proty-ukrayiny-u-najblyzhchi-tyzhni-rozpochne-pryjom-zayav/

This year, the largest investment forum FIT for Ukraine: Annual Meeting.

The goal of the forum is to attract private investment to rebuild Ukraine.

Everyone who wants to invest in Ukraine and take part in its reconstruction received the most up-to-date analytical data on investment incentives, regulatory changes, practical aspects of project implementation, and discussed the most important issues facing investors in Ukraine.

On the agenda

Private sector financing for the transformation of the Ukrainian economy
Restoration of Ukrainian regions and industry with the participation of the private sector: government support and incentives
Successful cases, investment plans for 2024
The event was held as part of ReBuild Ukraine, the largest exhibition for the reconstruction of Ukraine.

FIT for Ukraine is a series of investment forums for businesses interested in rebuilding Ukraine. In 2023, more than 7,000 people from 65 countries attended FIT for Ukraine events.

Key messages of the speakers

– the war is not an obstacle to investment activity in Ukraine, on the contrary, those businesses that start planning their projects now will be among the first to start implementing them after the victory – David Arakhamia – Member of Parliament of Ukraine (faction leader); Chairman of the Supervisory Board of UkraineInvest

– Italy wants to see Ukraine become an EU member as soon as possible, and in 2025 it wants to host the Ukraine Recovery Conference – David La Cecilia – Special Envoy for Ukraine’s recovery; Ambassador Extraordinary and Plenipotentiary of Italy to Ukraine 2016-2021

– Norway plans to provide long-term support for Ukraine’s recovery and reforms. Recently, the Government of Norway made a grant contribution to the World Bank’s Ukraine Recovery, Rehabilitation and Transformation Trust Fund (URTF) in the amount of $190 million to support Ukraine’s capacity to rebuild and reform. Christian Søse – Special Representative for Ukraine, Ministry of Foreign Affairs of Norway, to support the Government of Ukraine’s capacity to deliver services, including investments in repairing damaged infrastructure

– The EBRD cannot finance the state budget, but we can and should support the real economy of Ukraine. Since the beginning of the full-scale Russian aggression, together with international donors, we have created a program that envisages investments of three billion euros in Ukraine this year and next year – Matteo Patrone, EBRD Director for Eastern Europe and the Caucasus

– The U.S. Corporation for International Development (DFC) is helping the government of Ukraine attract public and private investment to rebuild the country. To provide support, DFC uses several instruments at once: direct lending, risk coverage, and war risk coverage. Currently, DFC is interested in financing and insurance in key sectors of Ukraine’s economy, including energy projects – Agnes Dasiewicz, Chief Operating Officer, DFC

– IFC’s Board of Directors has approved a $2 billion financing program to help strengthen the resilience of Ukraine’s private sector. The response package includes financing from IFC’s own account and leveraged funds from donor governments over the years 2023 and 2024 – Marcelo Castellanos, Senior Sector Manager, Europe, IFC

– BlackRock is advising on the creation of a special fund for economic recovery in Ukraine. The fund aims to attract billions of dollars of private investment to help with the reconstruction. It will serve as a risk mitigation mechanism and create the potential for large-scale private capital mobilization,” said Matthias Wirwall, Managing Director, Financial Markets Advisory (FMA) Group, BlackRock

– Oschadbank is expanding its business support. 15% of the Ukrainian economy is currently financed by Oschadbank. Examples of international cooperation include the guarantee program with the European Investment Bank and the grant program of the German government company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH – Serhiy Naumov, Chairman of the Management Board of Oschadbank

– Ukraine can count on full international support in its reconstruction efforts. Investments will go hand in hand with reforms that will support Ukraine on its European path – Adrian Stone – Head of Private Finance, Ukraine’s Early Recovery and Reconstruction Department (UERRD)

– CSIS initiated the creation of the Commission for Economic Reconstruction of Ukraine. The main goal is to attract private sector investment. To this end, CSIS is convening a number of working groups that will address specific issues critical to the modernization of the Ukrainian economy, including agriculture, energy, transportation and logistics – Daniel Rand – Senior Vice President, Center for Strategic and International Studies (CSIS)

– Ukraine needs at least USD 400 billion for recovery and reconstruction. To accelerate the access of private capital to rebuild infrastructure, we are developing an effective legal mechanism, following the example of the existing British PPP model – Ihor Marchuk, Member of Parliament of Ukraine

– Attracting investment and energy-efficient technologies to Ukraine should be the basis for reconstruction. We are talking about saving millions of hryvnias in community budgets, competitive business, new jobs, and the well-being of every family – Hanna Zamazeyeva, Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine

– PPPs are perhaps the only tool for attracting large companies to reconstruct cities to perform socially important functions. It would be more interesting for investors to invest in projects such as heat generation and distribution, and waste recycling. PPPs in the development of industrial parks are also promising. Dnipro is a city that will accompany every investor and provide all possible conditions in its industrial parks, allocate land plots, and connect to city communications – Volodymyr Miller, Deputy Mayor of Dnipro

– The Business Ombudsman Council is designed to ensure an open and transparent dialog between business and the state. We need formal and informal incentives to be the same, so that development opportunities are a priority – Roman Vashchuk, Business Ombudsman in Ukraine

– Poland has created a program to restore Ukraine with the participation of Polish business. The insurance covers a wide range of risks, in particular, it protects Polish companies from losses caused by non-payment for goods delivered or services rendered. It also includes reinsurance of transport insurance and a guarantee that protects banks issuing letters of credit – Dariusz Szymczykha, First Vice President of the Polish-Ukrainian Chamber of Commerce

– France has allocated €40 million in recovery assistance to Ukraine in 2023. France’s goal, in addition to bank guarantees and support for initiatives, is to help the private sector and build partnerships with Ukrainian companies. We have also committed ourselves to assisting in the reconstruction of Chernihiv region. We are very pleased to have been able to provide support for several specific projects: six bridges and assistance in demining the territories – Matilde Arjakovski, Deputy Head of the Financial Department, French Treasury

– We see a renewed interest from the French commercial sector in working in Ukraine, so France’s decision to provide guarantees for companies interested in rebuilding Ukraine is a signal that it is worth entering the Ukrainian market more actively. The insurance covers up to 95% of the loss of investor’s assets or receivables – Emma Hooper, Head of Export Development in the International Expertise Coordination Department, Bpifrance Assurance Export

– Among the advantages for investors who will come to Ukraine even before our victory are cheaper entry, which is associated with undervalued assets and a larger selection of investment objects; greater openness and flexibility of local partners; systemic support from the authorities and maximum assistance in work; lower operating costs; the opportunity to take a significant market share and increase their presence before other players come,” said Sergiy Gaidachuk, founder and president of CEO Club Ukraine and CEO Club London.

– Kingspan, with the support of UkraineInvest, is implementing a large investment project in Ukraine worth more than USD 300 million, in accordance with the law on state support for investment projects with significant investments. An important element of the project is the creation of more than 700 jobs. Kingspan is a world leader in the production of high-tech energy-efficient building materials. Ukraine will need them to rebuild destroyed housing, industrial facilities, and other infrastructure. This will also help raise the standards of production processes in Ukraine to the level of the best international practices,” says Anthony Dougherty, Kingspan’s In-House Legal Counsel

– For Ukraine, the woodworking and furniture industry is an engine of revival. We did not stop our investment activities during the war. We built and launched a logistics center in Kalynivka, Kyiv region, worth more than EUR 20 million. We invested over EUR 100 million in a plant in Rivne region. We are also developing the first private industrial park in the region. As part of our long-term goals, we are working to develop Ukrainian woodworking as one of the leading clusters for the production of furniture and building structures in Ukraine. Ukraine should become one of the world leaders in the production of high value-added wood products and furniture – Natalia Pokinska, CEO of Kronospan Ukraine

– Long before the full-scale war, Bayer invested about 200 million euros to set up corn seed production at a plant in Zhytomyr region. With its plant, Bayer is one of the largest investors in the region, with taxes accounting for about 25% of the local community’s budget. During 2022, our company decided to continue investing in the expansion of seed production, and in April 2023 announced its decision to increase it to 60 million euros,” Oliver Hirlichs, CEO of Bayer Ukraine

– “Astarta will resume construction of an additional deep soybean processing line at its Globinsky processing plant in Poltava region. The project was announced in 2021 at a cost of USD 50 million, and is now estimated at around USD 60 million, adjusted for inflation. The investment will be spread over three years. The plant is capable of producing approximately 160,000 tons of high-protein soybean meal, 40,000 tons of soybean oil and 9,000 tons of pelletized shell annually – Yulia Bereshchenko, Director of Sustainable Business Development and Investor Relations, Astarta-Kyiv Agro Holding

– Our Chicago Atlantic impact investing strategy supports international efforts to rebuild a prosperous Ukraine. The strategy invests in projects, companies, and organizations that create measurable social impact and promote development, focusing on residential and industrial real estate. Chicago Atlantic plans to implement a number of investment projects aimed at rebuilding Ukraine. UkraineInvest supports these projects under a bilateral Memorandum of Understanding,” says Matthew Taylor, Partner and CEO of Chicago Atlantic Trident

– Even during the war, retailers EVA and Varus have ambitious business development plans – a large project to build 1 million square meters. These are four hubs in Ukraine – Lviv, Odesa, Dnipro, and Kyiv. Their construction is scheduled to be completed in 2028. Approximately 200,000 square meters of logistics sites are currently under construction. At the same time, we are negotiating with Western investors who want to enter the project as partners,” says Olena Zubarieva, Director of Strategic Communications and Development, TerWin Group

– In 2003, Studiopack was the first company in the Ukrainian market to launch aluminum foil packaging, an environmentally friendly packaging that is 100% recyclable. Since the beginning of Russia’s full-scale invasion of Ukraine, the company has withdrawn from the Russian and Belarusian markets. Recently, the company was approved for a grant from the Ministry of Economy of Ukraine to purchase equipment to expand into a new market niche – the production of biodegradable packaging – the equipment has been purchased and partially commissioned,” says Vadym Gurzhos, Chairman of the Board of Directors, co-founder of StudioPack Group, Chairman of the Association of Ukrainian Aluminum Producers “Ukraluminiy”

– Ukrainian business is leading by example and encouraging foreign partners to invest in the Ukrainian economy. Total modernization of the infrastructure after the war, free and fast connection to electricity and gas networks when investing in new production, conditions for fair competition and business cooperation, and investment attraction are the fundamental principles of the new state economic policy of Ukraine – Andriy Dligach, Doctor of Economics, Founder and Chairman of Advanter Group, Founder of the international business community Board, Chairman of the Board of the Coalition of Business Communities for the Modernization of Ukraine

https://open4business.com.ua/en/fit-for-ukraine-annual-meeting-brought-together-over-500-international-delegates/

On November 15, the European Business Association held its 24th general membership meeting in Kyiv. Representatives from Ukrainian and global companies, the government, the Verkhovna Rada, international partners, media, etc., joined the meeting. EBA Executive Director Anna Derevyanko congratulated all members, sharing the first results of the year. Thus, in times of crisis, we feel an even greater trend of businesses coming together in communities, as entrepreneurs are better heard in this way. This is also reflected in advocacy effectiveness data. The business in the Western region has become even stronger. Additionally, there is a strengthened commitment to education, development, and reskilling because new skills are crucial for the country’s recovery.

Key trends in digitalization, euro integration, military and defense sectors, the global vector, and perceptions of Ukraine, which were discussed in panel discussions, we welcome you to read in the follow up below.

Digitalization, Innovation, Education

During the event, Mykhailo Fedorov, Deputy Prime Minister for Innovation, Education, Science, and Technology Development – Minister of Digital Transformation of Ukraine, noted that the issue of trust from global partners towards Ukraine is crucial today. Therefore, the Ministry of Digital Transformation pays a lot of attention to communication on the global stage. In this aspect, Ukraine finds the experience of Israel interesting – cases highlighting the importance of international communication, state marketing, attracting venture funds, etc. From Ukraine’s perspective, it is essential to communicate more about companies continuing to operate in Ukraine, particularly in IT, meeting deadlines despite shelling or blackouts. At the same time, the Minister hinted at some plans – the Ministry is currently working on a project similar to Upwork (to unite businesses needing orders on one platform and provide guarantees from the state to foreign partners that obligations will be fulfilled). This project will complement other Ministry projects, such as the Innovation Development Fund, the defense cluster to stimulate the development of defense innovations (Brave 1), and the special regime Diia City. Additionally, a new country’s innovation development strategy will be presented this winter. It will be a clear guide on what to do for innovation development – how to stimulate the development of science and education, launch venture funds, manage intellectual property, etc. The strategy, analyzed based on innovation strategies from various countries, will be designed for 10 years.

Eurointegration

Olivér Várhelyi, European Commissioner for Neighbourhood and Enlargement, highly praised Ukraine’s efforts in supporting macroeconomic stability, a functional banking sector, government services, and simultaneous mobilization of resources to overcome the consequences of unprovoked Russian aggression. He acknowledged positive trends in Ukraine’s business activity, noting a 5% economic growth in 2023. The Commissioner also announced a proposal to provide Ukraine with a special financial instrument of 80 million euros aimed at supporting economic stability and implementing reforms, contributing to European integration.

Olha Stefanishyna, Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine, discussed Ukraine’s progress towards EU membership. Tus, the European Commission recommended starting accession negotiations for Ukraine. Importantly, this thesis was unconditionally supported in the report, and all recommendations concern only the next steps. Yes, there is still work to be done, and a strategy for each area, aimed at solving problems and advancing in the negotiation process exists. As moving towards the EU means moving towards stability in unstable conditions. And by the beginning of 2024, the negotiation framework will be clear. Ms. Stefanishyna emphasized the importance of unity and strong ties between the state and business, especially in the face of russian aggression. In response to challenges related to the war, there are plans for targeted investments in the development of border and customs communication through Romania. The goal is to open freight routes and find solutions to ensure the stability of Ukrainian businesses. In conclusion, she noted that, in the context of the budget, we as a country know the volume of commitments, so can calculate the needs.

Ivanna Klympush-Tsintsadze, Chairperson of the Committee of the Verkhovna Rada on Ukraine’s Integration into the European Union, also acknowledged the progress achieved by Ukraine since 2014 in the context of European integration. However, she noted the need to develop institutional capacity in Ukraine. While not all ministries are considered ready for EU accession, there is a need for a qualified workforce to facilitate the integration process. At the same time, Ukraine should focus on effective communication and take responsibility for the accession process, prioritizing key democratic principles, such as the rule of law.

Andrii Gerus, Chairman of the Committee of the Verkhovna Rada of Ukraine on Energy and Housing and Communal Services, informed participants about the progress and plans for the Eurointegration of Ukraine’s energy sector. On March 16, 2022, the synchronization of the Ukrainian energy system with the European one took place in a unique experimental mode. The path that we were supposed to cover in years was overcome in months. The Verkhovna Rada of Ukraine continues to work on key decisions that would contribute to the development and Eurointegration of Ukrainian energy markets, particularly the prospective biomethane and bioethanol markets. Export and import of electricity to the EU are open, and European companies have access to Ukrainian gas storage facilities. Currently, dozens of European traders use them to store gas. This speaks to the predictability and trust in our state. At the same time, the construction of new energy capacities continues. This includes approximately 500 MW of solar power stations, 300 MW of wind power stations, and 100 MW of gas power stations. Even in such a challenging year, there is room for new projects and investments in Ukraine.

The EU’s climate agenda is quite demanding, but Ukraine continues efforts to align as closely as possible with European environmental and climate policy standards. Oleh Bondarenko, Chairperson of the Committee of the Verkhovna Rada of Ukraine on Environmental Policy and Nature Management, shared this information with the event participants. Even during the war, Ukraine is implementing systemic reforms and undertaking commitments under the Green Course, the Paris Agreement, and similar initiatives. But businesses also need to be ready to work towards achieving EU environmental standards, which are cross-cutting for various industries. For enterprises willing to modernize, this can be a stimulus for growth, a competitive advantage, and simplify access to funds and investments.

The integration of Ukraine’s agricultural market into the European one will be a real challenge for both Ukraine and the EU. According to Mykola Solskyi, Minister of Agrarian Policy and Food of Ukraine, the government does not expect any concessions from European colleagues and understands that the conditions will be stringent. Even during the war, we faced significant pressure on the export of Ukrainian agricultural products. Ukraine’s agriculture is very different from European agriculture, primarily because it does not exist on subsidies. This means that the EU will have to make several changes to integrate our agro-sector, and this can significantly impact even the social structure in some countries.

Logistics and Recovery Issues

Yurii Vaskov, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine, informed the attendees about the situation at the Ukrainian-Polish border. As of the event date, the strike by Polish carriers continued. However, the demands of the carriers are addressed not to Ukraine but to the European Commission, while Ukraine remains an active participant in negotiations to unblock border movement. Since the start of the protests, the number of freight transport leaving Ukraine has decreased by about 20-25%. Meanwhile, efforts continue to improve communication with Ukraine, including for passenger transport, as well as projects for recovery. The priority is the restoration of housing, energy, and transportation infrastructure, as well as local and social infrastructure. The state electronic ecosystem DREAM has been introduced to enhance transparency in post-war recovery. Work is underway to restore and develop facilities in the ports of Odesa. Together with the business sector, the Ministry will continue to address key issues in the transportation and logistics industry.

Defense and Strategic Industries Sector

Rustem Umerov, Minister of Defense of Ukraine, noted that Ukraine is currently restoring capabilities to return to the 1991 borders. The Ministry pays special attention to localizing the lethal and non-lethal components of defense needs, encouraging business participation, particularly in auctions, to localize defense requirements, as technology is crucial for the country. The Minister also identified tackling corruption as one of his key tasks. Additionally, communication support from the business sector is needed to ensure global partners understand that Ukraine is open for business and that long-term contracts are viable. A question was raised about reserving workers, and Rustem Umerov mentioned plans for a meeting with the Ministry of Economy to discuss this issue. Overall, the Minister called for everything to be done for Ukraine’s Victory, urging cooperation and the pooling of efforts to move forward.

On his part, Oleksandr Kamyshin, Minister for Strategic Industries of Ukraine, called for the development of arms and military equipment production in Ukraine, as the high-tech defense industry should become the main driver of national economic recovery. Mr. Kamyshin urged businesses to find niches, attract qualified personnel, and fund defense projects. The Minister acknowledged corruption issues in the state defense industry but stated that Ukroboronprom already has a short-term anti-corruption strategy to overcome opaque practices related to the appointment of plant directors, property distribution, and procurement. The first results include transparent competition for the position of the head of one of the enterprises, saving 50 million UAH on centralized purchases of energy resources, and the suspension of two directors from their duties on suspicion of corruption actions. Additionally, Mr. Kamyshin noted the rapid growth of the private sector’s share in the defense industry.

Financial Block

Andrii Pyshnyi, Governor of the National Bank of Ukraine (NBU), shared the results of recent negotiations with the International Monetary Fund (IMF). During the annual meetings of the IMF and the World Bank, Ukraine was discussed in a very positive context. Economic growth, despite the war, exceeded initial forecasts. The country entered a stable deflationary trend, and a reduction in the discount rate began earlier than predicted. Despite the war, Ukraine transitioned from a fixed exchange rate to managed flexibility. An essential element is the Currency Liberalization Strategy, which is currently being implemented. The first stage, including the transition from a fixed to a managed exchange rate, has been operating successfully for six weeks. NBU is working on the second stage of currency liberalization. Mr. Pyshnyi addressed the issue of the bank sector’s windfall profit tax, predicting its likely introduction (as banks earned 110 billion UAH in profit in 9 months). The discussion on this is ongoing in the Verkhovna Rada Committee. However, he assured that financial stability would be maintained. The diagnostics of the largest banks’ resilience (covering 90% of the market) showed that the banks are in good shape.

Inga Andreieva, General Manager of Mastercard in Ukraine and Moldova, highlighted the resilience and adaptability of Ukraine’s financial sector in the face of challenges, emphasizing the effectiveness of digital solutions in times of war. In terms of the volume of contactless payments with digital cards from smartphones and other gadgets, Ukraine is among the leading countries on the world stage, which reflects the country’s digital progress and innovativeness. Tokenization, which is the basis of digital payments, and the evolution of digital wallets into universal superwallets with wide functionality are identified as future trends in the field of financial technologies. In terms of changing customer attitudes, the emphasis on meaningful finances and shopping, coupled with a desire to understand their impact on the country and the planet, reflects a growing sense of responsibility among consumers. According to Inga, small and medium-sized businesses play a key role in the country’s economy, so the company supports entrepreneurs on their way to growth. At Mastercard, the Ministry of Digital Transformation acts as a long-term partner in the development of the Diya.Business portal, and also actively supports Diya.Business centers throughout Ukraine and abroad. The company’s research says that digital channels for entrepreneurs play a significant role in business growth, so the potential for further digitalization is obvious, and Ukrainian SMEs see this as an important condition for their recovery.

Oleksandr Pysaruk, Chairman of the Board of Raiffeisen Bank, spoke about the economic recovery of Ukraine and the role of international aid. Pysaruk agreed with the NBU’s forecast of actual economic growth of 5%, acknowledging that maintaining this growth, approximately 4-5%, over the next 2-3 years will depend on avoiding additional shocks and maintaining international aid. At the same time, he noted that although the reduction in international aid will affect growth, macroeconomic stability can still be maintained, given the record high foreign exchange reserves of the NBU and the stability of the banking system. Pysaruk noted a decrease in solvent demand for loans, especially during the crisis, but expects its recovery. He mentioned the recent revival of demand, especially for investment projects in the central and western parts of the country. Raiffeisen Bank actively issues new loans, including such critical sectors as agriculture, food industry, medicine and energy. Taking into account the NBU’s latest decisions on lowering the key rate and changing the operational design of monetary policy, interest rates on loans are expected to decrease by several percentage points next year. Oleksandr Pysaruk also noted that the banking sector works cyclically, often experiencing losses during crises. Therefore, taxation of the banking sector should take into account its profitability during the full economic cycle. He highlighted that the growth of tax revenues should be primarily due to the expansion of the number of taxpayers, and not solely due to the increase in the tax burden on transparent taxpayers.

Global view 

Pedro Serret Salvat, President and General Counsel, PPG EMEA greeted the participants and shared what challenges he perceived on global and Ukrainian business landscapes. He mentioned that business and the world enter a new phase of sustainability and that should be taken into account while working. Besides, worth making sure that everything (EU policies and local policies) is in line with the European market. Speaking about plans for Ukraine Mr Salvar mentioned that PPG is already on the market, for example under the Tikkurila brand and, yes, to be honest, the group is concerned about compliance, nevertheless, plans to increase expansion. According to Pedro, Ukraine every day shows enormous agility, and, therefore, has only admiration from the world.  

Marco Settembri, Executive Vice President, Chief Executive Officer Zone Europe, Nestle, obviously, highlighted on the war as the biggest challenge in Ukraine. But also, inflation, energy, very complex regulations. However, now Ukraine is shaping the future, as a part of the EU. Nevertheless, Nestle has a clear vision of what they do and must continue doing – make organic investments, have KPSs on quality, create an environment to help farmers, customers to transit to more sustainability.

Gunter Deuber, Managing Director, Head of Raiffeisen Research, Raiffeisen Bank International shared his macroeconomic forecasts. He expects a weak global economic growth, and this fact will stay up to 2025. This will, most probably, mean fewer policy space in the Western world, incl. Ukraine support. That said, Ukraine must be prepared for more discourse on economic support. However, we shall not allow the Kremlin’s calculus that we are only concerned about our short-term prosperity in the Western world to prove true in the end, as Gunter Deuber stressed. Otherwise, Gunter shared his view on the resilience of the Ukrainian economy and service sector, including banking. With positive GDP numbers in 2023 in Ukraine, this resilience gets more and more tangible for outsiders, which may finally support more business opportunities.

A view on the geopolitical situation was shared by Risto E. J. Penttilä, CEO of Nordic West Office, policy expert, former member of the Finnish parliament, and Secretary General of the European Business Leaders’ Convention. According to his forecasts, 4 geopolitical scenarios are possible. Among the possible shocks are oil at $200, a regional war in the Middle East, no climate cooperation, US cutting support for Ukraine, and the Taiwan crisis escalating in 2024. All these would lead to a “Polycrises” scenario. Other possible scenarios include “Orderly Decoupling” which is characterised by the US-China ‘divorce’, “Sleepwalking” which includes going back to quantitative easing and “Tech Boom” which sees significant technological advancements in all areas. 

We sincerely thank the speakers and all the participants for the event! It was a great pleasure to see our large business community.

https://eba.com.ua/en/my-yak-krayina-mayemo-navchytys-viryty-v-svoyi-syly-pidsumky-zagalnyh-zboriv-eva/?fbclid=IwAR1ZNp7ZzY5WtMCKCha81ALERa3nj4yx1N9PyX876otXmUacWEG-e438rFE

Throughout one and a half years of full-scale war, businesses have adapted to new challenges, and their primary objective now is not survival but recovery and growth. This is the prevailing sentiment among businesses voiced during the European Business Association’s Global Outlook meeting held on September 11. We spoke with officials and business leaders from various industries about their forecasts and plans, and below, we summarized the main ideas and key points.

Oleksandr Kamyshin, Minister for Strategic Industries of Ukraine, emphasized that, in his opinion, the only strategically important sector during the war was the defense-industrial complex. This sector is seen as crucial for Ukraine’s victory and economic recovery. Currently, in this sector, there is an increasing demand for labor, rising wages, and a growing number of new companies, among other things. In other words, the sector is gaining momentum. For example, in the spring, there were fewer than 100 companies in this sector, and now there are more than 200. Additionally, a significant number of Czech entrepreneurs have come to the country to study the sector and understand how to operate here. The future goal of the defense sector is to produce even more.

Mr. Kamyshin pointed out that from an economic perspective, it’s also crucial to shift more enterprises toward military-related activities. This, essentially, can compensate for the loss or reduction in development in the civilian sector for some businesses. Therefore, he urged businesses to collaborate with the defense sector – the Ministry and defense industry enterprises are actively seeking partnerships to fulfill specific tasks, such as repairs and more. The Minister emphasized his commitment to making the defense industry more transparent and understandable. For example, UkrOboronProm already has a long-term anti-corruption strategy in place, and initial results have been achieved – they have collected energy consumption data from all plants and completed procurement. Additionally, he invited startups in the military tech sector to take a look at the BRAVE 1 project, which helps innovative startups go from idea to implementation, providing grants (ranging from 5,000 to 25,000 dollars for this purpose through the Ukrainian Startup Fund).

Ukraine’s Finance Minister, Serhii Marchenko, noted that in 2023, the country’s financial situation is more stable and manageable compared to 2022. Thanks to international support and comprehensive measures taken by the Ukrainian government, priority budget expenditures are fully funded and timely, ensuring stability for 2024. Furthermore, the macroeconomic situation is stabilizing, the hryvnia exchange rate is strengthening, and GDP growth for the current year is projected to be around 3%. However, the level of imports is increasing more than exports, which is a concerning signal for the economy. At the same time, 2024 will not be an easy year, as substantial expenditures need to be allocated to the defense sector, no less than in the current year. The Finance Minister emphasized the importance of cooperation with the IMF and the implementation of structural reforms within the framework of the cooperation program with the Fund. This is critically important for other international partners as well, as collaboration with the IMF is a sign of trust in Ukraine.

Therefore, Ukraine needs to demonstrate transparency and accountability in the use of funds from its partners, particularly through commitments to reforms: effective anti-corruption efforts, establishing the rule of law in the country and ensuring macroeconomic stability. The Finance Minister noted that this year, donors have committed $42 billion in direct budget support to Ukraine. The priority is to create conditions for these funds to work for the country’s economy, stimulating development rather than increasing consumption. However, these funds must contribute to the country’s economy and enable businesses to generate taxes. At the same time, Finance Minister Marchenko emphasized that there are no plans to increase taxes.

The economic results of the past and current years have exceeded business expectations. According to Dragon Capital’s macro forecast, economic growth of +4.5% should be expected this year. The state of the economy in the following year will depend on the course of the war. In the coming days, the Ministry of Finance is expected to present the budget proposal for 2024, which is anticipated to include high expenditures for the defense sector throughout the year. The projected exchange rate for the dollar at the end of 2023 will be 37.5 UAH/1 USD if the National Bank adopts a flexible exchange rate in the fourth quarter. In 2024, the average annual exchange rate for the dollar will be 38.6 UAH, and it may rise to 41 UAH by the end of the year. Inflation is gradually slowing down. According to the forecast, the GDP in 2024 is expected to increase to $190 billion, nearly equaling the record value of 2021.

Currently, Dragon Capital has over 50 different investment projects, including those in the defense sector. According to Tomas Fiala, CEO of Dragon Capital, the government should focus on investors already working in Ukraine, both Ukrainian and foreign. In Mr. Fiala’s opinion, it is these investors who are already present in Ukraine that will continue to invest new funds until the end of hostilities. The appetites of new investors are currently relatively modest, so the government should concentrate its attention on existing companies in Ukraine and their needs, particularly in areas such as combating corruption, ensuring fair courts, and upholding the rule of law.

International organizations have not ceased their support of Ukraine since the beginning of the full-scale invasion. In particular, the International Finance Corporation (IFC) has invested over 400 million dollars since then, with more than half of the funds directed towards supporting critical exports and imports. Some donor funds’ purposes have been changed in response to the current needs. For example, 50 million euros from the energy efficiency program were redirected to the immediate repair of multi-story buildings affected by the conflict and the support of cities providing temporary housing for internally displaced persons. Olena Voloshyna, the head of the IFC office in Ukraine, provided this information.

According to the World Bank’s assessment, Ukraine’s reconstruction needs amount to 411 billion dollars, of which 14 billion are required this year. The World Bank identifies the most affected sectors as the housing sector, energy, trade, transportation, and agriculture. Recently, the IFC conducted its own study to determine the role of the private sector in the recovery process. According to this study, the private sector can generate around 70 billion out of the 411 billion needed without significant progress in reforms and nearly 140 billion with successful reform implementation. Moreover, the recovery of certain sectors, such as retail or agriculture, can be fully covered by private funds (except for the irrigation system in agriculture). Furthermore, if Ukraine can demonstrate successful reforms, the amount of private sector investment could increase to 434 billion dollars, addressing critical needs within the RDNA framework and other sectors.

To support SMEs, IFC offers banks a partial credit risk guarantee, enabling the allocation of additional credit resources. According to Ms. Voloshyna’s opinion, the private sector, which used to generate 70% of GDP before Russia invaded Ukraine, requires more support. To address this, the IFC Board of Directors has approved a support program worth 2 billion dollars, with 1 billion dollars coming from IFC’s own resources and the remainder aimed at accumulating through partnerships with donors and development partners.

Oleksandr Komarov, President of Kyivstar, calls 2023 a consistently difficult year. However, the industry is gradually recovering. Despite a significant decrease in the subscriber base (around 10%), there is some growth, particularly with a 25% increase in internet usage. Kyivstar is actively restoring capacity and expanding infrastructure. In the past year, following the operation in Kharkiv, 700 sites were restored, and an additional 1200 sites were built since the beginning of the war. During this time, LTE was introduced in over 3000 settlements where it was not available since the start of the conflict. At the same time, Mr. Komarov points out that a morally and psychologically challenging factor for the team is the presence of sanctioned minority shareholders in the company. Approximately 48% of Veon’s shares are owned by the international investment company LetterOne, based in Luxembourg, which includes sanctioned individuals among its minority shareholders. As a result, the company is forced to operate while taking this risk into account and under increased media scrutiny.

In Kyivstar, they expect the situation to improve in 2024. The company, along with other operators, is preparing to return to temporarily occupied territories and is actively planning for the restoration of communication services in Crimea. Kyivstar plans to reinvest $600 million in Ukraine’s economy. Additionally, the 15 billion in taxes paid by the company also contribute to the country’s defense capability. Kyivstar is getting ready for the challenges of the winter season and assures that they are better prepared than last year. They have changed their approaches to dealing with the aftermath of shelling and have increased the number of generators to 2,000 (compared to 700 last winter) and the number of people involved in recovery efforts.

As Alessandro Zanelli, CEO of Nestlé in Ukraine and South and Eastern Europe, explained, there has been growth in the FMCG industry this year – a 17% increase in monetary value, while at the same time, there has been a 7% decline in volume. Therefore, volume recovery will be a crucial task for the next year. The market significantly declined in 2022 due to the physical absence of goods at the beginning of the invasion, the loss of nearly 9 million consumers, and the occupation of some territories. Now, they have managed to overcome almost all the challenges, ensure the availability of goods through imports or local production, establish logistics, restore active communication with consumers, and even introduce innovations and launch new products, supplying them to store shelves. Mr. Zanelli also considers the resilience of the retail industry to be an extremely important factor in the development of the FMCG market, as it adapts very well to the conditions and challenges of full-scale war, including blackout periods, while simultaneously recovering and expanding.

Nestlé has completely shifted its work priorities – from a focus on financial results and market share increase to safety, employee support, societal contributions, and the ability to continue operations. The company has devoted significant efforts to support the physical and financial well-being of its people, mental health support, rehabilitation programs for veterans, and support for Ukrainian society as a whole. This year, the company has allocated approximately 8 million Swiss Francs for charitable purposes, in addition to last year’s 13 million. This year, the company is demonstrating a 10% growth in monetary terms, which is slightly below the market. At the same time, this year, they have experienced a 5% decline in volumes (compared to a 15% decline last year). All factories are operational. Currently, safe working conditions are in place at these facilities, and they are operational, including for exports.

European Business Association would like to thank all speakers and participants for interesting insights and lively discussion, as well as Kyivstar for supporting the event!

Source – EBA.com

On 26 June, the conference “Mechanisms and Sources of Funding for Ukraine’s Recovery” will be held in Luxembourg.
 
Representatives of business, the European Commission, private investors, IPAs, and experts from the European legal and financial sector will discuss investment mechanisms and financing opportunities for Ukrainian projects, start-ups, and businesses. Experts from the European legal and financial sector will present the main mechanisms and instruments of financing for Ukraine’s recovery.
 
Yevhenii Shakotko, Deputy Executive Director of UkraineInvest will be opening the conference
 
The format of the event is hybrid. The organisers: UkrainePlatform ThinkTank, Fund AML with a support of Arendt and Medernach
 
For reference: About 50 European and Ukrainian professionals from all sectors of the economy have joined forces to challenge the existing narratives of doing business in Ukraine. They have created the UkrainePlatform think tank, which represents an initiative aimed at aligning corporate governance, the regulatory framework and the investment environment for the future reconstruction of Ukraine. Currently, 4 working groups are working on various topics, including anti-corruption, procurement, corporate governance, compliance, anti-money laundering, investment structuring, green transition and innovation.
 
Registration: https://shorturl.at/fxM04
Programme: https://shorturl.at/xzT03

The Ukraine Recovery Conference 2023, to be held jointly by the UK and Ukraine in London in June, is a continuation of the cycle of annual events with the last one conducted jointly with Switzerland in Lugano.

The previous edition of the conference, held for the first time during the ongoing Russian aggression against Ukraine, launched the Lugano Principles, which laid the foundation for the reconstruction process of Ukraine and united the world in its efforts.

Since Lugano, the international community has pledged significant emergency assistance, but a broader mobilisation of public and private sectors is needed to meet the scale of stabilisation and recovery needs Ukraine requires following russian attacks. Ukraine has already undertaken initiatives to move forward with reconstruction in line with these principles and commitments, despite the circumstances of war.

The Ukraine Recovery Conference is dedicated to Ukraine’s transformation and was symbolically launched in London in 2017 as the Ukraine Reform Conference.

URC 2023 Goal

URC 2023 will focus on mobilising international support for Ukraine’s economic and social stabilisation and recovery from the effects of war, including through emergency assistance for immediate needs and financing private sector participation in the reconstruction process.

Participants

We expect the broad participation of the international community, international financial institutions, the private sector and civil society to mobilise support for Ukraine.

We are keen to see the private sector play a leading role by applying its expertise and supporting Ukraine’s recovery, and invite investors to consider specific sectors and opportunities. To support this, Ukraine continues to implement an ambitious reform agenda and look for ways to support investment in Ukraine and reduce risk.

Please note that the number of conference visitors is limited for security reasons. Participation in the conference is only possible if an invitation has been received from the host. Further information on the conference programme will be published shortly before the date of the event.

https://www.urc-international.com/

Overview

The Royal Society and the Universities Policy Engagement Network (UPEN), together with the Fund of the President of Ukraine for Education, Science and Sports and the Embassy of Ukraine, are planning a conference to support Ukraine’s reconstruction and recovery. This conference is being funded by Universities UK International and Research England and supported by the Academy of Medical Sciences, British Academy, and the Royal Academy of Engineering. 

Research evidence and expertise has a vital role to play in supporting policy makers to tackle the complex and urgent challenges related to the reconstruction and recovery of a resilient Ukraine. In consultation with researchers and policymakers in and outside Ukraine, the Royal Society and Universities Policy Engagement Network (UPEN) are therefore planning a conference aimed at supporting Ukraine’s reconstruction and recovery by improving policymakers’ access to the most relevant and best available research evidence and expertise, identifying and prioritising evidence gaps and research needs, and providing a forum to broaden and deepen research and policy networks. 

Ukraine’s recovery: rebuilding with research will bring together researchers from the Ukrainian and UK universities and policy makers to explore how research can help to tackle some of the many challenges facing policymakers, from rebuilding Ukraine’s economy, to addressing the complex needs related to health and wellbeing, re-imagining regional security and partnerships, and planning for a green recovery. The conference outcomes will be captured in a conference report and shared with policymakers ahead of the UK government hosted Ukraine Recovery Conference, which is taking place in June 2023.

Ukraine’s Recovery: Rebuilding with Research is an invite only event that will take place at the Royal Society from 15-16 May 2023. 

Ahead of the conference, the Royal Society and UPEN called for researchers who may have relevant evidence and expertise, and who may be interested in contributing to, or taking part in, the conference. Thank you to everyone who took part in this survey. 

If you are interested in finding out more about the conference, please get in touch with international@royalsociety.org.

https://royalsociety.org/science-events-and-lectures/2023/05/ukraines-recovery-rebuilding-with-research/

Maksym Marchenko, Head of Odesa Regional Military Administration, held a meeting with Claude Wild, the Ambassador Extraordinary and Plenipotentiary of the Swiss Confederation to Ukraine. The parties discussed Swiss support for restoration of Ukraine, and in particular, Odesa Region.

Claude Wild noted that both the Swiss Government and business actively support Ukraine on the economic and social fronts, which is extremely important.

The Ambassador Extraordinary and Plenipotentiary of the Swiss Confederation to Ukraine highlights, “With your resilience and courage, you teach us all a lesson of resistance and strength in the fight for the independence of your country. You pay with your blood for European civilization. That’s why Switzerland is completely on the side of Ukraine”.

In turn, Maksym Marchenko thanked Claude Wild for help and support provided by Switzerland, as well as proposed to discuss several specific projects related to restoration of the objects in Odesa being damaged as a result of missile strikes.

Head of Odesa Regional Military Administration notes, “Due to Russia’s military aggression against Ukraine, Odesa Region has become a home for internally displaced persons from the temporarily occupied territories of Ukraine and a large logistical and humanitarian hub for administrative management, humanitarian crisis response and resource base for Southern Ukraine, in particular for Mykolaiv and Kherson Regions. The region has retained its personnel expert potential and resource capacity for Odesa Region restoration and support to neighboring regions. We will also be grateful to you for further support of several important projects for their joint implementation”.

Key point of the conversation was the development of a plan for restoration, reconstruction and development of Odesa region in war and post-war conditions.

Maksym Marchenko adds, “Our goal, with your support, is to find and to develop effective solutions for the fastest possible restoration of the most important economic and social processes, by securing sustainable economic and social growth in the region. A separate component will be stimulation of private investments and entrepreneurship; support of small and medium-sized businesses; restoration and updating housing and social infrastructure, and most importantly, restoration of objects in Odesa Region being damaged due to Russia’s armed aggression”.

Separately, they also shared the plans to hold the World Exhibition Expo-2030 in Odesa, which can also become a crucial step in restoration of the country. In this context, Claude Wild emphasized that the Marshall Plan for restoration of Ukraine is already being discussed at the highest political level in many partner states; Odesa should be included in this plan and should become a kind of investment hub, while Expo-2030 in Odesa will speed up development of the region for the nearest decades.

The parties also agreed on further active cooperation and work intensification upon launching the proposed projects not only in economy, but also in digitalization and methodological projects, in particular, conducting internships and training courses for civil officers of the region by Swiss experts.