Category: News

Andrzej Duda, the President of Poland, signed an amendment to the law on export insurance, which allows the state-owned Insurance Corporation KUKE to provide more effective assistance to private business entities concerned in reconstruction of Ukraine, as reported by the Ministry of Economy of Ukraine. 

Yuliya Svyridenko, Minister of Economy, notes, “This is the first such comprehensive insurance tool supporting investments and activities of Polish companies in Ukraine. We hope that such a crucial step taken by Poland will be an impetus for the insurance market and other countries to more actively provide guarantees to companies operating in Ukraine. As the result, it will contribute to attraction of more investments and entry of new players into the Ukrainian private sector”. 

The law serves as grounds for Ukrainian Reconstruction Program with Polish business involved. It cover three aspects: 

• Safe trade with Ukraine. Insurance covers a wide range of risks, in particular, it protects Polish companies against losses caused by non-payment for delivered goods or services. There is also transport reinsurance and a guarantee that protects the banks that issue letters of credit. 

• Investment support of Polish companies. It guarantees support for entrepreneurs in financing investments implemented in Poland for export to Ukraine, as well as investments to be implemented directly in Ukraine, First of all, in the form of new absorption and acquisition projects. 

• Support for development of Ukraine. It provides security of financing of investment projects of Polish or foreign entrepreneurs for investors from Ukraine (both private and state-owned). 

New solutions include, inter alia, reinsurance by other insurers in cases where the risk is above average or if it is impossible to obtain reinsurance on the commercial market, related mainly to transport risks. Therefore, Polish entrepreneurs will be able to carry out transportation to Ukraine and to participate in the reconstruction process, the Ministry highlights. 

The new Polish law also facilitates insurance of Polish branches of foreign companies on a par with local companies. This will allow Ukrainian companies to expand their business on better terms. 

Source – hromadske.ua

Ukraine received the status of an associated member state of the Three Seas Initiative, which will contribute to development of logistics in the region and facilitate export of the Ukrainian goods, including foodstuff, as reported by the Ministry of Economy based on the results of the summit of the Three Seas initiative held in Bucharest on September 6, 2023. 

Yuliya Svyridenko, First Deputy Prime Minister & Minister of Economy, notes, “It means that our country has gained access to all the tools that have been developed as part of the initiative”. 

She adds, “Partners called us to participate in the restructuring of the region’s architecture, which is the need of the hour due to russian gostilities”. 

For Ukraine, as well as for (associate) member states the Three Seas initiative, key direction of efforts shall be development of logistics and trade in the region. 

Yuliya Svyridenko highlights, “For our partners, outbreak of the war served as grounds to think about the need to change global approaches, such as updating infrastructure, transport systems, food supply, attraction of investments in energy and other strategic sectors, in order to completely get rid of russian oil and gas”. 

At the summit, Ukraine drew attention to the need to solve problems in trade relations between the countries. First of all, it concerns removing barriers to trade and restoring the export of Ukrainian grain and other crops. At the summit, Yuliya Svyridenko discussed all these issues in her report. 

First Deputy Prime Minister & Minister of Economy emphasizes, “the states participating in this initiative are already developing transport capacities to facilitate exports from Ukraine. Therefore, despite the war and regular shelling, trade in the Danube and trade routes that go to the ports of Romania, Bulgaria, Croatia and Greece will develop rapidly”. 

Yuliya Svyridenko mentions, “With the victory and restoration of full freedom of navigation in the Black Sea, we will see a new reality of trade in the region of the Three Seas Initiative, i.e. free and efficient, thanks to the developed infrastructure”. 

A step towards logistic and export development: Ukraine is associated member state of the Three Seas Initiative 

Ukraine received the status of an associated member state of the Three Seas Initiative, which will contribute to development of logistics in the region and facilitate export of the Ukrainian goods, including foodstuff, as reported by the Ministry of Economy based on the results of the summit of the Three Seas initiative held in Bucharest on September 6, 2023. 

Yuliya Svyridenko, First Deputy Prime Minister & Minister of Economy, notes, “It means that our country has gained access to all the tools that have been developed as part of the initiative”. 

She adds, “Partners called us to participate in the restructuring of the region’s architecture, which is the need of the hour due to russian gostilities”. 

For Ukraine, as well as for (associate) member states the Three Seas initiative, key direction of efforts shall be development of logistics and trade in the region. 

Yuliya Svyridenko highlights, “For our partners, outbreak of the war served as grounds to think about the need to change global approaches, such as updating infrastructure, transport systems, food supply, attraction of investments in energy and other strategic sectors, in order to completely get rid of russian oil and gas”. 

At the summit, Ukraine drew attention to the need to solve problems in trade relations between the countries. First of all, it concerns removing barriers to trade and restoring the export of Ukrainian grain and other crops. At the summit, Yuliya Svyridenko discussed all these issues in her report. 

First Deputy Prime Minister & Minister of Economy emphasizes, “the states participating in this initiative are already developing transport capacities to facilitate exports from Ukraine. Therefore, despite the war and regular shelling, trade in the Danube and trade routes that go to the ports of Romania, Bulgaria, Croatia and Greece will develop rapidly”. 

Yuliya Svyridenko mentions, “With the victory and restoration of full freedom of navigation in the Black Sea, we will see a new reality of trade in the region of the Three Seas Initiative, i.e. free and efficient, thanks to the developed infrastructure”. 

https://www.epravda.com.ua/news/2023/09/7/704034/

In the context of the ongoing war between Ukraine and the russian federation, it is more difficult for foreign investors to assess risks and find successful investment opportunities. In such a dangerous and unpredictable environment, investment nanny can become an indispensable partner, providing support and expertise aimed at capital safety and growth.

What is an investment nanny?

Investment nanny is a financial professional acting as a consultant and manager for foreign investors having their interests in Ukraine. In wartime conditions, an investment nanny has in-depth knowledge of local financial market, economy and political situation, which allows him/her to identify opportunities and to mitigate risks.

Role of investment nanny.

Risk analysis: Investment nanny conducts a comprehensive analysis of risks correlated to investments in Ukraine in wartime conditions. (S)he assesses political and geopolitical situation, economic effects of the conflict and possibility of regulatory changes.

Portfolio Management: Investment nanny helps a foreign investor to develop and to manage a diversified investment portfolio in wartime conditions. (S)he recommends asset allocation, with regards to sustainability and potential returns of various sectors and companies.

Market Monitoring: Investment nanny monitors dynamics of the financial market and changes in legislation related to the war. (S)he provides regular updates to clients regarding the current situation and impact on their investments.

Safety Advice: Investment nanny develops safety strategies for foreign investors aimed at reducing their risks in wartime conditions. (S)he may consult upon the issues of asset protection, use of insurance tools and additional security measures.

Advantages of cooperation with investment nanny.

Expertise and market understanding: Investment nanny has deep knowledge of the Ukrainian financial market and understands its peculiarities in wartime conditions. This allows foreign investors to receive informed advice and strategic decisions.

Risk mitigation: Due to risk analysis and security strategy development, investment nanny helps to reduce the impact of military conflict on investments. (S)he understands potential threats and provides to his/her clients the tools aimed to protect themselves.

Individual approach: Investment nanny develops strategies with regards tp individual needs and goals of each client. This allows you to create investment solutions that meet their unique requirements.

Conclusion

In view of the war between Ukraine and Russia, there are extremely difficult conditions for foreign investors. Investment nanny can be an indispensable partner, providing expert knowledge and support aimed aimed at capital safety and growth. Cooperation with investment nanny will help foreign investors to effectively manage risks and to find opportunities in the Ukrainian financial market even in wartime conditions.

However, procedure of obtaining investment nanny for the relevant investor is a bureaucratic and complex procedure with lots of formalities. INTERLEGAL lawyers are ready to assist investors by representing and lobbying their interests in order to obtain such a tool as investment nanny.

The Netherlands Agency for Entrepreneurship has announced a state subsidy program for Dutch and international companies that are ready to invest in Ukraine recovery projects, as reported on the agency website. 

Companies are offered to receive reimbursement in the amount from 500,000 EUR to 5 million EUR. Aggregate subsidy cost makes up 25 million EUR. The Dutch government will reimburse 100% of the companies’ costs in their recovery projects. 

Projects are limited to water supply, health care and agriculture. 

Program of the Ukraine Partnership Fund (UPF) was developed by the Ministry of Foreign Affairs of the Netherlands. 

The agency explains, “Due to russian hostilities, Ukraine needs huge support. Most often, reconstruction projects cannot be financed through commercial sector”. 

A mandatory condition for receiving a subsidy shall be launching restoration project jointly with at least one Ukrainian company. 

The Ukrainian Ministry of Reintegration comments, “Initiative of the Netherlands shows readiness of international partners to participate in restoration of Ukraine. It will allow foreign companies to be involved in such project and will provide experience we can use in future”. 

https://finance.liga.net/ua/ekonomika/novosti/niderlandy-kompensiruyut-inostrannomu-biznesu-25-mln-evro-investitsiy-v-ukrainu

Many international companies will enter Crimea immediately following the peninsula’s de-occupation. Today, on August 23rd, the first corresponding document will be signed, according to a statement by Ukrainian President Volodymyr Zelenskyy during the Crimea Platform Summit.

He revealed that powerful international brands have expressed readiness to start their businesses in Crimea, including hotels, airlines, banking, IT, industrial, and energy companies. Thus, the peninsula will become a part of the global economy.

“Today, we are taking the first step. Today, we are signing the first document with companies ready to enter Crimea after its return to Ukraine. This is an open document for other honest businesses to join,” Zelenskyy noted.

The head of state clarified that in Crimea, the following entities are interested in starting operations:

• Ryanair
• Royal HaskoningDHV
• SkyUp
• JoinUp
• Vodafone
• Luxoft
• Genesis
• Ribas Group
• Okko
• Lifecell
• Fozzy Group
• Hyatt Ukraine
• Nokia

The Crimea Platform

Today, on August 23rd, the third summit of the Crimea Platform is taking place in Kyiv. Its purpose is to bring the issue of the peninsula’s de-occupation to the international agenda.

The initiative was launched by Ukraine in 2021 when the inaugural summit was held. At that time, a joint declaration of the Crimea Platform participants was adopted. Representatives from 43 countries took part in the meeting.

Interlegal’s comment (Dmytro Ochkolyas, leading lawyer, attorney):

KYIV. June 21, 2023. UNN. On Tuesday, the European Commission unveiled a new multi-billion-euro project to help rebuild Ukraine, the first major economic grouping to outline an estimate of a multi-year funding plan, as reported by UNN with reference to Politico. 

Details 

As stated by the World Bank, the United Nations and the European Commission, at least 411 billion US dollars are now needed to rebuild Ukraine: this figure only grows as long as the war continues. The publication notes that the Marshall Plan, being adjusted for inflation, is a package of loans and grants that provides less than a third of what Ukraine needs. In addition, the scale of financing is constantly growing. 

Recently, the European Commission announced a new aid plan: up to 50 billion euros of financial support for Ukraine. In addition, the Commission is also negotiating with the European Investment Bank upon the EU budget guarantees to finance another EUR 100 million in loans to Ukraine. Brussels will control the process of provided fund distribution. 

According to the Commission’s proposal made public on Tuesday, the Ukrainian government should prepare a so-called Ukraine plan detailing its vision of rebuilding the country in compliance with the EU standards. Costs will be paid on a quarterly basis, subject to fulfillment of terms is conditions. 

Another question is whether russian assets, including the russian Central Bank’s frozen $300 billion in reserves, should be used in order to finance reconstruction of Ukraine. Reporters believe that this issue could become the next large challenge for the EU. 

https://www.unn.com.ua/uk/news/2033277-yes-rozroblyaye-yevropeyskiy-plan-marshalla-dlya-ukrayini

As reported by the Ministry of Foreign Affairs of Ukraine, the UN is launching a power supply project in Odesa for 50 million USD, in order to facilitate power supply within the city. 

The UN development program is planning to launch the project for increasing the urban power infrastructure capacity before winter comes. 

Such a project will include installation of gas turbine, transformer (80 MW), compressors, nine gas generators and control stations. 

The aforesaid body reports that six UN agencies have opened their offices in Ukraine as support of state & local government in solving humanitarian problems caused by shelling the city and the seaports by russian troops. 

On August 2, 2023, Izmail port infrastructure got damage due to russian hostilities. 

As noted before, russia did not speak at the UNSC Meeting concerning missile shelling in Odesa on July 23, 2023. 

https://od.vgorode.ua/ukr/news/sobytyia/a1246022-do-zimi-oon-realizuje-v-odesi-enerhetichnij-proekt-na-50-miljoniv-dolariv

Illichivsk Oil & Fat Plant was purchased by Poltava-Grain with Kernel as its principal beneficiary

Privatization tender concerned sale of the Illichivsk Oil & Fat Plant located in Chornomorsk. The buyer was Poltava-Grain, while purchase cost made up 696.6 million UAH. The above company acquired the land plot of 8.58 hectares, administrative & household buildings, equipment and three vehicles. See Prozorro.Sales for the lot details.

Principal beneficiary of Poltava-Grain is Kernel Trade (95% shares), while the remaining 5% shares are owned by LLC Asset Management Company “Progressive Investment Strategies” (the single beneficiary is Ukragrobusiness).

In 2021 Odesa Region Commercial Court recognized PJSC Illichivsk Oil & Fat Plant as bankrupt and initiated winding-up procedure. Its accounts payable exceeded 1.6 billion UAH.

Олійно-жировий комбінат у Чорноморську приватизували майже за 700 млн грн

The guarantees of loss recovery in favor of shipowners suffered from the russian hostilities against Ukraine 

On May 26, 2023, the Cabinet of Ministers of Ukraine approved the Procedure for the guarantees of such loss recovery in favor of shipowners. 

This Procedure is aimed to secure fair reimbursement of losses incurred by the victim of hostilities, as well as to facilitate renewal of inland & sea trade in Ukraine. 

A comment by expert 

As soon as Ukraine suffered the russian hostilities and commenced battles at its own territory, everyone sustained essential material losses and damages. Victims of military aggression are shipowners, inland & sea-going vessel operators and charterers who incurred losses during the conflict. 

As prescribed by the Procedure, shipowners, operators and charterers, whose vessels, flying under Ukrainian or foreign flag, got damages due to russian hostilities and battles at the territory of Ukraine, may apply for reimbursement of losses by the state. Such reimbursement may cover vessel loss or damage, loss of profit, losses resulted from vessel detention or changing the route, ship repair & restoration costs, as well as other expenses caused by military aggression. 

It prescribes the procedure for filing application jointly with required documents, terms and other requirements for shipowners applying for reimbursement. After filing application jointly with supporting documents, the competent bodies shall assess the damage and shall make a decision on reimbursement. 

Such a Procedure is a crucial step for support of the shipowners-victims and for inland & sea transport renewal in Ukraine. It defends rights and interests of the shipowners-victims, as well as helps them to maintain economic stability after overcoming such obstacles. 

A prerequisite for successful implementation of such Procedure shall be strict compliance with its provisions, effective communication with shipowners and competent bodies, as well as sufficient financial resources in order to pay reimbursement. INTERLEGAL lawyers may help you to do it. 

Seeking to circumvent Russian aggression and keep supplying customers, Metinvest is weighing plans to construct a new Italian plant that could receive raw materials from its Ukrainian mines and steel mills, stated the CEO of the Metinvest Group Yuriy Ryzhenkov.

According to him, the European market has always been the number one market for Metinvest and now the group is studying opportunities in Europe.

“For example, many people talked about the fact that we are considering the possibility of building a new plant in Italy. This is true. This plant should be built in Italy in order to load Ukrainian mining and processing plants with super high-quality pellets. It will be a direct chain from Ukraine to Europe, it will be serious market for our high-quality mining products,” said Ryzhenkov.

In 2022, the mining and metallurgical group Metinvest recorded a loss of $2.193 billion. The year before that, it had a profit of $4.765 billion.

In January 2023, the Metinvest Group notified the Hungarian government of its desire to buy the ISD Dunaferr metallurgical plant, which is in liquidation.

According to Ryzhenkov’s forecasts, it may take up to five years to restore the Azovstal steelworks and Illich Steel and Iron Works in Mariupol after the city returns to Ukrainian control.

https://biz.liga.net/en/all/tek/novosti/eto-deystvitelno-tak-metinvest-podtverdil-plany-postroit-zavod-v-italii