Category: News

• International finance package of €157 million for private wind project to boost Ukraine’s energy security
• Project is co-financed by European Bank for Reconstruction and Development, International Finance Corporation, and Black Sea Trade and Development Bank
• The European Union (EU), the United Kingdom, and CIF’s Clean Technology Fund (CTF) supported the mobilization of the finance package
• Deal marks a pivotal step in advancing Ukraine’s shift towards renewable energy

An international finance package will bring €157 million of project finance debt to a private wind power project that aims to boost Ukraine’s energy security. The deal, announced today in Kyiv, is co-financed by the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) and Black Sea Trade and Development Bank (BSTDB) and supported by the European Union (EU), the United Kingdom, and CIF’s Clean Technology Fund (CTF).

One of the first greenfield private projects in Ukraine’s power sector since the beginning of Russia’s invasion of Ukraine in 2022, this project forms part of efforts to advance Ukraine’s shift towards renewable energy generation as well as bolster its energy security following attacks from Russia on the country’s energy generation infrastructure.

The EBRD and IFC will each lend €60 million and BSTDB €37 million. The total cost of the project is estimated at €225 million (excluding VAT), with the rest to be met by equity from the project sponsor, GNG Group or Galnaftogaz, widely known in Ukraine as OKKO Group. The loans are to Wind Power GSI Volyn LLC and Wind Power GSI Volyn 3 LLC, special purpose vehicles incorporated in Ukraine.

The loans will support OKKO to construct and operate wind power plants in Ukraine with a combined capacity of 147 MW. The plants are expected to generate at least 380 GWh of renewable zero carbon electricity annually, resulting in carbon dioxide emission savings of approximately 245,000 tons per year.

The EBRD’s funding will be backed by financial guarantees from the European Union provided under its Ukraine facility, the Ukraine Investment Framework. This comes from the Ukraine Investment Framework Hi-Bar guarantee programme, which supports both new and existing climate mitigation technologies, in particular in the energy sector, in line with the EU’s detailed Ukraine Plan.

IFC and BSTDB’s loans are backed by guarantees from the European Union under the Ukraine Investment Framework as part of IFC’s Better Futures Program: RE-Ukraine. The United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) provided grant funding as a first loss guarantee to enable the mobilization of IFC and BSTDB’s loans. IFC’s funding package also includes €10 million in debt financing from CTF and was enabled by pre-investment work through which IFC helped optimize the project structure in a highly volatile market environment. This was possible thanks to support from Austria’s Federal Ministry of Finance and the Swiss State Secretariat for Economic Affairs SECO.

“We are grateful to our partners for their long-term, sustainable cooperation, which is especially valuable during wartime — for both business and the country as a whole. This project addresses several key challenges at once. Firstly, it strengthens the country’s energy security and independence. Secondly, it advances the transition to zero-emission electricity production,” said OKKO Chief Executive Officer Vasyl Danyliak.

“With significant power generation capacity in Ukraine destroyed as a result of the war, this investment is crucial to address the severe current energy shortfall, support Ukraine’s decarbonisation goals and boost the private sector’s role in further development of the renewable energy sector in the country,” said Matteo Patrone, the EBRD’s Vice President, Banking.

Ines Rocha, IFC’s Regional Director for Europe, said: “This project will ensure that people can keep the lights on, stay warm and connected – therefore marking a significant milestone in Ukraine’s recovery. While paving the way for a more resilient Ukraine, this transaction also sends a clear signal about the country’s readiness for private investment and ability to meet the challenges of tomorrow.”

“Ukraine’s energy sector has faced unprecedented challenges due to the ongoing crisis, making the diversification and resilience of its power infrastructure more critical than ever. Supporting projects that strengthen the country’s energy independence and accelerate its transition to renewable energy is a priority for BSTDB. This wind power project is a tangible step toward building a sustainable energy future for Ukraine. We are proud to stand alongside our development partners in mobilizing essential resources, enabling investments that will help restore and stabilize Ukraine’s energy supply while fostering long-term economic recovery and environmental sustainability,” said Dr Serhat Köksal, BSTDB President.

“This is a smart investment at a critical time. It boosts Ukraine’s energy security and supports its shift to renewables. The EU is glad to help make it happen,” said Stefan Schleuning, Head of Cooperation at the EU Delegation to Ukraine.

Martin Harris, British Ambassador to Ukraine, said: “I’m delighted that £3.8 million in UK grant funding has helped unlock this wind farm project, which has the capacity to power the equivalent of up to 80,000 homes. The UK stands firmly behind Ukraine’s green recovery. These sustainable energy solutions not only help Ukraine withstand Russia’s attacks on the energy grid but also build a more sustainable future economy. It’s encouraging to see Ukrainian businesses diversifying their energy sources with cleaner, modern technologies. This strengthens Ukraine’s entire energy sector – a key priority behind the 100-Year Partnership Agreement that Prime Minister Keir Starmer and President Volodymyr Zelenskyy signed earlier this year.”

The EBRD and IFC have been supporting OKKO Group, their client since 2005, to move forward with the decarbonization strategy it is pursuing against the backdrop of Russia’s war on Ukraine, as it prepares for Ukraine’s integration into the European Union and a future net-zero economy.

Energy is a priority for the World Bank Group in Ukraine. The World Bank, IFC, and MIGA have been working closely on complementary public and private sector interventions to meet both the country’s short-term imperatives, including restoring essential infrastructure and procuring equipment, and longer-term needs.

Since February 2022, IFC has delivered $2.2 billion to support Ukraine’s private sector, including $760 million in mobilization, through its Economic Resilience Action (ERA) Program for Ukraine. The support is part of the World Bank Group’s response package, which has assisted more than 15 million Ukrainians by helping businesses stay afloat and enabling the government to provide essential services, pay wages, keep schools and hospitals open, and make critical repairs.

Source: https://www.ifc.org/en/pressroom/2025/157-million-finance-package-for-private-ukraine-wind-farms

In a recent statement, former U.S. President Donald Trump identified Ukraine—specifically Odessa—as a prime location for real estate development

From hotel ventures to large-scale construction, Trump believes that Ukraine presents lucrative opportunities for investors looking to expand their portfolios in emerging markets.

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Odessa in the Spotlight

During an autumn conversation with Ukrainian President Volodymyr Zelensky, Trump mentioned Odessa as a standout city for hotel investments, according to a report by the Wall Street Journal. Trump’s endorsement underscores the city’s strategic position as a port hub on the Black Sea, which could attract growing numbers of tourists and business travelers in the coming years.

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Gaza Strip: A Potential “Middle Eastern Riviera”?

Interestingly, Trump also suggested a real estate development idea to Israeli Prime Minister Benjamin Netanyahu: building hotels in the Gaza Strip. According to members of Trump’s team, the vision includes transforming Gaza into a “Middle Eastern Riviera,” offering enhanced opportunities and financial prospects for local Palestinians.

• US Envoy Steve Witkoff stated that Trump aims for transparency with the Palestinians, highlighting that improving living conditions and economic prospects in the region aligns with broader peace efforts. Witkoff noted that Gaza could become uninhabitable in the next 10–15 years without significant investment and infrastructure improvements.

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What This Means for Investors

1. Emerging Markets: Both Odessa and the Gaza Strip represent frontiers for hospitality and real estate development. Despite political complexities, early involvement may yield high returns.
2. Strategic Port Locations: Odessa’s status as a key Black Sea port could drive tourism and commerce, making it a magnet for international investors.
3. Political Will and Support: Trump’s vocal support, as well as backing from political leaders in the region, signals potential momentum for infrastructure upgrades and policy incentives.

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Key Takeaways

• Odessa: Trump highlights it as a prime opportunity for hotel investments in Ukraine.
• Gaza Strip: Long-term vision to develop hotels, turning it into a “Middle Eastern Riviera” for improved economic growth and living standards.
• Investor Outlook: While political and security factors remain crucial to consider, these regions may offer significant long-term potential for the real estate sector.

For those looking to diversify their portfolio and venture into new real estate markets, both Odessa and the Gaza Strip could become high-reward investments—if approached with careful due diligence and an eye on geopolitical developments.

Source: https://good-time-invest.com/blog/trumps-surprising-investment-tip-why-odessa-could-be-the-next-big-thing-for-hotel-developers/

Important notification: Considering the high level of interest and the needs in Ukraine, SECO has decided to increase the total contribution of this call for proposals to up to CHF 100 million (from CHF 50 million).

In June, 2024, the Federal Council decided to better involve the Swiss private sector in Ukraine’s recovery and reconstruction. Based on their expertise, Swiss companies can make an important contribution to Ukraine’s reconstruction process. Within the framework of the Call for Proposals, Switzerland supports projects from Swiss companies with a legal entity in Ukraine, aligned with the needs of Ukraine linked to recovery and reconstruction.

The new total contribution for this call is up to CHF 100 million. Individual financial contributions for selected projects still range from CHF 1 million to CHF 15 million. All the detailed information on the process, timelines, selection criteria, etc. can be found in the «Documents» below.

The «Main Document Call for Proposal Ukraine – Version 2» has been uploaded under the «Documents» section on 17.03.2025, replacing the original version published on 30.01.2025. The changes in this Version 2 exclusively relate to the increase in the budget and its implications, particularly the adaptation of deadlines and dates.

All changes made within this «Main Document Call for Proposal Ukraine – Version 2» compared to the «Main Document Call for Proposal Ukraine» uploaded on 30.01.2025 are marked in red color.
All eligibility and award criteria (Annex 1) and other Annexes listed on the website under the section «Documents» remain unchanged during the re-submission period.

As the deadline for submitting applications under the Call for Proposals has been re-opened from 17.03.2025 to 31.03.2025 (23:59 CET), Eligible companies that have not participated during the first submission period can submit their project proposals.

Resubmission is not required: The already submitted proposal will remain valid and will be evaluated based on the original version if no updated submission is made before the new deadline.

Please note: Applicants who have already submitted an application have the possibility to make modifications and/or additions. In this case, the changed and/or new passages shall be marked in yellow within the document, and newly uploaded documents within already submitted applications shall have a filename starting with «NEW».

Only new/modified documents need to be re-uploaded. The original documents that were replaced by the new documents are thus no longer considered in the evaluation. It is the full responsibility of the applicant that the modifications are clearly recognizable in yellow. If this is not the case, the original version uploaded between 30.01.2025 – 28.02.2025 will be taken into consideration for evaluation.

To submit new/modified documents, you have to create a new account within the profile environment on the website.

If you wish to withdraw an application, please do so in writing a letter and uploading it within the profile environment.

The Call for Proposals is re-opened from 17 of March until 31 of March (23:59 CET) to submit projects. Submissions received after the deadline will not be considered.

Please note: SECO will not answer questions individually during the application process. Questions and answers to the Call for Proposals were published anonymously and publicly on this Webpage under the section «Documents» on 14 of February 2025.

During the re-submission period, questions can be formulated through the contact form from 17.03.2025 – 20.03.2025 (23:59 CET). Answers will be published by 25.03.2025 under the section «Documents» on the website. Questions which have been answered during the first Q&A-session will not be answered again (see document “Q&A Call for Proposals SECO 14.02.2025”). Questions not submitted through the contact form will not be answered.

You can find all documents about Call for Proposals here.

These funds will be directed to key sectors of the economy where Swiss businesses are active.

Ukraine and Switzerland have signed a Memorandum of Understanding, under which the Swiss government will allocate 55 million USD to finance recovery projects via local companies. These funds will be directed to key sectors of the economy where Swiss businesses are active, as reported by the press service of the Ministry of Economy on January 23.

Details:

The Swiss State Secretariat for Economic Affairs (SECO) will provide funding. Project selection will start in late January 2025, and implementation of the first initiatives will begin in July 2025. The Government of Ukraine, SECO, and the Embassy of Switzerland will participate in the selection process.

• The memorandum creates the basis for further signing an intergovernmental agreement on technical and financial cooperation, as reported by the Ministry of Economy. The agreement will cover launching public projects from the Unified Public Investment Portfolio approved by the Strategic Investment Council.

Context:

Switzerland is launching programs to support Ukraine in decentralization, recovery, joint projects with Ukrzaliznytsia, and preparation for the heating season.

In April, the Swiss Federal Council decided to allocate 5 billion CHF (equal to 5.5 billion USD) for humanitarian aid, economic development, and long-term recovery of Ukraine until 2036.

Assistance will be implemented step by step: 1.5 billion CHF will be allocated for international cooperation till 2028, while in 2029-2036 the government will explore other sources of funding to allocate the remaining 3.5 billion CHF.

Source: https://borgexpert.com/news/shvejtsariia-spriamuie-55-mln-na-vidnovlennia-ukrainy-cherez-proiekty-svoikh-kompanij

On 12 February in Bern, the Swiss Federal Council adopted the Cooperation Programme with Ukraine for 2025-2028. It will be the first stage of a long-term 12-year support programme for Ukraine’s recovery, reforms and sustainable development. Under this programme, CHF 1.5 billion will be allocated for economic recovery, protection of civilians and strengthening of institutions.

“The Swiss Government declared its readiness to provide long-term support to Ukraine back in April 2024, announcing the allocation of CHF 5 billion over the next 12 years. The approved Support Programme for 2025-2028 is only the first stage of implementation of the intergovernmental agreements. In 2029-2036, the Swiss side will provide another CHF 3.5 billion for Ukraine,” said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.

The cooperation programme between Switzerland and Ukraine for 2025-2028 focuses on three main areas:

Economic recovery, including support for small and medium-sized enterprises (SMEs), agricultural development and infrastructure reconstruction, including in regions affected by the hostilities.

Modernisation of public services, including healthcare and education, public transport, energy and water supply.

Protection of civilians, including humanitarian demining, documentation of war crimes, assistance in the search for missing persons and strengthening of human rights mechanisms.

To ensure the successful implementation of the Programme, Switzerland will cooperate with Ukrainian government agencies, the private sector, academic institutions and NGOs. It is planned that one third of the Programme’s budget – about CHF 500 million – will be spent on rebuilding Ukraine in cooperation with Swiss companies. During the World Economic Forum in Davos, Ukraine and Switzerland signed a memorandum on the first CHF 50 million that Switzerland intends to allocate for its companies to support projects in Ukraine. Applications from businesses are now being accepted. Implementation of the selected projects is scheduled for July 2025.

Source: https://www.kmu.gov.ua/en/news/minekonomiky-shveitsariia-zapustyla-prohramu-pidtrymky-vidbudovy-ukrainy-na-2025-2028-roky

Join EY Law Denmark and EY Law Ukraine on February 25, 2025 for an insightful online webinar on the opportunities and challenges of doing business in Ukraine.

This webinar will be particularly engaging for Danish businesses looking to enter the Ukrainian market or expand their existing operations, and Danish investment bankers seeking insights into investment opportunities and trends in Ukraine.

Webinar topics and speakers include:

• Peder A. Larsen, Associated Director, The Export and Investment Fund of Denmark (EIFO): “Overview of the Danish governmental program supporting investments in Ukraine” moderated by Susanne Scott Levinsen, Partner, Country and Transaction Law Leader, EY Law Denmark;
• Troels Libak Stollberg, Vice President and Head of Legal & Compliance for Carlsberg’s CEE and India Region, Carlsberg Group : “Insights from Danish businesses with firsthand experience in the Ukrainian market” moderated by Bogdan Malniev, Partner, Tax&Law practice, EY Law Ukraine;
• Bogdan Malniev, Partner, and Olena Dreval, Director, Tax&Law practice, EY Law Ukraine: “Understanding the Ukrainian legal framework and strategies for market entry during wartime”;
• Borys Lobovyk, Partner, Law Leader, and Olena Dreval, Director, Tax&Law practice, EY Law Ukraine, Ninel Lugivska, General Manager, 3Shape Ukraine: “Key sectors of interest for investors: IT and energy”;
• An interactive Q&A session to address your queries.

Date and time: February 25, 2025, from 10:00 to 11:30 (Kyiv time) / 9:00 to 10:30 (Copenhagen time). 

Format: online.

Duration: 1.5 hours.

This webcast is free of charge but requires prior registration.

To register follow this link

Don’t miss this opportunity to hear expert insights and practical guidance on navigating the current business landscape in Ukraine.