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The EBA held a roundtable discussion on topical issues of Ukraine’s recovery

09/ 07/ 2024
    On July 5th, the European Business Associations Ukraine Recovery Committee held a round table discussion on key issues of Ukraines recovery. The focus was on the main challenges and problems faced by companies, cooperation between business and government in facilitating Ukraines recovery, issues of investment insurance, business access to finance, the main results of the recovery conference in Berlin, and more. The first panel addressed laying the foundation for Ukraines recovery. Vira Savchenko, Executive Director of BDO in Ukraine, and Olha Balytska, PWC, co-chairs of the EBAs Ukraine Recovery Committee, spoke about the Committees work and its main projects, emphasizing that the EBAs activities are aimed at supporting transparent and efficient recovery processes. The Ukraine Recovery Committee was established by the European Business Association in 2022 to facilitate Ukraines economic recovery and reconstruction. The Committees main priorities include advocacy - developing and implementing proposals from the European Business Associations White Paper on Ukraines recovery and actively seeking business partnerships in Ukraine and abroad. The White Paper details specific issues and proposals in 22 sectors aimed at Ukraines economic recovery, transparency, and compliance with international standards in reconstruction. The Committee actively interacts with government agencies and local authorities, including the Ministry of Recovery, the Ministry of Economy, the Parliament, and relevant agencies and departments, facilitating open dialogue and addressing business issues. In addition, in cooperation with Ukraine Invest, an Investment Map has been developed, which showcases potential investment projects in various regions and sectors of Ukraine. Seven projects from the Committees Investment Map and over 20 projects from EBA members were included in the Governments investment guide, presented at the Ukraine recovery conference in Berlin. By joining the Recovery Committee, your company can actively participate in shaping the future of Ukraine, contribute to its economic growth, and benefit from unique networking and partnership opportunities. Olena Shuliak, Head of the Verkhovna Rada Committee on Organization of State Power, Local Self-Government, Regional Development, and Urban Planning, emphasized the need for cooperation between business, local communities, and the Government to address the challenges facing Ukraine and ensure successful recovery and development. Each community needs a clear vision for its development to attract investment. The government encourages communities to develop comprehensive recovery programs that focus on economic development, demographics, and the environment. At the same time, communities need support in developing the skills and competencies needed to implement projects. The business community can play a crucial role in providing such support. There was also discussion about the development and attraction of people - an important issue for business, which government representatives are aware of and working to address. Volodymyr Kuzio, Deputy Minister of Economy of Ukraine, highlighted the key results of the International Ukraine Recovery Conference URC-2024 in Berlin. The conference brought together 3,400 participants, including more than 500 business representatives from Ukraine, Germany, and other countries. About 110 international agreements were signed, including support for small and medium-sized businesses with a commitment of 4.5 billion euros to support new projects. International financial institutions have allocated about 800 million euros for project financing in sectors such as agriculture, telecommunications, logistics, and industry. Belgium, Denmark, Finland, Japan, the Netherlands, Finland, and Sweden have allocated 1.4 billion euros to Ukraine through their development finance institutions. International partners announced energy support projects worth about 1 billion euros. The newly formed coalition to support the sustainable development of municipalities has committed to allocating about 2 billion euros. Agreements were also signed on project financing of transport and reconstruction projects, and an investment guide was presented, which includes industry analysis and investment teasers for key sectors. View the presentation Oksana Ocheretyana, Deputy Chairman of the Board of ECA, presented two new products launched in the second quarter of 2024: insurance of direct investments in Ukraine and insurance of investment loans against military and political risks. Direct investment is an investment of assets in exchange for corporate rights (a share of more than 10%). Direct investment insurance protects the interests of the investor (individual or legal entity, resident or non-resident). The investment object must be located in the controlled territory of Ukraine and aimed at creating export capacity. The exported goods must meet ECA requirements, mainly processed goods with high added value. Direct investment insurance can cover foreign investments and involve foreign export credit agencies. Investment loan insurance protects the interests of the bank that provides the loan for investment purposes. The loan should be aimed at creating export infrastructure. Both types of insurance can be combined to provide comprehensive protection for investors. A business plan or feasibility study is required to demonstrate the causal link between loan funds and future exports of goods. Ms. Oksana also said that if appropriate amendments are made to the legislation, ECA is ready to expand the coverage of investment loans to all risks. View the presentation The second panel discussed the challenges facing the business community. Businesses face various problems, such as lack of experience in obtaining external financing, language barriers, and lack of understanding of the Ukrainian market by foreign investors. Despite improvements in currency regulation, it is still far from ideal. However, there are now more opportunities to transfer funds for import services, dividend payments, and loan repayments. The availability of insurance against military and political risks has increased, but problems remain, especially for businesses located in high-risk areas. There is a need to improve education and skills development programs to strengthen the potential of Ukrainian businesses and citizens. Government programs to support businesses in frontline regions, such as tax exemptions and equipment provision, are not always effectively implemented. A significant part of the southern and eastern territories is contaminated with landmines, which is a serious obstacle for agricultural and other businesses. Overall, the speakers stressed the need for continued cooperation between business, the Government, and international partners to address these challenges and support Ukraines recovery and development. Presentation by Andrii Borenkov, BDO Ukraine Presentation by Oleksii Grinchenko, AON Presentation by Olena Ramazanova-Styopkina, International School of Technical Legislation and Quality Management The recording of the meeting can be viewed at the link: https://youtu.be/AMIuR0IoVqQ We thank the speakers of the second panel - Andrii Borenkov, BDO Ukraine, Vadym Romaniuk, PWC, Yurii Voichak, Oschadbank JSC, Oleksii Grinchenko, AON, Olena Ramazanova-Styopkina, International School of Technical Legislation and Quality Management, Ihor Balak, WWF Korona, Oleksandr Hryban, Ukrnafta PJSC - for their interesting presentations, and also our partners - BDO Ukraine - for the opportunity to meet and discuss important initiatives to support the recovery and development of Ukraine.
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On July 5th, the European Business Association’s Ukraine Recovery Committee held a round table discussion on key issues of Ukraine’s recovery. The focus was on the main challenges and problems faced by companies, cooperation between business and government in facilitating Ukraine’s recovery, issues of investment insurance, business access to finance, the main results of the recovery conference in Berlin, and more.

The first panel addressed laying the foundation for Ukraine’s recovery. Vira Savchenko, Executive Director of BDO in Ukraine, and Olha Balytska, PWC, co-chairs of the EBA’s Ukraine Recovery Committee, spoke about the Committee’s work and its main projects, emphasizing that the EBA’s activities are aimed at supporting transparent and efficient recovery processes.

The Ukraine Recovery Committee was established by the European Business Association in 2022 to facilitate Ukraine’s economic recovery and reconstruction. The Committee’s main priorities include advocacy – developing and implementing proposals from the European Business Association’s White Paper on Ukraine’s recovery and actively seeking business partnerships in Ukraine and abroad. The White Paper details specific issues and proposals in 22 sectors aimed at Ukraine’s economic recovery, transparency, and compliance with international standards in reconstruction.

The Committee actively interacts with government agencies and local authorities, including the Ministry of Recovery, the Ministry of Economy, the Parliament, and relevant agencies and departments, facilitating open dialogue and addressing business issues. In addition, in cooperation with Ukraine Invest, an Investment Map has been developed, which showcases potential investment projects in various regions and sectors of Ukraine. Seven projects from the Committee’s Investment Map and over 20 projects from EBA members were included in the Government’s investment guide, presented at the Ukraine recovery conference in Berlin. By joining the Recovery Committee, your company can actively participate in shaping the future of Ukraine, contribute to its economic growth, and benefit from unique networking and partnership opportunities.

Olena Shuliak, Head of the Verkhovna Rada Committee on Organization of State Power, Local Self-Government, Regional Development, and Urban Planning, emphasized the need for cooperation between business, local communities, and the Government to address the challenges facing Ukraine and ensure successful recovery and development. Each community needs a clear vision for its development to attract investment. The government encourages communities to develop comprehensive recovery programs that focus on economic development, demographics, and the environment. At the same time, communities need support in developing the skills and competencies needed to implement projects. The business community can play a crucial role in providing such support. There was also discussion about the development and attraction of people – an important issue for business, which government representatives are aware of and working to address.

Volodymyr Kuzio, Deputy Minister of Economy of Ukraine, highlighted the key results of the International Ukraine Recovery Conference URC-2024 in Berlin. The conference brought together 3,400 participants, including more than 500 business representatives from Ukraine, Germany, and other countries. About 110 international agreements were signed, including support for small and medium-sized businesses with a commitment of 4.5 billion euros to support new projects. International financial institutions have allocated about 800 million euros for project financing in sectors such as agriculture, telecommunications, logistics, and industry. Belgium, Denmark, Finland, Japan, the Netherlands, Finland, and Sweden have allocated 1.4 billion euros to Ukraine through their development finance institutions. International partners announced energy support projects worth about 1 billion euros. The newly formed coalition to support the sustainable development of municipalities has committed to allocating about 2 billion euros. Agreements were also signed on project financing of transport and reconstruction projects, and an investment guide was presented, which includes industry analysis and investment teasers for key sectors.

View the presentation

Oksana Ocheretyana, Deputy Chairman of the Board of ECA, presented two new products launched in the second quarter of 2024: insurance of direct investments in Ukraine and insurance of investment loans against military and political risks. Direct investment is an investment of assets in exchange for corporate rights (a share of more than 10%). Direct investment insurance protects the interests of the investor (individual or legal entity, resident or non-resident). The investment object must be located in the controlled territory of Ukraine and aimed at creating export capacity. The exported goods must meet ECA requirements, mainly processed goods with high added value. Direct investment insurance can cover foreign investments and involve foreign export credit agencies. Investment loan insurance protects the interests of the bank that provides the loan for investment purposes. The loan should be aimed at creating export infrastructure. Both types of insurance can be combined to provide comprehensive protection for investors. A business plan or feasibility study is required to demonstrate the causal link between loan funds and future exports of goods. Ms. Oksana also said that if appropriate amendments are made to the legislation, ECA is ready to expand the coverage of investment loans to all risks.

View the presentation

The second panel discussed the challenges facing the business community. Businesses face various problems, such as lack of experience in obtaining external financing, language barriers, and lack of understanding of the Ukrainian market by foreign investors. Despite improvements in currency regulation, it is still far from ideal. However, there are now more opportunities to transfer funds for import services, dividend payments, and loan repayments. The availability of insurance against military and political risks has increased, but problems remain, especially for businesses located in high-risk areas. There is a need to improve education and skills development programs to strengthen the potential of Ukrainian businesses and citizens. Government programs to support businesses in frontline regions, such as tax exemptions and equipment provision, are not always effectively implemented. A significant part of the southern and eastern territories is contaminated with landmines, which is a serious obstacle for agricultural and other businesses. Overall, the speakers stressed the need for continued cooperation between business, the Government, and international partners to address these challenges and support Ukraine’s recovery and development.

Presentation by Oleksii Grinchenko, AON

Presentation by Olena Ramazanova-Styopkina, International School of Technical Legislation and Quality Management

The recording of the meeting can be viewed at the link: https://youtu.be/AMIuR0IoVqQ

We thank the speakers of the second panel – Andrii Borenkov, BDO Ukraine, Vadym Romaniuk, PWC, Yurii Voichak, Oschadbank JSC, Oleksii Grinchenko, AON, Olena Ramazanova-Styopkina, International School of Technical Legislation and Quality Management, Ihor Balak, WWF Korona, Oleksandr Hryban, Ukrnafta PJSC – for their interesting presentations, and also our partners – BDO Ukraine – for the opportunity to meet and discuss important initiatives to support the recovery and development of Ukraine.

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