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Business met with Oleksandr Kubrakov and Olena Shuliak

22/ 03/ 2024
  Yesterday, the European Business Association hosted a meeting with Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine - Minister for Communities, Territories and Infrastructure Development of Ukraine, Olena Shuliak, Head of the Verkhovna Rada Committee on State Building, Local Governance, Regional Development and Urban Planning, and Oleksandra Azarkhina, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine. They discussed the priorities, principles of reconstruction, current and planned programs, and how businesses can join the process. Mr. Kubrakov emphasized that three priorities are currently crucial. The first is housing. In particular, several programs have been launched, such as eVidnovlennia. Already, 43 thousand families have received funds for construction works, building materials, etc. The program is funded jointly with the World Bank and will definitely continue. In addition, a program has been launched to compensate for completely destroyed housing, and applications are submitted digitally through Diia. This program has conditions. In particular, housing cannot be resold for 5 years, there are restrictions on the house size, etc. Another program in the housing block is major repairs of apartment buildings. Mr. Deputy Prime Minister hopes that the Council of Europe Development Bank will become a partner in this project. He also added that an event supported by the World Bank on the recovery and reconstruction of Ukraine will be held in early April, where broader policies and instruments can be presented. The second priority is export logistics. Thus, there are plans to increase the number of checkpoints where possible. In particular with Poland and Hungary. In addition, it is planned to open overhauled checkpoints with Romania and Moldova. Also, water logistics, the Danube cluster, has developed significantly during the war. Mr. Kubrakov stated that an intergovernmental meeting regarding the Polish border blockade is scheduled for next week. Most issues related to the Polish-Ukrainian border blockade are expected to be resolved. The third priority is the municipal and social infrastructure. This includes hundreds of schools, kindergartens, healthcare facilities, etc. The primary focus of the reconstruction will be on ensuring safety, enhancing energy efficiency, and providing barrier-free access. During the meeting, participants also explored areas where business support could be beneficial. Consequently, efforts are directed toward formulating a regional strategy wherein business guidance will hold significant relevance. Notably, 151 communities have initiated the development of a comprehensive recovery program, particularly concerning the assessment of territories for investment attractiveness. The launch of the Business Advisory Group for Restoration, which includes the EBA, was announced, and a discussion with interested businesses will be scheduled soon. The parties also agreed to hold a separate meeting to discuss how to make the process of attracting new business and investment to Ukraine more efficient. One of these tools is the DREAM platform, which continues to be filled with requests from communities and essential information for business and, therefore, deserves constant monitoring by those interested in investing. Currently, work is underway to develop legislation on reconstruction, including a legal requirement for the mandatory use of DREAM in the reconstruction process. The Ukraine Facility Program was discussed, with Oleksandra Azarkhina highlighting its three main pillars. Firstly, macro-financial assistance totaling €38 billion, part of which can be allocated to investment projects, notably in energy sectors such as energy efficiency and green energy, as well as housing and transport. Secondly, there is an EU investment fund for businesses amounting to nearly €7 billion. Lastly, technical and administrative support is valued at almost €5 billion. Separately, businesses supported the energy efficiency course and emphasized the importance of regulating issues related to eco-design, energy-efficient boilers, etc. It was also agreed to hold a separate meeting on these issues and urban planning. The parties also discussed programs for businesses operating in regions close to active hostilities, support for new investors, and also those who had invested before the war and lost everything because of the war, etc. Such programs are currently being discussed, and there is already a draft bill to support businesses in such regions, for example, through special taxation regimes, reducing the regulatory burden, etc. But comments and opinions of business are also crucial, so the participants agreed to hold a separate meeting. We sincerely thank Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine - Minister for Communities, Territories and Infrastructure Development of Ukraine, Olena Shuliak, Head of the Verkhovna Rada Committee on State Building, Local Governance, Regional Development and Urban Planning, and Oleksandra Azarkhina, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine for the meeting.

Yesterday, the European Business Association hosted a meeting with Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine – Minister for Communities, Territories and Infrastructure Development of Ukraine, Olena Shuliak, Head of the Verkhovna Rada Committee on State Building, Local Governance, Regional Development and Urban Planning, and Oleksandra Azarkhina, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine.

They discussed the priorities, principles of reconstruction, current and planned programs, and how businesses can join the process.

Mr. Kubrakov emphasized that three priorities are currently crucial. The first is housing. In particular, several programs have been launched, such as eVidnovlennia. Already, 43 thousand families have received funds for construction works, building materials, etc. The program is funded jointly with the World Bank and will definitely continue. In addition, a program has been launched to compensate for completely destroyed housing, and applications are submitted digitally through Diia. This program has conditions. In particular, housing cannot be resold for 5 years, there are restrictions on the house size, etc. Another program in the housing block is major repairs of apartment buildings. Mr. Deputy Prime Minister hopes that the Council of Europe Development Bank will become a partner in this project. He also added that an event supported by the World Bank on the recovery and reconstruction of Ukraine will be held in early April, where broader policies and instruments can be presented.

The second priority is export logistics. Thus, there are plans to increase the number of checkpoints where possible. In particular with Poland and Hungary. In addition, it is planned to open overhauled checkpoints with Romania and Moldova. Also, water logistics, the Danube cluster, has developed significantly during the war. Mr. Kubrakov stated that an intergovernmental meeting regarding the Polish border blockade is scheduled for next week. Most issues related to the Polish-Ukrainian border blockade are expected to be resolved.

The third priority is the municipal and social infrastructure. This includes hundreds of schools, kindergartens, healthcare facilities, etc.

The primary focus of the reconstruction will be on ensuring safety, enhancing energy efficiency, and providing barrier-free access. During the meeting, participants also explored areas where business support could be beneficial. Consequently, efforts are directed toward formulating a regional strategy wherein business guidance will hold significant relevance. Notably, 151 communities have initiated the development of a comprehensive recovery program, particularly concerning the assessment of territories for investment attractiveness.

The launch of the Business Advisory Group for Restoration, which includes the EBA, was announced, and a discussion with interested businesses will be scheduled soon. The parties also agreed to hold a separate meeting to discuss how to make the process of attracting new business and investment to Ukraine more efficient. One of these tools is the DREAM platform, which continues to be filled with requests from communities and essential information for business and, therefore, deserves constant monitoring by those interested in investing. Currently, work is underway to develop legislation on reconstruction, including a legal requirement for the mandatory use of DREAM in the reconstruction process.

The Ukraine Facility Program was discussed, with Oleksandra Azarkhina highlighting its three main pillars. Firstly, macro-financial assistance totaling €38 billion, part of which can be allocated to investment projects, notably in energy sectors such as energy efficiency and green energy, as well as housing and transport. Secondly, there is an EU investment fund for businesses amounting to nearly €7 billion. Lastly, technical and administrative support is valued at almost €5 billion.

Separately, businesses supported the energy efficiency course and emphasized the importance of regulating issues related to eco-design, energy-efficient boilers, etc. It was also agreed to hold a separate meeting on these issues and urban planning.

The parties also discussed programs for businesses operating in regions close to active hostilities, support for new investors, and also those who had invested before the war and lost everything because of the war, etc. Such programs are currently being discussed, and there is already a draft bill to support businesses in such regions, for example, through special taxation regimes, reducing the regulatory burden, etc. But comments and opinions of business are also crucial, so the participants agreed to hold a separate meeting.

We sincerely thank Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine – Minister for Communities, Territories and Infrastructure Development of Ukraine, Olena Shuliak, Head of the Verkhovna Rada Committee on State Building, Local Governance, Regional Development and Urban Planning, and Oleksandra Azarkhina, Deputy Minister for Communities, Territories and Infrastructure Development of Ukraine for the meeting.

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