Currect news on Rebuild Ukraine topic

The government has identified key sectors for investment and proposes state support programs to attract investors.

Minister of Economy, Yulia Svyrydenko, announced that despite war, foreign investment of $4.25 billion flowed into Ukraine's economy in 2023. "The government, in collaboration with the private sector, has identified several promising sectors that, in our opinion, will contribute the most to GDP growth. Among them are projects to attract private investors in energy, agro-industry, processing industry, transportation, logistics, IT, and critical materials," she emphasized.

It is noted that the government has various instruments for developing both small and medium-sized businesses and supporting large manufacturers. For example, ₴45 billion is allocated to support manufacturers within the "Made in Ukraine" economic policy. Additionally, the government offers various incentives to foreign investors to enter the Ukrainian market, including infrastructure for insurance against war risks, industrial parks, tax breaks, and support for projects with significant investments (over €12 million). Moreover, the investment component of the Ukraine Facility - Ukraine Investment Framework program aims to attract €40 billion.

The Ministry of Economy of Ukraine predicts that the country's investment opportunities over the next 10 years will exceed $292 billion.

These sectors may attract foreign companies: energy, transportation and logistics, agro-processing, critical materials, green steel, and digital transformations, Minister Yulia Svyrydenko announced during a meeting with her colleague from Finland.

Svyrydenko also emphasized that Ukraine is implementing a range of instruments to stimulate investment and support the development of the private sector. This includes incentive packages for residents of Ukrainian Industrial Parks and investors with large investments exceeding €12 million. Additionally, the introduction of Pillar II within the Ukraine Facility framework will facilitate access to project financing of €9 billion over the next four years through MFIs' guarantees.

The Finnish government is already prepared to offset credit risk up to €50 million through its national ECA, Finnvera, providing export credit guarantees to promote exports and investments in Ukraine.

A tobacco business corporation is investing $11 million in launching new products in the Ukrainian market.

Philip Morris announces the expansion of its range of smoke-free products in Ukraine and the introduction of the latest model of the tobacco heating device Iqos Iluma. In 2024, an investment of $11 million is planned to increase the number of stores, expand the service infrastructure, and create new jobs in Ukraine.

The launch of this product in Ukraine was postponed, but the company has demonstrated its readiness to invest in Ukraine and implement the strategic goal of transitioning to smoke-free products.

"Together with the investment in the factory in the Lviv region, this is another confirmed signal of our support for the Ukrainian economy in difficult times," said Maxim Barabash, General Director of Philip Morris Ukraine. It is also worth noting that the company has already opened 40 branded stores in 24 cities, launched express delivery and nationwide delivery services, and in the past two years, 120 recycling points have been introduced in the country for the processing or environmentally friendly disposal of old equipment.

The Ukrainian parliament has passed a bill allowing for the cultivation of a strategically important crop used during wartime.

According to Law No. 10427-1, adopted on April 23, the procedure for state registration and import of cotton varieties, including genetically modified ones, during the period of martial law, has been simplified. This decision is crucial for the production of gunpowder.

Previously, the registration process for cotton, including GMO varieties, took a long time. However, thanks to the new law, this process will be significantly simplified. Ukraine plans to start growing cotton in the Odesa region this year, which will attract significant investment in the construction of a plant for the production of raw materials for gunpowder.

Cotton is of great importance during wartime as its cellulose is used in the production of gunpowder, necessary for the defense of the country. The cultivation of this crop in Ukraine will be an important step in meeting the country's needs for strategic resources.