Today's Contents
Reporter's Notepad:
- The managing director of SAP Ukraine outlines her company's plans for the reconstruction of Ukraine, future M&A, and more
Just The Facts:
- Russia, Ukraine agree to maritime, energy ceasefires, White House says
- Ryanair CEO says Ukraine's Lviv and Kyiv airports need 'kick up backside' for lack of response
- US senators urge Trump administration to back transfer of $300 billion in frozen Russian assets to help Ukraine
- DTEK to build Ukraine's first digital substation with €11 million French government grant
- Dragon Capital makes maiden investment in Lviv's residential real estate sector
Here's What They Think:
- The Washington Post: How the US can help Ukraine without security guarantees
- The Hill: Putin exploits ceasefire talks as US gives away concessions
Sober Second Thought:
- Ukraine's Housing Institute study finds housing crisis deepened by policy gaps and war, urges reforms
The Rebuilders' Social
- Social media posts by Civitta about the most competitive sectors of Ukraine's economy for EU accession, by Bolt calling for ride-hailing market reform, Ukraine-Invest offering support for logistics development, and more.
Dear subscribers,
URN Daily attended yesterday's online session of the German-Ukrainian Chamber of Industry and Commerce (AHK Ukraine) and, as usual, found it productive.
In this session, Anna Mikulitskaya, managing director of SAP Ukraine, outlined her company's plans for the reconstruction of Ukraine, future M&A, and more. Here's a news story we prepared from the event:
SAP Ukraine predicts surge in demand amid reconstruction, 'de-Russification' of software market
The Ukrainian branch of SAP, the German multinational software company, is strengthening its partner network and securing resources now to take advantage of an expected spike in demand when the war ends, said the branch's head.
"There is high demand for our products now but we understand that it will be even higher with the peace settling in," said Anna Mikulitskaya, managing director of SAP Ukraine. "We are making some investments already, investing in people, and we are planning more investments on Day 1 of peacetime."
Speaking Tuesday on a live podcast hosted in Kyiv by the German-Ukrainian Chamber of Industry and Commerce (AHK Ukraine), she added that "everyone, personally and professionally, should be planning their actions for Day 1, and Month 1 and Month 2."
She said part of the company's plan for Ukraine consists of bolstering its partner network to take advantage of an expected spike in demand for SAP's products.
"We need to line up resources for ourselves and we need to line up resources for our partners, because we are very much relying on our partner network to ensure we meet the demand."
She said the spike in demand will come, in part, from "de-Russification" of the software market in Ukraine. For example, she said, about 80% of the corporate market for accounting software in Ukraine is taken by Russia's 1C Company.
"It's non scalable, it's cyber-insecure and it's reputationally inappropriate to use," she said. "And more and more companies are looking at the alternatives, and SAP is one of them."
She also said SAP is prepared for more acquisitions in Ukraine as the local IT market matures and shifts more toward making products rather than offering services.
"So as Ukraine develops its product potential, there will potentially be targets for acquisitions, because SAP is looking at acquiring product companies and not just service providers," she said.
Mikulitskaya spoke to interviewer Reiner Perau, CEO of AHK Ukraine, a day after SAP surpassed Novo Nordisk to become Europe's most valuage publicly listed company, with a market capitalization of €314 billion.
For questions related to daily news, story suggestions, scoops and other newsy matters, please message URN newsroom chief Valentina Bajic at valentina@ukrainerebuildnews.com.
For sponsorships, the URN Guidebooks, the Tips for Investors column and other general matters, email founder Adam Brown at adam.brown@ukrainerebuildnews.com.
If in doubt, email us both and we'll sort it out.
Now, on with the day's headlines ...
Russia, Ukraine agree to maritime, energy ceasefires, White House says
The US said on Tuesday it has reached agreements with Russia and Ukraine for a ceasefire in the Black Sea as well as for the two countries to halt attacks on energy infrastructures.
The White House said the US and Russia, as well as separately the US and Ukraine, "have agreed to ensure safe navigation, eliminate the use of force, and prevent the use of commercial vessels for military purposes in the Black Sea."
As part of the agreement with Russia, the US will facilitate Russia's reintegration into the global market for agricultural and fertilizer exports, reduce maritime insurance costs, and improve access to ports and payment systems for these transactions, the White House said in a press release.
Under the agreement with Ukraine, the US remains dedicated to facilitating the exchange of prisoners of war, securing the release of civilian detainees, and ensuring the return of forcibly displaced Ukrainian children, according to a separate statement from the White House.
Both Russia and Ukraine agreed with the US to develop measures to implement the agreements to halt strikes on energy facilities, as per the statements.
The Kremlin said the energy ceasefire will be in force for 30 days, effective March 18, and could be prolonged by mutual agreement. According to the Kremlin, the ceasefire includes oil refineries; oil and gas pipelines and storage facilities, including pumping stations; electricity generation and transmission infrastructure, including power plants, substations, transformers, and distribution facilities; nuclear power plants, and hydroelectric dams.
The Kremlin separately said the Black Sea agreements would come into effect only after the lifting of some sanctions, including those imposed on Russian Agricultural Bank and other financial institutions involved in international food trade, and their reconnection to SWIFT.
In his nightly address to the nation, Ukraine's President Volodymyr Zelensky said that the "Russians have already started to manipulate."
"There is something that the Kremlin is lying about again: that allegedly the silence in the Black Sea depends on the issue of sanctions, and that allegedly the start date for the silence in the energy sector is March 18. Moscow always lies," Zelensky stated.
Ryanair CEO says Ukraine's Lviv and Kyiv airports need 'kick up backside' for lack of response
Ryanair CEO Michael O'Leary said on Tuesday that Ukraine's Kyiv and Lviv airports need "a kick up the backside" for not responding to the Irish low-cost carrier's proposals on the resumption of flights once the country's airspace opens.
O'Leary said Ryanair's plans for the resumption of commercial flights at two Ukrainian airports have been met with "radio silence" for two years, noting that the restart of the flights is key to uplifting Ukraine's economy.
According to O'Leary, Ryanair in July 2023 proposed a plan to Lviv and Kyiv's Boryspil airports to bring 5 million passengers to Ukraine in the first year after airspace reopens, with a goal of reaching 10 million within five years.
"But disappointingly, we haven't heard back from them for over two years. I am somewhat at a loss to understand why the airports are not getting ready for the resumption of flights and why the airports are not doing the agreement with Ryanair," O'Leary said at a conference organised by the think tank We Build Ukraine.
O'Leary warned that without a cost agreement with the airports, Ryanair could transport only 1 million–1.5 million passengers instead of 5 million in the first year after the war, and Kyiv routes would be reduced from 50 to 20.
He also said that meetings with airport management are scheduled for later this week in Warsaw, adding that securing a cost agreement and ensuring civilian travel safety remain the airline's key conditions for resuming flights in Ukraine.
Last month, O'Leary said Ryanair is preparing a plan that would allow it to resume flights to Ukraine four to six weeks after the war with Russia ends, noting that the airline plans to launch approximately 24 new routes connecting Kyiv and Lviv, flying aircraft redirected from airports like Stansted and Paris Orly to service these cities.
At the same conference on Monday, Wizz Air CEO Jozsef Varadi said the Hungarian budget airline is ready to return to Ukraine and is close to reaching an agreement on resuming commercial operations with Kyiv and Lviv airports.
Like Ryanair, Wizz Air also plans to start flying to Ukraine within six weeks of any ceasefire agreement with Russia.
Ukraine's airspace has been closed since the start of the Russian full-scale invasion in February 2022.
US senators urge Trump administration to back transfer of $300 billion in frozen Russian assets to help Ukraine
A bipartisan group of US senators sent a letter to Secretary of State Marco Rubio urging the administration to transfer, and push allies to transfer, more than $300 billion of seized Russian assets to help Ukraine.
The senators, including Republicans Todd Young and Lindsey Graham, and Democrats Richard Blumenthal and Tim Kaine, asked Rubio whether the administration believes that US and EU-held assets "should be used as leverage in negotiations with Russia to bring an end to the war? If so, how?"
In 2022, G7 allies froze approximately €300 billion in Russian central bank assets following Moscow's full-scale invasion of Ukraine. The bulk of it—around €190 billion—is held in Belgium's central securities depository, Euroclear, while smaller amounts are stored in France, the UK, Japan, and Switzerland. The senators said in the letter to Rubio that $5 billion of the total is held in US financial institutions.
"What is the Administration's position on confiscating US-held Russian sovereign assets to help pay for Ukraine's reconstruction?," the senators asked Rubio.
The senators also asked does the administration plans to "develop a strategy to encourage" the G7 and the EU to use Russian sovereign assets under their control to fund Ukraine's security and reconstruction, the letter, published on Monday by Senator Young, showed.
The income from these assets—mainly cash and government bonds—is currently used to repay G7 nations for $50 billion in loans to Ukraine, while the core assets remain intact. Despite pressure from Ukraine, Poland, and the Baltic States to seize them, Germany and France have resisted, citing legal risks.
The US senators made a reference to the Rebuilding Economic Prosperity and Opportunity (REPO) for Ukrainians Act, which became law in 2024, quoting section 103 of the Act that authorizes the US president to "seize, confiscate, transfer, or vest any Russian ... sovereign assets, in whole or in part, and including any interest or interests in such assets, subject to the jurisdiction of the United States."
DTEK to build Ukraine's first digital substation with €11 million French government grant
Ukraine's largest private power producer, DTEK, said it has received an €11 million grant from the French government to build the first digital substation in Ukraine.
The total cost of the project amounts to €15 million, with DTEK investing the remaining €4 million.
Preparatory work for the substation is underway, with full construction to begin in Q3, DTEK said in a press release Tuesday. Once completed, it will deliver electricity to the equivalent of 65,000 households and businesses in a war-affected district of Ukraine.
DTEK did not disclose the exact location of the planned substation for security reasons.
US-based energy equipment manufacturer GE Vernova will provide equipment and technology for the substation, which will allow for remote monitoring and real-time diagnostics, improving grid reliability and cutting electricity losses.
"This digital substation is more than just infrastructure. It's a foundation for economic recovery, energy independence, and stronger ties between Ukraine and France," said DTEK CEO Maxim Timchenko.
The substation is one of 19 major energy projects approved this month in Paris under the €200 million "Fund for Ukraine," a Ukrainian-French government agreement aimed at rebuilding critical infrastructure, including the energy sector.
Dragon Capital makes maiden investment in Lviv's residential real estate sector
Ukrainian investment firm Dragon Capital said it has started the construction of a residential complex in Sokilnyky village, near Lviv, marking its first investment in the western Ukrainian city's residential real estate sector.
The project, dubbed Viking Gardens, is being developed by local company Viking Development and will feature 1,200 apartments, a gym, a botanical garden, a mini-cinema, underground parking with a bomb shelter function, and children's and sports playgrounds.
According to Oleh Lavryk, Partner at Viking Development, the first two phases of the project are currently under construction, with the first one expected to be completed by the end of 2026.
Dragon Capital's portfolio in Lviv currently includes the Viking business center, Victoria Gardens shopping mall, and the M10 Lviv Industrial Park, it said in a press release on Tuesday, without disclosing the size of the investment in Viking Gardens.
"At Viking Gardens, we aim to bring to life the successful concepts from our previous residential projects. Specifically, this will be the first residential complex in Lviv where all residents will have access to a private mini-cinema and a rooftop lounge area," said Volodymyr Tymochko, Managing Director of Private Equity at Dragon Capital.
Dragon Capital's real estate portfolio includes 25 properties with a total area of 560,000 sqm, the company said last month.
The Washington Post: How the US can help Ukraine without security guarantees
President Donald Trump's approach to mediating peace in Ukraine risks leading to a surrender rather than a fair settlement, Robert B. Zoellick, a former president of the World Bank and US deputy secretary of state, wrote for The Washington Post.
Since neither former President Joe Biden nor Trump was willing to provide security guarantees for Ukraine, the best alternative is to strengthen Ukraine's defense through economic and military support. The author proposes transferring over $300 billion in frozen Russian assets to Ukraine, a move justified under international law and backed by legal experts.
The Hill: Putin exploits ceasefire talks as US gives away concessions
Russian President Vladimir Putin is using ceasefire talks as a cover to expand his war on Ukraine, as shown by a recent attack on Sumy that injured 94 civilians, Mark Toth, a national security and foreign policy writer, and Col. (Ret.) Jonathan E. Sweet Rather, who served 30 years as an Army intelligence officer, wrote for The Hill.
The authors argue that Trump's envoy, Steve Witkoff, has played into Putin's hands by making concessions, including halting Ukrainian strikes on Russian energy infrastructure and potentially allowing Russia to regain control of the Black Sea.
Ukraine's Housing Institute study finds housing crisis deepened by policy gaps and war, urges reforms
The 2014 conflict in Donbas and Russia’s full-scale invasion in 2022 have exacerbated the housing crisis in Ukraine, which was already struggling with deep-rooted challenges stemming from mass privatization after 1991 and ongoing economic instability, according to the "Municipal Housing Stock in Ukraine: challenges and opportunities" study by Ukraine's Housing Institute.
The report states that over 2 million housing units were damaged or destroyed, and millions of people were displaced as a result of the conflict with Russia. The government's response has largely focused on temporary housing rather than long-term solutions. Internally displaced persons (IDPs) often face severe challenges in securing stable accommodations, with many living in overcrowded collective centers or relying on private rentals, often without financial support.
A key obstacle to addressing the crisis is Ukraine's outdated legal framework, according to the report. The Housing Code of 1983 remains in force, failing to address decentralization and modern housing. Although proposed reforms—such as the draft law on the Fundamental Principles of Housing Policy—aim to modernize housing governance. Fragmented responsibilities among ministries, local governments, and agencies further hinder effective policymaking enabling social protection.
Local self-governments (hromadas) play a crucial role in addressing housing issues but lack the resources and expertise to do so effectively, the study said. Decentralization has given municipalities more financial control, but rural and less affluent hromadas struggle with budget deficits and the ability to generate revenue for housing projects. Moreover, corruption in the housing sector remains a major obstacle, with bribery, misallocation of funds, and illegal privatization reducing the availability of social housing.
The study notes that programs like the UNHCR-supported Prykhystok initiative compensates Ukrainian citizens who provide free temporary housing to IDPs affected by the ongoing conflict. However, long-term stability remains uncertain, and there is an urgent need to transition from emergency responses to sustainable, affordable housing programs.
The report proposes several policy recommendations, including the Housing Pact (HPACT), a voluntary self-regulation mechanism to improve housing governance at the local level. Additionally, the Housing Project Incubation Center (HPIC) is suggested to assist municipalities in designing and implementing social housing projects. These initiatives aim to enhance transparency, streamline legal processes, and attract investment in housing infrastructure.
The study notes that a holistic approach integrating housing policy with economic and social development is essential for Ukraine's recovery. With housing expected to become a major focus of the Ukraine Recovery Program, local governments are likely to take on a greater role in the sector. This period may represent the first significant engagement of local self-governments in expanding housing stock and overseeing large-scale housing projects.
The study was produced with the assistance of UNHCR, the UN Refugee Agency, and the Norwegian Refugee Council. 710 out of 1,469 hromadas across Ukraine took part in the survey and shared their data, with the researchers then selecting 13 hromadas for qualitative engagement.
The Housing Institute was established last September to provide research as well as policy and practical guidance for housing solutions for war-affected, including internally displaced, people in Ukraine.
Social Media Posts
UkraineInvest Aids Logistics Projects in Odesa and Kyiv
UkraineInvest, the state investment promotion agency, said it is supporting a project by Ukraine's Terwin Corporation to build the first phase of a logistics complex in Odesa, at a cost of $18 million, and a separate logistics complex in Kyiv, which will cost $245 million.
UkraineInvest's support for the projects inclludes advisory help during preparation and organization, consultations on submitting applications for state support, helping with communications between Terwin and the government, and more.
Analysis of Most Competitive Sectors in Ukraine
Dmytro Lyvch, partner in Ukraine at management consultancy Civitta, posted partial results of "Ukraine’s first comprehensive study of economic sectors with the greatest potential for EU market integration," completed in cooperation with the non-profit EasyBusiness.
He said the full version of the research will be out soon, but offered some findings on the food industry, wood processing, electrical equipment, the textile industry and the IT sector in the post.
Bolt Calls for Ride-Hailing Market Reform
Yuliia Malich, head of public policy and government relations at ride-hailing firm Bolt, posted a call for ride-hailing market reform in Ukraine to include unified rules for all participants modified licensing for driver onboarding, integration with the Diia app, and more. She offered recent examples from other countries:
"Croatia created a unified legal framework for all: both traditional taxis and Bolt-like services. Slovakia implemented strict driver verification and personal data protection. The Czech Republic is fully digitalizing the licensing process" and "Poland established clear requirements for aggregator platforms."
Advice for Ukrainians Seeking to Enter Canadian Market
BDO in Ukraine offered advice for Ukrainian businesses seeking to enter the Canadian market and recapped a recent event with the Canada Ukraine Chamber of Commerce, the Embassy of Ukraine to Canada and others.
"Given that the service sector in Canada accounts for 74% of its GDP, Ukrainian entrepreneurs should focus on high-tech and innovative industries where demand is growing steadily," the post stated.
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
