Today's Contents
Reporter's Notepad:
- A retrospective of the week behind us
Just The Facts:
- Macron, Starmer propose deploying 'reassurance force' to Ukraine
- Ukraine reviewing US economic partnership document, may sign it next week, US treasury secretary says
- Finland's Hesburger fast food chain opens €7.3 million factory, logistics center in Boryspil
- Ukraine plans to launch agri notes and grain exchange trading, eyes $650 million in agriculture investments
- Ukraine's finance ministry, Ukraine Facility audit board to cooperate in facility's oversight
- Oschadbank lends €9.6 million to KNESS to build 30 MW of energy storage
- Norway to provide $5.5 million for solar plants in Ukraine's Kharkiv
Here's What They Think:
- The New York Times: How oil tariffs could push Russia into peace negotiations
- Responsible Statecraft: Ukraine faces financial uncertainty post-2025 as debt soars and military spending remains a priority
Sober Second Thought:
- IOM report highlights job market challenges faced by 6.2 million Ukrainians displaced across Europe
The Rebuilders' Social
- Social media posts about the creation of the national Biodiversity Plan for Ukraine, the restoration of traffic on the Dnipro and more.
Dear readers,
URN newsroom chief Valentina here with you today for a retrospective of this week's events.
The week has been fruitful in many ways. Breakthroughs were made in Ukraine's peace process, and a lot of smaller but still important bits of news were announced, altogether setting a positive tone for the weekend.
The week started with the US stepping up its diplomatic efforts to end the war in Ukraine, holding separate talks with Ukrainians and Russians in Saudi Arabia, with both sides eventually agreeing to energy and maritime ceasefires.
Mixed reactions following the White House announcements on the agreements, with the Kremlin saying the maritime ceasefire is conditioned by lifting some sanctions against Russia, and Ukraine's President Volodymyr Zelensky saying that Moscow was lying about it, made us pause on the optimism and wait to see how the situation will evolve.
The US has also been fighting a battle on another related diplomatic front - the minerals deal with Ukraine. On Wednesday, US Treasury Secretary Scott Bessent said that Ukraine is reviewing the newest version of an economic partnership agreement with the US, and that the signing of it may happen as soon as next week. Earlier, the Financial Times reported that the US sought revised agreements on access to Ukraine's critical minerals and energy resources, expanding its economic demands.
… and a battle on a related domestic front, with a bipartisan group of US senators urging the Trump administration to transfer, and push allies to transfer, more than $300 billion of seized Russian assets to help Ukraine.
Energy in Ukraine, always a hot topic, occupied front pages this week as well. The Netherlands said it will allocate €65 million to Ukraine Energy Support Fund to support the country's power system; DTEK announced it has received an €11 million grant from the French government to build the first digital substation in Ukraine, and Norway said it will provide €139 million in grants to Naftogaz to facilitate loans extended by the European Bank for Reconstruction and Development.
Several interesting investment stories made it to the headlines this week. Dragon Capital made its maiden investment in Lviv's residential real estate sector and said it plans to invest $100 million in Ukraine this year. And Ukraine's MHP signed a deal to buy 41% of Spanish poultry producer Uvesa.
We have also gotten some hints this past week of South Korea's eagerness to get involved in Ukraine's reconstruction. Korea's Ministry of Economy and Finance has reportedly selected Ukraine among the countries for its 2025-2026 Economic Innovation Partnership Program, aiming to boost economic ties with the war-torn country. Also, the Korea International Trade Association hosted a forum on Ukraine's reconstruction in Seoul on Tuesday, bringing together Ukrainian and local business representatives to discuss reconstruction.
And to conclude this weekly roundup, we brought you yesterday the exclusive news that the Ukrainian InsureTech startup FortuneGuard is in talks to raise $50 million to expand its AI-powered war risk insurance solution for Ukraine.
For questions related to daily news and story suggestions, feel free to message me 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.
Now moving on to today's headlines …
Macron, Starmer propose deploying 'reassurance force' to Ukraine
French President Emmanuel Macron, after hosting a summit of the so-called 'Coalition of the Willing' in Paris on Thursday, told reporters that he and British Prime Minister Keir Starmer proposed deploying a "reassurance force" to Ukraine after the war ends.
These are not intended to be peacekeeping forces and would serve as a deterrent against potential Russian aggression, Macron said. They would be positioned in strategic towns and bases and not on the frontlines.
Macron also said that not all countries at the summit agreed to this plan for different reasons, as seen in a video posted by Sky News.
He noted that a Franco-British military delegation will soon travel to Ukraine to explore options for shaping the country's armed forces over the long term.
On Wednesday, Macron said that France will provide €2 billion of extra military support to Ukraine, including anti-tank missiles, surface-to-air missiles, armoured vehicles, drones, and Mirage fighter jets.
No other commitments of military aid to Ukraine were announced at the summit in Paris.
Ukraine reviewing US economic partnership document, may sign it next week, US treasury secretary says
Ukraine is reviewing the newest version of an economic partnership agreement with the US, and the signing of it may happen as soon as next week, US Treasury Secretary Scott Bessent said.
"We have passed along a completed document for the economic partnership (that) is currently being reviewed by Ukrainians, and we hope to go to full discussions and perhaps even get signatures next week," Bessent told Fox News in an interview on Wednesday.
Bessent said the original document was a four-page agreement. "We took advantage of the gap in time to move to a completed agreement. So, I am sure we will move along and get this signed quickly," Bessent told Fox News.
Bessent, who was responding to a question from Fox News reporter about the state of a US-proposed minerals deal with Ukraine and of the US potentially taking over Ukraine's nuclear facilities, said he has "nothing to do with the energy or nuclear facilities."
Last week, US President Donald Trump said the US will soon sign the minerals deal with Ukraine.
The agreement between the US and Ukraine to jointly develop Ukraine's mineral resources was originally scheduled for signing during President Volodymyr Zelensky's visit to Washington on February 28. However, the deal was postponed following a tense exchange between Zelensky and Trump in the Oval Office.
Previously, both countries had reached a general understanding on the framework of the deal, which includes creating a fund where Ukraine would allocate 50% of the proceeds from the future monetization of state-owned mineral resources—such as oil, gas, and related infrastructure.
Bessent first presented a draft document on the bilateral economic partnership to Zelensky on February 12, during his visit to Kyiv.
Finland's Hesburger fast food chain opens €7.3 million factory, logistics center in Boryspil
Finnish fast food chain Hesburger opened a hamburger factory and a logistics center in Boryspil city in the Kyiv region on Thursday, following an investment of €7.3 million, the Embassy of Finland in Ukraine said.
This marks the first Finnish factory opening in Ukraine since the start of the Russian full-scale invasion in February 2022.
The embassy said in a post on Facebook that Hesburger is looking to expand its presence in Ukraine from seven to at least 20 restaurants.
"This opening marks a significant step forward in strengthening our competitive position in Ukraine. It lays a solid foundation for business growth, network expansion, and improved operational capabilities," Hesburger Finland CEO Kari Salmela said, as quoted by Interfax Ukraine.
The production facility and the logistics center will employ 10 people, bringing the total number of Hesburger employees in Ukraine to 75, according to Interfax Ukraine.
Founded in 1980, Hesburger is a family-owned company operating in Finland, Latvia, Lithuania, Estonia, Germany, Ukraine, Bulgaria, and Romania with more than 470 restaurants.
Ukraine plans to launch agri notes and grain exchange trading, eyes $650 million in agriculture investments
Ukraine plans to introduce agricultural notes and grain exchange trading as it looks to boost the financial position of farmers and attract investments in the sector, the country's agriculture ministry said.
In the first year after the launch, the organized commodity market would enable attraction of over UAH 350 billion ($8.4 billion) into the legal economy and over UAH 27 billion ($650 million) of investments into the agricultural sector, Ukraine's Minister for Agrarian Policy and Food Vitaliy Koval said, citing preliminary assessments.
"We are working to ensure that Ukrainian agricultural producers have access to modern financial instruments and transparent market mechanisms. Agrarian notes and grain exchange trading are another step towards developing the industry and attracting investment," Koval said, following a meeting with the National Securities and Stock Market Commission Chairman Ruslan Magomedov and the Chairman of the Board of the National Depository of Ukraine Oleksiy Yudin, as per a press release on Wednesday.
Koval said agricultural notes are an electronic financial instrument that allows for raising funds for the future harvest, adding that the notes would minimize bureaucracy and risks, provide quick access to financing, and allow for transparency in control.
The minister also said the creation of a liquid grain exchange market will allow for setting a fair market price of grain, ensure equal access for all market participants, and minimize risks and dependence on intermediaries.
Agriculture is a mainstay of Ukraine's economy, constituting 11% of GDP and 40% of exports as of 2021. In 2021, before the Russian full-scale invasion, Ukraine was the world's largest exporter of sunflower oil, the third-largest corn exporter, and the fifth-largest wheat exporter, according to the Center for Food and Land Use Research.
The World Bank estimated the cost of reconstruction of Ukraine's agriculture sector at more than $55 billion as of December 31, 2024.
Ukraine's finance ministry, Ukraine Facility audit board to cooperate in facility's oversight
Ukraine's Finance Ministry said it has signed a memorandum with the Ukraine Facility audit board to cooperate in strengthening financial management and oversight of the instrument.
The agreement allows for the exchange of information, reports, and documents, along with fostering active institutional dialogue.
The Ukraine Facility is the European Union's financial assistance program for Ukraine, amounting to €50 billion, for the period 2024-2027. Of the total, over €38 billion is allocated to support Ukraine's budget.
"International support is a crucial instrument for ensuring financial stability amid the full-scale war … Transparency and accountability in the use of donor funds are key to our cooperation," Ukraine's Finance Minister Sergii Marchenko said on Wednesday, following a meeting with members of the Ukraine Facility audit board.
The European Commission created the audit board in June 2024, with a mandate until June 2028, to ensure transparency and efficiency in managing financial assistance under the Ukraine Facility.
In February, the Commission finalized the formation of the audit board, appointing three experts in financial oversight and management, including Marek Belka, former head of the National Bank of Poland, Gijs De Vries, who earlier served on the European Court of Auditors, and Gunnar Wälzholz, former director of the Kyiv office of German development bank KfW.
In 2024, Ukraine received €16.1 billion under the Ukraine Facility, and it expects to receive the next tranche of €3.5 billion in the coming days, the Finance Ministry said.
Oschadbank lends €9.6 million to KNESS to build 30 MW of energy storage
Ukraine's state-owned lender Oschadbank said it has concluded a €9.6 million investment loan agreement with Ukraine-headquartered international energy group KNESS to finance and refinance the construction of 30 MW of energy storage facilities.
The project involves building and integrating energy storage facilities into the power grid to supply a 25 MW frequency support reserve and a 5 MW automatic frequency restoration reserve for balanced loading and unloading within the ancillary services market.
Oschadbank said in a press release on Wednesday that the equipment for the project, expected to be commissioned in October, will be delivered by China's energy storage systems manufacturer Hithium.
The European Bank for Reconstruction and Development (EBRD) participates in the risk sharing for the project, as per the statement.
In February, the EBRD announced a portfolio risk-sharing facility to Oschadbank that partially covers credit risks in up to €100 million of newly originated sub-loans by the Ukrainian lender.
The facility is intended to support Oschadbank's lending to micro, small and medium-sized enterprises (MSMEs), medium-sized corporate clients, regional municipalities, and private households for decentralised energy generation, storage, and energy efficiency projects, the EBRD said at the time.
Founded in 2009, KNESS has representative offices in Latvia and Poland. Its project pipeline includes 1.4 GW of designed and 1.2 GW of built power facilities, as well as 1.44 GW under comprehensive O&M service.
Norway to provide $5.5 million for solar plants in Ukraine's Kharkiv
The Norwegian government said on Thursday it will provide $5.5 million in funding for the installation of 13 solar power plants in Ukraine's northeastern city of Kharkiv through the United Nations Development Programme (UNDP).
The solar power plants will be installed at eight hospitals and five schools in Kharkiv this year, providing an overall capacity of 1.1 MW with energy storage systems totaling 2.3 MWh.
This pilot project will serve as a model for the potential introduction of decentralized renewable energy solutions in other city hospitals and schools, the government said in a press release.
In 2024 alone, Kharkiv endured at least 318 targeted attacks by Russian forces, including 128 missile strikes, 170 guided aerial bombings, and 59 drone assaults on critical infrastructure. Additionally, the region is hosting approximately 447,000 internally displaced people, as per the statement.
Separately, Norway and UNDP on Wednesday handed over critical energy equipment to three Ukrainian energy companies - the state oil and gas company Naftogaz, gas production company UkrGasVydobuvannya (UGV), and the operator of the transmission system Ukrenergo.
The equipment included gas-fired piston engine generator sets with a total capacity of approximately 150 MW for Naftogaz, critical equipment for UGV, and two 330 kV 200 MVA autotransformers for Ukrenergo, the UNDP said in a press release.
The World Bank estimated the Ukraine energy sector's reconstruction and recovery needs at approximately $68 billion as of December 31, 2024.
Russia's full-scale invasion has devtroyed over 60% of Ukraine's energy facilities, according to UNDP estimates.
The New York Times: How oil tariffs could push Russia into peace negotiations
Despite ceasefire talks, Russian President Vladimir Putin shows little genuine interest in ending the war, and existing US sanctions have been ineffective, according to an opinion piece for the New York Times by Columbia University Professor Glenn Hubbard and Catherine Wolfram, ex-deputy assistant secretary for climate and energy in the Treasury Department.
The authors propose a strategy to limit Russia's war funding by either diverting its revenue or making oil transactions more costly, ultimately pressuring Moscow into negotiations. The proposed "Russian Universal Tariff" would impose secondary sanctions on companies involved in Russian oil and gas sales unless Russia pays a per-shipment fee to the US Treasury. The tariff could generate $40 billion annually for the US while maintaining global oil stability.
Responsible Statecraft: Ukraine faces financial uncertainty post-2025 as debt soars and military spending remains a priority
Ukraine's financial situation remains precarious, with no clear plan for funding its budget after 2025, Ian Proud, a former British diplomat, wrote in an analysis piece for Responsible Statecraft. While Ukraine has relied heavily on foreign donations and loans to meet its budgetary needs, these contributions are shifting from grants to loans, exacerbating the country's debt. By 2025, Ukraine's debt will exceed 100% of its GDP, with debt servicing becoming the second-largest expenditure after defense.
The major challenge for post-war Ukraine will be reducing its military spending, which would need to be cut by at least 80% by 2026 to balance the budget, Proud argues. However, maintaining a strong military is likely to remain a priority for Kyiv due to ongoing concerns about Russian aggression. With the IMF not expecting Ukraine to access international lending markets until at least 2027, Western nations, particularly in Europe, will be under increasing pressure to provide financial support.
IOM report highlights job market challenges faced by 6.2 million Ukrainians displaced across Europe
Over 6.2 million people displaced by Russia's invasion of Ukraine have sought refuge across Europe, many living under Temporary Protection (TP) status. While TP offers immediate access to residency, employment, and social benefits, a persistent mismatch exists between the skills of these individuals and the quality of jobs they hold, according to the "Enhancing Labour Market Inclusion for People Displaced from Ukraine: IOM's Experience" report, published by the UN's International Organization for Migration (IOM).
This report explores how IOM is addressing these issues through its Migrant Resource Centres (MRCs), which support displaced individuals integrating into the labour market. The MRCs use a holistic, modular approach to labor market inclusion, offering advanced language training, streamlining qualification recognition, and providing tailored job-matching services.
In addition to addressing immediate labour market challenges, the MRCs have driven policy innovations that are essential not only for the socio-economic inclusion of displaced Ukrainians but also for Ukraine's long-term recovery, the report said. It stated that one key innovation of the MRC model is its dual approach to training and qualification recognition, which ensures that TP beneficiaries' efforts to integrate are compatible with the possibility of future reintegration into Ukraine.
Despite rapid labour market inclusion among TP beneficiaries—over 63% of working-age individuals were employed by 2023—many of these jobs do not align with their previous professional roles. Many TP beneficiaries have ended up in sectors like hospitality, retail, and agriculture, compared to their prior fields in law, education, and healthcare. This mismatch reflects the need for immediate employment and the lack of opportunities that match their qualifications.
Underemployment has broad consequences for both host and origin countries. In host nations, it hampers efforts to fill critical labor shortages, particularly in sectors like healthcare and education. The mismatch between skills and employment could fuel social tensions, as concerns about social dumping rise and "support fatigue" increases, the report said. Additionally, it limits displaced individuals' ability to send remittances or contribute to Ukraine's economic recovery.
Language barriers, difficulties in recognizing foreign qualifications, childcare constraints, and the assumption of a temporary stay initially discouraged TP beneficiaries from investing in long-term integration. The report noted, however, noted a shift in attitudes, with many beneficiaries now more willing to acquire host-country-specific skills as the prospect of returning to Ukraine becomes less immediate.
Policymakers across Europe have already been addressing these challenges by introducing measures to align TP beneficiaries' skills with suitable employment opportunities, according to the report. These efforts aim to fill gaps in traditional integration policies, with many host countries recognizing the long-term potential of skilled displaced individuals.
Social Media Posts
Biodiversity Plan Must Protect 30% of Ukraine by 2030
Svitlana Grynchuk, minister of environmental protection of Ukraine, said the ministry has started discussions to create a draft National Biodiversity Strategy for Ukraine along with international development partners, scientists and representatives of civil society.
"The document pays special attention to the development and improvement of protected areas. 8% of Ukraine’s total area is currently under protection, while the EU set the target of protecting 30% of land and sea by 2030."
Restore Navigation on the Dnipro?
Dmytro Moskalenko, CEO of Danube Shipping Company (UDP), promoted the idea of restoring the Dnipro River and outlined the steps it would take to restore commercial navigation, blocked since the 2023 destruction of the Kahhovka dam.
"The Dnipro was a vital transport artery, growing steadily pre-war, especially in agriculture. Terminals and fleets (Nibulon, Ukrichflot) emerged, sand extraction boomed. Its potential? 40 million tons of cargo if the river gains traction. Soviet infrastructure aligned with cargo hubs."
Tariff-Free Equipment Imports for Investment
UkraineInvest, the state investment promotion agency, posted about the government's approval of a list of goods that Ukrainian agro-industrial holding Astarta can import without customs duties.
"These goods include equipment and components for a soybean processing plant currently under construction in the Poltava region," the agency said. The exemption is part of a €76.6 million special investment project that will create 110 jobs.
Reconstruction Digest
The real estate and construction team of Ukrainian law firm Integrites promoted the latest edition of the firm's Reconstruction Digest, which offers a "helicopter view on the current condition and perspectives of the land and construction market in Ukraine."
The digest covers new guarantees for real estate owners, updates conditions for automated registration of construction documents, changes in the management of public investment projects, and more.
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
