Today's Contents
Reporter's Notepad:
- No questions unasked
Just The Facts:
- Russia can't accept US proposals to end Ukraine war 'as is,' says deputy foreign minister
- Ukraine, US held first round of consultations on minerals deal; work to continue, Sybiha says
- European Commission disburses €3.5 billion under Ukraine Facility
- World Bank approves $432 million for Ukraine to improve road network, transport sector
- BGV partners with UkraineInvest to attract investments to its $450 million graphite project
- Ukraine, France to launch healthcare development projects worth €51 million
- Ukrainian Railways to get €50 million from EIB for border crossings upgrades
Here's What They Think:
- CEPA: Foreign investment in Ukraine's nuclear sector could boost energy security and economic recovery
- Politico: Europe could transfer frozen Russian assets into an EU-governed trust for Ukraine
Sober Second Thought:
- Kyiv's retail real estate sees steady recovery in 2024, with continued growth expected this year, says CBRE Ukraine
The Rebuilders' Social
- ValiCor plans to customize emotional intelligence software for Ukraine veterans and drones, Russian drone hits a Hempire factory, and American University in Kyiv summarizes a study on why women stay in Ukraine (or don't).
Dear Subscribers,
A number of people have asked why John Moran, who we wrote about yesterday in our Tips for Investors series, resigned after almost 25 years with the US International Development Finance Corporation (DFC).
The resignation coincided with Trump's arrival in the White House, the USAID freeze and other tumult. So, was it a political resignation?
We couldn't have our readers thinking we were so remiss in our journalistic duties as to not ask that obvious question.
Here's what John said about his resignation.
"The writing was on the wall, with the administration change and the new people coming in. But I'd already thought that this was the right time. I had been doing this a long time"
He said he had actually planned to resign several months earlier, but he was asked to stay around through the transition
"I don't think they would have kept me around anyway. If they did, I wouldn't have been very active. I think they would have given me something else to do, or push me aside, if they didn't push me out."
"It was pretty clear that the Ukraine activities were going to be significantly different, and that would have been very frustrating for me."
And there were personal reasons too. He spoke fondly of working at DFC when it was still called OPIC (Overseas Private Investment Corporation), a smaller organization out of the political spotlight.
"You know, DFC is getting to be a bigger place. The juice wasn't worth the squeeze as much personally."
Plus, "I got grandkids coming."
For questions related to daily news and story suggestions, feel free to message 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.
Now, on to the day's headlines ...
Russia can't accept US proposals to end Ukraine war 'as is,' says deputy foreign minister
Russia can't accept current proposals by the US administration on ending the war in Ukraine in their current form, as they don't address what Russia sees as the "root causes of the conflict," the country's Deputy Foreign Minister Sergei Ryabkov said.
"We take the models and solutions proposed by the Americans very seriously, but we can't accept it all as is," Ryabkov said on Tuesday in an interview with the Russian magazine International Affairs.
"As far as we can see, there is no place in them today for our main demand, namely to solve the problems related to the root causes of this conflict. It is completely absent, and that must be overcome," Ryabkov stated.
Last month, Russian President Vladimir Putin said that Moscow agrees with the US ceasefire proposal for Ukraine in principle, but that a number of details need to be clarified before the fighting stops.
"We agree with the proposals to cease hostilities. The idea itself is correct, and we certainly support it. But we proceed from the fact that this cessation should be such that it would lead to long-term peace and would eliminate the original causes of this crisis," Putin said at the time.
Putin has said that he wanted Ukraine to abandon its NATO ambitions, for Russia to gain full control over the four Ukrainian regions it claims, and for limitations to be placed on the size of Ukraine's army
In the meantime, the US 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.
Ukraine, US held first round of consultations on minerals deal; work to continue, Sybiha says
Ukraine and the US have already held a first round of consultations on the newest draft of the proposed minerals agreement between the two countries and will continue working to "reach a mutually acceptable text for signing," Ukraine's Foreign Minister Andrii Sybiha said on Tuesday.
"The Ukrainian side is determined to conclude a document that would meet the national interests of both the United States and Ukraine," Sybiha said at a press conference.
Sybiha also said the text of the deal will contribute to his country's security infrastructure and that it will allow for the strengthening of the presence of US businesses in Ukraine.
Sybiha's comments come after US President Donald Trump said he believed that Ukraine's leader Volodymyr Zelensky is "trying to back out of the rare earth deal."
"And if he does that he's got some problems. Big, big problems. We made a deal on rare earth and now he's saying, 'Well, you know, I want to renegotiate the deal'. He wants to be a member of NATO. Well, he was never going to be a member of NATO. He understands that. So if he's looking to renegotiate the deal, he's got big problems," Trump told reporters aboard Air Force One on Monday.
On Friday, Zelensky said that the new proposal was "entirely different" from the earlier framework he was meant to sign in Washington on Feb 28. The signing was postponed following a tense exchange between him and Trump in the Oval Office.
Zelensky told reporters in Kyiv that Ukraine will reject any minerals agreement that jeopardizes its EU integration and that it will not recognize past US aid as loans, noting that it is too soon to assess the vastly expanded deal proposed by Washington.
The latest US proposal would require Kyiv to send the US all profit from a fund controlling Ukrainian resources until Ukraine repays all US wartime aid, plus interest, according to a summary reviewed by Reuters.
On Saturday, Bloomberg reported that Ukraine plans to request changes to the expanded deal, including a commitment for increased US investment.
European Commission disburses €3.5 billion under Ukraine Facility
The European Commission said on Tuesday it has disbursed €3.5 billion in funding to Ukraine as part of the €50 billion Ukraine Facility, bringing the total released under the facility to about €19.6 billion.
This third regular quarterly payment under the facility "will enhance Ukraine's macro-financial stability, support its public administration, and advance critical long-term reforms," the Commission said in a press release.
The EC previously determined that Ukraine has successfully met the 13 reform indicators required for the third regular payment. Key reforms achieved include advancements in transport, agriculture, and finance, along with initiatives such as the adoption of the state ownership policy.
The Ukraine Facility is a series of grants and loans to be disbursed between 2024 and 2027 to Ukraine by the EC. It aims to promote Ukraine's macro-financial stability and short-term recovery as well as aid rebuilding and modernizing efforts, as Kyiv implements structural reforms to advance its EU accession plans.
Of the total €3.5 billion disbursed in the latest Ukraine Facility tranche, €3.1 billion are soft loans and €400 million are grant funds, Ukraine's Economy Minister Yulia Svyrydenko said in a press release.
World Bank approves $432 million for Ukraine to improve road network, transport sector
The World Bank said it has approved a $432 million loan to Ukraine to improve the resilience of the country's national road network and increase operational efficiency in the transport sector.
The project, Delivering Resilient Infrastructure in Vulnerable Environments in Ukraine (DRIVE), will be implemented by Ukraine's Ministry for the Development of Communities and Territories and the State Agency for the Restoration and Development of Infrastructure of Ukraine, the lender said in a project disclosure document on its website.
The financing for the DRIVE project includes $212 million from the International Bank for Reconstruction and Development (IBRD), $210 million from the International Development Association, and $10 million from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF).
In addition, Ukraine's government is expected to contribute $75 million towards the project's implementation, the World Bank said.
In a separate document about the project, the lender said that, of the total funding, about $360 million will be allocated for routine preservation of Ukraine's national road network, covering about 50 roadworks contracts aimed at highway preservation, maintenance, and repairs.
A further $39 million will go toward periodic preservation of the national road network, while about $10 million will be directed to technical assistance and project management, among others.
The World Bank said that Ukrainian authorities have prioritized logistics and transport reforms to drive economic growth. In 2023, the transport sector played a crucial role, contributing over 4% to GDP and making up 7% of production inputs.
Ukraine has a vast yet largely undermaintained road network, spanning approximately 170,000 kilometers, with 30% classified as state roads, the lender noted. While its highway density is close to the EU average, the country scored just 2.4 out of 7 on the OECD perceived road quality index in 2018, highlighting the urgent need for infrastructure investment.
A 2018 World Bank study estimated that Ukraine's main state roads would require $700 million annually for capital repairs over a decade, plus an additional $500 million per year for maintenance.
BGV partners with UkraineInvest to attract investments in its $450 million graphite project
Ukraine-based investment manager BGV Group Management said its subsidiary Pobuzhzhia Development has agreed to cooperate with the Ukrainian investment promotion office, UkraineInvest, to attract investments in its $450 million graphite project in the country's Kirovohrad region.
Under a memorandum of understanding the two signed, UkraineInvest will offer information, consulting, and organizational support for the investment component of the BGV Graphite project, while also promoting cooperation between investors and government authorities, BGV said in a press release on Monday.
Pobuzhzhia Development is advancing the BGV Graphite, a large-scale project centered on the Balakhiv graphite deposit located in central Ukraine, as per the statement.
The project involves building a mining and processing plant at the deposit site, along with a spherical graphite production facility for lithium-ion battery materials.
As of early 2025, BGV has completed a reserve calculation for the deposit, a preliminary feasibility study, and pilot technological tests for the final product, it said.
Since late 2024, Pobuzhzhia Development has been collaborating with Finland's Metso on basic engineering for an enrichment plant. The company is also in the process of designing a mining and enrichment complex, with construction scheduled to begin in the first quarter of 2026.
BGV said it has been developing the project for six years, aiming to integrate it into global and European battery supply chains. The company also plans to expand production capacity in response to the graphite market demand.
According to BGV, a portion of the total $450 million in investments needed for the project has already been provided by the company's founder, Ukrainian entrepreneur Gennadii Butkevych.
Founded in 2015, BGV controls several companies that have exploration and/or production licenses for minerals and metals, it says on its website.
Ukraine, France to launch healthcare development projects worth €51 million
Ukraine and France on Tuesday signed seven agreements worth a total of €51 million to launch projects aimed at supporting Ukraine's healthcare sector, Ukraine's Economy Ministry said.
The projects, first announced last month, will be implemented as part of a €200 million grant agreement concluded in June 2024 between France and Ukraine, the ministry said in a press release.
The largest project among the seven is the construction of a rehabilitation center in Vinnytsia in west-central Ukraine and the reconstruction of the rehabilitation department at the city hospital in Ladyzhyn in the Vinnytsia region.
Providing portable X-ray machines to 75 medical institutions in Kharkiv, Sumy, Dnipro, Mykolaiv, and Odessa, as well as equipping 58 hospitals across the country with post-amputation rehabilitation capabilities, are also among the projects to be launched.
Other projects include the purchase of 700 mechanized cardiopulmonary resuscitation devices, the development of telemedicine networks in Odessa, Chernihiv, Zaporizhia, Donetsk, Kharkiv, and Zhytomyr regions, the establishment of a network of autonomous micro-clinics based on rehabilitation facilities, and the provision of 150 ultrasound diagnostic systems that can be used in medical institutions in all Ukrainian regions.
Apart from the seven healthcare projects, the 2024 grant agreement provides for the implementation of 12 more projects in the fields of infrastructure, energy, demining, and water supply, the Economy Ministry said.
In total, France has allocated €130 million to support Ukraine's healthcare sector, including Tuesday's agreements and additional funding under other support programs, as per the statement.
Ukrainian Railways to get €50 million from EIB for border crossings upgrades
The European Investment Bank (EIB) said it has agreed with Ukraine's government to direct €50 million of its financing to Ukrainian national railway operator Ukrainian Railways (Ukrzaliznytsia) to upgrade key rail border crossing points with Poland, Slovakia, Hungary, and Romania.
The funding will facilitate the modernization of border infrastructure and adjacent railway sections in Ukraine, enhancing both the volume and speed of cross-border trade.
Key upgrades include track repairs, relocation of wagon inspections, reconstruction of an intermodal terminal, and installation of equipment such as cranes. In addition to improving freight operations, these enhancements will also directly benefit passenger transport, the EIB said in a press release on Tuesday.
This funding is part of the EIB's broader €150 million initiative to modernize Ukraine's railways. In 2022, the first €100 million was allocated under the lender's Ukraine Solidarity Urgent Response to support emergency repairs and restore critical rail services.
Supported by an EU guarantee under the Ukraine Facility, this investment will enhance freight operations and strengthen Ukraine's trade and transport connections with the European Union, the EIB said. The upgrade is co-financed through a grant from the European Union under the Connecting Europe Facility (CEF).
Since the Russian full-scale invasion in February 2022, the EIB has disbursed €2.2 billion to support Ukraine's recovery. In March, the EIB and the European Commission signed a guarantee agreement allowing the EIB to invest at least €2 billion in urgent recovery and reconstruction projects in Ukraine.
CEPA: Foreign investment in Ukraine's nuclear sector could boost energy security and economic recovery
Private and foreign involvement in Ukraine's nuclear industry could enhance its energy security, deter Russian attacks on nuclear plants, and support both Ukraine's energy transition and the West's nuclear revival, Suriya Jayanti, an energy geo-strategist and former US diplomat, wrote in an opinion piece for the Center for European Policy Analysis (CEPA).
Ukraine could become Europe’s leading nuclear energy provider, boosting the country’s economic recovery and funding reconstruction through electricity exports to Europe. However, attracting foreign investment requires a stable security environment, a verifiable peace deal with Russia, and government policies that encourage private sector involvement and modernize nuclear governance.
Politico: Europe could transfer frozen Russian assets into an EU-governed trust for Ukraine
Europe must take decisive action on Russia's frozen central bank assets, worth over €300 billion, to support Ukraine's defense and economic stability, Tom Keatinge, director for the Centre for Finance & Security at RUSI, and Kinga Redlowska, head of the Centre for Finance & Security at RUSI Europe, wrote in an opinion piece for Politico.
To prevent the assets from being returned to Russia in July due to a potential veto from Slovakia or Hungary, the authors propose transferring them to a new EU-governed vehicle in Belgium, where they would generate annuity income for Ukraine rather than being given as a lump sum. This would provide sustainable financial support while keeping ownership technically reversible, meeting the legal criteria for countermeasures. A structured approach like this could not only fund Ukraine's defense and reconstruction but also lay the foundation for a Ukraine Reconstruction Bank, modeled after Germany's post-WWII recovery institution, Kreditanstalt für Wiederaufbau.
Kyiv's retail real estate sees steady recovery in 2024, with continued growth expected this year, says CBRE Ukraine
Kyiv's retail real estate market demonstrated "signs of steady recovery" in 2024, driven by stronger consumer activity, increased retailer confidence, and the gradual return of international brands, according to new research from CBRE Ukraine.
Retail turnover rose by 13% YoY, signaling a cautious but ongoing rebound, the report said, noting, however, that the broader recovery in spending remained constrained by a difficult economic environment. Despite a 20% annual increase in average wages, rising taxes and a 13.5% YoY jump in the Consumer Price Index (CPI) continued to erode purchasing power, limiting household spending on non-essential goods.
The city's retail landscape remained unchanged, with no new shopping centers opening in 2024, keeping total stock at approximately 1.59 million sqm—the lowest level of new retail development in a decade, according to the report. Retail space density per 1,000 residents holding steady at 537 sqm. The only major project in the pipeline, Ocean Mall (110,000 sqm GLA), is expected in 2025, though delays are likely.
Developers remain cautious, with large-scale projects postponed until at least 2026-2027 due to security concerns, rising construction costs, and limited financing. Yet, despite supply constraints, Kyiv's shopping centers experienced improved occupancy and footfall in 2024, surpassing 2023 levels, it added.
Regional expansion also continued, particularly in western and central Ukraine, where migration-driven population growth has supported retail activity, according to the research. Food retailers such as Fozzy Group, Simi&Simi23, Delvi, and Rukavychka expanded beyond regional centers, with Lviv, Dnipro, Cherkasy, and Ivano-Frankivsk emerging as key markets, according to the report.
International retailers also remained active, with Poland's LPP Group opening more than 100 stores across Ukraine. Other notable expansions included the Polish mid-priced clothing retailer HalfPrice launched a new store in Odesa, while Kiko Milano expanded to Lutsk, Vinnytsia, Poltava, and Cherkasy. Sportswear brands like New Balance, The North Face, Skechers, and Puma also strenghten their footprint in Lviv and Ivano-Frankivsk.
Looking ahead, CBRE Ukraine forecasts Kyiv's retail market will "enter the next stage of recovery" in 2025, driven by economic stabilization and potential improvements in the war situation. "However, persistent security risks, inflationary pressures, and prolonged uncertainty may continue to weigh on overall market performance, limiting the pace of recovery, despite broader economic improvements," it added.
International fashion brands such as Uniqlo, Kiabi, and Pepco may enter the Kyiv market "in the near-term future," but significant new brand entries are unlikely until the war comes to an end.
Social Media Posts
ValiCor Emotional Intelligence Software for Ukraine
John Kilmer, founder of ValiCor US, which develops software that maps an "emotional blueprint" of individuals, plans to roll out a "very customized version for Ukraine in two to three months," according to an interview on YouTube by Ukrainian political analysts and business consultant Andrii Buzarov.
In the interview, Kilmer says (from minute 5:10) that the software, which uses tonality, micro-expressions, sonar, AI and other features, can be used in helping veterans recover from mental issues in post war Ukraine as well as in development of intelligence-gathering capabilities in drones. (Launch discussion after 10:00)
Study of International Push for Ukraine Reconstruction
Kyiv-based DataDriven Research & Consulting promoted its new report, titled Ukraine’s Path to Recovery and Development, that offers an 81-page report, in carousel format on LinkedIn, examining international development efforts toward Ukraine’s reconstruction.
"As Ukraine navigates the challenges of war and recovery, the report provides rare insight into the architecture of global aid, analysing strategic funding mechanisms, the growing role of private sector instruments, and the evolving landscape of technical assistance," the firm wrote.
Why Women Stay (or Go)
American University Kyiv (AUK) summarizes the results of a study of the reasons women stay or leave during the war in Ukraine, presented at the AUK Campus with the participation of experts from the Institute for Behavioral Studies and representatives of the government and international organizations.
The study found that "family ties and a deep sense of belonging are the primary reasons" for staying and that "younger women (18-29), unmarried women, and those who have already moved abroad since 2022 are the most likely to consider leaving."
4 Visits from Potential Nordic Investors
Jukka Laikari, the co-founder of Nordic reconstruction consultancy Rebuild Ukraine Office, announced that his firm will bring four groups of companies to Ukraine in May "to explore the opportunities related to the reconstruction of Ukraine."
The first group in early May will visit "the larger cities of Western Ukraine," while the second will visit the new Goro ski resort project, said to be Ukraine's largest wood construction site. The third will visit the Lviv Medical Forum and the fourth will travel to Kyiv for the engineering and machinery exhibition International Industrial Forum.
Russian Drone Hits Hempire Manufacturing
Sergiy Kovalenkov, CEO of sustainable construction materials firm Hempire, reported that the space his company is renting in Kyiv for manufacturing operations was hit by a Russian drone.
"Our partners’ space got hit the hardest.The most important news is that all people working inside are alive and healthy. Everything else will be renovated. No evil forces will ever stop us from building durable , energy -efficient homes using local biobased materials."
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
