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URN Daily: Zelensky says Putin is 'silent' on talks. Customs processes remain a challenge to logistics in Ukraine.

Today's Contents

Reporter's Notepad:

  • Interest in shipping to Ukraine is rising, but hurdles include port congestion, lack of truckers and customs processes, Ahlers Logistics pro says

Just The Facts:

  • Zelensky says Moscow 'silent' on direct talks proposal as Trump mulls joining negotiations in Istanbul
  • DTEK Energy plans annual buyback of up to $100 million in Eurobonds, seeks term changes
  • Ukraine's MHP starts production of liquified biomethane, makes first shipment to EU

Here's What They Think:

  • The Art Newspaper: Why art matters in wartime
  • Politico: Ukraine's EU accession should not be rushed

Sober Second Thought:

  • Ukraine's forestry sector struggles with inefficiency, skills gaps, underused potential, report says

Rebuilder's Social

  • Draft laws on public-private partnerships and taxation of virtual assets. New demining tech tested and railway cargo fee hikes defended.

Dear subscribers,

Ukraine Rebuild Newswire recently attended a webinar hosted by the Swiss-Ukrainian Reconstruction Agency (SURA) on the complex subject of logistics in Ukraine.

We've prepared the following news story based on our main takeways.

Interest in shipping to Ukraine is rising, but hurdles include port congestion, lack of truckers and customs processes, logistics pro says

Spotty availability of railway wagons, congestion at Black Sea ports, complex insurance mechanisms, a lack of truck drivers and the risks of military strikes pose serious challenges to firms looking to ship goods to Ukraine, says a logistics professional with operations in the country.

However, the most consistent issue shippers face is with complex customers procedures, says Jeroen De Ryck, business unit director for industry and energy at Ahlers Logistics, which has been operating for 30 years in Ukraine.

"The biggest challenge was, and is, customs clearance," he said in a logistics webinar organized last week by the Swiss-Ukrainian Reconstruction Agency (SURA). "We really emphasize the fact that preparation is key."

"Prepare your documents well - commercial invoices, import licenses, certificates of origin. Have it checked by your local partners or by a good freight forward because this can create a lot of chaos when it's at the border to enter Ukraine."

Image from Ahlers PowerPoint presentation

"Also, a so-called 'PP' number is available for the driver so that you can enter Ukraine. And then, last but not least, is the dual use certificate. This is very, very strict, and it's growing every day. So there we really require detailed documentation. That's quite a challenge for the moment."

Regardless of the challenges, De Ryck said interest in shipping goods to and from Ukraine is increasing as companies begin to envision an end to the war and the start of the $524 billion reconstruction of the country.

"I feel a growing interest from other companies, but they often don't know where to start because of the unknowns and the risks," De Ryck said in a logistics webinar organized last week by the Swiss-Ukrainian Reconstruction Agency (SURA).

"But I want to emphasize that deliveries have continued in recent years and will grow even more in the future, because there is an immense need for consumer products, but even more for infrastructural projects, energy supply, and heavy industry development, such as steel or cement production," he said.

Ahlers, based in the Belgian port of Antwerp, ships 700 trucks per month on Ukrainian operations and expects that number to grow, particularly as road transport is currently the most reliable method for shipping to Ukraine.

While sea ports suffer from severe congestion and, in some cases, increased threat of Russian attack, railway transport is affected by the low predictability of the availability of train wagons, possible military strikes, and the commandeering of transport for military use, which takes priority.


For further information, you can see the PowerPoint presentation prepared by Ahlers Logistics for the webinar here:

Also for the webinar, the law firm Baker McKenzie prepared the following pdf illustrating the legal risks of logistics in Ukraine:


Contacts

For questions related to daily news and story suggestions, feel free to message newsroom chief Valentina Bajic at valentina@ukrainerebuildnews.com.

For sponsorships, 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 …

Zelensky says Moscow 'silent' on direct talks proposal as Trump mulls joining negotiations in Istanbul

Ukraine's President Volodymyr Zelensky said on Monday evening that Moscow has stayed "silent" all day about a proposal for direct peace negotiations between Ukraine and Russia in Turkey's city of Istanbul on May 15.

"A very strange silence. One way or another, Russia will have to end this war – and the sooner, the better," Zelensky said in his address to the nation, adding that Russia has also yet to respond to ceasefire proposals. "Russian shelling and assaults continue."

Ukraine's leader also said he had spoken with President Recep Tayyip Erdoğan of Turkey, to whom he reaffirmed his commitment to direct negotiations with Russian leader Vladimir Putin.

Zelensky on Sunday said he was ready to meet with Putin for direct peace talks in Istanbul, after the Russian president earlier the same day proposed that Russia and Ukraine resume direct talks in the Turkish city on Thursday, which he said Kyiv "interrupted" at the end of 2022.

Earlier on Monday, US President Donald Trump said he was considering joining the potential talks in Istanbul.

"I've got so many meetings, but I was thinking about actually flying over there. There's a possibility of it, I guess, if I think things can happen, but we've got to get it done," Trump told reporters at the White House ahead of his trip to Saudi Arabia on Tuesday. Trump is also expected to visit Qatar and then the United Arab Emirates this week.

DTEK Energy plans annual buyback of up to $100 million in Eurobonds, seeks term changes

DTEK Energy, a subsidiary of Ukraine's largest private energy producer DTEK, has asked holders of its 2027 Eurobonds to consider changes to the current payment rules and to approve a plan where the company would buy back up to $100 million worth of bonds each year.

In a filing with the Euronext Dublin on Monday, DTEK said that bonds with a nominal amount of $931 million are currently outstanding, out of a total issuance volume of about $1.5 billion. 

Noteholders who give their consent by the deadline and do not take it back in time will receive a payment on the settlement date. This payment will be 1% of the total value of the notes they approved, as per the statement.

DTEK Energy noted that despite the challenges and disruptions arising from the war in Ukraine, the group managed to reduce its nominal debt by about 47% since the start of the war to about $931 million.

Ukraine's MHP starts production of liquified biomethane, makes first shipment to EU

MHP, the agricultural holding that includes Ukraine's largest poultry producer, said it has started commercial production of liquefied biomethane (Bio-LNG) and finalised its first export shipment to the European Union.

In a press release on Friday, MHP said its Bio-LNG, produced entirely from poultry manure and other agricultural waste, is the first liquefied biomethane made in Ukraine.

"The launch of Bio-LNG exports confirms MHP's leadership in bioenergy and innovation … We are turning poultry waste into climate-positive fuel that can power trucks and ships across Europe today," said Adomas Audickas, Deputy CEO of MHP Group responsible for bioenergy development.

In February, MHP became the second Ukrainian company to export biomethane, Interfax Ukraine reported at the time. MHP exported 27,400 cubic metres of biomethane across the Ukrainian-Polish border, where it was sold to energy major Vitol. 

The first Ukrainian company to export biomethane was Ukrainian energy holding Vitagro, which, also in February, made a 67,000 cubic meter shipment to the EU.

In 2023, the EU and Ukraine signed a deal to form a strategic partnership on biomethane, hydrogen, and other synthetic gases. This builds on the bloc's REPowerEU plan, launched after Russia's 2022 invasion of Ukraine, aimed at strengthening Europe's energy independence.

The plan sets a target for the EU to produce 35 billion cubic meters of biomethane annually by 2030, with an estimated €37 billion needed in investments.

Biomethane, a cleaned-up form of biogas similar to natural gas, can be used for heating, power, and transport. Importantly, it can flow through existing gas networks, making it easy to adopt on a large scale.

Liquid biomethane takes up less space, so more of it can be stored in the same area compared to biomethane in gas form.

The Art Newspaper: Why art matters in wartime

Even during wartime, a country must invest in art and culture, as they play a vital role in preserving democratic values, encouraging dialogue, and maintaining a space for critical thought, Björn Geldhof, the artistic director of the PinchukArtCentre in Kyiv, wrote in an opinion for The Art Newspaper. While war demands unity and immediate responses, art offers a platform for exploring the unresolved emotional and societal consequences of conflict—issues politics cannot always address.

Geldhof warns against the dangers of isolationism during war, stressing that Ukrainian art embodies an "open nationalism" that both defends the country and fosters democratic engagement. He underscores the importance of cultural exchange, where international artists bring new perspectives to Ukraine and vice versa, enriching the global conversation. Calling for sustained international support, Geldhof urges institutions to invest in Ukrainian art—not as charity, but because the world has much to learn from Ukraine's cultural resilience.

Politico: Ukraine's EU accession should not be rushed

Rushing Ukraine's EU accession is a misguided and potentially damaging move for both Ukraine and the EU, Mat Whatley, a former U.K. army officer, who was head of the OSCE Special Monitoring Mission in Donetsk, Ukraine, wrote in an opinion piece for Politico. While politically motivated urgency—exacerbated by fears of a second Trump presidency—has led to calls for fast-tracking membership, Whatley warns that Ukraine still suffers from entrenched corruption and weak rule of law, making it unfit for EU standards.

The author warns that fast-tracking Ukraine without addressing corruption could import instability into the bloc and alienate other candidate countries that have waited years for progress. Instead of false promises, the EU should offer steady, conditional support to strengthen Ukraine's institutions and war effort, ensuring the country is truly ready for membership when the time comes.

Ukraine's forestry sector struggles with inefficiency, skills gaps and underused potential, report says

Ukraine's state-controlled forestry sector, almost entirely state-controlled with just 0.1% in private hands, is undergoing major structural changes amid war-related destruction, underutilization of resources, and ongoing institutional reform.

While the country holds 9.6 million hectares of forests—covering 15.9% of its territory—its forestry sector harvests only around 60% of annual timber growth.

In contrast, Sweden harvests 75% of its yearly growth and nearly 80% of its forests are privately owned, according to a report, titled "Ukraine's Forestry at a Glance: Lessons from Sweden," from the Kyiv School of Economics' Center for Food and Land Use Research, authored by Roksolana Nazarkina and Mariia Bogonos.

The war in Ukraine has caused notable disruptions to the forestry sector, including declines in logging, woodworking, furniture, and paper production. Damage to protected natural areas and forest infrastructure is severe, with over 4.7 million trees destroyed and timber losses valued at $4.5 billion. Although timber harvesting has declined, exports of fuelwood and wood products reached $1.4 billion in 2023, indicating a shift toward energy-related products. Still, timber stock continues to accumulate due to underharvesting.

Ukraine has initiated reforms to increase transparency and efficiency in the timber market. Since 2021, mandatory electronic auctions and a national timber portal have been introduced, leading to increased tax revenues and improved traceability. The February 2023 establishment of the "Forests of Ukraine," which is overseen by State Agency of Forest Resources of Ukraine, consolidated over 170 forest entities under one umbrella, strengthening central control and oversight. However, the report notes that despite these changes, an estimated 5–10% of the market remains informal, and illegal logging remains a persistent issue due to weak enforcement and lack of reliable data.

Recent trends point to growing interest in wood biomass for renewable energy and the use of timber in green construction, particularly for Ukraine's post-war rebuilding, according to the report. However, wood remains a marginal contributor to the country's renewable energy mix, which is dominated by wind and solar. Green construction is also in its infancy, representing just 2% of the market—far below European levels. In contrast, Sweden's forestry industry is a major producer of bioenergy and features a high level of integration across sawmills, pulp and paper mills, and processing facilities.

The report concludes that Ukraine's forestry sector has significant untapped potential but faces systemic obstacles, including inefficient practices, outdated or poorly enforced regulations, and shortage of skilled labor. Lessons from Sweden highlight the benefits of private ownership, professional support networks, practical education, and efficient market structures.

Social Media Posts

New Demining Technology Tested

The government-run Demine Ukraine platform recapped a demonstration in Ukraine of the Minesight, a US "next-generation metal detector designed to identify bombs, shells, mines, cluster munitions, grenades, and rockets — with over 90% accuracy, while ignoring irrelevant metallic debris."

"During a recent test on a 50×50 m site, APEX detected 76 objects in 5 hours — and correctly flagged only 4 as hazardous. Traditional metal detectors would have required manual checking of all 76."

Railway Cargo Fee Hike Defended

Gebhard Hafer, chairman of the supervisory board of Ukrainian Railway, called on Maersk, CMA CGM, MSC and the American Chamber of Commerce in Ukraine to end their opposition to Ukrainian Railway's request to raise cargo tarrifs.

"JSC Ukrainian Railways hasn't indexed the cargo tariffs for more than two years already. The request is justified by the current industrial inflation rate in Ukraine, measured by the Producer Price Index (PPI), and by investment needs into infrastructure and rolling stocks."

400-Page Draft Law on Public-Private Partnerships

UkraineInvest, the state investment promotion agency, said the Draft Law No. 7508 on Public-Private Partnerships (PPPs) is expected to be submitted for a second reading in Parliament soon.

The agency said the draft law includes:
✔️ Simplified procedures
✔️ Broader application of PPPs across sectors
✔️ The option to apply the UK model: private investors finance the construction, and the state gradually pays for its usage — minimizing budget pressure
✔️ Introduction of electronic platforms for PPP tenders

Possible New Tax Rules for Virtual Assets

Ukrainian law firm Arzinger promoted a legal alert about possible new taxation rules for virtual assets in Ukraine, with a new draft law before Parliament that would create a classification system for virtual assets.

The alert says the draft law also obliges Ukrainian and foreign virtual asset service providers to register with local tax authroties and submit an annual report on transactions with virtual assets conducted with residents of Ukraine.

AmCham Releases Latest Fact Sheet

The American Chamber of Commerce in Ukraine introduced its latest Ukraine Fact Sheet, with information on the US-Ukraine Reconstruction Investment Fund, defense production, the impact of the war on EU integration and more.

The 13-page fact sheet also covers the Ukrainian IT sector, various international conferences, digitalization, events in the war, distributed generation and other topics affecting Ukraine in recent months.

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URN Daily: Rovertech sets mine-clearing record and MHP suffers record cyberattack; Plus, Davos chatter about flights to Lviv and a National Investment Plan

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