Today's Contents
Reporter's Notepad:
- A Sale of Two Banks? Possible hints, rumors and observations from the Economy Ministry, the EBRD, Rothschild & Co and CMS about the government's plan to sell two state banks
Just The Facts:
- IFC, DFC, Raiffeisen Bank Ukraine launch $210 million of risk-sharing facilities to support Ukrainian businesses
- Dutch, British, Ukrainian consortium to develop technologies to reuse Ukraine's rubble in reconstruction
- US seeks to cancel $4.7 billion of Ukraine's debt
- UN World Food Programme adopts $2.1 billion strategic plan for Ukraine for 2025-2027, Shmyhal says
- Lithuania to contribute €10 million to World Bank's Ukraine recovery fund
- Austria allocates €10 million for Ukraine grain initiative, humanitarian aid
- IBRD, Ukraine sign MoU on exchange of knowledge related to reforms and economic growth
Here's What They Think:
- Bloomberg says Biden's move to let Ukraine use long-range US missiles to strike deep inside Russia move may boost Trump's negotiations with Russia
Sober Second Thought:
- UkraineInvest, the government investment promotion agency, has released a presentation aiming to encourage investment in Ukraine's agrifood sector, which the agency said can restore its global leadership in food exports with adequate investment and adaptation strategies.
The Rebuilder's Social:
- Today's posts cover German-Ukraine relations, the law on the sale of state banks, school kitchen upgrades, the selection of anti-corruption court judges and other matters.
Dear readers,
A Sale of Two Banks?
CMS, the international law firm, just published a short review of recent legal changes that would allow the Ukrainian government to sell state-owned banks. It starts by naming two banks rumored to be up for sale.
"Rumors have begun circulating that the first banks that are likely to be sold to private investors include Sense Bank, acquired on the introduction of sanctions on oligarchs linked to the Kremlin after the war started in 2022, and Ukrgasbank," CMS writes. Ukrgasbank, as the law firm recalls, became state-owned during the banking crisis and has built a franchise as a green bank.
Still in the realm of rumor, URN Daily overheard multiple snippets of conversation at the ReBuild Ukraine conference last week could suggest the following conclusions: at least one bank might be offered for sale soon, it will attract substantial interest, and the sale would involve, in some way or other, the EBRD and Rothschild & Co.
Or maybe not. But here's what we heard:
When might they be sold? Deputy Prime Minister Oleksii Sobolev, when talking about the opportunites for foreign investors to enter Ukraine via acquisition, mentioned state banks and then said, in passing, "we'll be doing a sale hopefully soon, of at least one."
Who might help organize the sale? Rothschild & Co regional chief Giovianni Salvetti, when asked about the possible sale of state banks, said his investment bank has historically been involved in the sale of all banks sold in Ukraine so far and "hopefully we'll continue doing so."
But would investors be interested? "I know already that there is interest in these banks," Salvetti said. "Of course, price matters" but "I believe that if is one of these two banks will be for sale, there will be significant interest."
"I think quality assets in the banking sector in Ukraine are doing well. They do work. There's a bit of a synthetic market, from a certain point of view, but it's much better than it used to be."
Dirk Werner, managing director for Equity at the EBRD, followed Salvetti by saying "I would confirm" that the banks are drawing interest and hinted at possible involvement by his lender.
"Our mandate is also privatization," he said. "So we would not become necessarily a minority investor in a state-owned bank, but if there's a path to privatization by capital markets or further M&A transactions, we would clearly be a party of that."
US seeks to cancel $4.7 billion of Ukraine's debt
The Biden administration in the White House has notified Congress it plans to forgive some $4.65 billion of debt owned by Ukraine, US State Department spokesperson Matthew Miller said at a press briefing on Wednesday.
"We have taken the step that was outlined in the law to cancel those loans, provide that economic assistance to Ukraine, and now Congress is welcome to take it up – if they wish," Miller stated.
Miller also said that steps had been taken in the past few days, noting that Congress could still block the move.
Of the $61 billion in aid for Ukraine authorized by Congress in April, approximately $9.4 billion was allocated as economic and budgetary aid in the form of loans.
Under the law, President Joe Biden was allowed to forgive the first half of the loan after November 15, while on January 1, 2026, Donald Trump will be able to forgive the second half of the loan if he chooses to do so and Congress allows it.
Ukrainian, Dutch, British consortium to develop technologies to reuse Ukraine's rubble in reconstruction
A consortium of British, Ukrainian and Dutch organizations secured GBP 16 million ($20 million) in funding from the UK government for a project that aims to up-cycle Ukraine's war-torn rubble into green building materials, the University of Leeds said in a press release.
The group includes Rotterdam-based up-cycling firm C2Ca Technology as well as the Lviv Polytechnic National University, the National University of Water and Environmental Engineering, Eco+Logic and ReThink as well as the University of Sheffield, the University of Oxford and Imperial College London.
The consortium, called Safe, Sustainable, and Swift Reconstruction of Ukraine, (S3RoU) will also raise awareness among Ukrainians about the hazards of asbestos, which is widely used in the country's civil infrastructure and likely present in the rubble.
Rebuilding Ukraine, expected to cost $500 billion - $1 trillion, would require sustainable practices to reduce costs and environmental impact and help meet the country's goal to join the European Union
S3RoU says it aims to rethink traditional construction practices that lead to waste and low-grade reuse of rubble, by using a decentralized production system to up-cycle rubble into high-value, low-energy, and low-carbon building materials.
The project's innovation areas include rapid identification and assessment of rubble suitable for recycling, mobile equipment for on-site rubble separation, optimization of processes for recycling separated components, and public awareness campaigns.
"By recycling rubble into low-energy and low-carbon construction materials, manufactured in a responsible, resilient, and sustainable manner, we will create a circular economy," said S3RoU's technology lead, Professor Theodore Hanein.
"We will develop technologies that can be used globally in post-conflict and end-of-life infrastructure reconstruction, as well as to help all parts of the world affected by disasters such as earthquakes and floods," Hanein added.
IFC, DFC, Raiffeisen Bank Ukraine launch $210 million of risk-sharing facilities to support Ukrainian businesses
The International Finance Corporation (IFC), the US International Development Finance Corporation (DFC), and Raiffeisen Bank Ukraine have established two risk-sharing facilities totaling about $210 million to support Ukrainian small and medium enterprises (SMEs) and midcaps, IFC said in a press release on Wednesday.
Under the first risk-sharing facility, IFC and Raiffeisen Bank Ukraine will provide up to $50 million, shared equally, to support smaller businesses, especially in agribusiness. IFC's contribution is partially guaranteed through its Economic Resilience Action (ERA) program, supported by the Swiss State Secretariat for Economic Affairs (SECO).
The second facility, amounting to €150 million, includes contributions of up to €50 million from the IFC and $50 million from DFC, targeting mid-sized companies. Of the total, around 30% is earmarked for long-term renewable energy and energy-efficiency projects to enhance Ukraine's energy security.
This marks the first direct collaboration between the IFC and DFC to create a risk-sharing facility, according to the statement. IFC's participation is backed by a partial guarantee from the French government and additional support from the UK's Foreign, Commonwealth, and Development Office through IFC's ERA Program. DFC's financing is supported in partnership with the US Agency for International Development (USAID).
Risk-sharing facilities allow multilateral development banks to absorb part of the credit risk, encouraging lenders to provide financing, especially in volatile markets.
UN World Food Programme adopts $2.1 billion strategic plan for Ukraine for 2025-2027, Shmyhal says
The UN World Food Programme's executive board approved an interim strategic plan for Ukraine for the 2025-2027 period with a total budget of $2.1 billion, Ukraine's Prime Minister Denys Shmyhal said in a post on X on Wednesday.
The plan includes humanitarian aid, support for civilians, continued demining efforts, and assistance in boosting Ukraine's export capacity for agricultural products in global markets, Shmyhal stated.
According to the UN World Food Programme, 14.6 million people in Ukraine are in need of humanitarian assistance.
The UN World Food Programme is a 100% voluntarily funded organization. Of every $1 donated, 64 cents goes directly to programs supporting hungry people.
Lithuania to contribute €10 million to World Bank's Ukraine recovery fund
Lithuania will allocate €10 million to the World Bank's Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF), the country's finance ministry said in a press release on Tuesday.
The funding will contribute to the reconstruction of Ukraine's destroyed energy infrastructure, houses, schools, and hospitals, and will be used for other urgent financing needs, the ministry stated.
Lithuania allocated an additional €5 million to the URTF in December 2022.
Since the establishment of the URTF in 2022, donors from 17 countries joined the initiative. Between 2022 and 2024, the fund mobilized almost $2 billion of donor support, including $1.2 billion already disbursed for specific projects, the ministry said.
Lithuania has allocated a total of over €1.5 billion in military, financial, and humanitarian support to Ukraine since the start of Russia's full-scale invasion, according to the statement.
The URTF is funding framework projects by mobilizing donor support to respond to Ukraine's emergency needs in a rapidly changing wartime environment.
Austria allocates €10 million for Ukraine grain initiative, humanitarian aid
Austria will provide €10 million in new aid to Ukraine, the country's Foreign Minister Alexander Schallenberg said on Wednesday, following a meeting in Vienna with his Ukrainian counterpart Andrii Sybiha.
Of the total, €2 million will go toward the "Grain from Ukraine" initiative, a humanitarian food program launched by Ukraine's President Volodymyr Zelensky in 2022, to provide Ukrainian grain to countries in Africa and Asia facing malnutrition and hunger.
The remaining €8 million will be allocated from the Foreign Ministry's Foreign Disaster Fund (AKF) to support humanitarian aid measures in Ukraine, Schallenberg stated.
This brings Austria's state humanitarian and financial aid to Ukraine to around €264 million since the start of the Russian full-scale invasion, according to Schallenberg.
"The people of Ukraine deserve peace, but not an imposed peace," Schallenberg said. "It is up to the Ukrainian people to decide when and how to negotiate. Because they are the ones who are defending their country, their sovereignty, and their territorial integrity with admirable courage."
IBRD, Ukraine sign MoU on exchange of knowledge related to reforms and economic growth
The International Bank for Reconstruction and Development (IBRD) and Ukraine's government on Wednesday signed a memorandum of understanding (MoU) on knowledge sharing, according to a press release.
"The Memorandum provides for the exchange of knowledge and best practices on economic growth, business support and the implementation of key reforms to promote European integration in key sectors," Ukraine's Prime Minister Denys Shmyhal said.
The MoU was signed in a meeting between Shmyhal and the World Bank's Managing Director for Operations Anna Bjerde in Kyiv.
The parties also discussed the financing of joint projects for economic reconstruction and development this year and in 2025, according to that statement.
"We are very grateful for the support provided and look forward to jointly implementing even more projects for the economic development of our country and its integration into the EU," Shmyhal noted.
Bloomberg: Biden's Ukraine missile move may boost Trump's negotiations with Russia
US President Joe Biden's decision to allow Ukraine to use US-made ATACMS missiles to strike deeper into Russian territory has sparked outrage among President-elect Donald Trump supporters, but the move might strengthen Trump's position in future negotiations with Putin, Bloomberg columnist Andreas Kluth wrote in an op-ed.
Kluth argues that Biden's move is a measured response to recent Russian aggression, including bombing Ukrainian infrastructure and inviting the North Korean military to join the fight on Russia's side. By allowing Kyiv to strike deep into Russia in retaliation for provocations, Biden is giving Ukraine leverage in future peace talks, giving Trump more bargaining power against Putin.
EPP: Europe must lift restrictions on Ukraine's military, prioritize reconstruction efforts
The war in Ukraine is not just a defense of the country's sovereignty, but it has become a defining moment for Europe's future, the European People's Party (EPP) said in an op-ed.
To ensure Ukraine's victory, European governments must remove restrictions on Kyiv's ability to target Russian military assets, as well as commit around 0.25% of GDP in military support to Ukraine, EPP said. Moreover, Europe must be ready to support reconstruction efforts, as damages exceeded USD 157 billion.
UkraineInvest highlights investment possibilities in Ukraine's agrifood sector
UkraineInvest, the government investment promotion agency, has released a presentation aiming to encourage investment in Ukraine's agrifood sector, which the agency said can restore its global leadership in food exports with adequate investment and adaptation strategies.
The presentation highlighted four main projects seeking investments, including; the development of an agro-food tech cluster, the construction of a feed soy protein concentrate plant, tomato processing recovery, and the development of a honey production facility.
The war has resulted in losses in the sector estimated at billions of dollars. In 2022, losses in revenues due to reduced exports topped $5 billion, while grain production declined significantly in the 2022/2023 marketing year, with wheat production dropping 26% in comparison to the previous year and corn production dropping 17%.
The Russian invasion has also resulted in the loss of capital for farmers, making the purchase of seeds, fertilizers, and fuel more difficult. At the same time, over 5 million people were forcibly displaced, resulting in a labor shortage in the sector. However, farmers remained resilient and actively implemented adaptive strategies to minimize losses, including changing the planting areas, adopting new technologies, and optimizing costs, the agency said.
Investing in infrastructure — including irrigation, transportation and storage — could help increase productivity and reduce crop losses, according to the presentation. Moreover, the adoption of advanced and modern agricultural technology offers the opportunity to improve production efficiency, helping Ukrainian farmers to recover from setbacks caused by the war, while enabling them to ensure sustainable growth.
The adaptations of Ukrainian farmers to the difficult working conditions could unlock significant growth, as productivity remains below global benchmarks, the presentation states. Coupled with further investments and support, these adaptive strategies could allow Ukraine to reclaim its position as a global leader in agricultural production and exports.
The Ministry of Finance of Ukraine posted about an online meeting between Ukrainian Finance Minister Sergii Marchenko and the newly appointed German Finance Minister Jörg Kukies, who "assured that Germany remains committed to comprehensive support for Ukraine and its citizens."
Nazar Bobitski, director of the EU Office of the Ukrainian Agribusiness Club Association (UCAB), recapped a visit by association members to Brussels for three days of outreach to EU institutions, European business associations and think tanks.
Law firm CMS Ukraine comments on rumors regarding privatization that "the first banks that are likely to be sold to private investors include Sense Bank, acquired on the introduction of sanctions on oligarchs linked to the Kremlin after the war started in 2022, and Ukrgasbank."
Kristina Mikulova, head of Regional Hub for Eastern Europe at the European Investment Bank (EIB) posted about multiple initiatives, led by the Ukrainian government and others, "spearheading a transformative effort to upgrade school kitchens and dining facilities in the Kyiv region."
Transparency International Ukraine reviewed a draft law adopted by Parliament "that will significantly affect the testing process for the selection of new High Anti-Corruption Court (HACC) and High Anti-Corruption Court Appeals Chamber (HACC AC) judges."
The Ministry of Economy of Ukraine announced that Italy has provided €160,000 to strengthen the National Cancer Institute in Ukraine on the occasion of a Ukrainian government visit to Rome.
