Today's Contents
Just The Facts:
- Ukraine seeks to retake occupied land via diplomacy, Zelensky says
- Ukraine to receive $1.4 billion in new military aid from the US and Germany
- Kyivstar, AWS launch generative AI lab to support Ukrainian enterprises
- Security guarantees are key to Ukraine's reconstruction, Metinvest CEO says
Here's What They Think:
- Washington Monthly: Any Ukraine peace deal should answer four questions
- Carnegie Politika: Trump will support Ukraine only if that aligns with 'America first' principle
- Middle East Eye: Ukraine, Russia should listen to their citizens and start negotiating
Sober Second Thought:
- Ukrainian FDPs in Poland still face barriers to full financial inclusion, study finds
Ukraine seeks to retake occupied land via diplomacy, Zelensky says
Ukraine aims to end the war with Russia swiftly, and secure the return of some of its territory through diplomacy once Kyiv's NATO membership is assured, President Volodymyr Zelensky said.
Zelensky acknowledged the challenges of reclaiming certain areas occupied by Russia, including Crimea, which Russia annexed in 2014, through military force.
"Our army lacks the strength to do that. That is true," Zelensky said in an interview with the Japanese news agency Kyodo News published on Monday. "We do have to find diplomatic solutions," he added.
Zelensky emphasized such moves would be considered "only when we know that we are strong enough" that Russia cannot launch a new aggression against Ukraine.
Zelensky comments suggest a potential shift from his earlier firm stance that Ukraine will fight to reclaim all territory occupied by Russia, Kyodo News noted.
Ukraine to receive $1.4 billion in new military aid from the US and Germany
US President Joe Biden's administration has announced a military aid package of $725 million for Ukraine, the US Department of Defense (DoD) said in a press release.
The Presidential Drawdown Authority (PDA) package is the 71st tranche of equipment provided for Ukraine from DoD inventories since August 2021, according to the statement.
The package consists of equipment and ammunition that aim to help Ukraine with air defense capabilities, munitions for rocket systems and artillery, as well as anti-tank weapons, according to separate press releases by the US DoD and Department of State.
Separately, German Chancellor Olaf Scholz announced via X (formerly Twitter) that Germany will provide military aid to Ukraine worth €650 million, to be delivered in December. The aid package will reportedly include battle tanks, missiles, drone and air defense systems, ZDF reported.
Scholz sent a message to Russian President Vladimir Putin from Kyiv, saying that Germany is in this "for the long haul," adding: "We will stand by the Ukrainian people — for as long as it takes."
News of the US $725 million military aid package first broke news on Nov 28, when two unnamed officials told Reuters. The normal range of PDA packages ranged from $125 million to $250 million.
Biden currently has around $4 billion-$5 billion in PDA authorized by Congress that he is expected to use before President-elect Donald Trump returns to the White House on Jan 20.
Biden is reportedly preparing another package worth $24 billion, according to a list seen by Politico.
The news of the military aid comes amid concerns surrounding Trump's reelection and its impact on the war in Ukraine. CNN argued that Ukraine might need to adapt to a "dramatic reduction" in US support, citing statement by Trump and his running JD Vance during their campaign.
Kyivstar, AWS launch generative AI lab to support Ukrainian enterprises
VEON-owned Kyivstar has partnered with Amazon Web Services (AWS) to launch a generative AI lab to enhance business processes in Ukraine and contribute to the countries long-term economic recovery.
Leveraging AWS cloud solutions, the new lab aims to provide AI services, such as text and visual content creation, augmented intelligence chatbots, and virtual assistants, among other things, telecoms group VEON said in a press release. The tools will improve operational efficienct for Ukrainian businesses and support long-term growth.
"Generative AI has the potential to be a transformative force for the efficiency and competitiveness of Ukraine’s enterprises," said Kyivstar CEO Oleksandr Komarov. "It will also play a pivotal role in driving economic growth as part of Ukraine’s long-term recovery."
On Nov 29, VEON welcomed the decision of the Shevchenkivskyi District Court of Kyiv to unfreeze 47.85% corporate rights in Kyivstar, as well as 100% of its corporate rights in other Ukrainian subsidies. The company has committed $1 billion to rebuild Ukraine's digital infrastructure through 2027.
In 2023, Ukrainian authorities ordered the seizure of VEON's corporate rights in local units as part of sanctions and asset seizure targeting Russian oligarchs Mikhail Fridman and Petr Aven, co-founders of VEON's largest shareholder, LetterOne.
VEON is considering an initial public offering for Kyivstar in the US as early as next year, CEO Kaan Tezioglu told Reuters in an interview.
"We have not made those decisions yet, but we are committed to looking into IPOs of our local assets," he said. "And clearly, Kyivstar is one of those assets which could be in the line of this process."
Security guarantees are key to Ukraine's reconstruction, Metinvest CEO says
Security guarantees will be vital for the recovery of Ukrainian economy if US President-elect Donald Trump starts negotiating an end to the war with Russia when he returns to office Jan. 20, said Metinvest CEO Yuriy Ryzhenkov.
Ryzhenkov, who was speaking with The Guardian, said the economy could grow like Germany after the devastation of WWII if the right policies and guarantees are in place, noting that there is a lot of uncertainties surrounding Trump's plans.
"President Trump is quite a decisive person, and his pledge to end all wars, and end the Ukraine war, is a very welcome thing," said Ryzhenkov. "The problem is we still don’t know what the plan is. What’s more important to me is the security guarantees that we will receive at the end of the war, or a ceasefire."
Ukraine's assets — such as lithium and uranium deposits, and the country's history of industrial production — could draw investor interest, which could support economic recovery and attract foreign investment, Ryzhenkov said.
Steel manufacturer Metinvest is among Ukraine's largest companies. The company has faced substantial losses during the war, including the complete destruction of its Azovstal and Illich steel plants in Mariupol during a prolonged siege, as well as the loss of a coke mine in Avdiivka.
Washington Monthly: Any Ukraine peace deal should answer four questions
Any potential peace deal for Ukraine should answer four key questions: where the ceasefire line will be, how to respond to Ukraine's security guarantee requests, how to curb Moscow's influence in Ukraine, and how to tackle restitution and reconstruction of Ukraine, Tamar Jacoby, director of the Progressive Policy Institute's New Ukraine Project, wrote in an op-ed for the Washington Monthly.
Carnegie Politika: Trump will support Ukraine only if that aligns with 'America first' principle
US President-elect Donald Trump will offer help to Ukraine only if that would align with his foreign policy principle of putting 'America first' as his "egotistical pragmatism" will make him reaffirm what he considers to be US interests, independent journalist Konstantin Skorkin wrote in an op-ed for Carnegie Politika.
Middle East Eye: Ukraine, Russia should listen to their citizens and start negotiating
Recent surveys in Ukraine and Russia showed that the majority of the population in both countries support starting negotiations to end the war and their leaders should follow through, Jonathan Steel, a veteran foreign correspondent, wrote in an op-ed for the Middle East Eye. Steel proposed a Cyprus model peace deal, under which Ukraine will not have to cede juridical sovereignty over areas under Russian occupation, but it will have to admit it has lost control.
Ukrainian FDPs in Poland still face barriers to full financial inclusion, study finds
Forcibly displaced persons (FDPs) from Ukraine in Poland still face some barriers to full financial inclusion, such as identity verification, and limited access to credit, especially for businesses opened by FDPs, a study solicited by the International Finance Corporation (IFC) and conducted by PwC Poland found.
Approximately 1.9 million Ukrainians crossed the border with Poland since Russia launched the full-scale invasion in February 2022 and have not returned to Ukraine. Of the total, about 1.4 million are adults or potential customers of financial services providers, according to the study.
Based on the findings of the study, more than 60% of early Ukrainian FDPs, corresponding to 900,000 FDPs, found jobs and settled in Poland. In 2022, around 20,000 companies were registered in Poland by Ukrainians, up from 7,117 in the previous year. Between February 2022 and the end of June 2023, Ukrainians registered a total of 17 29,400 sole proprietorship businesses in Poland.
As advised by the Financial Ombudsman in March 2022, Polish financial institutions undertook several initiatives to facilitate access to finance for FDPs from Ukraine, which led to the growth in the number of loans and mortgages issued to Ukrainian citizens.
However, a quarter of respondents to a survey said they encountered barriers when reaching the financial sector, mostly connected to language.
With the growing number of Ukrainian entrepreneurs, banks can play a pivotal role by actively expanding access to credit, which was found to be one of the main hurdles on the way to Ukrainians being fully included in the Polish financial system. Over 400,000 FDPs from Ukraine can meet the most common eligibility criteria to obtain credit services, according to the study.
In addition, banks should streamline the identity verification process by accepting a broader range of identity documents and adopting digital verification technologies.
The study also highlights key opportunities for banks and fintech companies to better serve the unique needs of Ukrainian FDPs. By offering tailored financial products, credit services, and non-financial support such as language and business training, they can promote deeper integration and financial independence.
Lisa Kaestner, the IFC's country manager for Ukraine, announced her participation in the Dec 3 seminar "Bridging Barriers and Building Opportunities for Ukrainian Women-Led Businesses: Advancing Gender Equality in Ukraine," organized by the US Dept of Commerce.
The American Chamber of Commerce in Ukraine announced the results of the election for its Agricultural Committee. The new members are:
▪️ Vadim Miroshnichenko, Head of Trade Department, Cargill;
▪️ Volodymyr Osadchuk, General Director, COFCO International Agri Resources Ukraine;
▪️ Natalia Pylyptseva, Deputy Legal and GR Director, Bunge.
Ukrainian law firm Sayenko Kharenko announced that it served as Ukrainian legal counsel to the EBRD on its €55 million finance package to the city of Kyiv to help tackle the impact of the ongoing war.
Melinda Haring, a senior adviser to Ukrainian-American non-profit Razom and a non-resident senior fellow at the Atlantic Council, posted an article making the case that "especially after the nomination of Lt. General Keith Kellogg, there’s every reason to expect Donald Trump that will be tough on Vladimir Putin."
The Finance Ministry of Ukraine said in a social media post the state budget in November received $6.4 billion in concessional financing and grants from international partners, including:
- a $4.8 billion - loan from the World Bank, made possible by a USD 1.6 billion grant from the United States and funds from other development partners
- A $1.35 billion grant from the United States
- $235 million in concessional financing from Japan
- a $100 million loan from the Republic of Korea
- a €10.8 million grant from Norway
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