Today's Contents
Just The Facts:
- Zelensky says he's open to diplomatic end to war, brings up foreign troops as security guarantors
- EU member states approve €4.1 billion disbursement under Ukraine Facility
- Ukraine gets €7 million for restoration of Chernobyl exclusion zone
- Ukraine to receive $454 million support package from World Bank
- SSAB to donate roofing products for Ukraine's reconstruction
Here's What They Think:
- Deseret News: War in Ukraine nears cease-fire as both sides face grappling costs
- The Hill: Putin's authoritarian regime stands as major obstacle to peace in Ukraine
- Newsweek: Russia's nuclear threats could emerge with three potential strategies
Sober Second Thought:
- Ukraine's anti-collaboration laws lead to unjust prosecutions, Human Rights Watch Finds
Dear subscribers,
One interesting topic that came up at the 8th annual Ukraine Investment Roadshow in London is the notion that London will serve as the capital-raising center for the reconstruction of Ukraine when the war is done and the rebuilding begins in earnest.
The idea was first brought up by Nick Bias, a Brit who works as head of investor relations and corporate communications for Ukrainian miner Ferrexpo, a Ukrainian company listed on the London Stock Exchange.
It's "my personal view that London is going to be the capital raising center for the future of Ukraine," Bias said. "We have the abilities with equity, with debt, with all sorts of finance. We also know the country and we know the region. We know all the intricacies, largely because Ferrexpo has been established here since 2007 but I do believe that London will be that center now."
He said he believes his company is leading the way for other companies that might raise capital via London for the reconstruction of Ukraine, adding that, besides bringing money to the reconstruction of Ukraine, raising capital internationally will also raise business standards in Ukraine.
"Ferrexpo, of course, has the first-mover advantage. I like to think of us as a looking glass. We take the very best of Ukraine industry out and we offer it to investors in international markets. Conversely, we take international governance and international standards back into Ukraine. So a bit like a bit like a nexus in that sense, as London becomes the premier capital market of choice, we stand ready to help other companies coming. We'd like to show them our experience - 15 years of it."
Kateryna Chechel, operations officer at the IFC, speaking just after an optimistic presentation by a representative from UkraineInvest, said she's seeing a crisis among small and medium-sized businesses in Ukraine, and the war is not even necessarily at the top of their list.
"I would like to add a bit of a cold shower. I would like to highlight something that we're constantly hearing from our clients and something that we as a private investor are trying to address, together with other development partners:
"Many companies continue to exit the Ukrainian market, citing, first of all, low demand, then security concerns and financial constraints. While the sales of mostly large corporates and mid-size companies have started to recover, the sales and incomes of SMEs are still declining.
"Financial vulnerability of the large corporates is declining but most of the SMEs still say they are in a very high risk of falling into arrears. This is the gap, which hasn't been still addressed in full.
She added that "most of our clients are saying that with many men conscripted and people relocated, they face big challenges. We know that the Ukrainian government is making huge efforts now to introduce programs, and many development partners and Ukrainian governments are introducing these programs. But still, it's not enough."
Zelensky says he's open to diplomatic end to war, brings up foreign troops as security guarantors
Ukraine's President Volodymyr Zelensky said on Monday he was in favor of a diplomatic end to the war with Russia.
"We, more than anyone in the world, want an end to the war. And certainly, a diplomatic end to the war will save more lives. And we want that," Zelensky stated.
At a joint press conference with German opposition leader Friedrich Merz in Kyiv, Zelensky also said that he told US President-elect Donald Trump and French President Emmanuel Macron during their recent meeting in Paris that Russia's President Vladimir Putin does not want the war to end.
"Therefore, he must be forced," which can only be done if Ukraine is strong, Zelensky stated. "A strong Ukraine before any diplomacy is strong on the battlefield."
Zelensky also brought up an idea floated by Macron earlier this year that some European countries could send troops to Ukraine.
"We can think and work on Emmanuel's position," Zelensky said. "He suggested that some part of the troops of a country be present on the territory of Ukraine, which would guarantee us security while Ukraine is not in NATO. But we must have a clear understanding of when Ukraine will be in the EU and when Ukraine will be in NATO."
Zelensky also stated he will in the coming period call US President Joe Biden to discuss the prospects of an invitation for Ukraine to join NATO, noting that there is no point in discussing this with Trump as he is not yet in the White House.
Following the meeting with Zelensky and Macron, Trump called for an "immediate" ceasefire in Ukraine and the launch of peace negotiations.
EU member states approve €4.1 billion disbursement under Ukraine Facility
Envoys of the European Union member states approved the second regular payment of grants and loans totaling nearly €4.1 billion under the EU's Ukraine Facility, to support the country's macro-financial stability and its public administration.
It was concluded that Ukraine had met the required conditions and reforms outlined in the Ukraine Plan to receive funds from the Ukraine Facility, the European Council said on Monday.
The Council emphasized the urgency of disbursing the funds promptly due to Ukraine's challenging fiscal situation, it said in a press release.
The EU's €50 billion Ukraine Facility, available as grants and loans for 2024-2027, aims to support Ukraine in maintaining macro-financial stability, advancing short-term recovery, rebuilding efforts, and implementing key reforms to progress on its EU accession path.
Since it entered into force, the Ukraine Facility has already disbursed €6 billion by way of bridge financing, €1.89 billion in pre-financing, and a first installment of nearly €4.2 billion, of which €1.5 billion in grants and over €2.6 billion in the form of loans, the European Council said.
The European Commission approved the second allocation under the instrument in November.
The Ukraine Plan, which outlines Ukraine's strategy for modernization, recovery, and reconstruction, includes reforms in energy, agriculture, transport, the green and digital transition, human capital, state-owned enterprises, the business environment, public finances, and decentralization.
Ukraine to receive €7 million for restoration of Chernobyl exclusion zone
Contributing states to the International Cooperation Account for Chernobyl announced they will provide about €7 million for restoring and developing the Chernobyl exclusion zone, Ukraine's Minister of Environmental Protection and Natural Resources Svitlana Hrynchuk stated.
Canada has pledged €7 million, the European Commission €1.7 million, and Belgium will also make a contribution, Hrynchuk said, without specifying the size.
Ukraine has already received about €26 million from 18 states to the Chernobyl account, Hrynchuk wrote in a post on Facebook on Friday, following a meeting between the depositors of the account organized by the European Bank for Reconstruction and Development (EBRD) that acts as the account manager.
Hrynchuk said the funds will be used to restore the equipment at the Chernobyl nuclear power plant that was damaged during the Russian occupation.
At the meeting, the parties also agreed to establish a project management group for more effective implementation of grant agreements, according to Hrynchuk.
The International Chernobyl Cooperation Account, established by the EBRD in November 2020 at Ukraine's request, initially aimed to develop a comprehensive plan for Chernobyl.
Since the onset of Russia's full-scale invasion of Ukraine, the account's scope has expanded to include measures for restoring nuclear safety, security, and decommissioning capabilities within the Chernobyl exclusion zone. The account now also supports nuclear safety initiatives across Ukraine's nuclear sector, subject to contributor approval.
Ukraine to receive $454 million support package from World Bank
The World Bank has announced a new $454 million support package for Ukraine under the Transforming Healthcare through Reform and Investments in Efficiency (THRIVE).
THRIVE will support the government in prioritizing funding within the Program for Medical Guarantees, which includes the country's universal population coverage, enhancing the technical and operational capacity of the National Health Service of Ukraine, assisting strategic planning, and strengthening the sector's management capacity, the lender said.
The financing includes loans totaling $449 million from Japan-supported ADVANCE Ukraine Trust Fund and the World Bank, as well as a $5 million grant from Ukraine Relief, Recovery, Reconstruction, and Reform Trust Fund, the World Bank said.
"In the third year of Russia’s invasion, Ukraine is facing severe fiscal stress, making it essential to continue implementing health reforms that improve the efficiency of public funds," said World Bank Country Director for Eastern Europe Robert Saum.
"The reforms supported by the THRIVE project will help reduce unnecessary financial burdens on patients while enhancing the accessibility and resilience of the health care sector," Saum added.
SSAB to donate roofing products for Ukraine's reconstruction
Swedish steel company SSAB and its subsidiary Ruukki Construction will donate roofing products for the reconstruction of houses in Ukraine for the third straight year this year.
Ruukki is donating roof profiles, flashings, and fasteners to rebuild or repair war-damaged roofs in Ukraine's Mykolaiv region. The products, made from SSAB color-coated steel, will be manufactured at Ruukki's plant near Kyiv, with a total of approximately 3,000 square meters of steel being donated.
In addition, SSAB will donate almost 20 tonnes of steel to make around 750 field stoves, the company said in a press release on Monday.
Both roofing products and steel for the stoves will be donated to the non-governmental organization OperationAid.
"We want to show Ukrainians our continued support. At the same time, we want to ensure the safety of our employees," said Christina Friborg, head of sustainability at SSAB. "There is a shortage of building products in the country and it is admirable that our Ukrainian employees have continued to provide high-quality roofing products and services to the country's renovation industry."
Deseret News: War in Ukraine nears cease-fire as both sides face grappling costs
The war in Ukraine is nearing a potential cease-fire, as both Moscow and Kyiv acknowledge the unbearable costs of conflict, according to an op-ed published by Deseret News. With the re-election of Donald Trump as US president creating a shift in US foreign policy, the possibility for a negotiated peace is becoming increasingly likely.
The Hill: Putin's authoritarian regime stands as major obstacle to peace in Ukraine
The greatest obstacle to a negotiated peace in the Russo-Ukrainian war is Russian President Vladimir Putin's authoritarian regime and broader political culture of Russia, according to an op-ed published by the Hill. Despite the desire for peace, the commitment towards imperialism and authoritarianism make a lasting peace unattainable unless Ukraine forces a genuine change in Russia's stance.
Newsweek: Russia's nuclear threats could emerge with 3 potential strategies
Russia's recent nuclear threats, which culminated with expanding the criteria for nuclear use, signal an alarming escalation but do not yet mark a fundamental shift in its nuclear posture, according to an op-ed published by Newsweek. The real risk of nuclear conflict could emerge if Russian President Vladimir Putin adopts one of three strategies; committing to automatic nuclear responses, delegating nuclear authority to battlefield commanders, or green-lighting nuclear testing as a way of lowering the threshold for nuclear warfare.
Ukraine's anti-collaboration laws lead to unjust prosecutions, Human Rights Watch finds
Ukraine adopted new anti-collaboration laws after Russia's 2022 invasion, which have led to unjust prosecutions, targeting civilians who remained in occupied territories to perform essential services, according to a study by Human Rights Watch (HRW).
HRW conducted the research between March 2023 and September 2024, based on 34 in-depth interviews with judges, defense lawyers, legal experts, human rights advocates, as well as civilians from areas affected by Russian occupation.
Moreover, the researchers reviewed Ukrainian legislation and other secondary sources, including parliamentary commissions' reviews of draft legislation and other official documents. The review also included reports and publications by civil society groups.
The report highlights how Ukraine's anti-collaboration laws criminalize civilians who provide basic public services under occupation. Many of the prosecuted individuals were performing essential tasks for their communities, like cleaning, teaching and administering healthcare.
On March 3, 2022, Ukraine adopted article 111-1 to the Criminal Code of Ukraine, which consists of seven paragraphs that define "acts of collaboration" and applies only to Ukrainian citizens. The penalties range from fines to life imprisonment.
In April of the same year, the parliament adopted Law No. 2198-IX, introducing article 111-2 to the criminal code. The article established criminal liability for "abetting an aggressor state." The article applies to Ukrainian citizens and foreigners, with punishments including imprisonment and confiscation of property.
Since the adoption of both pieces of legislation in 2022, Ukrainian authorities have opened over 8,894 criminal cases under article 111-1 and 1,388 cases under 111-2. As of September 2024, HRW reported 1,948 verdicts under 111-1 and 84 verdicts under 111-2.
The report documents charges brought against volunteers, municipal workers, medical personnel, and teachers. The analysis by HRW and other organizations show that the conviction rate in collaboration cases is close to 100%.
In one instance, a veterinarian was sentenced to 10 years in prison for accepting an administrative role in the local veterinary service, while an electrician who helped restore electrical supply to a city was sentenced to three years in prison.
Andrii Teliupa, a deputy minister at the Ukrainian Economy Ministry, posted about the "transformational opportunities for international business" in the reconstruction of Ukraine, particularly in the sectors of energy, agriculture, logistics, critical raw materials, defense and IT.
The Canada Ukraine Chamber of Commerce published a "Rebuild Ukraine Toolkit for Canadian Businesses" - a digital platform it calls a "a comprehensive, one-stop shop for Canadian businesses looking to invest, export, or collaborate in Ukraine."
Law firm Redcliffe Partners announced that it served as a legal adviser to the EBRD and IFC on the $435 million financing package they offered to support the merger between Lifecell and Datagroup-Volia, one of the largest Ukrainian telecommunications service providers.
Invest in Lviv, a municipal investment promotion agency in the western Ukrainian city, announced that Okko Group, a holding company that includes the Okko gas station network, has joined a group of companies helping rebuild buildings damaged by a Russian missile attack in Lviv.
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