Today's Contents
Just The Facts:
- EIB approves €450 million for district heating, hydropower plants in Ukraine
- Ukrainian Railways asks bondholders to delay $83 million of coupon payments
- Zavalivsky Graphite, Ukraine's sole graphite miner, shuts down due to energy costs and outdated equipment
- Japan to establish Coordination Council for Ukraine's reconstruction
- Norway to give NOK1 billion to 7 Norwegian humanitarian organizations in Ukraine
- UNDP and the German government develop plan to rebuild 11 Ukrainian schools
Here's What They Think:
- Foreign Policy: Trump should exclude Ukraine from initial phase of peace talks
- CSIS: Ukraine's allies must escalate support to Kyiv to force Putin into negotiations
- OMFIF: Putin's diplomatic leverage weaker than perceived
Sober Second Thought:
- 91% of Ukrainian refugees plan to voluntarily return in the long term, IOM study finds
EIB approves €450 million for district heating, hydropower plants in Ukraine
The European Investment Bank (EIB) said it has approved a total of €450 million to finance municipal district heating projects and repairs of hydropower plants in Ukraine.
The funding was approved as part of a €6.8 billion package for energy investments in several countries the EIB announced last week and will be allocated through the lender's €600 million Energy Rescue Plan for Ukraine introduced in October, the EIB told Ukraine Rebuild Newswire in an emailed statement.
Of the €450 million, €250 million will go towards municipal district heating and energy efficiency projects carried out by local authorities in Ukraine, according to project documents EIB shared with Ukraine Rebuild Newswire.
The remainder will be used for the rehabilitation and modernization of the Kaniv, Kremenchuk, and Dnipro hydropower plants through a project implemented by Ukraine's hydropower generation company Ukrhydrenergo.
The EIB noted its board has greenlighted these investments, adding the lender is now working with the Ukrainian authorities to finalize the agreements.
Ukrainian Railways asks bondholders to delay $83 million of coupon payments
Ukrainian Railways (Ukrzaliznytsia) said it has asked its Eurobond holders to postpone to 2026 coupon payments due in January and July 2025, totaling $83 million.
The deferred payments will ease the liquidity burden, enabling stable passenger and cargo transport, infrastructure maintenance, and traffic safety, the state-run railway company said.
"The extension of the support period for 12 months, during which bond coupons are not paid, will provide the prerequisites for working out the issue of long-term settlement of external liabilities, including its possible refinancing with the participation of international financial institutions (IFIs)," Ukrzaliznytsia said in a press release on Tuesday.
Ukrainian Railways also decided to add the coupon payments amounting to $160 million deferred as a result of a previous agreement with creditors in 2022 to the principal debt maturing in mid-2026 and 2028.
Dollar bonds issued by Ukrzaliznytsia fell following the announcement, Bloomberg reported. The 2026 note declined as much as 6 cents to 82 cents on the dollar, while the security due 2028 dropped by 0.46 cents to 77.4 cents.
Zavalivsky Graphite, Ukraine's sole graphite miner, shuts down due to energy costs and outdated equipment
Ukraine's only natural graphite mining company, Zavalivsky Graphite, has suspended operations, the National Association of Mining Industries of Ukraine (NAEIU) said.
The shutdown was attributed primarily to high electricity costs and outdated production infrastructure requiring substantial investments in modernization.
Combined with rising logistics expenses, these factors significantly increased production costs, preventing the company from maintaining stable operations, NAEIU said in a press release on Tuesday.
Zavalivsky Graphite has been mining a deposit in Ukraine's Kirovohrad region since 1934, with a production capacity of 30,000 tons per year.
"This will be a serious blow to the national industry, given the strategic role of graphite in many industries, including the production of electrodes, the automotive industry, and the new technologies, including the country's defense industry," NAEIU said.
In 2021, Australia's critical minerals and battery materials company Volt Resources acquired a 70% stake in Zavalivsky Graphite for $7.6 million, with the remainder held by Ukrainian entities.
Volt Resources has said that about 90% of graphite mined by Zavalivsky Graphite was suitable for lithium-ion batteries.
Japan to establish Coordination Council for Ukraine's reconstruction
Japan's Minister of Land, Infrastructure, Transport and Tourism Hiromasa Nakano announced the establishment of a Coordination Council for the reconstruction of Ukraine, which will include Ukrainian and Japanese businesses.
The announcement came during a meeting attended by Ukraine's Minister of Economy Yulia Svyrydenko in Japan, the Ukrainian government said in a press release. Attendants discussed how Japan and Ukraine could facilitate the involvement of Japanese companies in the recovery of Ukraine.
"We are sincerely grateful to Japan for its willingness to join the restoration of the destroyed Ukrainian infrastructure," said Svyrydenko. "Japan has the experience in disaster management, technology and production necessary for reconstruction."
During the meeting, Ukraine highlighted its infrastructure restoration priorities in cooperation with the Japan. This included providing Ukrzaliznytsia with rails to restore the railroad's coating, as Ukraine needs 25,000 tonnes of R-65 steel rails.
Other priorities include restoration of housing infrastructure with the use of Japanese technologies and innovations, the exchange of experience for training specialists in the transport sector, and other potential projects.
"We expect that the Coordination Council will become an effective mechanism for attracting support for the restoration of critical infrastructure, the transport sector, social facilities and housing," said Ukrainian Deputy Minister of Communities and Territories Development Serhii Derkach.
During a business forum organized by the Japan External Trade Organization, Svyrydenko announced that several Ukrainian manufacturers and a Japanese engineering company plan to make Japanese pickup trucks using semi-disassembled kits (SKD) technology in Ukraine.
In 2024, Japan's budgetary support to Ukraine has totalled $4.2 billion.
"We appreciate Japan’s continued commitment to supporting Ukraine through the G7 ERA mechanism, utilizing frozen Russian sovereign assets to finance critical need," commented Svyrydenko.
Norway to give NOK1 billion to 7 Norwegian humanitarian organizations in Ukraine
The government of Norway is providing NOK 1 billion ($89.26 million) to seven Norwegian humanitarian organizations to support humanitarian relief efforts in Ukraine.
The funding, provided under the Nansen Support Programme for Ukraine, will be channeled to Norwegian Red Cross, Norwegian Church Aid, Norwegian People’s Aid, Caritas Norway, Save the Children Norway, SOS Children’s Villages Norway, and the Norwegian Refugee Council and its civilian task force, NORCAP.
The funding will be spent on life-saving assistance for vulnerable groups in Ukraine, the Norwegian government said in a press release. The support will include access to food, shelter, electricity, heat, water and sanitation, education, health care and psychosocial support, as well as protection against sexual and gender-based violence.
"Ukraine’s civilian population has suffered greatly as a result of Russia’s brutal war," said Norway's Foreign Affairs Minister Espen Barth Eide. "The country’s energy supply infrastructure is particularly vulnerable. The Ukrainian people need our help to make it through this third winter of war."
Since the start of the Russian invasion in 2022, Norway has provided more than NOK 8 billion in humanitarian support to Ukraine.
UNDP and the German government develop plan to rebuild 11 Ukrainian schools
The United Nations Development Programme (UNDP) in Ukraine has partnered with the Ukrainian Ministry of Education and Science to analyze the country's educational infrastructure and develop a reconstruction concept for Ukrainian schools.
The project, which included financial support from the German government, proposed improvements focusing on wartime challenges, such as equipping shelters and evacuation exits, providing heating during winter, implementing universal design, and adopting a gender-responsive approach.
UNDP and Germany will restore 11 war-affected Ukrainian schools in Kirovohrad, Lviv, Poltava, Khmelnytskyi, and Cherkasy oblasts, said the UN agency in a press release.
The reconstruction concept also include providing the schools with well-equipped medical aid rooms, installation of arched metal detectors, and armour plating. For underground schools in frontline regions, the project will install powerful ventilation systems as well as energy efficient solutions.
"Supporting the reconstruction of Ukraine’s schools is a key element of the national recovery strategy," said German Ambassador to Ukraine Martin Jäger.
As of 2023, some 13% of Ukraine's educational infrastructure has been damaged during the war, including 4,000 educational facilities, according to the Third Rapid Damage and Needs Assessment report.
Foreign Policy: Trump should exclude Ukraine from initial phase of peace talks
The incoming Donald Trump administration in Washington should exclude Ukraine from the initial phase of peace negotiations in which only the US and Russia should participate, Anatol Lieven, a senior research Fellow at the Quincy Institute for Responsible Statecraft, wrote in an op-ed for Foreign Policy. This is mainly due to some fundamental issues the US will have to negotiate with Russia, including the lifting of sanctions, elements of Russia's pre-war ultimatums to NATO unrelated to Ukraine, and Russia's demands concerning the arming of Ukraine's military.
CSIS: Ukraine's allies must escalate support to Kyiv to force Putin into negotiations
Russian President Vladimir Putin's belief that he could win the war in Ukraine continues to fuel his reluctance to engage in meaningful peace negotiations, according to an op-ed published by the Center for Strategic & International Studies.
The authors argue that Ukraine's allies must alter their strategy by increasing military aid to Ukraine and intensifying economic sanctions on Russia to push Putin towards peace negotiations.
OMFIF: Putin's diplomatic leverage weaker than perceived
Russian President Vladimir Putin's leverage in peace negotiations with Ukraine might be weaker than widely believed, according to an op-ed published by OMFIF. OMFIF US Chair Mark Sobel argues that sanctions, a declining economy, and internal resource constraints are undermining Russia's long-term stability, challenging the narrative that Putin holds the upper hand in diplomatic talks.
91% of Ukrainian refugees plan to voluntarily return in the long term, IOM study finds
Millions of Ukrainians have been forcibly displaced since the Russian invasion in 2022, with many now considering the possibility of voluntary repatriation, according to a study conducted by the International Organization for Migration (IOM).
The study employed a mix of quantitative and qualitative research methods, with data collected through IOM Survey with Refugees in the Ukraine Response Region. The data set contained 68,745 surveys completed by refugees from Ukraine who fled the war.
Survey respondents were adults over the age of 18. The surveys were conducted between April 16, 2022 and the end of 2023. The dataset was provided to Migration Policy Institute (MPI) Europe for data cleaning, editing and merging with secondary data sources. The final dataset consisted of responses from 60,800 Ukrainian in ten European countries.
Across the 10 surveyed countries, nearly 91% of Ukrainians reported intentions to return home in the long run once the situation is safe. Intentions to voluntarily repatriate in the short-run among Ukrainians was significantly lower, at 15%.
The pattern of lower intentions to return in the short-run is common in displacement, according to IOM. In the context of Ukraine, intentions of return in the short-term varies significantly across the 10 surveyed countries. In Poland and Czechia more than 40% research participants indicated plans to return in the short term, compared to 1% in Moldova.
Some 28% of respondents with intentions to return in the short term reported that the main factor was improved security in their home regions (28%). This was followed by 21% reporting family reasons as the main factor contributing to the intentions for return. Other reasons included lack of support in current host country, employment reasons, are returns for short-term visits.
Access to education, healthcare, and social services in host countries appeared to contribute to refugees' capacity to return. Ukrainian refugees residing in countries with higher GDP and less poverty were more likely to indicate intentions of returning in the short term, according to IOM.
The report's conclusions outline the importance of a coordinated policy response. Among the key recommendations was greater support for reconstruction and recovery of Ukrainian regions to encourage sustainable repatriation. The study also highlights the role of host countries in supporting eventual reintegration. IOM encouraged policymakers to establish "dual-intent" integration policies, that aim to support refugees' integration in host communities and strengthen their capacity to potentially return to Ukraine in the future.
The Ukraine-based European Business Association (EBA) announced on social media that its Logistics Committee met with Ukrzaliznytsia, or Ukrainian Railways, to discuss tariff increases. To offset the impact on companies, Ukrainian Railways proposed:
🔹 Route-based shipments;
🔹 Targeted sectoral discounts;
🔹 Long-term contracts;
🔹 Revised wagon decommissioning timelines;
🔹 Reduced average haul distances.
Edem Adamov, Ukraine's deputy minister of health, said he discussed in a visit to Japan this week "developing centers for the production of radiopharmaceuticals and building cyclotron complexes to perform PET scans" with Japanese partners, among other projects.
Reinoud Nuijten, senior advisor at the Netherlands Enterprise Agency (RVO) and to the Dutch Ministry of Foreign Affairs on the reconstruction, posted about an information session on the EU's call for expressions of interest in investments in Ukraine. He said the session emphasized:
✅ The Call for Expressions of Interest targets transformative private investments in Ukraine.
✅ Minimum investment threshold: €50 million, with flexibility for partnerships.
✅ Priority sectors include energy, transport, green technologies, critical raw materials, and agriculture.
✅ EU businesses benefit from a streamlined process, matchmaking with IFIs, and access to guarantees under the Ukraine Investment Framework.
USAID Economic Resilience Activity (ERA) said it helped Ukrainian grain exporter Urochyshche Zhuravske prevent losses of 20% to the harvest this year with the donation of two 100 kW generators, a telescopic handler, bucket filler, trailer, and truck scales. It added that:
"The truck scales provided by USAID doubled the efficiency of load processing, allowing two trucks to be weighed simultaneously" and the "telescopic handler with bucket fillers significantly streamlined big bag loading, accelerating goods prepared for transport and export."
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
