Today's Contents
Just The Facts:
- German building materials maker Knauf starts work on €150 million second plant in Ukraine
- McGill and Partners joins ARX and FortuneGuard in war risk insurance partnership
- Ukraine completely localizes production of Croatian DOK-ING demining machines
- Vinos de la Luz buys Ukrainian winemaker 46 Parallel
- Norway to allocate NOK 164 million this year for demining in Ukraine
- Ukraine ready to supply coal to help ease energy crisis in Moldovan breakaway region
Here's What They Think:
- Chatham House: Trump may use Russia's economic difficulties as leverage in Ukraine talks
- Project Syndicate: Ukrainians deserve understanding for banning Russian culture
- Atlantic Council: Russia's peace plan aims to erase Ukraine's independence
Sober Second Thought:
- Ukraine's economy shows signs of recovery amid labor market challenges, study finds
German building materials maker Knauf starts work on €150 million second plant in Ukraine
The German building materials manufacturer Knauf has started construction of its second factory in Ukraine with an investment of €150 million, Dmytro Kysylevskyi, deputy chairman of Ukraine's parliamentary committee of economic development, said on Wednesday.
The new plant, in Borshchiv in Ukraine's Ternopil region, will have a production capacity of 30 million square meters of drywall and 320,000 tons of dry mixes, according to Kysylevskyi.
Knauf already operates a factory in Kyiv, which has a capacity of 25 million square meters of drywall and 200,000 tons of dry mixes annually. The Kyiv plant employs 425 workers, Kysylevskyi wrote in a post on Facebook.
Kysylevskyi said the capacity of the Kyiv plant is enough to meet Ukraine's current needs, but demand will multiply after the war.
"That is why the new plant in Borshchiv is an investment with faith in Victory," Kysylevskyi wrote.
The city of Borshchiv is home to Knauf's gypsum quarry, which will supply raw materials for the new plant.
Knauf also had a factory in the occupied Donbas region which has been destroyed by Russian forces.
Last year, Knauf announced plans to leave the Russian market, citing "current events."
McGill and Partners joins ARX and FortuneGuard in war risk insurance partnership
McGill and Partners, Lloyd's Lab insuretech FortuneGuard, and ARX have partnered to launch a Ukraine War Risk Insurance Facility for commercial property and investments with $50 million limit per risk.
The new limit is higher than existing ceiling for insurance, which provides "an unprecedented way and addressing a critical gap in the Ukrainian market," the companies said in a joint statement.
"Ukrainian businesses need insurance to operate with confidence in a war zone," said McGill and Partners partner and head of crisis management, Hamish Greenwood. "Before this facility, due to pricing demands, only multinational companies could reasonably consider purchasing this coverage, leaving local businesses largely unprotected."
FortuneGuard, which will distribute the insurance product in Ukraine, taps AI-powered analytics to assess risks based on strikes, damage patterns, and proximity to critical infrastructure. The insurance will cover threats from drones, missiles, and air defense damage.
"This historic facility unlocks the bottleneck of war risk insurance for Ukraine’s economy, providing businesses and investors with the protection needed to operate and grow," said FortuneGuard Founder and CEO Oleksii Omelianchuk. "Offering unprecedented policy limits of up to $50 million, it provides coverage that was previously unavailable in the market."
ARX Insurance — a subsidiary of Canadian insurer Fairfax Group — started offering coverage for property against missile and drone attacks in Ukraine with a reinsurance contract with the US International Development Finance Corporation. ARX Deputy CEO Maksim Mezhebitsky stated that reinsurance coverage of at least 100 kms from the front line for damages could reach up to 100 million hryvnias ($2.36 million) per object.
Ukraine Rebuild Newswire attended a meeting on risk insurance in Warsaw, during which Mezhebitsky said that "despite these limits, the demand for this cover is quite huge. We insured almost 300 objects, commercial properties and private houses."
In December, the EBRD and Aon launched a new €110 million war risk insurance facility that provides guarantees to international reinsurers to cover war-related losses underwritten by local Ukrainian insurance.
Ukraine completely localizes production of Croatian DOK-ING demining machines
Ukrainian company A3tech-Ukraine has completely localized the production of demining machines of the Croatian company DOK-ING, according to government officials.
The company tested the first localized demining machine in spring, said Ukraine Deputy Minister of Economy Ihor Bezkaravayny.
"It was then that plans were announced to launch independent production of the working body for DOK-ING demining machines," he added, noting that the target was achieved by the end of 2024.
In total, A3tech-Ukraine assembled eight heavy MV-10 demining vehicles in 2024 and repaired 10 after explosions and technical malfunctions, the ministry of economy said in a press release.
"Manufacturing parts for demining machines in Ukraine makes it possible to reduce the cost of such equipment," said A3tech-Ukraine Director Marat Mints.
Private and government operators in Ukraine currently have over 50 DOK-ING demining machines. The State Emergency Services received the largest batch during fall after purchasing 20 MV-10 machines.
"Localization significantly speeds up repairs," said Ukraine Minister of Economy Yulia Svyrydenko via LinkedIn. "Today, it is critically important for deminers to quickly restore equipment and return to work."
"Moreover, localized production significantly reduces maintenance costs and creates new jobs and boosts budget revenues, providing a double economic benefit," Svyrydenk added.
In September, DOK-ING opened its representative office in Ukraine to help speed up the demining process.
Vinos de la Luz buys Ukrainian winemaker 46 Parallel
Big Wines, a Ukrainian subsidiary of international wine group Vinos de la Luz, has acquired local wine company 46 Parallel Wine Group.
Financial terms of the transaction were not disclosed.
Through the acquisition, Big Wines gains access to the high- and mid-range market, securing another portion of the Ukrainian wine industry, 46 Parallel said in a press release on Wednesday.
"We are investing in Ukraine's future because, after victory, we must meet the demands of a more discerning consumer and the international market," said Big Wines Director Taliia Burlachenko.
Anna Gorkun, former owner of 46 Parallel, said in a post on LinkedIn that the sale marks the first international M&A deal in the Ukrainian wine industry in 15 years.
Vinos de la Luz, whose history dates back to the beginning of the 20th century, has wineries in Argentina, Spain, Italy, and the US, it says on its website.
46 Parallel was founded in 2020 and some of its most famous brands include El Capitan and Grand Admiral.
Norway to allocate NOK 164 million this year for demining in Ukraine
Norway will allocate NOK 164 million ($14.4 million) in 2025 to support the clearance of mines and explosives in Ukraine.
The funding will go towards strengthening the training facilities for mine clearance dogs and dog handlers that the Norwegian People's Aid and the State Emergency Service of Ukraine have established in the northern Ukrainian city of Romny.
Norwegian People's Aid's efforts in Ukraine's demining include training 14 mine dogs and developing Ukrainian capacity in the area of mine clearance with the assistance of dogs, Norway's government said in a press release on Tuesday.
It is estimated that around 140,000 square kilometers of Ukraine's territory are risk areas, potentially containing mines and explosives, as per the statement.
On Wednesday, Ukraine's government said that deminers have reclaimed 35,000 square kilometers of Ukrainian land since the start of the Russian full-scale invasion in February 2022, with 17,000 square kilometers of it restored in 2024 only.
Ukraine ready to supply coal to help ease energy crisis in Moldovan breakaway region
Ukraine is ready to help address the energy crisis in the breakaway Moldovan region of Transnistria with coal supplies, Ukraine's President Volodymyr Zelensky said on Wednesday.
"We are ready to help Moldova, in particular, with coal," Zelensky said in his nightly address to the nation following a phone conversation with Moldova's President Maia Sandu.
Zelensky described the current energy crisis in Transnistria as "Russia's attempt to manipulate energy resources against the Moldovan authorities."
Transnistria halted heating and hot water supplies to households on Jan. 1 following Russia's suspension of gas deliveries to central and eastern Europe through Ukraine, Reuters reported earlier.
The predominantly Russian-speaking territory of approximately 450,000 people, Transnistria broke away from Moldova in the early 1990s during the Soviet Union's collapse and has no international recognition.
During the call, Zelensky and Sandu agreed to identify common solutions to prevent the worsening of the humanitarian crisis in Transnistria, including through the use of alternative energy sources, such as coal, Sandu's office said in a statement.
Chatham House: Trump may use Russia's economic difficulties as leverage in Ukraine talks
Incoming US President Donald Trump could use the highly stressed Russian economy to put additional pressure on Moscow via aggressive sanctions and energy policy in negotiations on Ukraine, David Lubin, a senior research fellow at Chatham House, wrote in an op-ed.
According to Rubin, Russia's President Vladimir Putin faces a tough choice: support the central bank's fight against inflation at the risk of recession or fuel growth and allow inflation to surge. The Trump administration can exploit this by restricting Russia's access to foreign exchange, increasing pressure on the rouble and complicating Putin's decision.
Project Syndicate: Ukrainians deserve understanding for banning Russian culture
Although prohibiting the art of another country is generally not a good idea, Ukrainians warrant consideration for shedding Russian music, art, and literature, as they are fighting for survival, with culture being an existential matter, writer and editor Ian Buruma wrote in an op-ed for the Project Syndicate.
Banning Russian art will not do much for universal humanism in Ukraine, Buruma wrote, noting, however, that Ukrainians face more urgent priorities: preserving their distinct language, culture, and government. Once they do, they will no longer have a reason to fear Russian culture, Buruma concluded.
Atlantic Council: Russia's peace plan aims to erase Ukraine's independence
Russia's peace plan, which includes insistence that Ukraine drop efforts to join NATO and accept geopolitical neutrality, is a call for Ukraine's capitulation rather than an effort to safeguard Russian national security as claimed by Moscow, Serhii Kuzan, chairman of the Ukrainian Security and Cooperation Center, wrote in an op-ed for the Atlantic Council.
Russian demands for a neutral and demilitarized Ukraine should be unacceptable to both Kyiv and its Western allies, according to Kuzan. Conceding to the Kremlin's terms would leave millions of Ukrainians vulnerable to Putin's control while encouraging further Russian aggression, Kuzan argued.
Ukraine's economy shows signs of recovery amid labor market challenges, study finds
Ukraine's economy showed signs of recovery in 2023 after a sharp downturn in 2022, with stabilization observed across key sectors such as agriculture, industry, and trade, according to a study by Helvetas Ukraine.
The Swiss development organization analyzed labor market trends by conducting employers surveys and compiling available secondary data from the State Employment Service and Pension Fund of Ukraine. The surveys involved 33,056 companies.
The researchers examined labor indicators such as employment levels, sectoral performance, and skills needs across regions affected by the conflict. The employers surveys and data collection was conducted in urban and rural areas, covering industries such as energy, healthcare, and trade.
The survey showed that 42% of enterprises maintained production volume in 2023, while 36% reported declines in production levels, surpassing the 22% that experienced growth.
Large businesses in western regions performed better, while small and micro-enterprises in areas near the frontline faced challenges. Optimism remained among businesses, with 28% expecting production growth in 2024, compared to 16% predicting declines.
Ukraine's economy started to recover in 2023, and was expected to grow by 3%-5% by the end of the year. However, small enterprises in Ukraine struggled the most, suffering workforce reductions ranging from 38% to 48%.
Digitalization emerged as a prominent strategy, with over 90% of enterprises incorporating technology in their operations. Some 10% of businesses employed AI and robotics in their work. However, the need for employees with more advanced digital skills is still prevalent in the country.
The study identified vulnerable population as critical to workforce strategies. In 2023, 5% of hired workers were internally displaced persons (IDPs) and 4% were persons with disabilities. Employers showed increased recognition for inclusive hiring practices and tailored training groups to support vulnerable groups.
As for 2024, only 8% of surveyed companies indicated the possibility of staff expansion, and only 2% noted confidence in the implementation of these plans. Additionally, more than 40% of surveyed companies indicated plans to increase salaries in 2024.
The study's key recommendations emphasized the importance of vocational education and supporting access and availability of trainings on demand. Digital skills are becoming vital, as individuals with digital skills are needed across all sectors of the economy.
Oleksiy Chernov, who heads Ukraine's newly established Ministry of National Unity, posted that he met with senior Polish officials to discuss the "long-term settlement" of Ukrainians in Poland, EU accession, and security matters.
Dentons, the global law firm, promoted a new article discussing the government's renewable energy auction storage schedule for 2025 and predicting an increase in auction attendance.
Transparency International Ukraine outlined in a social media post its views on the nation's priorities for 2025 in fighting corruption, including:
📌 Streamlining the Accounting Chamber;
📌 Improving the public procurement system;
📌 Enhancing the Asset Recovery and Management Agency (ARMA).
The Confederation of Builders of Ukraine announced that the European Investment Bank has won the confederation's "Support of the Reconstruction Processes of Ukraine" award for 2024 due to its several related programs and its aid for both the private and public sectors.
UkraineInvest, the national investment promotion agency, announced that Ukraine's 100th industrial park has been designated. The Myronivka park, in the Kyiv region, will focus on production of food, electrical equipment, metal building structures and other goods.
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