Today's Contents
Just The Facts:
- Poland vows to accelerate Ukraine's EU membership during bloc presidency
- EBRD's support for Ukraine more than doubled in 2024 to a record €2.4 billion
- Vodafone Ukraine reaches deal with 49% of bondholders to delay repayment by two years
- DTEK Energy invested $260 million in overhaul of thermal power plants and mines in 2024
- Ukraine upgrades Luzhanka border control post with Hungary with USAID backing
- Germany's Saarstahl starts supplying railway tracks to Ukraine under France-funded initiative
- South Korea's MainBiz association and Odesa region agree to cooperate on Ukraine reconstruction
- Ukrainian AI startup LetsData raises $1.6 million in first funding round
Here's What They Think:
- Atlantic Council: Ukraine signals readiness to negotiate peace, stressing need for security guarantees
- Ukrinform: Ukraine must attract foreign workers to rebuild economy, expert says
- Project Syndicate: Russia's economy faces stagflation as war pressures mount
Sober Second Thought:
- Ukraine's EU membership faces challenges as well as opportunities, study finds
Poland vows to accelerate Ukraine's EU membership during bloc presidency
Polish Prime Minister Donald Tusk promised to seek to speed up talks for Ukraine to join the European Union during Poland's six-month term as president of the bloc, which started this month.
In 2022, Ukraine secured EU candidacy status in the months after Russia launched its attack on the country. EU negotiators will initiate talks around two areas — the rule of law and external relations.
"The Polish presidency will break the impasse of last month to accelerate the accession path," Tusk told reported during a joint news conference that included Ukrainian President Volodymyr Zelenski, according to a Bloomberg report.
Ukraine has a total of 35 negotiating chapters to complete, meaning the EU accession process could still take years.
Poland has provided Ukraine with 45 defense assistance packages, and is currently preparing the 46th, the Office of the President of Ukraine said in a press release.
Developments took place during Zelensky's visit to Warsaw, where the parties discussed several issues, including a historical dispute over wartime exhumations that took place from 1943 to 1945, Reuters reported. At the time, Ukrainian nationalists killed 100,000 Poles.
"There are a lot of topics (to discuss), including of course exhumations," an unnamed Polish official told Reuters, adding: "What interests us is the way these decisions (about exhumations) are carried out."
Separately, Ukraine has officially joined Interreg Europe Programme, the European Commission said in a press release. The interregional cooperation programme has a budget of €394 million targeted at supporting local, regional, and national governments across Europe to develop and implement better policy.
EBRD's support for Ukraine more than doubled in 2024 to a record €2.4 billion
The European Bank for Reconstruction and Development (EBRD) deployed a total of €2.4 billion in Ukraine in 2024, surpassing 2023's deployment of €2.1 billion.
The priority areas for EBRD's support were energy, vital infrastructure, food security, trade and the private sector.
In 2024, EBRD provided a record €833 million in financing via partner financial institutions in Ukraine, including €472 million to support trade finance under the Trade Facilitation Program, the bank said in a press release.
Through collaborations with donors for Ukraine, EBRD has managed to secure over €2.6 billion in donor funds for the country since 2022, including unfunded guarantees, of which around €1 billion was in 2024 alone, the lender said.
Since 2022, EBRD's leading donors since 2022 have been the EU, US, France, Norway, and The Netherlands, which in 2024 they were EU, France, Norway, South Korea, Sweden, and The Netherlands.
EBRD signed an agreement in 2023 to increase the bank's paid-in capital by €4 billion to sustain support for Ukraine. Following the agreement, EBRD's investment levels are envisioned to remain around €1.5 billion annually, with a potential for furthure increases when the reconstruction efforts start.
"Our shareholders have expressed enormous confidence in us by agreeing to a substantial capital increase for our activity in Ukraine and affected countries," said EBRD President Odile Renaud-Basso.
"I would like nothing more than for 2025 to be a year of reconstruction. This is where the EBRD can be at its best – using our financing knowledge and experience to build back better."
EBRD's investment highlights for 2024 include war risk insurance guarantee scheme, participating in a $435 million telecoms deal, and private-sector finance for postal services to Nova Post, among others.
Since the Russian escalation in February 2022, EBRD has made around €6.2 billion available to Ukraine, becoming the country's largest institutional investor.
Vodafone Ukraine reaches deal with 49% of bondholders to delay repayment by two years
Ukraine's second-largest mobile operator, Vodafone Ukraine, said it has reached an agreement with 49% of its eurobond holders to delay repayment by two years until February 2027.
A special committee representing 31% of bondholders and another individual bondholder, collectively holding 49% of the bonds, had approved Vodafone Ukraine's repayment proposal for the outstanding $399.88 million of $500 million eurobonds the company issued in 2020 at a 6.2% interest rate.
Vodafone Ukraine's repayment proposal includes partial repayment of $99.88 million plus accrued interest, raising the coupon rate to 9.625%, and offering compensation of 2% of the bond's nominal value, it said in a regulatory filing on Tuesday.
The operator said it was restricted from repaying principal debt using funds within Ukraine by a resolution adopted by the country's central bank following the Russian full-scale invasion.
While interest payments have been covered using foreign currency reserves held abroad, these reserves are now exhausted, Vodafone Ukraine said, adding it lacks foreign currency revenue and sufficient external reserves to meet the loan repayment by the maturity date.
DTEK Energy invested $260 million in overhaul of thermal power plants and mines in 2024
DTEK Energy, a thermal power engineering arm of Ukraine's largest private power producer DTEK, said it had invested an estimated UAH 11 billion ($260 million) of its own funds in the restoration of thermal power plants (TPPs) and the operation of mines in 2024.
By the end of 2024, DTEK Energy invested over UAH 3 billion in repairing and restoring TPPs, which led to the restoration of more than half of TPPs capacities damaged during the Russian attacks in spring and summer.
However, massive attacks on Ukraine's energy infrastructure in November and December caused significant damage, with overhaul works ongoing, DTEK Energy said in a press release on Wednesday.
The company invested approximately UAH 7.5 billion in Ukrainian coal mining, focusing on building and repairing capital mine workings, completing coal faces, equipping mines with tunneling machinery, upgrading underground mine transport, and supporting production capacity projects, as per the statement.
"We are directing all possible and available resources so that thermal generation and the Ukrainian energy system can operate stably in the face of enemy attacks …We will mobilize all available opportunities to strengthen the energy front in the future," said DTEK Energy CEO Oleksandr Fomenko.
In 2024, Russia launched 13 large-scale attacks on Ukraine's energy sector, severely impacting DTEK Energy's TPPs. By the summer of 2024, 90% of the company's thermal generation facilities had been damaged or destroyed.
Since the start of the full-scale invasion, DTEK Energy's TPPs have been targeted over 200 times, resulting in 56 worker injuries and 4 fatalities, according to the press release.
Ukraine upgrades Luzhanka border control post with Hungary with USAID backing
Ukraine has completed the modernization of the Luzhanka border control post with Hungary with the support of The US Agency for International Development's Economic Resilience Activity (ERA).
Key upgrades include road surface repairs, updated road markings, and the installation of new modular facilities for border and customs officials, among others.
USAID ERA also supplied critical equipment such as a commodity scale, two advanced backscatter scanners for security screening, and a forklift to facilitate the flow of goods, USAID ERA said in a press release on Wednesday.
Luzhanka is the only Ukrainian border crossing with Hungary that allows empty trucks over 7.5 tons without weight restrictions. This feature helps streamline transport flows and alleviates congestion at other border crossings, especially the nearby Chop border control post, as per the statement.
In addition to Luzhanka, USAID ERA has completed rapid upgrades and equipped the Yahodyn, Uzhhorod, Porubne, Chop (Tysa), and Mohyliv-Podilskyi border control posts in western Ukraine. At the Mamalyha, Starokozache, Rososhany, and Rava-Ruska border crossings, upgrades are being finalized, USAID ERA said.
USAD ERA has committed $115 million between 2023-2026 to the State Agency for Restoration and Development of Infrastructure of Ukraine, Ukrainian Railways, and State Customs Services, for the border crossings upgrades.
Germany's Saarstahl starts supplying railway tracks to Ukraine under France-funded initiative
German steel company Saarsthal has started delivery of 20,000 tons of railway tracks to Ukraine, whose production was supported by a €37.6 million concessional loan from the French Treasury.
Saarsthal has manufactured the tracks at the Hayange and Ascoval sites in northern and eastern France, with shipments continuing over a period of one year.
The project will enable the reconstruction of nearly 150 kilometers of tracks of the Ukrainian railway network, France's Economy Ministry said in a press release on Wednesday.
Since Russia's large-scale invasion of Ukraine, the Ukrainian railway network has been severely damaged, including the destruction of the Azovstal industrial complex, depriving the country of its main rail supplier, the ministry noted.
To address this situation, Ukraine and France signed an intergovernmental during the bilateral conference on Ukraine's reconstruction in Paris in December 2022, which paved the way for concessional financing for the production of the tracks.
The modernization of the Ukrainian railway network, which is the third largest in Europe after Germany and France, represents a major challenge, the ministry noted, adding that the cooperation between France and Ukraine will not be limited to this project.
"Many infrastructures, such as bridges and stations, have been damaged or destroyed, requiring considerable investments," the ministry said.
South Korea's MainBiz association and Odesa region agree to cooperate on Ukraine reconstruction
South Korea's association of small and medium-sized businesses MainBiz said on Wednesday it has signed a memorandum of understanding (MoU) with the Odesa Regional Council to cooperate on the reconstruction of Ukraine.
Under the agreement, MainBiz and Odesa Regional Council committed to cooperation in the economy, trade, logistics, and shipping sectors for Ukraine's reconstruction, as well as fostering exchanges in education, healthcare, tourism, culture, and sports.
They also agreed to share information for mutual collaboration, promote economic and investment forums, and explore joint participation in investment projects, MainBiz said in a press release.
The MoU was signed between MainBiz President Kim Myung-jin and Oleksandr Denysenko, a member of the Odesa council, as per the statement.
MainBiz gathers 5,174 South Korean companies and has 96 branches in the country.
Ukrainian AI startup LetsData raises $1.6 million in first funding round
Ukraine's AI startup LetsData said on Wednesday it has secured $1.6 million in its first investment round.
Investors include venture capital firms SMOK Ventures, Wayra, Tilia Impact Ventures, 1991 Ventures, Google's Ukraine Support Fund, and Startup Wise Guys as well as two angel investors
LetsData will use the funding to support its expansion in the US and European markets, it said in a press release.
LetsData offers an AI-powered platform that processes open-source data from over 100 million websites and social media platforms in more than 50 languages and regions.
By analyzing text and video metadata from platforms such as Telegram, YouTube, and TikTok, it uses semantic understanding to link and group content, uncovering intent and coordination in information operations.
This approach enables the detection of 87% more threats at their onset compared to traditional tools.
Atlantic Council: Ukraine signals readiness to negotiate peace, stressing need for security guarantees
The return of US President-elect Donald Trump to office has sparked expectations of a brokered peace deal between Russia and Ukraine, which could potentially include Ukrainian territorial concessions, according to an op-ed published by Atlantic Council.
Ukrainian officials have signaled readiness to compromise and seek diplomatic solutions, provided any agreement includes security guarantees to prevent future aggression.
Ukrinform: Ukraine must attract foreign workers to rebuild economy, expert says
As Ukraine rebuilds after the war, attracting both Ukrainians and foreign workers will be crucial for reviving the economy and preventing population decline, economist and migration policy expert Andrii Haidutskyi told Ukrinform during an interview.
Haidutskyi emphasized the need for national programs and policies to draw foreign employees and taxpayers, suggesting a model similar to the UAE, Qatar and Bahrain, where foreign labor drives economic sectors and generates funds for social development.
Project Syndicate: Russia's economy faces stagflation as war pressures mount
Russian President Vladimir Putin boasts the country's economic resilience amid Western sanctions, but inflation, labor shortages, and fiscal pressures are pushing Moscow toward stagflation, according to an op-ed published by Project Syndicate.
Russia is struggling with declining reserves, rising bankruptcies, and restricted financing, putting the economy under pressure that could limit its capacity to sustain the war in Ukraine.
Ukraine's EU membership faces challenges as well as opportunities, study finds
Ukraine's pursuit of European Union membership faces significant challenges and opportunities, according to a study by Anton Bendarzsevszkij, director of the Oeconomus Economic Research Institute.
The study highlights three primary obstacles to Ukraine's EU membership: the ongoing war with Russia, the financial strain on the EU budget, and the necessity for EU institutional reform.
According to Bendarzsevszkij, peace remains a fundamental prerequisite for accession, as EU leaders are hesitant to integrate a nation actively at war. The prolonged conflict has left Ukraine's economic and infrastructural stability uncertain, complicating membership negotiations.
Financially, the study estimates Ukraine would require €130 billion to €200 billion from the EU's budget over seven years, with additional reconstruction costs projected at €600 billion.
Ukraine's accession would also shift current net recipient countries, such as Poland and Hungary, into net contributor positions, intensifying political debates within the bloc, as per the study.
Institutional reform within the EU is deemed necessary to accommodate Ukraine's membership. The study notes that decision-making processes and budgetary allocations could face further strain as the EU expands to potentially include nine additional candidate countries, including Ukraine.
Despite these challenges, the study identifies several benefits of Ukraine's EU membership. The country's vast natural resources—including 22 out of 30 critical raw materials such as lithium and titanium—could bolster the EU's energy independence and industrial competitiveness. Additionally, Ukraine's agricultural sector could increase the EU's global share of wheat exports to 30%.
The study also emphasizes Ukraine's potential contributions to the EU's defense capabilities. With one of the largest armies in Europe and expertise in modern warfare, Ukraine could strengthen the EU's security framework.
In conclusion, Bendarzsevszkij's study calls for realistic timelines and practical solutions, urging EU policymakers to address internal reforms and financial readiness while maintaining support for Ukraine. The study warns that a rushed or stalled accession process could harm both Ukraine and the EU, underscoring the importance of strategic planning and mutual commitment.
The study was produced within the Think Visegrad in Brussels Fellowship program and draws on decades of Ukraine's political, economic, and diplomatic history. It reviews the country’s integration efforts since the 1990s, with primary sources including reports by European institutions, interviews with policymakers, and data from think tanks such as Bruegel and the European Policy Center.
Natalya Yemchenko, chief corporate affairs officer at SCM, the holding group owned by billionaire Rinat Akhmetov, announced that Shakhtar Stalevi, the amputee football team of FC Shakhtar Donetsk, also owned by Akhmetov, joined the first-ever amputee football tournament in Ukraine.
She said the core mission of the amputee league, the League of the Mighty, "is to support military veterans and contribute to the social and athletic rehabilitation of those who have endured life-altering injuries, many sustained during the ongoing war."
Giovanni Salvetti, head of the CIS region for Rothschild & Co, said he served as adviser for VEON on the listing of Kyivstar, which will make it the only Ukrainian firm listed on Nasdaq.
"It will be the obvious and only equity play on an American exchange for investors interested in getting exposure to Ukrainian renaissance on top of investing in one of the best run companies in Ukraine," Salvetti said.
Municipal investment promotion agency Invest in Lviv said Lviv Mayor Andriy Sadovyi met with Ilryoung Jeong, Head of the Representative Office of South Korea's heavy equipment manufacturer HD Hyundai Xitesolution in Ukraine, to discuss "strategic areas of cooperation with the Lviv community."
The mayor offered help in opening a Lviv, representative office of the heavy equipment manufacturer, localizing production in an industrial part and more, the agency said.
Transparency International Ukraine said in an article that proposed amendments to the procedure for informing prosecutors about the discovery of assets eligible for seizure in criminal proceedings represents "another example of less-than-successful lawmaking."
The organization instead proposed its own version of draft law No.11473, including "analyzing the practice of providing explanations to pre-trial investigation bodies and identifying the most significant mistakes."
GIZ, the German development agency, said Germany's Westnetz delivered six 10 kV voltage transformers and 22 110 kV disconnectors to Ukraine and Mitnetz Strom delivered two Siemens high-voltage SF6 circuit breakers as part of a "donation and procurement campaign" carried out by GIZ Ukraine.
The delivery by electricity and gas network operator Westnetz "will provide a stable electricity supply for more than 15,500 households" and the delivery by Mitnetz Strom, a,regional distribution network operator, will "another 28,000 households to have power."
The Ukraine-based European Business Association posted that a delay by President Volodymyr Zelensky in signing Law No. 4115-IX (Law No. 11090), which revises excise tax rates on tobacco products, "clearly undermines predictability for businesses and creates uncertainty for medium-term operations."
The delay in signing the law, which was set to take effect on Jan 1, has cost the national budget 378 million hryvnia $8.9 million in the first two weeks of the year alone, the association said, citing People's Deputy Yaroslav Zhelezniak.
The U.S.-Ukraine Business Council (USUBC) formally announced the results of its elections, appointing leaders in the organization from Kinstellar, BAE Systems, PwC, Bunge, Bayer, Westinghouse and other corporations.
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