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URN Daily: Trump's treasury nominee supports sanctions on Russia; State procurement agency conducts first purchase via Prozorro

Today's Contents

Just The Facts:

  • UK, Ukraine sign 100-year defense, economic partnership as Starmer visits Zelensky
  • Trump's treasury nominee supports sanctions on Russia over war in Ukraine
  • Ukraine's state procurement agency cut computer costs 33% in first purchase via Prozorro tender system
  • UK, Switzerland provide $500 million for demining project in Ukraine
  • South Korea's Daedong starts full-scale tractor exports to Ukraine

Here's What They Think:

  • Project Syndicate: Ukraine one of EU's biggest challenges in 2025
  • US State Department: Ukraine's economy demonstrates extraordinary resilience
  • Anadolu Agency: US-Turkey partnership key to ending war in Ukraine

Sober Second Thought:

  • Explosive weapons leave heavy metals in soil, contaminated groundwater in Ukraine frontline areas, study finds

UK, Ukraine sign 100-year defense, economic partnership as Starmer visits Zelensky

British Prime Minister Keir Starmer and Ukrainian President Volodymyr Zelensky on Thursday signed a 100-year partnership agreement to deepen cooperation between the two countries in defense, economy, education, science, technology, and other areas.

The agreement, which consist both of public and confidential sections, includes a commitment by the UK to provide Ukraine with a minimum of $3.6 billion in military assistance annually for as long as needed.

The partnership also focuses on enhanced economic cooperation, attracting investments, advancing nuclear energy, and replacing Russian technologies, the Office of the President of Ukraine said in a press release.

The UK Foreign, Commonwealth and Development Office said in a post on X that the UK will also provide Ukraine with GBP 100 million in humanitarian aid and GBP 40 million to support the country's economy, "unlocking millions in private lending to increase growth and trade."

In a press release prior to the signing of the agreement, the UK government said that the GBP 40 million will go towards an economic program dubbed TIGER (Triggering Investment Growth and Economic Resilience) to create opportunities for UK companies by supporting key growth sectors in Ukraine.

The government added the TIGER funding will be targeted at businesses supporting the green economy, women, veterans and marginalized groups.

The UK has provided GBP 12.8 billion in support to Ukraine since the Russian full-scale invasion in 2022, including GBP 7.8 billion of military assistance.

Trump's treasury nominee supports sanctions on Russia over war in Ukraine

US President-elect Donald Trump's pick for treasury secretary, Scott Bessent, said he would "100%" support sharply raising sanctions on Russian oil producers if Trump requests it.

"If any officials in the Russian Federation are watching this confirmation hearing, they should know that if I’m confirmed and if President Trump requests as part of his strategy to end the Ukraine war, that I will be 100% on board for taking sanctions up, especially on the Russian oil majors, to levels that would bring the Russia Federation to the table," Bessent said.

Commenting on the war during his Senate confirmation hearing, Bessent said that the conflict in Ukraine is "one of the greatest tragedies of my adult life," adding that ending it "as soon as possible, and any role the Treasury can play in that — if confirmed, I would like to do."

Bessent criticized President Joe Biden's administration with regards to sanctions, saying that "the previous administration was worried about raising U.S. energy prices during an election season."

Ukraine's state procurement agency cut computer costs 33% in first purchase via Prozorro tender system

Ukraine's State Institution Professional Procurement has completed its first international tender using the Prozorro eletronic public procurement system, the platform meant to serve saving UAH 58 million ($1.38 million).

The SI Professional Procurement team completed the purchase of computer hardware and software, finance by the World Bank, to improve operations of 25 territorial offices of the Pension Fund of Ukraine.

The team managed to save 33% of the expected cost, spending $2.8 million instead of $4.17 million, said the Ukrainian government in a press release. The savings were attributed to a high level of competition, as the Professional Procurement team received proposals from five bidders.

The procurement was conducted through a trilateral cooperation framework between Prozorro, the World Bank, and Ukraine's Ministry of Social Policy. It was part of the Social Assistance System Modernization Project aimed at enhancing the quality of social services for low-income households in Ukraine.

Prozorro, which means "transparent," was designed with the help of the European Bank for Reconstruction and Development (EBRD), Transparency International and the governments of several European nations as a means to fight corruption in public procurement.

"Procurement with the funds of international partners is a strategically important area of development for the public procurement sector of Ukraine،" said Professional Procurement Director Yevhen Yukabovsky. "Our partners actively support us, and it is our duty to spend these resources efficiently."

Commenting on the development, Ukraine's Minister of Economy Yulia Svyrydenko said on LinkedIn that the cost reduction is "a clear demonstration of how professional procurement practices can maximize efficiency and resource use. This success goes beyond numbers—it shows what happens when transparency meets innovation."

The Professional Procurement also announced a second tender on Dec 30 for $2.5 million, which includes network equipment and equipment for cybersecurity purposes for the Data Processing Centre of the Unified Information System of Social Sphere.

SI Professional Procurement is the first centralized procurement organization to use Prozorro for purchasing goods and services on behalf of another public client using funds from international donors.

UK, Switzerland provide $500 million for demining project in Ukraine

The UK and Switzerland are providing $500 million for a pilot project in Ukraine on prioritization in humanitarian demining, Ukraine's Economy Ministry said.

The funding will be used to implement the pilot project in Ukraine's Kharkiv region to prioritize territories for humanitarian demining.

The project was launched earlier this month and will last three months, with Ukraine's Humanitarian Demining Center managing the project, the ministry said in a press release on Thursday.

Agreements to support the pilot project were reached at the Ukraine Mine Action Conference (UMAC-2024), which took place in October 2024 in Lausanne, Switzerland.

Ukraine's Economy Minister Yulia Svyrydenko said at the time that the project will be implemented using the platform of US-based tech company Palantir, which specializes in big data analytics.

During the UMAC-2024, Ukraine's allies pledged about $70 million for mine clearance in the country, bringing the total foreign allocations for demining in Ukraine to $1.07 billion since the Russian full-scale invasion in 2022.

Following the invasion, Ukraine has become one of the world's most heavily mined countries, with nearly a quarter of its territory estimated to be contaminated by mines and explosive ordnance.

In February 2024, the World Bank estimated the cost of surveying land that may be affected, and clearing that which is confirmed as contaminated at $34.6 billion.

South Korea's Daedong starts full-scale tractor exports to Ukraine

South Korean agricultural machinery manufacturer Daedong said on Thursday it has started full-scale tractor exports to Ukraine.

On Jan 15, Daedong shipped the first order of 20 units of its mid-to-large tractor models it said are expected to play a crucial role in Ukraine's agricultural reconstruction efforts.

The shipment was made under a three-year agreement to export tractors worth KRW 30 billion ($21.5 million) to Ukraine, which was signed in November last year, Daedong said in a press release.

Ukraine has lost about 30% of its total agricultural potential, and 20% of its farmland has been occupied, Daedong noted, adding that the damage to the country's agricultural sector was estimated to be over $80 billion, of which $5.8 billion in agricultural machinery.

The local tractor market has also shrinked, from 30,000 units per year in 2021 to 16,600 units in 2022. 

Daedong intends to significantly expand its business operations in Ukraine starting in 2025. The company also aims to grow its market presence by engaging in agricultural reconstruction efforts in collaboration with the Ukrainian government and supporting the development of local young farmers' skills, it said.

Project Syndicate: Ukraine one of EU's biggest challenges in 2025

The EU faces heightened urgency to support Ukraine amid Russia's ongoing aggression, ensuring continued resistance and advancing reconstruction efforts as the situation in the country represents one of the biggest challenges for the block this year, Ana Palacio, a former minister of foreign affairs of Spain, wrote in an op-ed for the Project Syndicate.

Apart from this, the EU must address internal divisions over Ukraine's future, accelerate institutional reforms, and implement practical measures like trade integration to strengthen Ukraine's progress toward membership in the union, Palacio noted.

US State Department: Ukraine's economy demonstrates extraordinary resilience

Despite the ongoing war, Ukraine's economy has shown remarkable resilience, with a 5% GDP growth in 2023 and projections exceeding 3% for 2024, supported by thriving industries such as agriculture and iron production, Richard Verma, the US deputy secretary of state for management and resources, wrote in an op-ed.

Bolstered by international partnerships, improved investment conditions, and a dynamic private sector, Ukraine is steadily positioning itself as a global resource hub and economic powerhouse, according to Verma.

Anadolu Agency: US-Turkey partnership key to ending war in Ukraine

Turkey is a unique player in the international system and its role in preventing and resolving conflicts is critical, which is why the country should cooperate with the US to end the war in Ukraine, Aylin Unver Noi, a professor of international relations at Turkey's Halic University, wrote in an op-ed for the Anadolu Agency.

Noi noted that Turkey has already shown its willingness, capability, and effectiveness in peace negotiations to end the war in Ukraine by facilitating the Istanbul Agreement in 2022.

Explosive weapons leave heavy metals in soil, contaminated groundwater in Ukraine frontline areas, study finds

The use of explosive weapons in southern regions of Ukraine have caused significant environmental degradation, according to a study by the Conflict and Environment Observatory (CEOBS) and Norwegian People's Aid (NPA).

The study assessed two areas in the Kherson and Mykolaiv regions using a combination of remote sensing, field sampling, and community interviews. Soil and water samples were collected from accessible locations that were low-risk, while satellite imagery and open-source data were used for remote analyses.

Researchers chose case studies based on two types of explosive weapon impacts. Snihurivka in the Mykolaiv region was under occupation from March to November 2022, with heavy shelling and sporadic missile attacks due to its proximity to the front line.

In the Kherson region, the selected case studies were the communities of Komyshany and Zymivnyk, which were occupied during the same period as the Snihurivka community. Both communities suffered additional environmental harm from oil spills and flooding caused by the destruction of Kakhovka Dam in June 2023.

Key findings revealed that military activity and the use of explosive weapons were correlated with higher contaminant levels and industrial damage.

In Snihurivka, soil properties were significantly altered, with pollutants like heavy metals and polycyclic aromatic hydrocarbons (PAHs) exceeding Ukrainian limits. Communities of Komyshany and Zymivnyk showed elevated hydrocarbons and heavy metals in soil, as well as groundwater contamination.

In terms of damage to critical infrastructure, in Snihurivka 22% of residential properties and 90% of administrative buildings were damaged. The destruction resulted in interruptions in water and power supply, as well as well contamination from damaged wastewater systems.

The study reported significant impact to agricultural livelihoods, with many fields remaining unsafe and in need of landmine surveying. Meanwhile, some damaged irrigation canals have been repurposed as defensive trenches, further exacerbating the livelihoods of farmers and impacting livelihoods.

CEOBS and NPA's paper exposes the intersection of war, pollution, and environmental degradation, emphasizing the need for protecting ecosystems and communities in conflict zones. The organizations called for stronger international legal protections for the environment during armed conflict.

Social Media Posts

French Aid

The Ministry of Finance of Ukraine posted about a Jan 16 meeting between Finance Minister Sergii Marchenko the Special Envoy of the President of France for Aid and Reconstruction of Ukraine Pierre Heilbronn.

"The discussion focused on addressing Ukraine's budgetary needs for 2025 and implementing investment projects in key areas such as healthcare, transport and railway infrastructure, maritime security, water supply, and ecology," the ministry said.

Register of Damage

Markiyan Kliuchkovskyi, executive director of the Register of Damage Caused by the Aggression of the Russian Federation against Ukraine, announced that, as of yesterday, anyone who has lost loved ones due to the Russian full-scale invasion can seek compensation for "mental pain and anguish."

"This applies to parents, spouses or civil partners, and children of the deceased. Other family members may also submit claims if they can demonstrate a close family relationship or dependency," he said.

UNDP Response Plan

The UNDP Ukraine posted about its Ukraine Humanitarian Needs and Response Plans for 2025, saying they "suggest strategies to address the needs of people whose lives were affected by the war."

"This year, the humanitarian community requires $2.6 billion for the 2025 Humanitarian Needs and Response Plan to support 6 million people and provide access to essential services — with a special focus on the most vulnerable groups, including children, older people and people with disabilities."

New Corruption Law

Ukrainian law firm Avellum promoted an article providing an overview of a law in Ukraine introducing corporate criminal liability for bribery of foreign officials, which took effect on Dec 26, 2024.

Lack of Corruption Judges

Transparency International Ukraine posted about poor exam results in the competition for High Anti-Corruption Court (HACC) judge positions, with none of the 44 candidates qualifying for the HACC Appeal Chamber and only 7 reaching the pass threshold for the first instance.

"It is already evident that such low exam results will prevent the HQCJ from filling all 25 vacant positions in the Anti-Corruption Court. This will delay the planned workload reduction at the HACC and hinder Ukraine’s progress in meeting its international obligations."

Ukrainians in Germany

Oleksiy Chernyshov, the minister for the National Unity of Ukraine, announced the start of a visit to Berlin to discuss support for Ukrainians living in Germany, including "practical steps to create a Unity Hub for Ukrainians in Berlin."

Helping Refugees Return

Yulia Svyrydenko, Ukraine's economy minister and deputy prime minister, announced that the Economy Ministry signed a memorandum of understanding with the United Nations refugee agency, the UNHCR, to create jobs, training and financial stability for refugees who return to Ukraine.

The ministry will provide "up-to-date information on state grant programs for those wishing to return to Ukraine, as well as opportunities for reskilling and professional growth," she said. "Additionally, our cooperation will enable better data collection and analysis to inform policies that strengthen economic resilience and improve access to employment."

Danube Infrastructure

Serhiy Derkach, Ukraine's deputy minister for Communities, Territories and Infrastructure Development, said he met with officials from Romania, Moldova, the US and the European Commission to discuss "strengthening cooperation and finding practical solutions for the development of the Danube region."

"Our priorities include optimising port operations and developing rail and road infrastructure to ensure efficient cargo delivery to port terminals," he said.

German Tailoring for Ukrainian Women

GIZ, the German development agency, said it is providing protective clothing for women first responders in Ukraine in a project funded by the German government to ensure a better fit, fire and heat protection and resistance to mechanical damage.

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