Today's Contents
Just The Facts:
- Canadian miner Black Iron leases 248 hectares of land in Ukraine's Kryvyi Rih to develop iron ore deposit
- EU weighs possibility of resuming Russian gas imports after a Ukraine peace deal, sources say
- Switzerland to boost private sector role in Ukraine's reconstruction with new treaty
- Sweden approves $1.2 billion in military aid to support Ukraine's long-range capacity
- Foreigners opened more than 1,100 new companies in Ukraine in 2024, led by wholesalers
Here's What They Think:
- The Hill: Failing to support Kyiv would be costlier for US than aiding it
- Stars and Stripes: Ukraine should become NATO member to deter Russian aggression
- IES: Ukraine between hopes and fears as Trump returns to office
Sober Second Thought:
- Kharkiv's manufacturing sector struggles amid war, but majority plan for growth, study finds
Dear subscriber,
Nearly everybody the URN Daily has spoken to this week has talked of a sense that businesses are getting busier. Anticipation is growing in the US, the UK, Italy, Ukraine and elsewhere that the reconstruction will start in earnest in the not-so-distant future.
Antii Vänskä, who became Finland's first envoy to the reconstruction of Ukraine last year at the end of a term as ambassador to Singapore, told URN Daily that Finland is no exception.
Finnish companies are increasingly expressing interest in the reconstruction and turning to government services to get oriented.
Tune in to Monday's URN Daily premium newsletter for our interview with the Finnish diplomat, with insights into the growing interest in the Finnish private sector over the reconstruction of Ukraine, details of the help Finland is offering its companies, and more.
... now, on with the headlines
Canadian miner Black Iron leases 248 hectares of land in Ukraine's Kryvyi Rih to develop iron ore deposit
Canadian mining company Black Iron said it entered into a multi-year agreement with Ukraine's central city of Kryvyi Rih to lease 248 hectares of land, critical for the development of Shymanivske iron ore deposit.
The lease encompasses a significant portion of the planned mining pit and extends westward beyond its boundaries to land owned by Ukraine's government, currently used by the Ministry of Defense as a training firing range.
Black Iron aims to acquire or lease a section of this government land for its future processing plant, as well as for tailings and waste rock storage, the company said in a press release earlier this week.
The lease agreement marks a key step toward renewing Black Iron's special mining permit. It also facilitates the completion of essential environmental and engineering studies required for the project's further development, as per the statement.
Black Iron has said that its Shymanivske project would require a $1.2 billion investment over a 20-year project life, including $452 million in the first development phase.
Annual production at the mine is expected to reach 4 million tons of ore in the first phase and up to 8 million tons in phase 2.
The site is surrounded by five other operating mines, including Metinvest's YuGOK and ArcelorMittal's iron ore complex.
Black Iron acquired Cyprus-based Geo-Alliance Ore East, which owned the rights for the development of the Shymanivske project from Ukrainian businessman Viktor Pinchuk's EastOne investment group in 2010 for $13 million, GMK Center reported earlier.
In 2013, Black Iron entered a partnership with the Ukrainian mining group Metinvest to develop its iron ore assets. Metinvest initially paid $20 million for a 49% stake in Black Iron's Cyprus entity but later withdrew from the project and works on it were suspended after Russia invaded Crimea in 2014.
EU weighs possibility of resuming Russian gas imports after a Ukraine peace deal, sources say
European officials are discussing the possibility of resuming Russian pipeline gas sales to the EU as part of a broader settlement to end the war in Ukraine, unnamed sources told the Financial Times.
Proponents argue that reinstating Russian gas imports could help lower Europe's energy prices, motivate Moscow to negotiate, and create mutual incentives to uphold a ceasefire.
However, even preliminary discussions on the matter have triggered strong opposition from Ukraine's closest EU allies, the FT reported.
Three officials briefed on the talks indicated that the proposal has gained backing from some German and Hungarian officials, as well as support from other European capitals seeking to ease energy costs.
"There is pressure from some big member states on energy prices and this is one way to bring those down, of course," one of the officials said.
The suggestion of resuming Russian pipeline gas sales has, however, sparked outrage among Brussels officials and diplomats from several Eastern European countries, many of whom have spent the past three years working to cut the EU's reliance on Russian energy.
In 2024, Russian pipeline gas accounted for approximately 10% of the EU's total supply, but volumes have dropped by half since the expiration of a transit contract in January that allowed flows through Ukraine, according to the report.
The only remaining pipeline delivering Russian gas to the EU is TurkStream via Turkey, supplying Hungary with around 7.5 billion cubic meters of gas. Budapest, along with Slovakia's government, has been lobbying the EU to pressure Ukraine into resuming gas transit.
Switzerland to boost private sector role in Ukraine's reconstruction with new treaty
The Swiss Federal Council has approved negotiating an international treaty between Switzerland and Ukraine to create a legal basis that would allow Swiss private sector in participating in the reconstruction of Ukraine.
Switzerland and Ukraine signed a memorandum of understanding at the World Economic Forum Annual Meeting in Davos that aims to strengthen cooperation with Swiss companies already operating in Ukraine.
"The challenges involved in rebuilding Ukraine are huge," the Swiss Federal Council said in a press release. "Support cannot be provided in the form of traditional international cooperation alone."
The new legal basis would boost cooperation with Swiss companies that are not currently active in Ukraine, the council stated, adding that it will consult the Parliament's foreign policy committees over the mandate.
In June 2024, the Council approved CHF 500 million to incentivize the involvement of Swiss private sector in the reconstruction of Ukraine, which is part of Switzerland's Ukraine country programme 2025-2028. Switzerland has earmarked a total of CHF 1.5 billion ($1.65 billion) to support Ukraine.
Sweden approves $1.2 billion in military aid to support Ukraine's long-range capacity
Sweden has approved its largest-ever support package to Kyiv, valued at SEK 13.5 billion ($1.22 billion), which is meant to bolster Ukraine's long-range capability.
In total, Sweden has give Ukraine SEK 61.9 billion in military support since the Russian invasion began three years ago.
The latest package includes eight components, the largest part — SEK 5.9 billion — is dedicated to procuring new material, the Swedish defense ministry said in a press release.
Other parts of the package include SEK 2.8 billion in financial donations, which will support Ukraine through military procurement funds and cooperation initiatives. This component includes a SEK 1 billion contribution to strengthen Ukraine's production of long-range missiles and drones.
Sweden will also donate military equipment worth SEK 3.3 billion, including trucks, boats, weapon stations, ammunition, anti-tank weapons, and protective gear.
The Swedish aid package will include SEK 180 million dedicated for research and education services which aim to support Ukraine's efforts in developing a defense research agency and military training programs.
Foreigners opened more than 1,100 new companies in Ukraine in 2024, led by wholesalers
Foreign owners registered more than 1,109 new businesses in Ukraine in 2024, with the biggest single group coming from Turkey — 201 companies.
Polish citizens followed, with 90 companies, then the US with 89. The number of new companies is a 24% decrease from 2023's 1,464, and 60% drop from pre-war level of 2,770 in 2021.
Almost half of the new companies are in Kyiv, with 542 opening in the capital during 2024, followed by Lviv with 137 companies, and Odesa region with 122 companies, according to a report by Open Data Bot.
Some 23% of new foreign companies are in engaged in wholesale, followed by 9.8% the computer programming sector, and 7.8% focusing on real estate.
The most notable newly established companies include French-owned DVL UKR in Kyiv, which an authorized capital of UAH 1.18 billion ($28.23 million). The top companies include also Czech-owned Trade Solutions with UAH 456.7 million capital and Czech-owned DK Kyib Outlet with UAH 335.6 million capital.
The Hill: Failing to support Kyiv would be costlier for US than aiding it
Many Americans worry about the cost of aiding Ukraine, but failing to support Kyiv would be far more expensive, requiring the US to expand its military and spend an estimated $808 billion to counter a resurgent Russia, Elaine McCusker, a senior fellow at the American Enterprise Institute, wrote in an op-ed for The Hill.
If Ukraine falls, the US will need a significantly larger force presence in Europe, while a Ukrainian victory would weaken Russia, stabilize the region, and allow Washington to refocus on other global priorities, according to McCusker.
Stars and Stripes: Ukraine should become NATO member to deter Russian aggression
Ukraine has proven itself as one of Europe's most capable and battle-hardened militaries, making its NATO membership a strategic move to strengthen the alliance against Russian aggression, Wes Martin, a retired US Army colonel, wrote in an op-ed for Stars and Stripes.
With Donald Trump as US president, integrating Ukraine into NATO would not only enhance European security but also reinforce the West's commitment to democracy and collective defense, Martin argued.
IES: Ukraine between hopes and fears as Trump returns to office
Donald Trump’s return to the U.S. presidency has sparked both hope and anxiety in Ukraine, with some expecting stronger action against Russia while others fear unpredictable policies and a potential alignment with the Kremlin, according to an op-ed published by Institute of Central Europe.
Ukraine remains uncertain about Trump's true intentions and is carefully navigating its relationship with the new administration.
Kharkiv's manufacturing sector struggles amid war, but majority plan for growth, study finds
Seventy-five percent of manufacturing enterprises in Ukraine's second-largest city, Kharkiv, have experienced a decline in income since 2021, highlighting the economic challenges posed by the ongoing war, according to a study conducted by PwC.
The study, commissioned by Helvetas Swiss Intercooperation, examined the state and needs of manufacturing businesses in Kharkiv. It found that 70% of enterprises struggle with a lack of clients, while 49% are unaware of any business support from local authorities. Despite these difficulties, 62% of surveyed businesses forecast active or moderate development over the next three years.
Employment levels have also been affected, with 37% of businesses reducing personnel by more than half since the full-scale invasion. Meanwhile, 50% of enterprises reported an increase in salary budgets, primarily to retain skilled employees. Additionally, 84% of businesses expressed a need for support programs targeting enterprises that continue to operate in Kharkiv.
Export activities have also shifted, with 37% of businesses engaged in exports, though 49% cite travel restrictions as a significant obstacle. Among those exporting, 29% reported an increase in export volume, while 16% have stopped exporting altogether.
The study recommends targeted support measures, including financial grants, tax benefits, and improved informational resources for businesses. It also suggests increasing local government engagement with enterprises to foster economic stability.
International assistance remains largely untapped, with 81% of businesses not receiving support from foreign organizations. The study highlights a need for clearer communication about available international aid and financial programs.
Businesses identified key barriers to recovery, including outdated equipment (37%), a shortage of qualified personnel (70%), and unfair market competition (66%). Only 30% of enterprises are members of business associations, with many citing a lack of perceived benefits.
Asked about business development plans for the next three years, 44% of respondents said they plan active business development, with only 2% planning business reduction.
The study was conducted through a combination of quantitative and qualitative methods, including a structured telephone survey of 101 manufacturing enterprises and three focus group discussions. Data collection took place between February and March 2024, providing a snapshot of Kharkiv's industrial sector under wartime conditions.
Swedish Reconstruction Training
The Confederation of Builders of Ukraine recapped a meeting with V94 Ventures, a company formed with Swedish government backing to train workers for the reconstruction of Ukraine, to discuss the use of Swedish expertise in the construction.
"During the meeting, they discussed the possibilities of cooperation between the CBU and Swedish partners to create comprehensive training programs, develop professional standards, and launch initiatives that would attract investments into Ukraine's construction sector."
JETRO Meets Invest in Lviv
Invest in Lviv, the investment promotion agency of the western Ukrainian city, posted details of a two-day visit by the development organization Japan External Trade Organization, JETRO.
During the visit, JETRO discussed investment opportunities in Lviv with KPMG and the local branch of the European Business Association, visited leading local tech companies, met with Lviv's chief architect, and more.
German Accreditation for KSE
Tymofiy Mylovanov, president of the Kyiv School of Economics, said the KSE has received accreditation in Germany for its Business Economics, Economics & Big Data Bachelor's programs and Economic Analysis, Business & Financial Economics Master's Programs.
"Experts noted that we have an excellent program structure, high-quality faculty, and unbelievably strong student engagement.In Ukraine, this accreditation is automatically recognized under the Higher Education Law," he said in the post.
Maksym Maksymenko, head of real estate and infrastructure at Ukrainian law firm Avellum, published a third brief article in his series of social media posts explaining Ukraine's electricity submarkets, this time focusing on the retail market.
"The retail electricity market serves end consumers connected primarily to distribution networks, with only a limited number of large industrial consumers directly linked to high-voltage TSO networks."
Land Reclaimed from Garbage in Bucha
A debris recycling station supported by the EU and the UNDP in the city of Bucha, near Kyiv, has helped clear a former landfill, once filled with 75,000 cubic meters of waste, for other purposes, the UNDP Ukraine said in a social media post.
"Launched in April 2024 by Bucha’s local authorities, this station is Ukraine’s first operational debris recycling facility. Local workers, along with the UNDP contractors, sorted through debris accumulated after the after the end of the community’s occupation. Recyclable materials were repurposed, with 30% used for road gravelling within the community."
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