Contents
Just The Facts: Helsinki court freezes Russian assets at Naftogaz's request, pension funds invest in Nova Post bonds, NATO head says South Korean troops are in Kursk, Kernel secures loan from ING and other international lenders.
Here's What They Think: CSIS argues that South Korea should recognize the need to support Ukraine given that North Korea has openly aligned with Russia, adding that South Korea's advanced weaponry industry could be crucial to Ukraine's fight.
Sober Second Opinion: The new book Systemic Risk and Complex Networks in Modern Financial Systems devotes a chapter on the relationship between investment flows in Ukraine and key macroeconomic indicators and identifies "pivotal factors influencing investment processes amidst wartime."
The Rebuilder's Social: Ukrainian Railways and the EBRD will hold market consultations to procure complete gas engine power plants, USAID Economic Resilience Activity (ERA) calls contractors to a tender to help install prefabs at 40 Ukrainian border crossings, and Transparency International Ukraine says Parlament must still address political independence in its Accounting Chamber reform, an IMF structural benchmark for reform.
Helsinki court freezes Russian assets in Finland at Naftogaz's request
The Helsinki District Court has granted a motion filed by Ukraine's state-owned oil and gas company Naftogaz, ordering the freezing of some Russian assets in Finland, including real estate and other assets valued in the tens of millions of dollars, Naftogaz said Monday in a press release.
The decision is part of Naftogaz's global strategy to recover compensation for losses resulting from the seizure of its assets in Crimea, as ordered by the Hague arbitration tribunal, as per the statement.
In April 2023, the Hague arbitration tribunal ruled Russia must pay Naftogaz $5 billion for losses caused by the seizure of assets in Crimea in 2014, Naftogaz said at the time.
Naftogaz said Monday that the Helsinki court's decision represents the first publicly known successful asset freeze outside Ukraine in the enforcement of arbitration awards filed by Ukrainian companies against Russia for the expropriation of property in Crimea in 2014.
Naftogaz's assets in Crimea included special permits for subsoil use, equipment and infrastructure, pipeline and gas-storage operation rights, ownership interests in gas pipelines, and over 675 million cubic meters of stored gas.
"Since Russia refuses to voluntarily pay Naftogaz the compensation stipulated by the Hague ruling, we continue to leverage all available mechanisms to recover these funds," said Naftogaz Group CEO Oleksiy Chernyshov. "Today, we are one step closer to restoring justice. Simultaneously, we are actively pursuing enforcement of the arbitration award in other target jurisdictions where Russian assets are located."
Ukrainian pension funds invest $1.5 million in Nova Post bonds
Ukraine's pension funds have invested UAH 60 million ($1.5 million) in bonds of the local privately held postal and courier company Nova Post, Interfax reported Monday, citing Petro Fokov, CFO of Nova Post owner, NOVA Group.
"While some may think the pension fund market in Ukraine is underdeveloped, we see that it is indeed active," Fokov said at the Ukrainian CFO Forum in Kyiv, held on Oct 24-25.
Nova Post currently conducts private bond placements among pre-designated institutional investors, but bonds can be purchased on the secondary market by individual investors.
"We have individual investors (bondholders), but not as many compared to banks, insurers, and pension funds," Fokov said.
Fokov said Nova Post was the first issuer to resume bond issuance after the full-scale Russian invasion began, highlighting the advantages of hryvnia bonds for issuers, including the lack of collateral requirements.
"They're more expensive and require a bit more transparency, with some additional disclosures on the website, but they offer their own benefits," Fokov added.
NOVA Group, which also issues bonds through NovaPay Credit, sees maintaining an attractive bond market as a responsibility, ensuring that bonds remain stable and reliable investments.
"We want people to trust corporate bonds, not only government bonds," Fokov said.
NATO head says he has confirmed that North Korean troops are in Russia's Kursk
NATO Secretary General Mark Rutte said on Monday that he can confirm North Korean troops have been sent to Russia and that military units have been deployed to its Kursk region.
"The deployment of North Korean troops represents: one, a significant escalation in the DPRK ongoing involvement in Russia's illegal war; two, yet another breach of UN Security Council resolutions, and three, a dangerous expansion of Russia's war," Rutte said at a press conference after NATO officials were briefed by a South Korean delegation.
Rutte argued the deployment of North Korean troops to Kursk is a sign of Putin's "growing desperation."
"Over 600,000 Russian soldiers have been killed or wounded in Putin's war, and he is unable to sustain his assault to Ukraine without foreign support," Rutte stated.
Rutte said NATO calls on Russia and North Korea to "cease these actions immediately."
After the initial reports on North Korean potential involvement in the war in Ukraine on the side of Russia, Moscow denied them.
However, at the final press conference of the BRICS summit in Russia's Kazan on Thursday, Russia's President Vladimir Putin said on the topic: "This is our sovereign decision. Whether we use it or not, where, how, or whether we engage in exercises, training, or transfer some experience. It's our business."
Zelensky says India's Modi can help end the war
Ukrainian President Volodymyr Zelensky said that India's Prime Minister Narendra Modi could help in ending the war in Ukraine.
"Modi can influence the end of the war," Zelensky said Monday in an interview with The Times of India. "This is his great value in any conflict. The great value of India, a population of one and a half billion, has a real impact on this."
Zelensky also stated that blocking Russia's economic, energy, and defense resources would reduce Moscow's ability to continue aggression.
According to Zelensky, India could organize a peace dialogue, but this requires preparation and adherence to the Ukrainian format of negotiations.
Modi can also help with the return of Ukrainian children kidnapped by Russia, Zelensky said.
During a visit to Kyiv in August, Modi told Zelensky he was ready to play a personal role to end the war.
IFC to provide advisory services to Ukraine's central bank on digital finance and asset resolution companies
The International Finance Corporation (IFC), the private sector investment arm of the World Bank, said it will provide advisory services to Ukraine's central bank (NBU) in the areas of digital financial services and asset resolution companies.
For this purpose, the IFC has signed two new cooperation agreements with the NBU, according to a press release on Monday.
In the area of digital financial services, key initiatives include promoting innovation through sharing financial data and services with trusted third parties, promoting resilient agent banking models, encouraging businesses to launch and to live-test innovative financial services, and supporting the growth of cashless operations.
"These efforts are expected to enhance competition, improve financial service offerings, foster a cashless economy, and contribute to Ukraine's alignment with European standards," the IFC said.
Via the second agreement, the parties will look to create a legal framework for establishing Asset Resolution Companies (ARCs) in Ukraine to address the growing issue of non-performing loans in the country. The statement said ARCs are vital for managing distressed assets and attracting private investment and often outperform banks in restructuring distressed assets.
Losses to Ukraine's financial sector due to the Russian invasion are estimated at $5.7 billion as of December 2023, according to the World Bank.
Since February 2022, IFC has invested $1.6 billion in Ukraine, including $530 million mobilized, it said.
Ukrainian agroholding Kernel secures $150 million loan from international lenders
Ukrainian agricultural holding Kernel said it has secured a $150 million credit line from a syndicate of international lenders, marking the first loan from international banks the company has secured since the beginning of the Russian full-scale invasion.
The group of lenders includes Dutch commercial banks ING Bank and Coöperatieve Rabobank, as well as the international financial institution The Black Sea Trade and Development Bank, Kernel said in a press release on Friday.
The credit line has a maturity date of Aug 1, 2025, with an option for extension, as per the statement. The funds will be used to support operations to increase the export of Ukrainian agricultural products, particularly sunflower oil.
White Arkitekter secures funding to support sustainable timber in rebuilding of Ukraine
Sweden-based architecture firm White Arkitekter said it has secured a grant from the Swedish Institute project that aims to develop sustainable timber architecture in Ukraine, without disclosing financial details.
The project, SustainTimber: Standards for Sustainable Transition, will use the potential of timber construction to rebuild modern, energy-efficient, and environmentally responsible infrastructure, according to a press release issued on Monday.
White Arkitekter will manage the project in collaboration with its Ukrainian partner, Studio Zmist, an architecture firm in Lviv specializing in sustainable urban planning.
The project aims to develop a roadmap that outlines steps for Ukraine's transition to sustainable architecture and a pilot project concept that can serve as a model for future large-scale initiatives, as per the statement.
Via its Ukraine Cooperation Programme, the Swedish Institute offers grants to Swedish organizations and their partners in Ukraine to jointly implement projects supporting Ukraine's reconstruction, reform efforts, and EU integration.
Swedish Institute allocates $5.3 million for projects to support Ukraine's reconstruction, reforms
Swedish Institute, a public agency that promotes Sweden, said on Monday it will allocate SEK 56 million ($5. 3 million) to fund 41 projects aimed at supporting Ukraine's reconstruction, reform efforts, and EU integration.
The funding will be allocated through the first phase of the Swedish Institute's new grant program, the SI Ukraine Cooperation Programme, launched this spring, according to a press release.
Swedish Institute said it had received a total of 168 proposals in the program's first round. The grant program targets Swedish organizations and their partners in Ukraine that will jointly implement projects.
"SI's support is granted to Swedish actors who, together with Ukrainian counterparts, will strengthen opportunities for entrepreneurship and trade," said the Swedish Institute General Director Madeleine Sjöstedt. "There are also projects that enhance capacity in the areas of human rights, democracy, the rule of law, and gender equality."
A new call within the program will be announced during spring 2025, the Swedish Institute said.
UNDP to survey Ukrainian companies on corporate sustainability
The United Nations Development Programme (UNDP) said Monday it will conduct a survey of Ukrainian companies to assess their readiness to implement the new European Union (EU) legislation on corporate sustainability.
The survey is intended to assess how prepared Ukrainian firms are to implement the EU's Corporate Sustainability Due Diligence Directive (CSDDD), the challenges they face in this process, and how Ukrainian businesses can be supported to adapt to the legislative changes in the EU successfully.
The survey results will serve as a basis for developing policies, capacity-building initiatives, and support programs to help Ukrainian companies comply with the CSDDD and promote responsible business practices in Ukraine, UNDP said.
Longer Reads
Wall Street Journal: Ukraine Resorts to Shaking Down Nightlife Spots for Recruits as Troop Numbers Fall
In a photo-laden feature essay, the Wall Street Journal examines recent recruiting methods in Ukraine, including conducting spot checks for eligible men in upscale venues across Kyiv and Odesa.
The tactic highlights a shift to targeting men who frequent urban areas as the war drags on, the newspaper writes. The move follows reports of influential figures, including some state prosecutors, evading the draft with medical exemptions, leading to a public outcry and even the resignation of Ukraine’s attorney general.
Overall, recruitment efforts have been impacted by a population decline—driven by war casualties, migration, and a demographic gap—complicating efforts to reach young men eligible for service. Though Ukraine recently lowered the draft age to 25, enlistment numbers are dropping, with fewer than 20,000 soldiers in training monthly, compared to 35,000 after new mobilization laws were passed.
Public sentiment toward mobilization is polarized, with some supporting the fairer distribution of the burden and others angered by draft avoidance among elites. President Zelensky is under pressure to maintain equitable mobilization amid scandals involving bribes for medical exemptions. Authorities have taken steps to dissolve existing medical examination boards and plan an audit of companies exempting employees from the draft.
Despite these mobilization drives, Ukraine struggles to fully equip new recruits. Western allies have offered training and some supplies, but a lack of equipment for new brigades hampers efforts to push back Russian forces. With mobilization now a social and political issue as well as a military one, Ukraine faces the ongoing challenge of balancing internal discontent with its need for a sustained defense force.
CSIS: Korean support for Kyiv would transform Ukraine and Korea's global role
South Korea, whose advanced defense industry could be crucial in providing the weaponry Ukraine needs to counter Russia and potentially shift the trajectory of the conflict, should recognize the need to support Ukraine given that North Korea has openly aligned with Russia, former Minister Counselor for Political Affairs at the US Embassy in Seoul, Henry Haggard, wrote in an op-ed for the Center for Strategic and International Studies.
Despite arguments that supporting Ukraine could escalate tensions with Pyongyang and Moscow, there are stronger reasons for South Korea to act based on its global role and potential economic benefits, Haggard wrote.
Rather than responding to threats from North Korea and Russia, South Korea should take a stand rooted in its responsibility as a global leader, Haggard argued, noting that this could be an opportunity for Seoul to align its actions with its values and aspirations for G7+ membership, which requires decisive leadership and a commitment to universal principles.
South Korea's involvement in aiding Ukraine would echo the international support it received during the Korean War, Haggard wrote. Additionally, Korean companies could gain direct benefits by positioning themselves at the forefront of Ukraine's post-war reconstruction, which is set to be a massive effort, according to Haggard.
Springer Nature: Systemic risks to capital investment flows in the post-crisis economy of Ukraine
The newly published book Systemic Risk and Complex Networks in Modern Financial Systems devotes a chapter to a study on Ukraine examining "systemic risks affecting capital investment flows in Ukraine’s post-crisis economy.
The 27-page open access chapter, called "Systemic Risks to Capital Investment Flows in the Post-crisis Economy of Ukraine," focuses on the relationship between investment flows and key macroeconomic indicators and identifies "pivotal factors influencing investment processes amidst wartime."
"The study delineates primary strategies for risk mitigation, including the adoption of modern warfare economics principles, combating systemic dysfunctions such as corruption, and legitimizing property rights through targeted investments," according to the chapter description.
Volodymyr Shemayev, deputy director of corporate finance at JSC Ukrainian Railways, posted that Ukrainian Railways and the European Bank for Reconstruction and Development will together hold market consultations for the procurement of complete gas engine power plants under the Ukrainian Railways Emergency Distributed Generation Project.
Transparency International Ukraine said the Parliamentary Budget Committee has taken into account its recommendations on Accounting Chamber reform, an IMF structural benchmark for reform, but didn't tackle issues surrounding the political independence of the Accounting Chamber.
USAID Economic Resilience Activity (ERA) posted about how ERA’s contractors are modernizing Ukraine’s western borders by installing prefabs at 40 border crossings and invited "builders and contracting organizations to participate in tenders for the purchase of goods and services for their reconstruction and construction."
Ukrainian Finance Minister Sergii Marchenko recaps a week of IMF and World Bank meetings, including agreeing on the $50 billion G7 loan for Ukraine. "Just six months ago, this seemed an unlikely possibility in the near term due to significant legal and political hurdles."
