Contents
The Reporter's Notepad: Frustration at the often slow progress of reform in Ukraine, particularly given that the government's main focus on fighting the war, can stir up frustration among the very foreign investors the country is trying to attract, as URN Daily witnessed this week.
Just The Facts: The European Commission said it aims to open talks next year on "fundamentals" of Ukraine's EU entry, the government announces a partial "roadmap" on opening its airspace but adds few details, and it has adopted an action plan to join the European employment service (EURES), marking a step toward integration into the European labor market.
Here's What They Think: European countries should consider interim measures such as deploying troops as a security guarantee to Ukraine while the country awaits NATO membership, a lecturer at Bocconi University's Institute for European Policymaking wrote in an op-ed for The Conversation.
Sober Second Opinion: A new study by the International Bar Association into gender disparity in the legal profession in Ukraine has found that 56% of all lawyers and 53% of the lawyers in senior roles are women.
The Rebuilder's Social: Time Magazine names Diia, Ukraine's state-wide app with more than 20 million users, as one of the world's best inventions of 2024, CMS Ukraine explains changes to Ukrainian data protection law and Sayenko Kharenko says it served as legal counsel to the EBRD on a €35 million finance package to the city of Kharkiv.
Dear URN Daily subscribers,
As this section of the newsletter is called The Reporter's Notepad, we intend to present the reader, at least occasionally, with bits and pieces from our notebooks that seem interesting but that couldn't be turned into a news story, for various reasons.
The following style of reporting should probably be called "Fly on the Wall" or "Way Behind the Paywall."
A Gauge of Moods ...
Here's one possibly revealing exchange, witnessed by URN Daily at this week's 3rd Annual Ukrainian Infrastructure Forum in London organized by the Strategy Council.
It started with a question by an audience member, who turned out to be Neville Bissett, CEO of Qatari port operator QTerminals. His company won the 2020 concession to operate the Black Sea port of Olvia, near Mykolaiv, with promises to invest $120 million. The operation is now shuttered due to the war.
"We have huge costs and we have no income, and I can't get to speak to the government in Ukraine, because the Minister of Infrastructure doesn't exist," he said, addressing the panel that had just presented on the needs of infrastructure in Ukraine.
"You made mention of this merry-go-round of ministers going from one chair to another chair to another chair, and then disappearing, and new people coming in. So my question is, really, what do we need to do to get the government to actually make these changes rather than just talking about it every time?"
The comment sparked an immediate reply of empathy from Suha Canatan, the head in Ukraine of Turkey's Dogus Construction:
"We are suffering from the same situation - the chairs are changing and the people are changing. I also think it is the end of a political cycle.
"When a new government comes, they are very ambitious in their first three or four years. They want to start a major project and, at the end of their term, they want to see the result," he said. "At the end of their cycle, it's not very interesting to start something new, as it could create problems for them in the next government."
"I totally agree with all this," he said, referring to Bissett's comments. "Unfortunately, we are just trying to wait for them to be resolved, because it's not something that, as commercial companies, we can do much about."
Andrii Tsokol, the EBRD's associate director for infrastructure in Europe, then suggested a strategy, albeit a painstaking one.
"Like with private investors, we need to show the business case to the government and clearly show them that the returns outweigh the costs," he said. "That is slightly simplified, but that's what we try to do at EBRD when we discuss sector reforms. One approach is you can sit down and say 'just practice this.' This is what was done in the UK. This is what was done in France, etc. On the other hand, you can tie funding to meeting specific conditionalities, and you can also show the opportunities that lie ahead.
"One very good example of that is actually the PPP (Public Private Partnership) concession legislation. When we were starting out on that, together with the IFC, what we had was basically very old, outdated legislation, and no international investor would ever come in on that legal basis. It had existed at the time for over 10 years, but there were no projects being done under that legislation.
"So, we engaged legal teams to work on this new legislation, and then in parallel, we started preparing pilot projects. With pilot projects, you can show what can be done. If they are successful, then obviously a bigger market opens up. So I would say it's a it's a step by step approach."
Dear readers - please do write to adam.brown@ukrainerebuildnews.com if you find the above kind of reporting useful. Or with any other comments or suggestions.
EC hopes to open talks on 'fundamentals' with Ukraine 'as soon as possible' in 2025
The European Commission said on Wednesday that it aims to open talks "as soon as possible" next year on "fundamentals," one of the six main areas, or "clusters," up for negotiation as the country seeks to join the European Union.
"The steady increase of Ukraine’s alignment with the EU common foreign and security policy positions and restrictive measures is a clear sign of political commitment and should continue," the Commission said. "Subject to Ukraine meeting all the conditions, the Commission is looking forward to the opening of negotiations on clusters, starting with the fundamentals, as soon as possible in 2025."
Under changes made in 2020, EU accession negotiations are divided into six "clusters," or areas of interest: Fundamentals; Internal Market; Competitiveness and Inclusive Growth; Green Agenda and Sustainable Connectivity; Resources, Agriculture and Cohesion, and External Relations.
In the latest statement, or Communication on EU Enlargement Policy, the Commission said that, despite Ukraine's progress on fundamental reforms, further efforts are needed.
It said Ukraine should continue to focus on building further a credible enforcement track record in high-level corruption cases to address the systemic corruption, while also stepping up the fight against organized crime.
The protection of fundamental rights also needs to be further strengthened, and public administration reform and decentralization should advance.
Measures to support the repair and rebuilding of infrastructure will be key for the full recovery of the economy, especially in the energy sector which needs to be further decentralized with its governance improved, according to the Commission.
Ukraine applied for EU membership several days after it was invaded by Russia in February 2022, and was granted candidate status in June that year. Membership negotiations opened in June 2024.
EBRD to provide €40 million to Ukraine's pet food producer Kormotech for Lithuania expansion
The European Bank for Reconstruction and Development (EBRD) said Wednesday it will provide a €40 million financing package to Ukraine's pet food producer Kormotech to build a second pet food plant in Lithuania.
The package is a syndicated A/B facility, the EBRD said in a press release. Of the total, €20 million will come from the Dutch-based and SDG-focused asset manager ILX Fund.
The EBRD said that the total cost of the project will be €63 million, adding its funding will be supported by grant funding, including from the Japan-EBRD Cooperation Fund to partially cover external legal costs. Grant funding also partially covers the costs of new workplace equipment.
The project will help strengthen Kormotech's human resources and training practices in response to ongoing labor shortages in Ukraine by opening up new employment and training opportunities for women workers, veterans, and other under-served groups, as per the statement.
The EBRD previously provided €15 million to Kormotech, for the construction of its first production facility in Lithuania, which has been operational since June 2020. It also provided a €3.3 million working capital loan during the Covid-19 pandemic in 2020.
Ukraine presents roadmap for partial opening of airspace under martial law
Ukraine's Ministry for Communities and Territories Development on Wednesday presented a roadmap for the partial opening of the country's airspace under martial law.
Deputy Communities and Territories Development Minister Serhii Derkach introduced a step-by-step plan for the partial reopening of the airspace at a conference in Warsaw, Poland, the ministry said in a press release, without specifying which airports were considered nor when the reopening could take place.
Risk assessments for civil aviation, peculiarities of ensuring air navigation safety, Ukraine's airports' readiness to resume operations, and mechanisms for coordinating civil and military aviation were also discussed.
"This is the first expert discussion that we expect will help us move forward in creating the conditions for opening the airspace," said Communities and Territories Development Minister Oleksii Kuleba. "During the war, our strategic objective is to preserve aviation infrastructure and qualified personnel so that when the time comes, we can resume civilian flights as quickly as possible," he added.
International airlines, including LOT Polish Airlines, SkyUp Airlines, Turkish Airlines, Wizz Air, and others, joined the discussion, as per the statement.
The roadmap was developed with the assistance of the US Embassy in Ukraine, the State Aviation Service, the State Enterprise for Air Traffic Services, the Air Force Command, and the heads of Ukrainian international airports.
Ukraine's airspace has been closed since the start of the Russian full-scale invasion in February 2022.
Russian assets ordered confiscated in Finland at Naftogaz's request are worth $4.25 billion
Russian assets in Finland ordered frozen by the Helsinki District Court on Aug. 13 at the request of Ukraine's state-owned oil and gas company, Naftogaz, are worth $4.25 billion, Reuters reported, citing a court document.
Finland's National Enforcement Authority told Reuters it had executed the court order by confiscating and freezing Russian assets, without immediately providing details on the assets.
On Tuesday, the Kremlin had said it would contest the confiscation in court and defend its property interests, and on Wednesday summoned the Finnish ambassador to protest, demanding that Finland reviews the situation, Reuters reported.
Naftogaz said earlier this week that the assets frozen by Finland included "real estate and other assets valued in the tens of millions of dollars."
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.
Ukraine adopts plan to join European employment service in a step toward free movement of workers
Ukraine has adopted an action plan to join the European employment service (EURES), marking a step toward integration into the European labor market and the free movement of workers within the region, the government said in a press release.
The preparatory measures outlined in the plan focus on assessing the compatibility of Ukrainian systems and frameworks with EURES requirements and implementing regulations to enable effective interaction with European labor databases.
EURES currently supports the free movement of labor in 31 countries of the European Union (EU) and the European Economic Area. The platform contains more than 4 million vacancies, as per the statement.
Joining EURES is in line with the recommendations of the European Commission presented in the Ukraine Progress Report under the EU’s 2023 Enlargement Package, the government noted.
EURES is a network for cooperation between the European Commission, the European Labour Authority, the national public and other admitted employment services in all the EU countries, plus Iceland, Liechtenstein, Norway and Switzerland.
The network is meant to help the free movement of workers by providing information and employment support services to workers and employers, and by enhancing cooperation and information exchange between its member organizations.
Lithuania signs deals with partners from Ireland, Italy and Taiwan on Ukraine reconstruction projects
Lithuania on Wednesday signed agreements with partners from Ireland, Italy, and Taiwan on financing and carrying out reconstruction projects in Ukraine, Lithuania's Foreign Ministry said in a press release.
During the annual Lithuanian Development Cooperation Conference, the Foreign Ministry and the Embassy of Ireland in Lithuania signed a memorandum of understanding on the €3 million contribution Ireland has earmarked for the construction of shelters alongside Ukrainian schools.
These funds will be transferred to the Lithuanian Development Cooperation and Humanitarian Aid Fund, which finances reconstruction projects in Ukraine.
Another agreement was signed between Lithuania's Central Project Management Agency (CPMA) and the Italian architectural company Scandurra Studio Architeturra to prepare a standardized technical school design. The company won the international architectural competition The Future School for Ukraine initiated by Lithuania.
Scandurra Studio Architeturra will produce a standardized technical design for schools by February 2025, which will be made available free of charge to the Ukrainian authorities and other international partners involved in the reconstruction of schools, as per the statement.
The Foreign Ministry did not say what agreement was signed with a Taiwanese partner, but European Pravda reported that a memorandum of understanding was to be signed with Taiwan regarding further cooperation in the restoration of Ukraine.
The Taiwanese representative office will reportedly allocate €5 million for initiatives to restore Ukraine, implemented by Lithuania.
The Conversation: European countries should consider sending troops to Ukraine
European countries should consider interim measures such as deploying troops as a security guarantee to Ukraine while the country awaits NATO membership, Viktoriia Lapa, a lecturer at Bocconi University's Institute for European Policymaking wrote in an op-ed for The Conversation.
The European Union's commitment to Ukraine is embodied in its "as long as it takes" mantra, but this endurance strategy is taking a heavy toll, Lapa wrote, noting that despite initial predictions that Ukraine would fall quickly, nearly three years later, the conflict rages on, and the human cost is staggering.
Lapa argued that Ukrainians, while appreciative of EU support, are growing weary as hope for a decisive victory fades. For them, the EU's approach seems more focused on managing the crisis rather than actively confronting Russian aggression, which risks emboldening Moscow and its allies, she wrote.
Although security agreements exist between Ukraine and its EU and G7 partners, no country has yet seriously considered deploying troops on the ground as a peace guarantee. Such a commitment would be essential to countering Russian aggression and ensuring long-term stability in the region, according to Lapa.
Women account for 66% of in-house lawyers and 76% of senior public lawyers in Ukraine, gender inequality study finds
A new study into gender disparity in the legal profession in Ukraine has found that 56% of all lawyers and 53% of those in senior roles are women.
The study, published Wednesday by the International Bar Association and the Ukrainian Bar Association, shows that women make up the majority of lawyers in all areas of law in Ukraine but the areas they most dominate are the corporate and public sectors.
"Impressively, out of the 56 per cent of female lawyers in Ukraine, 53 per cent hold senior positions – a figure significantly higher than any other surveyed country," according to the report.
In the corporate sector in Ukraine, women account for 66% of all in-house lawyers and 59% of lawyers in senior positions. In the public sector, they account for 52% of lawyers and 76% of lawyers in positions of responsibility.
The study comes almost three years into the full-scale Russian invasion in Ukraine and the mass recruitment of men into the military that has left the country with a severe labor shortage. The researchers did not give corresponding pre-war figures for the representation of women in the legal profession in Ukraine.
The study, titled "50:50 by 2030: A longitudinal study into gender disparity in law," found that women were least represented in law firms, where they account for 49% of lawyers and 38% of lawyers in senior positions.
The study also found 64% of respondents monitor gender representation in their workplaces and 58% track gender balance across all levels and at the senior level.
As of July 2024, Ukraine had 5,051 judges and more than 66,500 practicing advocates, according to the study. As of January 2024, Ukraine had more than 9,900 prosecutors.
Ukraine is the 10th country examined in a series of studies by the International Bar Association. Previous reports covered England, Spain, Uganda, Nigeria, the Netherlands, Chile, South Korea, Brazil and Mexico.
Mykhailo Fedorov, Ukraine's minister of Digital Transformation, celebrated Time Magazine's naming of Diia, Ukraine's state-wide app with more than 20 million users, as one of the world's best inventions of 2024.
CMS Ukraine explains recent changes to Ukrainian data protection law affecting companies with an article that the law firm says "outlines essential regulatory updates that impact how personal data is managed, secured, and shared across sectors."
Ukrainian law firm Sayenko Kharenko announces that it served as legal counsel to the EBRD on a €35 million finance package to the city of Kharkiv, including a €25 million loan with a partial guarantee from Spain, and a €10 million grant by the US government.
Andrii Borovyk, CEO of Transparency International Ukraine, posts that six lawyers from TI Ukraine worked on the anti-corruption section of the shadow report on Chapter 23 of the EC's report on "Justice and Fundamental Rights." The section spans 76 pages and includes 94 recommendations.
