Today's Contents
Reporter's Notepad:
- URN Classified Ads?
Just The Facts:
- EC seeks to extend duty-free imports for Ukraine steel as Metinvest CEO warns capacity depends on security guarantees
- Ukraine's legislation passes EU review for free movement of goods
- EU issues call for proposals to support Ukrainian small businesses under Ukraine Facility
- Take-up of Kyiv warehouse space surged 63% last year to near pre-war levels, CBRE says
- EBRD approves €15 million loan for Ukrainian Yuria Pharm Group's investments in Ukraine, Uzbekistan, Latvia
Here's What They Think:
- ECFR: Europeans need to provide alternative offer for Ukraine's security
- The Conversation: Russia won't end Ukraine war because of struggling economy
Sober Second Thought:
- Ukraine's underground gas storage facilities could become a key asset for hydrogen and CO₂ storage, study finds
Dear subscribers,
Ukraine Rebuild Newswire (URN) and its daily news package, URN Daily, are growing rapidly, so we feel the need to periodically inform new readers of our purpose and goals.
The legal name of URN is actually The Whole News Company. We chose that name because our goal is to inform at multiple levels - we tell the "whole news."
This means we report and verify the news like other news agencies, but we also tell you what other media are saying, we cover academic and scientific studies related to the rebuilding of Ukraine that others often neglect, we bring you fresh and relevant social media posts, and we often use The Reporter's Notepad to convey snippets of interviews or conversations that don't make the news but are useful nonetheless.
Today we'd like to draw your attention to The Rebuilders' Social, our section that highlights informative social media posts. The posts we chose today offer a good example of the content we're going for - meaty and interesting. Most of the post link to attachments for further reading and they're all on topics of interest to the reconstruction of Ukraine.
Now we are considering launching a related section for Classified Ads. We would announce important job openings, partnerships, conference dates, deals signed, publications launched and other reconstruction-related items on behalf of readers. In a way, this is yet another part of the "whole news."
While we test the idea and work out the kinks, we're offering to publish one- or two-paragraph announcements for subscribers of URN Daily, free of charge for an indeterminate period. If interested, please write to the founder, Adam Brown, at adam.brown@ukrainerebuildnews.com.
Now, on to the day's headlines ...
EC seeks to extend duty-free imports for Ukraine steel as Metinvest CEO warns capacity depends on security guarantees
The European Commission (EC) said it has proposed to prolong measures guaranteeing duty-free imports for Ukraine's steel as it looks to support the country's economy.
"Iron and steel exports to the EU are a significant source of revenue for Ukraine. Continuing to exempt these products from steel safeguard measures would support Ukraine's economy, by helping to alleviate the difficult situation faced by Ukrainian producers and exporters because of Russia's unprovoked and unjustified war of aggression," the EC said.
The EU's executive arm also noted in a press release that the proposal will have to be approved by the Council and the European Parliament.
The EU has enforced provisional safeguard measures on specific steel imports to protect EU steel producers from economic harm since 2018. The block first exempted Ukraine from these measures in June 2022, with the exemption being renewed every year since.
Meanwhile, Yuriy Ryzhenkov, CEO of Ukraine's largest steelmaker Metinvest, told Reuters in an interview that rebuilding Ukraine's steel capacity will depend on US and European security guarantees in case of a ceasefire.
"We need to see what sort of conditions will be agreed to for a ceasefire or peace deal, and what sort of guarantees will be provided so that business can start investing again. Nobody knows what's going to be on the table at the end. And more importantly, we still don't understand what will be the guarantees that it (the war) won't restart," Ryzhenkov stated.
Ukraine's legislation passes EU review for free movement of goods
The Ukrainian government said the country has completed the official screening of its legislation for compliance with European Union norms under the Free Movement of Goods chapter.
As part of the screening, Ukraine prepared over 44 presentations for the European Commission on 59 acts of EU law regulating industrial products, said Deputy Minister of Economy of Ukraine Vitalii Kindrativ.
"The European side highly appreciated our progress in harmonising regulations and fulfilling our commitments under the Association Agreement," he stated.
"However, we recognise that the road ahead requires even more effort. Harmonisation of technical requirements across all sectors, especially in high-risk areas, is crucial to remove barriers that can impede the free movement of goods," Kindrati added in a government press release.
Last month Ukrainian President Volodymyr Zelensky expressed hope that the EU will facilitate a prompt opening of the negotiations on "fundamentals," one of the six main areas or "clusters," up for negotiations on the country's path to joining the EU.
Under changes made in 2020, EU accession negotiations are divided into six areas of interest: Fundamentals; Internal Market; Competitiveness and Inclusive Growth; Green Agenda and Sustainable Connectivity; Resources, Agriculture and Cohesion, and External Relations.
EU issues call for proposals to support Ukrainian small businesses under Ukraine Facility
The European Commission (EC) issued a new call for proposals from banks and international financial institutions under the €9.3 billion Ukraine Investment Framework, this time focused on supporting small businesses.
This call "encourages partners to take on more risk and provide grants to businesses in war-affected areas, as well as to war veterans, displaced persons, and refugees returning to Ukraine," the commission said.
"It also prioritises support for micro-enterprises, start-ups, and businesses led by women, youth, and people with disabilities, along with small-scale farmers," it said in a news release.
This call has a total budget of €1.6 billion, which includes budgetary guarantees and blended finance grants, according to the EC. It also includes financing for the demining industry, particularly efforts by farmers and agribusinesses involved in land mine clearance.
The deadline for applications is set for April 22.
The first call for proposals, with a total budget of €2.75 billion, was issued in October of last year, covering public investment, direct private investment, and private equity investment.
The Ukraine Investment Framework (UIF), the so-called "Pillar II" of the €50 billion Ukraine Facility, is designed to use public funds to attract private investments to aid Ukraine's recovery, reconstruction, and EU integration.
The commission has said the €9.3 billion framework, which includes €7.8 billion in loan guarantees and €1.51 billion for blended finance, will mobilize more than €40 billion in investment overall.
The first, and largest, pillar of the €50 billion Ukraine Facility, which is to be handed over by the end of 2027, consists of more than €38 billion in loans and grants for Ukraine's budget. The third pillar includes about €4.8 in technical support.
Take-up of Kyiv warehouse space surged 63% last year to near pre-war levels, CBRE says
The annual take-up of warehouse space in the Kyiv market returned to near pre-war levels last year, driven by a surge in pre-leases for developments nearing completion, according to a study by CBRE Ukraine.
Annual take-up in Kyiv totaled 167,000 in the year, an increase of 63% from 2023 and just 3% below the level of 2021, the last year before the full-scale Russian invasion, said CBRE, the world's largest commercial real estate and investment services firm.
Pre-leases accounted for 72% of the take-up in 2024, an increase from just 23% the previous year, as four of the five largest deals were for projects still in the pipeline, according to the report.
Key transactions included the take-up of 23,000 sqm by BudPostach, a Ukrainian dealer of household and professional tools, and the take up of 20,000 sqm by Yug Contract, a distributor of household appliances, electronics and other items.
"Despite a cautious approach among the largest market players, several occupiers expanded within existing properties, whilst expansions in new and under-construction projects led the market with 54% of take up," CBRE said.
Meanwhile, about 79,000 square meters of new supply was added in 2024, in line with pre-war levels, contributing to a 6% increase in the competitive warehouse stock to 1.37 million sqm.
Prime rent for ambient warehouses rose 8% on year to $5.3 per sqm per month and the vacancy rate rose, driven by the addition of new supply, to 3.1% from 2%, according to the report.
"“The overall outlook for 2025 remains positive, with the gradual market recovery continuing to be closely linked to the dynamics caused by the war," said Natalia Sokyrko, Head of the Warehouse and Logistics Real Estate Department at CBRE Ukraine. "We expect tenants to maintain their expansionary stance, which could drive strong rental activity in 2025."
She added that "rising consumer demand is expected to further strengthen the rental potential of the wholesale and retail sector. High energy costs, exchange rate fluctuations and labor shortages will continue to weigh on the market. However, pent-up demand, driven by high space requirements, is likely to drive gross take-up throughout 2025."
EBRD approves €15 million loan for Ukrainian Yuria Pharm Group's investments in Ukraine, Uzbekistan, Latvia
The European Bank for Reconstruction and Development (EBRD) said it approved a €15 million loan to co-finance Ukrainian pharmaceuticals manufacturer Yuria Pharm Group's investment program in Uzbekistan, Ukraine and Latvia for 2025-2027.
The funding, focused on green projects and other capex, will be divided into €13 million committed and €2 million uncommitted tranches, both with a six-year tenor, according to the EBRD.
Yuria Pharm plans to invest about €32 million to expand production and storage facilities in Uzbekistan, implement capex projects in Ukraine, and upgrade IT systems to streamline operations and accounting process across its markets, the EBRD said on Monday in a project document.
The transaction includes concessional financing managed by the EBRD and a net 27% Ukraine Investment Framework Guarantee applied to part of the Ukrainian tranche.
ECFR: Europeans can ensure Ukraine's security despite US withdrawal
European leaders can and need to provide an alternative offer to ensure Ukraine's security as proposals coming from the US administration are seemingly further and further away from European interests, Marine Dumoulin, a director at the European Council on Foreign Relations (ECFR), wrote in an op-ed.
The offer should be based on four pillars, Dumoulin wrote, including boosting Ukraine's capacity to defend itself, limiting Russia's ability to rebuild its offensive capabilities, strengthening Europe's capacity to detect and respond to signs of a renewed Russian military buildup, and ensuring a presence on the ground in Ukraine.
The Conversation: Russia won't end Ukraine war because of struggling economy
Russia shouldn't be expected to end the war in Ukraine because of the rising pressures its economy is facing, Julian Cooper, professor at the University of Birmingham, wrote in an op-ed for The Conversation.
The troubling economy may only lead Russian President Vladimir Putin to start fostering closer ties with the West, Cooper wrote, noting that time hasn't yet arrived and that Putin would only end the war to gain recognition from the US that he is a great leader of a powerful country.
Ukraine's underground gas storage facilities could become a key asset for hydrogen, CO₂ storage, study finds
Ukraine's vast underground gas storage (UGS) facilities hold significant potential for storing hydrogen (H₂) and carbon dioxide (CO₂), making them a crucial part of Europe's clean energy transition, according to a study conducted by an international group of scientists and published by MDPI.
Ukraine currently operates 13 UGS facilities with a total capacity exceeding 31 billion cubic meters of natural gas. These sites are located in key geological regions, including the Carpathian Foreland, the Dnieper-Donets Basin, and the Prychornomorska Depression. Most of these facilities were originally developed for storing surplus European gas, but they could be repurposed to support the clean energy transition, as per the study.
These UGS facilities have an estimated H₂ storage capacity of 89.8 TWh and CO₂ storage potential ranging from 18.8 to 37.6 gigatons, which means that these facilities can support long-term climate goals, the authors wrote.
The Bilche–Volytsko–Uherske facility, the largest in Ukraine and Europe, is particularly promising. It has an estimated hydrogen storage capacity of over 127 million tons in its working zone and a CO₂ storage potential of nearly 20 gigatons, the study revealed.
Ukraine's commitment to EU climate targets strengthens the case for repurposing its UGS network, according to the scientists. The country aims to achieve a 65% reduction in greenhouse gas emissions by 2030 and become climate-neutral by 2060. Integrating hydrogen storage into its energy system would help align with EU policies such as the European Green Deal and the REPowerEU Plan.
One innovative approach examined in the study is the possibility of using CO₂ as a cushion gas for H₂ storage. Cushion gas is needed to maintain pressure within storage reservoirs, and CO₂ could be an effective and sustainable alternative to traditional methods. This synergy between hydrogen and CO₂ storage could enhance efficiency and make use of existing resources in a more sustainable way, the study found.
The scientists noted that although no official plans are currently in place to convert Ukrainian UGS facilities for hydrogen or CO₂ storage, a recent agreement between Ukraine's Naftogaz and Austria's RAG Austria AG signals growing interest. This partnership aims to exchange expertise on hydrogen storage, potentially paving the way for future large-scale projects.
By leveraging its extensive underground storage capacity, Ukraine could become a key player in Europe's hydrogen economy and carbon capture initiatives. With the right investments and policy support, these storage sites could help drive the transition to a cleaner energy future, the study concluded.
Meetings with Bechtel, Bank of America, Morgan Stanley et al
Ihor Baranetskyi, minister-counsellor for economic issues at the Embassy of Ukraine in the USA, recapped yesterday's meeting with the US Chamber of Commerce and major US businesses with a focus on the energy sector, logistics, agriculture and the defense industry.
Businesses at the meeting included Bank of America, Bayer, ADM, Bechtel, Cargill, Dow, GE Vernova, Harman International Industries Inc, Jacobs, John Deere, Logistics Plus, Morgan Stanley, Parsons, PepsiCo, PwC, and Venture Global LNG, Baranetskyi wrote.
€4 Million to Build 400 Hemp Homes
Yannick Du Pont, a board member of humanitarian organization OpenDoorUkraine.NL, announced that a consortium including that organization as well as Rawblox and Hempire UA won a €4 million grant from the Netherlands Enterprise Agency and the Dutch embassy in Ukraine.
The grant will allow the consortium to build 400+ bio-based, circular homes using straw & hemp technology and import advanced Bio Panel manufacturing lines from the Netherlands with Hempire in Ukraine. "Each 60m² home will use 5 tons of locally grown straw & hemp, generating new economic opportunities for communities."
Ukrainian Steel on the Brink
Shukufa Sayadli, a steel market specialist with SteelRadar Insight magazine, promoted an interview with Stanislav Zinchenko, the CEO of Ukrainian steel market consultancy GMK Center.
The social media post is accompanied by a carousel that includes the full 164-page issue of the magazine, along with the interview, titled "Ukraine's Iron and Steel Industry is Working on the Brink of Survival."
Wind Energy Review and Outlook
The Ukrainian Wind Energy Association (UWEA) promoted its 2024 market overview and outlook, which covers the industry's current state, achievements, and future outlook as well as the shift toward decentralization, the current status of onshore wind energy and key market challenges.
"A significant portion of the Overview focuses on the market-based mechanisms for promoting renewables in Ukraine, the latest legal frameworks guiding developer-investor relations, and an in-depth examination of the Electricity Price Guarantee Fund, an initiative launched by the UWEA," according to the post.
Tax Cuts for Frontline Businesses?
Vira Savchenko, CEO of BDO in Ukraine, promoted an overview of proposals developed by BDO in Ukraine and the regional offices of the Kyiv-based European Business Association to help businesses continue operating in frontline regions.
The proposals include compensation for military risks, an easing of mobilization requirements, a reduction of various taxes, preferential lending, logistics support and special economic zones.
Energy Plans in Parliament
Nataliia Huarevych, counsel at Ukrainian law firm Sayenko Kharenko, reviewed parliament's legislative work plan for the year with an eye to expected developments in the energy sector.
Possible reforms include alignement with the European Union regulations, strengthening the independence of the energy regulator, changes in the certification of gas and electricity transmission operators and an emissions trading system draft law to be submitted in August.
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
