Today's Contents
Reporter's Notepad:
- Leonteq Reconstruction Investment Idea: Cement companies with Eastern Europe exposure
Just The Facts:
- Putin agrees to 30-day pause in attacks on Ukraine's energy infrastructure in call with Trump
- Veon signs business combination deal with Cohen Circle to list Kyivstar on Nasdaq
- Switzerland's SECO doubles budget for Ukraine reconstruction bids call
- Ukraine submits its first integrated report on national energy and climate plan to the Energy Community
- NSSMC chairman says 'proper' reconstruction of Ukraine won't be possible without stock market
- Ukraine signs MoU on energy and green transition partnership with Sweden
Here's What They Think:
- Head of Ukraine's IP office: Ukraine recognizes importance of IP protection in drawing investments
- Chatham House: US should partner with EU on Ukraine's minerals
Sober Second Thought:
- Backing for stronger US involvement in Ukraine hits record-high 46%, Gallup poll finds
Dear subscribers,
Here's a neat little news item based on a report by Leonteq Securities to its clients, forwarded to URN by a reader.
Leonteq Reconstruction Investment Idea: Cement companies with Eastern Europe exposure
Zurich-based Leonteq Securities is offering clients seeking exposure to the reconstruction of Ukraine a profit of as much as 12% of their initial investment over a year with a new structured financial product.
The product, called an "autocallable," is linked to Holcim, Heidelberg, Buzzi and CRH, based on the idea that the reconstruction will drive demand for cement and boost their stock prices.
The instrument redeems early if all four stocks are trading at or above their initial fixing levels as little as six months into the investment, leaving investors with the coupon up until that point. In other words, if the stocks are all trading up in six months, investors receive a 6% coupon, plus their initial capital.
They stand to lose on capital, however, if any of the four stocks is trading at 69% or less of the initial price when the autocallable matures in 12 months. For example, if the worst stock falls to 60%, investors only get 60% of their original capital back.
The Leonteq "Investment Idea" report, titled "To rebuild Ukraine, a lot of Cement is required," initially looked at listed cement producers including CRH, Holcim, Cemex, Buzzi, Heidelberg Materials, Vicat Turkey and others.
The research also found building materials suppliers, except for Kingspan in the following chart, outperformed the Stoxx 600 Index so far this year, helped by news of a possible ceasefire in Ukraine.
For questions related to daily news, story suggestions, scoops and other newsy matters, please message URN newsroom chief Valentina Bajic at valentina@ukrainerebuildnews.com.
For sponsorships, the URN Guidebooks, the Tips for Investors column and other general matters, email founder Adam Brown at adam.brown@ukrainerebuildnews.com.
If in doubt, email us both and we'll sort it out.
Now, on with the day's headlines ...
Putin agrees to 30-day pause in attacks on Ukraine's energy infrastructure in call with Trump
Russian President Vladimir Putin agreed during a phone call with US President Donald Trump on Tuesday to a 30-day pause in attacks against Ukraine's energy infrastructure facilities, the White House and the Kremlin said.
The two leaders also agreed that the technical negotiations on the implementation of a maritime ceasefire in the Black Sea, full ceasefire, and permanent peace between Russia and Ukraine will start "immediately" in the Middle East, according to a readout of the call posted by the White House Press Secretary Karoline Leavitt on X.
"The two leaders agreed that a future with an improved bilateral relationship between the United States and Russia has huge upside. This includes enormous economic deals and geopolitical stability when peace has been achieved," the White House readout said.
The Kremlin's readout said Putin also expressed his readiness to work together with the US to "thoroughly explore possible ways of resolving the conflict, which should be comprehensive, sustainable and long-term," taking into account "the absolute need to eliminate the root causes of the crisis, and Russia's legitimate interests in the area of security."
When it comes to the US proposal for a full ceasefire, the Russian side highlighted key points, including the need for effective control over a potential ceasefire along the entire front line, an end to forced mobilization in Ukraine, and a halt to the rearmament of the Ukrainian Armed Forces, as per the Kremlin.
"It was emphasized that the key condition for preventing the escalation of the conflict and working towards its resolution through political and diplomatic means should be the complete cessation of foreign military aid and the provision of intelligence information to Kyiv," the Kremlin said.
Trump wrote on Truth Social following the phone call that "many elements of a Contract for Peace were discussed," adding that the process to end the war is "now in full force and effect, and we will, hopefully, for the sake of Humanity, get the job done!"
Ukraine's President Volodymyr Zelensky, who is currently on his official visit to Finland, told reporters during an online briefing following the Trump-Putin call that Ukraine would agree to a proposal to stop attacks on Russian energy infrastructure.
"...The two sides, Ukraine and Russia, are able to not strike energy infrastructure. Our side will support this," Zelensky stated, as quoted by Reuters.
Last week, Ukraine agreed to the US-proposed immediate, interim 30-day ceasefire, subject to acceptance and implementation by Russia.
Veon signs business combination deal with Cohen Circle to list Kyivstar on Nasdaq
Telecoms group Veon said on Tuesday it has signed a business combination agreement with special purpose acquisition company Cohen Circle that will result in the listing of Ukraine's leading digital operator, Kyivstar, on Nasdaq.
Veon will own a minimum of 80% of the issued and outstanding equity in Kyivstar following the closing of the agreement, according to a press release. The deal, expected to close in Q3, is subject to shareholder approvals and other customary closing conditions.
"Kyivstar's listing on Nasdaq will be more than a financial milestone—it will mark a defining moment for Ukraine's economic future," said Augie K Fabela II, chairman and founder of Veon. "As one of Ukraine's largest private sector investors, Veon is proud to pioneer this historic step, offering US and global investors a unique opportunity to support and participate in Ukraine's economic growth and resilience."
Cohen Circle Chairman and CEO Betsy Cohen said Kyivstar is "a significant investment opportunity that stands to deliver growth for international investors as Ukraine moves into a rebuilding phase."
Rothschild & Co acts as the lead financial and capital markets advisor to Veon, while BTIG also advises the firm on capital markets. Cantor Fitzgerald & Co. advises Cohen Circle on capital markets, according to the release. Legal counsel includes Latham & Watkins and Sayenko Kharenko for Veon and Kyivstar, and Morgan, Lewis & Bockius and Integrites for Cohen Circle.
Switzerland's SECO doubles budget for Ukraine reconstruction bids call
The State Secretariat for Economic Affairs of Switzerland (SECO) said it has doubled the budget to CHF 100 million ($114 million) of its call for proposals for Swiss companies to apply for co-funding of projects contributing to Ukraine's reconstruction and economic recovery.
The decision has been made due to the "high level of interest and the needs in Ukraine," SECO said.
The Swiss government agency also said it has re-opened and extended the application deadline. Interested companies that still have not submitted a proposal can now apply for the co-financing between March 17 and March 31, as per a press release on Monday.
The initial application deadline for the call first, opened on Jan 30, was Feb 28. Individual financial contributions for selected projects still range from CHF 1 million to CHF 15 million.
To participate in the program, a company needs a subsidiary or a production site in Ukraine covering the country's acute needs, with an offering that includes products with Swiss quality as well as expertise for Ukraine.
A company also needs to provide a service in return for the funding, such as job creation or preservation, vocational training, or investments in Ukraine, among others
SECO launched the call under a previously announced Swiss government CHF 500 million program to support Ukraine's reconstruction. The program is part of a CHF 1.5 billion in funding by 2028, which the Swiss parliament approved in December for Ukraine. The remaining CHF 1 billion will be directed toward the self-government, demining, and humanitarian aid sectors.
Ukraine submits its first integrated report on national energy and climate plan to the Energy Community
Ukraine has submitted its first integrated report on the implementation of the National Energy and Climate Plan (NECP) to the Energy Community, comprised of the European Union and neighbors, in compliance with European regulations and legislation.
The March 15 submission "demonstrates the seriousness of our intentions to integrate into the European energy and climate space," said First Deputy Minister of Economy of Ukraine Oleksii Sobolev. "Thanks to the report, we were also able to identify areas where additional efforts and investments are needed to achieve the set goals."
The Energy Community's key aim is to extend the European Union internal energy market rules and principles to countries in South East Europe, the Black Sea region and beyond, according to its website.
The integrated report was prepared with the same methodology as used by EU countries and it offers a comprehensive analysis of Ukraine's progress implementing 144 NECP policies and measures across six key dimensions: decarbonization, energy efficiency, energy security, internal energy market, research, innovation, and competitiveness, according to a news release from the Ukrainian think tank DiXi Group.
Despite the war's disruptions, the report shows positive dynamics in the local energy sector, including in support for energy efficiency through initiatives such as the "Rebuild Your Home" program, according to the release.
Andrii Teliupa, Ukraine's deputy minister of economy, said the report "demonstrates how Ukraine combines economic reconstruction with its structural transformation, which will allow it to emerge from this war with a more modern and competitive economic model."
The monitoring process for NECP implementation is coordinated by the Green Transition Office at Ukraine's Ministry of Economy, the release said. The Green Transition Office operates with the financial support of the UK International Development and is implemented by DiXi Group.
NSSMC chairman says 'proper' reconstruction of Ukraine won't be possible without stock market
Ruslan Mahomedov, chairman of Ukraine's National Securities and Stock Market Commission (NSSMC), said in an interview with Interfax-Ukraine that the reconstruction efforts in Ukraine will not be possible without a well functioning stock market.
"I am absolutely sure that without the stock market, we will not ensure proper reconstruction of the country's economy," Mahomedov said. "Direct investments, selling mining licenses, we will not achieve the necessary result... Therefore, it is necessary to provide portfolio investment instruments that are understandable to European and global investors (shares and other corporate securities)."
Mahomedov said in the interview that Ukraine still has the potential to develop a domestic stock market through a local exchange. However, this development is hindered by a lack of financial investment to support the market's growth and insufficient activity in trading domestic securities.
Ukraine's largest stock exchange, the PFTS Stock Exchange, has recently met the prudential liquidity standard and is currently resolving the issue of its license being revoked. However, the exchange may face this risk again unless it develops new instruments or products that will generate earnings for its clients, according to Mahomedov.
To support the growth of long-term investment in Ukraine, Mahomedov said the regulator proposed the adoption of bill No. 8111 on investment accounts, which would allow individuals to invest in permitted financial instruments and earn tax exemptions if the funds remain in the account for three to five year.
Mahomedov also advocated for Ukrainian companies to conduct their primary (IPO) and secondary (SPO) public offerings, as well as the circulation of their securities, either fully or partially within the country.
"The business is here, but all the money stays there," Mahomedov said, advocating instead for dual listings to retain some of the value within Ukraine.
He stressed the importance of creating a "link" between Ukrainian markets and foreign depositories like Euroclear and Clearstream, allowing foreign investors to purchase Ukrainian securities without needing to open accounts in the country.
"If we keep the shares here, start trading here, but make a 'link' that allows them to move freely between foreign markets and back, this will be the beginning of the development of the domestic stock market," he said. Mahomedov expects this link to be in place already this year.
Ukraine signs MoU on energy and green transition partnership with Sweden
Sweden's Minister for Energy, Business, and Industry, Ebba Busch, and Ukraine's Minister of Energy, German Galushchenko, have signed a memorandum of understanding to establish a partnership on energy and the green transition.
The agreement, signed on Monday in Brussels, also includes a declaration of intent to enhance cooperation in civil nuclear power, energy security, and the green transition of the economy, as stated in press releases from both countries' ministries.
"We have already endured our third wartime winter. We thank Sweden for its continuous support of Ukraine's energy sector from the very first days of the full-scale invasion," said Galushchenko. "This support plays a significant role both in restoring our infrastructure and in the further development of the energy sector in Ukraine and throughout Europe."
Busch praised Ukraine's resilience in the energy sector, stating that "Ukraine's energy sector, as in general, is a model for all countries."
"Through this partnership, we look forward to working together and learning from each other to strengthen our energy infrastructure and build the foundation for transforming our societies with fossil-free power," she added.
Last month, the European Commission proposed a new support package for Ukraine to strengthen its energy system, including Ukraine's electricity market integration with the EU by spring 2027, and further integration in the EU gas sector.
Head of Ukraine's IP office: Ukraine recognizes importance of IP protection in drawing investments
Olena Orliuk, Director of the Ukrainian National Office for Intellectual Property and Innovations, wrote in a column for Forbes about the importance of reliable IP protection in attracting investments, noting that Ukraine has recognized it as one of the key factors foreign investors look at when making business decisions.
Ukraine is actively developing effective mechanisms to protect intellectual property, Orliuk wrote, noting that the ongoing Russia-Ukraine war, combined with Ukraine's push toward European and Euro-Atlantic integration, has been a major catalyst for these changes.
Chatham House: US should partner with EU on Ukraine's minerals
The US should cooperate with the European Union on the extraction of Ukraine's minerals to strengthen supply chain security, drive investments, and contribute to geopolitical stability, which would all ultimately benefit Ukraine, Patrick Schröder and Armida van Rij, senior research fellows at Chatham House wrote in an expert opinion.
Without Europe's help, the US would struggle with logistics and regulations when sourcing minerals from Ukraine, the authors wrote, adding that the EU's proximity, trade networks, and regulations make it easier to integrate Ukraine's minerals into both markets.
Backing for stronger US involvement in Ukraine hits record-high 46%, Gallup poll finds
A record 46% of Americans, including a strong majority of Democrats and nearly half of independents, now feel the US is not providing enough support to Ukraine, a recent survey by Gallup revealed.
Until now, the highest percentage of Americans who believed the US was not doing enough to help Ukraine was 38%, recorded in Gallup's poll from August 2022.
Gallup noted that the latest survey was conducted after the contentious meeting between US President Donald Trump, VP J.D. Vance, and Ukraine's President Volodymyr Zelensky in the White House on February 28.
The growing belief among Americans that the US is not doing enough for Ukraine is largely driven by a 31-point surge among Democrats, reaching 79%, and a 14-point increase among independents, now at 46%—both record highs since December.
Meanwhile, only 13% of Democrats now say US involvement is at the right level, a sharp 28-point drop, while just 8% believe the US is providing too much aid.
Republicans have remained the most likely to argue that the US is giving Ukraine excessive support. However, this sentiment has declined by 11 points in the past three months, now standing at 56%.
At the same time, the share of Republicans who see US aid as appropriate has increased by the same margin, likely reflecting support for the Trump administration's Ukraine policy.
In addition, the latest poll shows a five-point rise in the share of Americans who believe the US should continue supporting Ukraine in reclaiming its territory, even if it means prolonged involvement (53%), rather than seeking a quick end to the conflict by conceding land to Russia (45%). This marks a shift from December, when 50% favored ending the war swiftly.
"Looking ahead, this increase in public preference for stronger US involvement may pressure the Trump administration to recalibrate its Ukraine policy, especially if Russia violates potential ceasefire agreements," Gallup said.
Social Media Posts
Higher Tax Exemptions on Donations
The European Business Association in Ukraine applauded President Volodymyr Zelensky's signing of a law meant to encourage companies to increase their charitable contributions.
"For the duration of martial law, the legislation proposes doubling the amount of tax-exempt charitable donations—from 4% to 8%," the EBA wrote. "Additionally, tax exemptions will now apply not only to monetary donations but also to in-kind contributions. Such aid must be directed towards charitable organisations and individuals affected by the armed aggression of the russian federation."
New Gas Standards Needed
The Gas TSO of Ukraine, which operates the national transmission system, recapped a meeting it attended in Greece meant to harmonize gas quality standards throughout Southeastern Europe after multiple changes.
"Historically, gas has been transported from east to west, and its physical and chemical properties consistent with Russian gas," the company wrote. "However, the suspension of gas transit and the European Union's policy of diversifying its supplies - in particular, through increased imports of Liquefied Natural Gas (LNG) and resources from alternative sources — have made such requirements obsolete."
100 Industrial Complexes Started Since 2022
Ukrainian Economy Minister and First Deputy Prime Minister Yulia Svyrydenko applauded DTEK for its planned $450 million wind power plant, Kingspan for its planned $280 million building materials campus and Quantum Systems for drone production in a social media post.
Svyrydenko cited a report from Forbes Ukraine that said nearly 100 new industrial complexes have launched or started construction since the full-scale war began in 2022.
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
