Today's Contents
Reporter's Notepad:
- Forvis Mazars in Ukraine focuses tightly on the reconstruction
Just The Facts:
- Trump, Zelensky agree to work together to achieve lasting peace in Ukraine
- Germany's finance ministry confirms extra €3 billion in military aid for Ukraine
- Ferrexpo says Ukraine's 'discriminatory' action violates Swiss, UK investment accords; calls for negotiations
- China 'ready' to help rebuild Ukraine after war, says foreign aid agency
- EU, member states roll out €62 million Phase III of U-LEAD focused on Ukraine's recovery, local self-government
- Italy plans to help develop Ukrainian agriculture, invest €11 million in irrigation, small-scale farmers
Here's What They Think:
- CSIS: US should look at Ukraine as strategic ally
- Project Syndicate: Europeans and Americans still united in support for Ukraine
Sober Second Thought:
- Russia-Ukraine war only slightly reduced their combined grain, oilseed production, analysis finds
Dear subscribers,
In recent months, Ukraine Rebuild Newswire has noticed the concerted efforts of Forvis Mazars, the global professional services network, to reach out to companies considering investing in the reconstruction of Ukraine.
The company, formed last year when Mazars and Forvis created a new global network, has a dedicated web page for the reconstruction, a reconstruction newsletter, a reconstruction business guide, and last year organized a reconstruction networking event. Much of its promotions, too, seem to tighly focus on the reconstruction.
So we spoke yesterday with Gregoire Dattee, managing partner at Forvis Mazars in Ukraine. We'll flesh out the story later, and add Gregoire's advice, gathered over his 15 years in Ukraine, to our expanding series of Investor Tips articles. In the meantime, here is one interesting highlight of our conversation.
Gregoire said the company's reconstruction outreach pays special attention to the IT, energy and infrastructure sectors, which the firm sees as "strong, priority sectors in Ukraine."
"These are activities and industries where we have expertise, where we have some clients in Ukraine, and we have the opportunity to strengthen them," he said. "This is part of our strategy, to be more focused on some industries and to prepare for what will come after the war, so we're ready to support businesses entering Ukraine by providing them with the relevant expertise and assistance."
"We are offering financial audit, tax advisory, tax and legal, accounting, payroll, support for finance functions and more. Now we are focusing more on specific industries and their specificity."
"The IT industry, for example, is specific in the sense that there is a need to accompany clients from the startup phase to a large scale. In energy and infrastructure, these are complex projects that need specific financing, transnational structuring, etc. We already have expertise in those areas."
While the energy and infrastructure sectors will have powerful international components, the IT sector will remain comprised mainly of Ukrainian companies art all levels, he said.
He said, however, that these three sectors do not constitute a majority of the clients of the company, which will still serve other sectors.
"We are quite developed in agriculture. We are present in industry. We are in financial services and bank insurance. So we are, I would say, generalist."
We'll be hearing more from Gregoire soon.
In the meantime, 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 ...
Trump, Zelensky agree to work together to achieve lasting peace in Ukraine
US President Donald Trump and Ukrainian President Volodymyr Zelensky agreed during a phone call on Wednesday that their countries will work together to end the war and achieve a lasting peace, the White House and Zelensky's office said.
Trump shared the details of his conversation with Russian President Vladimir Putin on Tuesday during which Putin agreed to a 30-day pause in attacks against Ukraine's energy infrastructure facilities.
Zelensky also agreed to a pause in attacks on Russian energy infrastructure and said Ukraine will continue to work on a US-proposed ceasefire on the frontline as well, according to a readout of the call by his office.
Technical teams from the US and Ukraine will convene in Saudi Arabia in the coming days to discuss expanding the ceasefire to the Black Sea as a step toward a full ceasefire, as per the White House readout.
The White House also said that Zelensky asked for additional air defense systems to protect civilians, particularly Patriot missile systems. "Trump agreed to work with him to find what was available particularly in Europe," as per the readout.
According to the White House, Trump also discussed Ukraine's electrical supply and nuclear power plants, saying that the US could help run those plants with its electricity and utility expertise.
"American ownership of those plants would be the best protection for that infrastructure and support for Ukrainian energy infrastructure," the readout said.
Earlier on Wednesday, Russia and Ukraine conducted a prisoner exchange, with each side releasing 175 troops, with an additional 22 Ukrainian POWs returning beyond the exchange deal.
This came after Kyiv and Moscow exchanged areal attacks, with Ukraine attacking an oil facility in Russia and Russia attacking Ukraine with 150 drones, including strikes on energy facilities, all within hours after the Trump-Putin call, as reported by CNN.
Germany's finance ministry confirms extra €3 billion in military aid for Ukraine
Germany's finance ministry told the Kyiv Independent that the German government will release an additional €3 billion in military aid for Ukraine.
The funding includes €2.6 billion from the German budget, with the rest funded by the European Peace Facility, a European Union funding mechanism for military items.
Outgoing German Chancellor Olaf Scholz had previously said any additional support should be combined with the easing of borrowing rules, according to the report.
On Tuesday, the German lower house of parliament, the Bundestag, approved legislation proposed by SPD and CDU/CSU, releasing defense spending from debt restrictions. In addition, the bill would set up a €500 billion fund to invest in Germany's defence infrastructure, according to a Bundestag press release.
The budget committee is expected to approve the military aid package to Ukraine on Friday, provided that the Bundesrat, the legislative body representing Germany's federal states, approves new legislation on a debt brake, the Kyiv Independent reported.
German Finance Minister Joerg Kukies plans to also approve an additional €8.3 billion in military aid to Ukraine between 2026 and 2029.
Thomas Silberhorn, the spokesperson for the CDU/CSU parliamentary group for trans-Atlantic relations, said his party changed its stance and voted in favor of the bill as Germany's "threat perception" has changed due to the country being the object of "Russian cyberattacks, of espionage and of sabotage" as well as President Donald Trump's leadership raising questions about US solidarity with Europe, Deutsche Welle reported.
"That's why we decided to do whatever it takes to make Germany safe and to enable us to defend our country and our partners in Europe," Silberhorn said.
The conservative CDU/CSU won the federal elections on Feb 23 with 28.5% of the votes, followed by the far-right party AfD with 20.8%, and the Social Democrats (SPD) with 16.4%.
CDU/CSU, led by Friedrich Merz who is expected be Germany's next chancellor, is in formal negotiations with Scholz's SPD to form a government, according to CDU's website.
Ferrexpo says Ukraine's 'discriminatory' action violates Swiss, UK investment accords; calls for negotiations
Ferrexpo has accused the Ukrainian authorities of breaching international investment agreements with a series of "discriminatory and unreasonable" asset freezes, management arrests and other actions against the miner's subsidiaries.
Ferrexpo, a Switzerland-based iron ore miner that operates in Ukraine and is listed on the London Stock Exchange, accused the Ukrainian government of acting against its assets in a manner that violates the country's investment agreements with the UK and Switzerland.
The agreements, the company said, oblige Ukraine to "accord Ferrexpo's investment fair and equitable treatment and not to impair by unreasonable or discriminatory measures the management, maintenance, use, enjoyment or disposal of Ferrexpo's investment."
Ferrexpo said it sent formal notice asking Ukraine to lift or cease "the unlawful actions" and for the government to enter negotiations, without elaborating further.
The state legal actions are linked to Konstantin Zhevago, a Ukrainian oligarch and former member of parliament who is wanted in Ukraine over a case of alleged embezzlement involving Finance & Credit Bank, his former bank that collapsed in 2015.
Ferrexpo says, however, that Zhevago owns no shares in its Ukrainian subsidiaries, and "there is no reasonable nexus whatsoever between these actions and decisions against the Ferrexpo Group and the supposed aim of prosecuting cases" against Zhevago.
Ferrexpo said the shares in all of its Ukrainian subisidiaries have been frozen at various times, the railway wagon fleet of its Ferrexpo Poltava Mining (FPM) has been seized and FPM bank accounts have been frozen.
It also said senior management, including the general director of FPM, has been detained, and the company has been forced to pay more than $16 million in bail.
Earlier this month, the State Bureau of Investigation in Ukraine (SBI) said that a Kyiv district court had ordered the transfer of 49.5% of FPM's corporate rights to Ukraine's Asset Recovery and Management Agency (ARMA), according to Ferrexpo's separate news release.
The company said Wednesday that it has yet to receive any official documentation regarding the court decision.
In early February, the company disclosed that a $3.76 billion civil claim had been filed against FPM over alleged illegal mining activities and the sale of waste products.
Separately, the company's shares plunged on Wednesday after it annnounced a $72 million non-cash impairment that prompted it to report an unexpected loss of $50 million in its 2024 earnings.
China 'ready' to help rebuild Ukraine after war, says foreign aid agency
China has provided humanitarian aid to Ukraine and stands ready to help rebuild the country after the war, said Li Ming, spokesperson for China International Development Cooperation Agency.
"We are ready to continue to provide assistance within our capacity according to the wishes of parties involved, which of course includes post-war reconstruction," Li said.
Li added that China had already provided four packages of humanitarian assistance to Ukraine, as reported by state-run Xinhua News Agency.
China is seen as an ally of both Russia and North Korea, who both have forces battling the Ukrainians, but Ukrainian officials have suggested China might play a role in any peace talks and in the post-war reconstruction.
Beijing delivered supplies, including infant formula, quilts and moisture-proof mats, worth about CNY 15 million ($2.1 million) to Ukraine shortly after the beginning of the war, according to a report from South China Morning Post.
Last month, Chinese Foreign Minister Wang Yi told the United Nations Security Council that Beijing "supports all efforts conducive to peace talks," Reuters reported.
Earlier this month, Ukraine and China signed two agreements for China to import Ukrainian peas and wild fish products, according to a release from Ukraine's Ministry of Agrarian Policy and Food.
EU, member states roll out €62 million Phase III of U-LEAD focused on Ukraine's recovery, local self-government
The European Union, together with Germany, Denmark, France, Poland, and Slovenia, is launching the €62 million Phase III of the U-LEAD with Europe initiative aimed at supporting Ukraine's recovery at the local and regional levels and strengthening local self-government.
The Ukraine – Local Empowerment, Accountability and Development Programme (U-LEAD with Europe) was established in 2016 to support transparent, accountable, and responsive multi-level governance in Ukraine, according to a press release from the Delegation of the European Union to Ukraine.
The release says Ukraine's decentralisation reform, enabled through Ukraine's decentralisation reform, "contributed to the resilience of Ukrainian statehood during the ongoing war."
The new Phase III initiative, supported with €40 million from the EU, €18 million from Germany, and €4 million from Denmark, will run until the end of 2027.
U-LEAD with Europe Director Bastian Veigel said in the release this "crucial phase" will equip "municipalities with the tools, knowledge, and partnerships they need to be in the lead of Ukraine's process of recovery, reconstruction and modernization from the bottom up."
It will also focus on strengthening local self-government and preparing municipalities for Ukraine's EU accession through policy and legal support, advancing decentralization reform, and enhancing financial capacities.
"As we move forward, this reform will continue to play a key role in Ukraine's recovery and European integration, ensuring that our hromadas are stronger, more self-sufficient, and fully aligned with European standards," said Oleksii Kuleba, minister for development of communities and territories of Ukraine.
Italy plans to help develop Ukrainian agriculture, invest €11 million in irrigation, small-scale farmers
Italy is ready to invest in the restoration and development of the Ukrainian agriculture sector, Ukraine's Minister of Agrarian Policy and Food Vitaliy Koval said following a meeting with an Italian delegation.
The Italian Pro.UKR project will provide over €11 million to develop irrigation infrastructure, support cooperatives, give equipment to small farmers, and help integrate Ukraine's agribusiness into the European market, Koval said.
The Italian delegation included Ambassador Carl Formosa along with the Italian Agency for Cooperation Development (AICS) and the International Center for Advanced Mediterranean Agronomic Research (CIHEAM), who are coordinating Pro.UKR.
The project will also support some 16,200 small and medium-sized farms, affecting 48,000 people, mostly in the districts of Berezivskyi, Rozdilnyanskyi and Odessa, the Ukrainian ministry said. The initiative seeks to strengthen Ukraine’s agri-food industry by providing technological support, improving product quality to align with European standards, and developing livestock farming.
Koval noted that Ukraine primarily exports raw agricultural products such as grain and corn, whereas Italy excels in exporting high-value finished goods, including pasta, wine, juice, and sweets. In 2024, exported $24 billion worth of agricultural products, while Italy exported $70 billion.
"Ukraine mainly supplies raw materials, while Italy exports high value-added products. It is important for us to change this situation by developing joint deep processing, creating more opportunities for Ukrainian producers and increasing the share of finished products in exports," Koval said.
He added that Ukraine was also interested in Italy's marketing experience to help it position its own products in the EU markets.
CSIS: US should look at Ukraine as strategic ally
The United States should observe Ukraine as a possible strategic ally, and not as a charity cause, due to its vast economic potential and commitment to democracy, Sergiy Tsivkach, an adjunct fellow at the Center for Strategic and International Studies (CSIS), wrote in an op-ed.
Ukraine's rebuilding offers broad cooperation opportunities, spanning energy, infrastructure, agriculture, defense, and aerospace. US technology and investment, paired with Ukrainian talent and resources, can create a win-win partnership, Tsivkach wrote.
Project Syndicate: Europeans and Americans still united in support for Ukraine
Voters across the Atlantic—including US Republicans—remain unexpectedly united in their support for Ukraine despite the high cost of it, and the broader transatlantic alliance, Mathieu Lefèvre and Tim Dixon, co-founder of non-profit More in Common, wrote in an op-ed for the Project Syndicate.
From a series of surveys Lefèvre and Dixon conducted in the US and four major European countries, they found that clear majorities in all countries still support NATO's core principles, while significant disagreement appears only among far-right AfD voters in Germany and US Republicans, though even these groups remain divided, they wrote.
Russia-Ukraine war only slightly reduced the countries' combined grain, oilseed production, analysis finds
The Ukraine-Russia war has only slightly impacted the countries' combined grain and oilseed production, thanks to higher yields in Russia—likely due to favorable weather—a minor drop in Ukraine's yields, and expanded harvested land in Russia, according to an analysis by scientists from the Ohio State University and the University of Illinois, published by farmdoc daily.
During the war, Ukraine's harvested feed grain, food grain, and oilseed land has been 16% lower than in 2019-21. Before the conflict, Ukraine's harvested land had steadily increased throughout the 21st century.
In contrast, Russia's harvested land has grown since 2010 and continued to expand during the war. Combined, harvested land in both countries has been 3% lower than in 2019-21, as per the analysis.
Ukraine's 16% drop in harvested land largely accounts for its 18% decline in grain and oilseed production during the war, while overall yields fell just 3% from 2019-21 to 2022-24, according to the analysis.
In contrast, Russia's grain-oilseed yield rose 12% during the war, and with more harvested land, its total output increased by 18%. As a result, combined Ukrainian-Russian grain and oilseed production has been only 1% lower than in 2019-21.
If Russia maintains its higher wartime grain and oilseed production while Ukraine returns to its 2019-21 levels, the total annual output will rise by 7%, while corn production—the most affected crop—will rise by 17%, which would lead to crop prices likely facing downward pressure, as per the analysis.
The increase in corn production is not likely to happen immediately after the war but will amount to 7-8 million metric tons, or 250 to 300 million bushels of additional corn output, which is between 3% and 4% of currently projected international trade in corn during the 2024 crop year.
"It is reasonable to expect that Ukraine will be an aggressive exporter of agricultural products to fund post-war reconstruction," the authors wrote.
Social Media Posts
GDP Grew 1.1% in First 2 Months
Ukrainian Economy Minister Yulia Svyrydenko announced that the country's gross domestic product grew 1.1% in the first two months of the year amid a decline in exports.
She said, however, that exports are picking up in March and the economy is recovering due to the restoration of infrastructure, growth in the processing industry, expansion of the defense industry and implementation of business recovery and development programs.
'Vast' Wind Energy Potential
GIZ Ukraine, the local branch of the German development agency, recapped a meeting in Berlin on the potential of wind energy to contribute to the long-term energy security of Ukraine.
"While the sector’s potential is vast, war-related risks and price instability deter investors," the post says. "Solutions such as a proposed price guarantee fund are under discussion to mitigate these concerns. Expanding corporate power purchase agreements (PPAs) — long-term contracts ensuring fixed electricity prices — is another promising tool."
Energy Sector Changes Explained
BDO in Ukraine promoted a new article on its website outlining changes to Ukraine's energy sector as the country seeks to acheive energy independence, develop renewable energy sources and improve efficiency.
The article covers the National Energy and Climate Plan, development of the biomethane sector, changes in taxation of energy equipment, the strategy for digital transformation in the energy sector and more.
Dairy Roadmap to the EU
The EU Integration Committee of Ukrainian Dairy, which is meant to help prepare the Ukrainian dairy industry for EU integration, explained the need for a dairy sector "integration roadmap" in a social media post.
"Integration is a complex process," said committee Chairman Andriy Tabalov. "We face challenges, including high-quality raw material requirements and technical infrastructure improvements. This is a difficult task, especially during wartime, when attracting investment is a real challenge."
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
