Today's Contents
Reporter's Notepad:
- Dear readers: A busy week of getting not much done
Just The Facts:
- Trump says US to sign minerals deal with Ukraine shortly
- Ukraine receives €1 billion in second EU tranche of G7 ERA initiative to be repaid with frozen Russian assets
- Kyivstar agrees to buy Ukraine's ride hailing business Uklon for $155 million
- European Commission mulls cutting Ukrainian sugar imports after sharp drop in sugar prices, sources say
- European Commission suggests EU fund Ukraine's space-based services from EU-based commercial providers
- Italy launches €6 million tender for demining in Ukraine
- Ukraine's foreign minister opens consulate general in Mumbai, talks to Indian businesses
Here's What They Think:
- E-IR: Ukraine could become key player in European gas market
- The Hill: Peace in Ukraine possible only if Russia is strategically defeated
Sober Second Thought:
- Ukrainians stay resilient in their spending habits amid war, Deloitte survey finds
Dear readers,
This week has felt odd, from a news perspective - lots of activity but little getting done.
The week started with US President Donald Trump on Air Force One, announcing on Monday that he would speak later in the week with Russian President Vladimir Putin. The announcement came after US and Ukrainian officials met in Saudi Arabia last week to outline a 30-day ceasefire proposal.
In related news on Monday, Australian billionaire Andrew Forrest, famous in Ukraine for committing $500 million to the reconstruction of Ukraine in 2022, said he may withdraw his pledge in case of a bad peace deal.
On Tuesday, URN readers received three tips for investing in Ukraine from Tyson Barker, who served as Deputy Special Representative for Ukraine's Economic Recovery in the Biden administration.
At the same time, we learned that Ukraine and South Korea were discussing how to handle North Korean prisoners of war, and the European Council approved €3.5 billion as a third payment of repayable grants and loans to Ukraine under the €50 billion Ukraine Facility.
Then, the results of the Trump-Putin talks came on: Putin agreed to a 30-day pause in attacks against Ukraine's energy infrastructure facilities. The results were not very noticeable in Ukraine.
On Thursday, we learned that the German government will release an additional €3 billion in military aid for Ukraine, including €2.6 billion from the German budget, with the rest funded by the European Peace Facility, a European Union funding mechanism for military items.
At the same time, the European Commission sweetened the day a bit more by announcing a further €1 billion loan for Ukraine, to be repaid with proceeds from frozen Russian assets.
The sweetness didn't linger, however, as Ukrainians learned the Commission may cut Ukrainian sugar imports following complaints from EU producers that shipments from Ukraine have driven down prices and hurt sales.
And, just as the week started by waiting for a Trump announcement, it ends with another one. Trump said late Thursday, Kyiv time, that the United States will soon sign a minerals deal with Ukraine, considered key in the developing relations between the two countries.
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 says US to sign minerals deal with Ukraine shortly
US President Donald Trump said on Thursday the US will soon sign a minerals deal with Ukraine amid his administration's efforts to end the war between Russia and Ukraine.
"We're doing very well with regard to Ukraine and Russia. And one of the things we are doing is signing a deal very shortly with respect to rare earths with Ukraine," Trump said after signing an order to raise the production of critical minerals in the US.
Trump also noted he thought the US was "doing pretty well" with regards to ending the war. "Hopefully we'd save thousands of people a week from dying. That's what it's all about. They're dying so unnecessarily, and I believe we'll get it done," he stated.
The agreement for the US and Ukraine to jointly develop Ukraine's mineral resources was initially set to be signed during Ukrainian President Volodymyr Zelensky's visit to Washington on Feb 28. The deal was, however, put on hold after a contentious exchange between Zelensky and Trump in the Oval Office.
The US and Ukraine have previously agreed on the broad terms of a deal that envisions the establishment of a fund into which Ukraine would contribute 50% of proceeds from the "future monetization" of state-owned mineral resources, including oil and gas, and associated logistics.
Trump's latest comments come after he earlier this week had phone calls with both Russian President Vladimir Putin and Zelensky, securing a 30-day halt on attacks on energy infrastructure between the two countries. He also agreed with both leaders that the US will continue working toward a full ceasefire between Russia and Ukraine.
Ukraine receives €1 billion in second EU tranche of G7 ERA initiative to be repaid with frozen Russian assets
Ukraine has received a further €1 billion from the European Commission's (EC's) Macro-Financial Assistance (MFA) loan, which is expected to be repaid with proceeds from Russian assets frozen in the European Union.
The €18.1 billion MFA loan constitutes the EU's contribution to the G7-led Extraordinary Revenue Acceleration (ERA) loans initiative, whic aimes to provide €45 billion in financial support to Ukraine, according to an EC press release.
With the €1 billion tranche, the Commission's lending to Ukraine under the MFA totals €4 billion since the start of the war, the release said. The MFA offers long maturities which can extend up to 45 years and the loans repayment will come from the proceeds from frozen Russian assets collected from the Ukraine Loan Cooperation Mechanism.
The financial package is being used to support Ukraine's current and future military, budget and reconstruction needs, as well as the restoration of critical infrastructure destroyed during the war.
"We stand ready to frontload financial support to Ukraine, if necessary. The financing provided will be used to help Ukraine maintain macroeconomic stability, rebuild infrastructure, and continue its fight against Russian aggression," said Valdis Dombrovskis, EU commissioner for economy and productivity; implementation and simplification
The frozen assets of Russia's central bank in the EU amount to about €210 billion and represent the majority of frozen Russian assets worldwide, Ukraine's finance ministry said, citing official EU data.
"I am grateful to the EU countries for their support of the ERA mechanism and, in particular, for the next tranche of €1 billion. This year, we expect to attract the entire amount of funds from the EU, which will allow us to meet Ukraine's budgetary needs in 2025-2026," said Sergii Marchenko, Ukraine's finance minister.
He added: "Our next priority is the complete confiscation of frozen Russian sovereign assets. These funds should become a tool for Ukraine's recovery."
Kyivstar agrees to buy Ukraine's ride hailing business Uklon for $155 million
Veon's Kyivstar, the Ukrainian telecoms operator, has signed a deal to buy Ukraine's ride-hailing and delivery platform Uklon for $155.2 million.
Uklon operates in 27 cities across Ukraine and in 2024 facilitated more than 100 million rides and over 3 million deliveries, Veon said in a press release on Thursday. In 2023, Uklon has entered the deliveries business and expended its operations into Uzebkistan.
Veon CEO Kaan Terzioglu said the takeover was "a statement of confidence in Ukraine's digital growth potential... We are looking forward to exploring the expansion of Uklon's capabilities beyond Ukraine and Uzbekistan with the support of our digital operators in Kazakhstan, Pakistan and Bangladesh."
Following the deal, Serhii Hryshkov is expected to remain in his position as Uklon CEO, the release said.
On Tuesday, Veon said it had signed a business combination agreement with special purpose acquisition company Cohen Circle that will result in the listing of Kyivstar on Nasdaq. Veon will own a minimum of 80% of the issued and outstanding equity in Ukraine's leading digital operator following the closing of the agreement.
European Commission mulls cutting Ukrainian sugar imports after sharp drop in sugar prices, sources say
The European Commission (EC) is considering cutting Ukrainian sugar imports following complaints from EU producers that shipments from Ukraine have driven down prices and hurt sales, three unnamed sources told Reuters.
EU Agriculture Commissioner Christophe Hansen signaled plans to reduce sugar imports "well below" current levels during a February meeting in Paris with the leaders of French farm unions and industry representatives, though he did not specify by how much, the sources said.
Hansen said he would also address other imports from Ukraine, including grains, without elaborating further.
The Commission told Reuters it was aware of the concerns coming from EU farmers and member states regarding agricultural imports but declined to comment further.
Ukraine's Agriculture Minister Vitaliy Koval told the news outlet it was important to maintain continuity in the supply of Ukrainian products to the bloc. Last week, Ukrainian Deputy Economy Minister Taras Kachka during an online conference expressed hope for a fair agricultural deal with the EU, stating the issue was " more a matter of politics than trade."
Ukrainian sugar imports surged after the EU lifted duties on farm products in 2022, exceeding 500,000 tons in 2023/24—far above the pre-war quota of 20,000 tons. This lead to a 30% drop in European sugar prices last year, Reuters said, citing EU data.
In response to complaints from European farmers, the EU reinstated import quotas, halting sugar imports once the initial limit was reached. With the second quota opened in January for 109,440 tons, Ukraine has exported little so far, redirecting shipments mainly to Turkey, the report said, citing Ukraine's sugar union Ukrtsukor.
European Commission suggests EU fund Ukraine's space-based services from EU-based commercial providers
The European Commission said in a white paper on the future of European defence that the EU should finance Ukraine's access to space-based services offered by EU-based commercial providers, including start-ups and scale-ups.
The EU should grant Ukraine access to its space program and fund access "in support of and upon demand of the Ukrainian Armed Forces," the white paper said on Wednesday.
"This will help Ukraine to enhance its resilience by diversifying its sources of space-based services," it added.
Eva Berneke, the CEO of French satellite operator Eutelsat, told Bloomberg earlier this month the company's talks with the EU to replace Elon Musk's Starlink satellite internet systems in Ukraine were intensifying.
Eutelsat has thousands of terminals in Ukraine, but not all are on the network, and the company would need "a couple of months" to provide 40,000 military-grade and standard terminals to replace Starlink.
Starlink has been crucial for the Ukrainian military throughout the war with Russia, as much of the country's communications infrastructure has been destroyed, according to the report. However, tensions between Washington and Europe have sparked concerns about potential service disruptions.
Poland currently pays for a part of Ukraine's connectivity, and has spent approximately PLN 323 million (€77 million) on over 24,500 Starlink terminals between 2022 and 2024, the Polish ministry of digital affairs told state news agency PAP. In 2025, Poland will pay further PLN 77 million for Starlink's services.
Earlier this month, US Secretary of State Marco Rubio and Elon Musk have clashed with Poland's foreign minister, Radosław Sikorski, on platform X over the services in Ukraine.
Musk said that Ukraine's "entire front line" would collapse if his company would turn the system off, with Sikorski responding that if SpaceX "proves to be unreliable provider we will be forced to look for other suppliers." Rubio said Sikorski "was just making things up" as "no-one has made any threats about cutting Ukraine off from Starlink," while Musk called Sikorski a "small man."
Italy launches €6 million tender for demining in Ukraine
The Italian Agency for Development Cooperation (AICS) has announced a €6 million grant competition for demining operations in Ukraine's war-affected frontline regions, with a maximum funding of €1.8 million per project, Ukraine's Economy Ministry said.
Projects must include both technical and non-technical land surveys, along with public awareness campaigns on mine threats. Ukraine's Kharkiv region is the top priority, as 55 of its 56 municipalities have been impacted by the war.
"This is the first time a partner country has allocated funds specifically for demining Ukrainian land while involving Ukrainian operators. This cooperation will accelerate decontamination efforts and strengthen collaboration at both institutional and operational levels," said Ukraine's Minister of Economy Yulia Svyrydenko.
Only nonprofit organizations can apply, but they may partner with commercial demining operators. Applications are open until May 11, with projects lasting up to 15 months.
Ukraine is now the world's most mined country, with up to 23% of its land at risk of contamination from landmines and unexploded ordnance, according to the United Nations Development Programme.
Removing landmines and unexploded ordnance is a decades-long process requiring substantial investment. In its latest Rapid Damage and Needs Assessment for Ukraine from February, the World Bank estimated the cost of demining in the country at $30 billion.
Ukraine's foreign minister opens consulate general in Mumbai, talks to Indian businesses
Ukraine's Foreign Minister Andrii Sybiha on Wednesday opened a Consulate General in Mumbai to boost diplomatic relations and business ties with the world's most populous country.
The consulate will "contribute to the protection of the rights and interests of our citizens, develop partnerships and business contacts," Ukraine's Foreign Ministry said in a press release on Thursday.
During his official visit to India on March 17-19, Sybiha also participated in a business forum in Mumbai on Wednesday, with over 130 Indian businesses, the ministry said.
"Today we are talking about opportunities. Our bilateral relations have enormous potential. Throughout history, Ukraine and India have had truly close ties. And we are ready to develop our bilateral relations. India's role is very important and we invite you to actively cooperate with Ukrainian partners," Sybiha said at the forum, as quoted by Interfax Ukraine.
A key highlight of the event was showcasing India's expertise in critical areas for Ukraine. Horizon Group presented advanced humanitarian demining solutions and is currently undergoing certification in Ukraine, according to Interfax Ukraine.
Sybiha also held key meetings with major Indian businesses looking to strengthen ties with Ukrainian companies, the ministry said. According to the minister, Indian businesses showed strong interest in partnering, investing, and expanding operations in Ukraine.
E-IR: Ukraine could become key player in European gas market
Ukraine could become an important player in the European gas market if the government implements investor-friendly policies, including regulatory reforms and tax incentives, Chris Pallett, a retired teacher, wrote in an op-ed for E-International Relations.
Western companies have shown that Ukraine's gas sector remains profitable even in difficult times and, with the right strategy, other international energy companies could consider entering Ukraine's market, Pallett wrote, adding that Ukraine's gas storage capacity could serve as a strategic asset for Europe.
The Hill: Peace in Ukraine possible only if Russia is strategically defeated
Expecting Russia to willingly agree to a settlement that ensures an independent Ukraine is unrealistic - dispelling this idea sooner will accelerate the real work toward peace, Daniel Kochis, a senior fellow at the Center on Europe and Eurasia at Hudson Institute, wrote in an op-ed for the Hill.
The US must now focus on the key objective: increasing pressure on Russia and equipping Ukraine to resist aggression, ensuring Russia's strategic defeat—the only path to true peace, according to Kochis.
Ukrainians stay resilient in their spending habits amid war, Deloitte survey finds
Ukrainians remain resilient in their spending despite the war, opting for fewer but higher-value purchases, especially on food and medicine, according to Deloitte Ukraine's latest consumer behavior survey.
Overall spending among Ukrainians has declined in most categories, but 37% of respondents increased their spending on food and medicine. The biggest cuts were in children's goods (39%) and building materials (48%), as per the survey.
Ukrainians dedicate 77% of their budget to essentials such as housing, food, healthcare, and transport, compared to 46% in Poland and 51% in Germany, the survey found. Only 3% is spent on leisure, well below the European average of 15–20%.
Despite the rise of e-commerce, 72% of Ukrainians still prefer in-store shopping for food, while online purchases are highest for electronics (17%) and cosmetics (15%), according to Deloitte.
Notably, online spending among young people is surging, with the average grocery bill for 18-27-year-olds rising by 90%—the highest among all age groups. In contrast, older shoppers (43-57) prefer in-store shopping, increasing their average bill by 45%.
For the first time, the survey examined Ukrainians' book-buying habits. It found that one in three respondents purchases books online at least once every two months, spending an average of UAH 1,028 ($28) per transaction.
Ukrainians continue to pay attention to the social responsibility of businesses, with 62% of respondents avoiding companies still operating in Russia, with Kyiv residents and those over 58 most committed to this stance. Additionally, 55% favor businesses supporting Ukraine's armed forces, and 28% are willing to pay significantly more for their products.
The survey was conducted from November 28 to December 11, 2024, covering all regions of Ukraine. More than 1,000 residents of Ukraine aged 18 and over who use smartphones participated in it.
Social Media Posts
Massive Reconstruction of Tram Network Needed
Viktor Zagreba, chairman of the NGO Vision Zero which advocates for sustainable transport in the recovery of Ukraine, posted an overview of the state of Ukraine's tram network and reconstruction needs.
"Ukraine's total length of tram tracks is 1758 km, it about the distance from Copenhagen to Naples. And I can say that perhaps 1700 km of them will need a complete, deep reconstruction after the war. Also, hundreds of traction substations, dozens of depots, thousands of km of cable and catenary lines. Of course, hundreds and hundreds of new low-floor trams. And other "small things", such as thousands of new bridges."
This is What a 'Wartime Economy' Looks Like
Ukrainian Economy Minister Yulia Svyrydenko posted a description of a "wartime economy," including details of the state's increased influence on gross domestic product, changes in the various sectors of the economy and spending habits.
Since the full-scale invasion, the capacity of Ukraine's defense industry increased 35-fold, while the state portion of GDP grew to 21.4% in 2023 from 6.2% in 2021 and a decrease in consumer spending on non-essential goods accounted for a 9.1 percentage point drop in consumption as a portion of GDP, she said.
XFactory accelerator launched in Ukraine
The Ukraine branch of Forvis Mazars, the global professional services network, announced the launch of XFactory Ukraine, a corporate accelerator that includes a 5-month program with no financial obligations, personal coaching and a focus on French and German markets for scaling.
Building on the success of XFactory in France, we’re bringing its proven model to Ukraine – adapting the best corporate accelerator practices to the Ukrainian market. By combining our global expertise with industry insights, we will help startups scale faster and grow confidently.
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
