Saturday, May 25, 2024

The Platform for Co-Investment to Support Ukraine's Private Sector

 Ukraine is making strides in coordination with bilateral development agencies (DFIs), notably through a Memorandum of Understanding between the EBRD and DFIs on a co-financing platform. This initiative enables the use of long-term project financing and guarantees from DFIs alongside resources from international financial institutions (IFIs) to implement investment projects in Ukraine.

Investing in Ukraine's private sector is urgent and should not wait until the war ends. Leveraging this Platform is crucial for the country's reconstruction efforts.

Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, highlighted this in a video address at the annual EBRD-G7 DFI-EDFI Ukraine Co-Investment Platform meeting in Oslo, Norway.

"We are grateful to our partners from the EBRD and global development finance institutions for their support of Ukraine's private sector. The Memorandum between the EBRD and DFIs establishes effective coordination of investment efforts in Ukraine. It is vital that investors use the Co-Investment Platform now, not waiting for the war to end," stated Yuliia Svyrydenko.

She emphasized that Ukraine anticipates new practical initiatives within the Co-Investment Platform, focusing on urgent needs. This includes identifying projects with high potential for mobilizing private capital and significant multiplier effects, enhancing financial mechanisms to stimulate private investment, and creating investment projects for businesses through technical assistance and feasibility studies.

For investors, the Government offers a wide range of support programs, including war risk insurance infrastructure, support for projects with significant investments, and initiatives to develop industrial parks. Additionally, investors have access to various financing options through the Ukraine Investment Framework, part of the Ukraine Facility, totaling over EUR 9 billion over the next four years.

At the Platform meeting, the Ukrainian delegation, led by Deputy Minister of Economy Volodymyr Kuzio, held more than 15 bilateral meetings with DFI representatives. These meetings aimed to explore further cooperation and joint investment projects.

"The Ministry of Economy is creating conditions for DFIs to finance business investments in Ukraine, including mandates from partner country governments, de-risking tools, and local investment expertise. Exchanging information and cooperating with international financial institutions like the EBRD and IFC, Ukrainian banks, and export credit agencies is crucial. This will establish direct communication with partners and secure targeted support for rapid investment project implementation," said Deputy Minister Kuzio.

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