Page 55 - UKRRptApr24

activities initiated by the Ukrainian authorities, in particular the National Bank, to deepen financial markets infrastructure and oversight.
The EIB has increased investment in Ukraine by 700% and plans to allocate €100M for the restoration of hydropower. In 2023, the European Investment Bank increased project financing in Ukraine by 700% compared to the previous year, up to €262M. The main direction for this financing was €133M to restore damaged critical energy infrastructure. As noted by the Ministry of Finance, EIB initiatives in the state sector currently comprises 25 projects with a total volume of €5.2B. Of these, 23 projects with a total volume of €4.8B are in the implementation stage. During a meeting of Ukrainian government representatives and EIB management, the parties agreed to continue their work on the effective implementation of current and potential projects and the attraction of new bank investment in Ukraine. According to Prime Minister Shmyhal, the EIB is considering allocating approximately €100M to support Ukraine's hydropower industry. According to him, Ukraine's hydropower industry has lost about 2,500 MW of capacity through Russian aggression.
EBRD will consider co-investing with UDF in future The European Bank for Reconstruction and Development (EBRD) at this stage does not plan to invest in the Ukraine Development Fund (UDF), created by the Ukrainian government in cooperation with BlackRock and JP Morgan, however, in the future it will consider the possibility of joint investment with it.
The EBRD plans to invest up to €10B in Ukraine over the next five years,
said EBRD Vice President Jürgen Rigterink. He noted that the EBRD, responding to the crisis caused by the war, is focused on five main areas of Ukrainian support, spread between the private sector and the public sector. The five areas of focus include energy security, critical infrastructure, food security, business support and trade finance. The EBRD vice president explained that through the bank's decision to increase capital by €4B, the EBRD can leverage four to six times that amount in additional investment. Therefore, over the next five years, the bank expects to be able to invest €1.5-2B in projects in Ukraine every year. "We do not think that it would be wise for the bank to rely on donor support every time. So, we increased the capital. This will allow us to invest €10B in Ukraine over the next five years, and when the war in over, this amount will grow even more," he said.
On March 26, the World Bank’s Board of Executive Directors approved a new Development Policy Operation (DPO) for Ukraine in the amount of $1.5B. The Growth Foundations operation is credit enhanced through the ADVANCE Ukraine Trust Fund ($984 million), supported by the Ministry of Finance of Japan, and guaranteed by the Government of the United Kingdom ($516M).
6.1.4 Budget dynamics - privatisation
Investments in distilleries during privatization bring ₴4B to the budget. Since distilleries began to be sold, the State Property Fund of Ukraine has organized 115 online auctions. Privatization of these assets ensured the receipt of ₴4B ($105M) to Ukraine’s budget, said the head of the SPFU, Vitaliy Koval. During 54 successful auctions an average of 3.2 participants participated, which indicates a great interest in these auctions. Due to the competition generated, asset prices increased by an average of 140%. In addition to the sale price, the new owners also assume the property’s debt burden, including taxes and back wages, with a total amount of ₴364M. Also, the contribution from these new owners to the state budget in the form of ₴602M in VAT is noted. The total economic gain from the de-monopolization of
55 UKRAINE Country Report April 2024 www.intellinews.com