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vice president of Philip Morris International in Northeast Europe. "For example, in Poland, the government provides huge financial support to the investor, investing a lot of money in infrastructure, tax benefits, etc. All these government grants given to companies are repaid in two to four years," the vice president noted. According to him, in addition to improving infrastructure, it is worth quickening the introduction of changes to Ukrainian legislation to correspond to European practices. He recalled that in June of this year, the company announced an investment of more than $30M in a new production facility in the Lviv region. "We had several options, including Poland, Turkey, the Czech Republic, and Lithuania. But we are not only thinking about economic indicators. Philip Morris wants to show international investors that Ukraine is a place where you can and should invest, despite all the risks," the company's vice president said.
Korean companies will receive state support during Ukraine's reconstruction. The South Korean government will support state and private companies in restoring Ukraine's destroyed transport infrastructure and energy sector, the Korea Times writes. Hyundai Engineering & Construction has already signed a memorandum with Boryspil International Airport regarding reconstruction and expansion projects. Samsung C&T signed an agreement with Lviv to develop a "smart" city. Other companies ready to participate in Ukraine's reconstruction include Kolon Global, HD Hyundai XiteSolution, and Hyundai Rotem. South Korea plans to send a delegation from their Ministry of Infrastructure to Kyiv in August and from their Ministry of Trade and Energy in October. The cost of reconstructing all of Ukraine's transport and energy infrastructure is estimated at $140B. The largest costs are for the restoration of destroyed housing ($50.4B), transportation ($35.7B), trade ($10.9B), energy ($10.6B), highways and roads ($26.4B), as well as power supply facilities for railways and stations ($23.3B).
Until the war ends, Ukraine will not be able to attract large-scale foreign investment. Attracting capital will be possible only if the active phase of the war ends and security guarantees are obtained from partners, said Deputy Head of the Office of the President Rostyslav Shurma. "After the victory, the normal security guarantees, and the disclosure of all the potential we are talking about, we see that there will be a fairly large flow of all types of funds. Both cheap pension funds and active funds," he noted. However, suppose the active phase of the war continues in Ukraine without security guarantees. In that case, the official is convinced that large international private capital will not invest in the Ukrainian economy. According to him, the only capital that Ukraine can count on is the concessional capital of partners, that is, part of the budget funds or state guarantees, under which specific projects with a limited scale will be financed.
Since the war, Henkel has invested about €1.5M in its Ukrainian factories. According to the President of Henkel Bautechnik (Ukraine), Olena Yefremova-Kursik, the company has invested in the modernization of their production, restoration, digitalization, as well as process automation. These measures have been implemented as part of a sustainable development strategy and to increase employee safety. Currently, the company is resuming operations at another plant in Ukraine in the Kharkiv region. "After the liberation of the Kyiv region, we started production at our factories in the Kyiv and Lviv regions in April 2022. Another one of our factories, located in the Kharkiv region, is also gradually resuming production after its liberation," Yefremova-Kursik said. Another production facility of Henkel Ukraine, which
38 UKRAINE Country Report September 2023 www.intellinews.com