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5.3 FDI
US companies are interested in investing in the reconstruction of Ukraine under certain conditions. Penny Pritzker, the US Special Representative for Ukraine's Economic Recovery, said these conditions center on reforms in accountability and transparency in Ukraine. "The key task is to ensure that recovery goes forward following international best practices. Thus, reforms and recovery go hand in hand," Pritzker emphasized. According to her, Ukraine's potential is enormous, particularly in agriculture, energy, metallurgy and mining, and mineral extraction, among others. "But to realize this potential, it is necessary to carry out preliminary work, which can be successfully accomplished now, and the Ukrainian government is ready to accept this challenge," the special representative added. She clarified that in 13 days, she met with representatives from 30 private companies interested in reconstructing Ukraine. "Everybody sees the opportunity, and I'm really encouraged by the private sector's interest in tackling this. It requires some kind of partnership between the government and the private sector," she said.
In the midst of the war, Lebanese and Jordanian companies have invested $15M in a farm in the Kyiv region. The companies are retooling the production facilities at the MP Agro-Trading House in the city of Tarasha, which is engaged in the breeding and harvesting of cattle. The project was implemented after the full-scale invasion began. The new equipment will ensure a full production cycle of semi-finished veal and beef products. The modern, world-class production facilities include a meat processing plant and 12,000 head of cattle. As their production processes comply with Muslim food standards, the company can export products to Middle Eastern countries. Expanding production capacity will also provide 300 new jobs for the entire region. Before the start of the war, the company exported cattle through ports by live weight. After the invasion, the business's owners decided to reformat their activity to meat processing and export of value-added products.
About 2,500 Polish companies want to rebuild Ukraine. Despite martial law and the risk of missile and drone attacks, about 600 Polish companies remain at work in Ukraine, paying taxes and supporting social initiatives. Some are already planning to expand their investments. Over the past three months, Ukraine's government and the Polish Sejm have adopted a draft law on investment insurance in Ukraine. Legislation on this matter has already been signed by the President of Poland, Andrzej Duda. At the same time, it is noted that almost 2,500 companies want to take part in rebuilding Ukraine and have notified the Polish Investment and Trade Agency of their readiness. This is evidenced by the results from the Congress on the Reconstruction of Ukraine Common Future in Poznań. Commissioner of the Council for Polish-Ukrainian Development Cooperation Jadwiga Emilevich reported Poland's desire for an economic presence in Ukraine so that "the post-war reconstruction process becomes an opportunity for the development of new forms of cooperation for Polish companies."
France will insure its companies against war risk in Ukraine. The French state insurance company Bpifrance Assurance Export will insure companies ready to participate in the reconstruction of Ukraine even before the end of the war, the Ministry of Economy reported. It is said that any company operating under French law and making a long-term investment abroad in a new or existing company or any credit institution providing a bank loan to a foreign
43 UKRAINE Country Report October 2023 www.intellinews.com