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seeks to develop its processing industry. According to the Minister of Economy of Ukraine, Yulia Svyridenko, Ukraine's projected investment need for 2023-2032 is estimated at $90B. At the same time, the state plans to concentrate on developing the processing industry because it provides a high percentage of added value. Currently, the share of the processing industry in Ukraine's GDP is 10.3%. At the same time, the processing industry shares of GDP from neighboring countries include Poland – 17.3%, Turkey – 22%, and Slovakia – 19.1%. The OECD guideline for Ukraine is 20-25%. Svyridenko emphasized that for sustainable economic growth, Ukraine must transition from a country that exports raw materials into an exporter of finished products. In addition, to help local businesses, the government is focused on supporting exports by increasing the capacity of the Ukrainian Export Credit Agency.
The Turkish Onur Group plans to invest $500M in Ukraine and has already concluded new road construction contracts worth UAH 13B. The contractor for the presidential program Big Construction, the Onur Group, has invested more than $350M in nine business areas in Ukraine since 2021, said the general director of the Onur Group in Ukraine, Emre Karaahmetoglu. By 2030, the company plans to invest another $500M in Ukraine. According to him, in addition to road construction and engineering, the Turkish group is focused on seven more areas: the mining, energy, industry, hotel and restaurant business, real estate, agricultural, and woodworking industries. It is worth noting that Ukraine owes the Onur Group more than UAH 5B, but the Turkish company does not currently plan to sue the state. Included in the results from the first half of 2023, the Onur Group has already managed to conclude contracts for the construction and repair of roads worth UAH 13B, of which UAH 4.2B is with the State Agency for Reconstruction and Development of Infrastructure of Ukraine.
Ukraine and Korea have agreed on preferential loans for projects with participation from Korean companies. An intergovernmental agreement on loans from the Economic Development and Cooperation Fund (EDCF) was signed between the two countries in the presence of President Volodymyr Zelenskyy and the Korean Minister of Infrastructure and Transport Won Hee-ryong. In particular, Ukraine, or a business entity that has received a state guarantee, has the right to attract long-term loans at low-interest rates from the Export-Import Bank of Korea through the EDCF. In the first stage, such loans can be used for equipment acquisition, but from 2025, infrastructure loans will become available for the reconstruction of Ukraine. This was announced by Korean President Yoon Seok-yeol during the G20 summit, announcing the provision of $2B to Ukraine for reconstruction in the form of loans through the EDCF. “The loans will contribute to the restoration of production potential and the creation of new jobs. Ukraine will benefit from the Korean experience for post-war reconstruction," said Minister of Economy Yulia Svyridenko.
Turkish investment in Ukraine is growing annually by $200-$300M.Despite the war, almost all Turkish companies continue their work in Ukraine, keeping their existing investments and increasing the number of new ones, said Burak Pehlivan, the chairman of the International Turkish Ukrainian Business Association. According to him, five years before the war, Turkey became the No. 1 investor in Ukraine and is among the top three foreign investors for all the years of the Ukrainian state's independence. Today, the total amount of Turkish investment in Ukraine amounts to more than $4.5B. "Of course, after February 24, 2022, it became difficult for Turkish investors to do business due to difficult and unpredictable conditions. However, Turkish companies continue
45 UKRAINE Country Report October 2023 www.intellinews.com