Page 46 - UKRRptNov23

5.3 FDI
Ukraine received $3.1 billion in foreign direct investment this year as of August, including reinvested earnings, after a slight contraction in the same period last year. Prices for many overseas government bonds have jumped roughly 50% since May, though they continue to trade at a deep discount.
Sweden and Estonia are ready to support investment in Ukraine and the country's reconstruction. The Swedish government proposes the allocation of SEK 333M for special export credit guarantees for companies that trade with Ukraine. The Export Credit Agency of Sweden will cover the guarantees for exports from Swedish companies. The policies will begin to be issued in 2024 and apply to transactions for a maximum of three years but no later than the end of 2026. For Ukrainian and Swedish companies, this means less riskier conditions for logistics, protection of investments, and receiving compensation in the event of force majeure. Meanwhile, Estonia is considering implementing new projects to restore Ukraine's destroyed infrastructure. "Ukraine invites Estonian businesses to invest in logistics, energy, processing, and IT. To implement this, we will introduce military risk insurance. Moreover, through KredEx, Estonia insures not only Estonian but also Ukrainian investments. We will encourage the creation of many joint Ukrainian-Estonian enterprises," said Economy Minister Yuliya Svyridenko.
One of the largest European sugar producers is buying its sixth plant in Ukraine. On October 19, the Antimonopoly Committee agreed to allow the Radekhiv Sugar Company, the owner of which is the German company Pfeifer & Langen, to buy the assets of the Hnidavsky Sugar Factory in Lutsk. Earlier, the AMCU announced that it found grounds for banning the deal, as it could create threats to competition, but the buyer undertook several obligations to prevent these from happening. These five-year obligations include:
● to accept beets for processing, absent compelling reason
● to pay for transportation of beets up to 132 km.
● to offer long-term contracts, up to three years, but allow suppliers the right to shorter contracts, etc.
Pfeifer & Langen owns five sugar factories in Germany and shares in enterprises in Poland, Romania, Italy, Hungary, Slovenia, and the Czech Republic. In Ukraine, the company has production facilities in the Lviv and Ternopil regions. The Hnidavsky Sugar Factory can process up to 6,000 tons of sugar beets daily.
A Polish pharmaceutical company will build a production plant in the Lviv region. Polish company Biofarm plans to open a production facility in the Lviv region that will create 500 jobs, said the chairman of the Zhovkiv city council, Oleg Volskyi. Last week, the Zhovkiv community signed a memorandum of cooperation with a Polish pharmaceutical company. It refers to providing the enterprise with approximately 10 hectares of land. "They want to lease or buy land in the Zhovkivska region and start construction. By the end of the year, we must organize all the documents. According to previous agreements, the company is ready to start building the enterprise next year," he added. After obtaining the land and all the necessary documents, it will take approximately 1.5 years to build the factory. The company is generally interested in working on the Ukrainian market, but its capacity will also allow the export of goods.
46 UKRAINE Country Report November 2023 www.intellinews.com