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Ukraine asks the OECD to lower its country risk classification group to halve the cost of investment insurance. The Ministry of Economy, with the participation of Advantage Ukraine, is conducting active negotiations with export credit agencies (ECAs) in partner countries, emphasizing the importance of applying 100% coverage for insurance risks, said Deputy Minister Volodymyr Kuzyo. “We call on the ECA to expand support for projects in Ukraine. In addition, providing investment insurance to Ukrainian companies when establishing joint ventures with foreign partners can provide significant advantages for business activity in Ukraine. We are currently working on collecting possible investment projects in key sectors of the economy. Some of them are already being considered by the ESA, international organizations, and development finance institutes (DFIs and IFIs)," Kuzio noted. In addition, Ukraine asked the OECD to revise its country risk classification group from the seventh group to the sixth. This could halve the premium rate for insurance of investment risks, significantly reducing the cost of equipment and facilities needed by Ukrainian companies to participate in reconstruction.
Military bonds in September brought the budget UAH23bn ($629mn).
According to the Ministry of Finance, about UAH185bn in military bonds were issued in the nine full months of the year. As of the end of September, Ukrainian citizens owned military bonds worth about UAH25.4B. The total portfolio of military bonds owned by individuals and legal entities as of October 1 amounted to UAH58.3B equivalent, compared to UAH34.5B as of January 1, 2023. Funds raised through this mechanism are directed to support the military. The Ministry of Finance began issuing war bonds on March 1, 2022, a few days after the start of the full-scale invasion. As of the end of September, the total amount of funding raised through military bonds reached about UAH385B.
The European Union has allocated €85bn to aid Ukraine in 2022, including the military aid, EU High Representative for Foreign Affairs Josep Borrell said during the visit to Kyiv. "Our military support to Ukraine has reached the figure of twenty €5bn and altogether, military, civilian, humanitarian, has reached the figure of €85bn," Borrel said in the statement posted on the EU web portal.
The US is discussing a $100B aid package, its largest, and will work to convince the IMF and the World Bank to maintain financial support for Ukraine. US President Joe Biden plans to ask Congress to approve $100B for the largest package of military and humanitarian aid to Ukraine, which should be enough for about two years. According to The Telegraph, the White House is drawing up plans to ask Congress for the largest package of defence and humanitarian aid funding amid fears that disputes over spending could hurt the president in next year's election. "The idea of a "big package" is strongly supported by many in the administration," the publication’s sources noted. Meanwhile, US Treasury Secretary Janet Yellen will discuss US priorities at the annual meeting of the IMF and the World Bank, including increasing funding for institutions amid political chaos in the US Congress. A representative from the US Treasury Department said that Yellen will advocate for countries and institutions to provide Ukraine with as much funding as it needs to fight the Russian invasion.
Due to uncertainty of further US support, Yelen approves the EU's plan to tax the Russian Federation’s frozen assets. US Treasury Secretary Janet Yellen strongly supported the EU's plan to introduce a windfall tax on frozen
55 UKRAINE Country Report November 2023 www.intellinews.com