Today's Contents
Reporter's Notepad:
- 4 lessons building materials giant Kingspan learned from planning a $280 million investment in war-time Ukraine
Just The Facts:
- EBRD to invest at least €1.5 billion in Ukraine in 2025
- Kingspan to start building its first Ukrainian factory 6 months later than planned after cumbersome paperwork
- EIB to allocate €100 million for district heating in Ukraine through Ukreximbank
- Schneider Electric vows to train 1 million Ukrainians in energy management basics
- EBRD signs guarantee agreement for electric locomotives project in Ukraine
- UK to invest additional GBP 17 million via InnovateUkraine program to bolster clean energy solutions in Ukraine
Here's What They Think:
- ICDS: 2025 decisive year for Ukraine war
- Geopolitical Monitor: Europe may have to escalate Ukraine war to protect itself
Sober Second Thought:
- 60% of Ukrainian media says halt of US support will have 'catastrophic' impact, survey finds
Dear reader,
As the world hesitantly anticipates an end to the shooting this year, with fingers crossed, Ukraine Rebuild Newswire is starting to focus on the investors who still plan to enter Ukraine.
They will be starved for advice, and they will look to the brave few who preceded them - including many URN readers like yourself. In that spirit, we are looking to start a regular column on advice from old hands at the Ukraine scene.
Any tips you wish you'd heard before venturing into Ukraine? Do you find yourself passing on the same lessons to others in your company or organization? Experienced hard knocks and unexpected joys in your professional association with Ukraine? Please do share with us - we'd like to write about it.
Of course, some of our readers never underwent the process of adjusting to Ukraine – they were born there. What do you find yourself telling newcomers over and over? What advice can save foreigners grief and help attract the funds Ukraine will desperately need in coming years?
Please email the editor at adam.brown@ukrainerebuildnews.com if you'd like to contribute advice to help smooth out the historic reconstruction of Ukraine.
We look forward to hearing from you,
The URN Team
And here's a few words of advice earned from a pretty unique experience:
4 lessons building materials giant Kingspan learned from planning a $300 million investment in war-time Ukraine
Kingspan's Mike Stenson has ushered the building materials giant through multiple complicated stages of investing in war-time Ukraine as it seeks to build a $300 million multi-factory manufacturing campus near the western city of Lviv.
Stenson, who is serving as project manager on the investment, first revealed the extent of the plans last year in an interview with Ukraine Rebuild Newswire a little over a year ago, which can be seen here and here.
Although actual construction of the factories has yet to start, the Irishman has learned valuable lessons from scouting the Ukrainian countryside for suitable land, dealing with local bureaucracy, re-thinking insurance, recruiting local help and coping with a dearth of services.
He shared some of those lessons in a chat yesterday with members of the German-Ukrainian Chamber of Industry and Commerce (AHK Ukraine), reproduced in part below:
The Lessons
#1 - "Firstly, we've learned that developed, serviced land is an issue."
"There are some industrial parks that are under development, and the more of them, the easier it will be for investors. Our project was a little bit bigger, so it was a little bit more complicated for us. "
#2- "The second thing we've learned is that you need a strong, competent, locally based team to execute the project.
"For us, we work with an Austria-headquartered company called Delta Group, who are our project managers. They have been superb, guiding us through all of the details we need to comply with Ukrainian laws and rules. Anyone thinking of investing needs somebody like them on board to work the project.
"We also have a Lviv-based architectural firm, AVR Development, and we work very closely with Gleeds, who are a global cost consultancy company helping us with tenders and stuff like that."
#3 - "The third thing that's interesting for external investors is that the process of getting approvals and progressing is incredibly bureaucratic.
"That's the bad news. The good news, though, is that, if you follow that process and work through it, then it's possible to do even the complicated projects. It's bureaucratic, but it works."
#4 - 'The other area that's important is getting state support."
"Submitting stuff in that area to get those approvals is incredibly complicated, but it's doable. You need some experts who know that stuff very well, either with UkraineInvest or with other organizations, who can develop those documentations locally for you and make that submission."
And now, on with the headlines. You'll also find a related Kingspan story below ...
EBRD to invest at least €1.5 billion in Ukraine in 2025
The European Bank for Reconstruction and Development (EBRD) will invest at least €1.5 billion this year in Ukraine's economy and businesses, EBRD President Odile Renaud-Basso told Reuters in an interview.
In 2024, the EBRD deployed €2.4 billion in Ukraine, bringing the total allocated to the war-torn country since the Russian full-scale invasion in February 2022 to €6.2 billion.
"Our plan is to continue with this level of investment. At a minimum, we aim for €1.5 billion of investment but if we can do more..., we will do it," Renaud-Basso said in the interview during a visit to Kyiv.
Renaud-Basso stated the bank would prioritize Ukraine's private sector, focusing on energy amid repeated Russian attacks on the grid, along with national and municipal infrastructure.
She said EBRD's operations were demand-driven and that it was ready to raise investments to around €3 billion annually in Ukraine once the war ended.
Renaud-Basso emphasized Ukraine's energy sector as a key priority this year and beyond, noting that modernization and renewable energy projects could drive private investment after the war.
"There is a lot of potential, therefore it will trigger a lot of interest from foreign investors, and it will trigger a lot of activity in the country – this will really drive growth dynamics," she said.
While in Kyiv, Renaud-Basso met with Ukraine's President Volodymyr Zelensky, with whom she discussed expanding support for state-owned companies, increasing direct investments in the private sector, and cooperation in the banking sector, as per a statement from Zelensky's office.
The talks also focused on supporting internally displaced persons and securing housing for Ukrainians displaced by the war.
"I believe that, in addition to the assistance from banks and partners, it would be fair to increase the share of frozen assets. I will discuss this with our European partners and raise the issue during the Munich Security Conference. We are talking about tens of billions. These funds could be used to help people obtain housing and find a place to live," Zelensky said during the meeting.
The parties also discussed how to continue funding some key reform programs after US President Donald Trump paused development aid from the U.S. Agency for International Development (USAID). The EBRD would be able to step in only in a limited capacity, Renaud-Basso told Reuters.
Kingspan to start building its first Ukrainian factory 6 months later than planned after cumbersome paperwork
Global building materials giant Kingspan said it will start building its first Ukrainian factory in the middle of this year, at least six months behind its initial projection, after completing the cumbersome bureaucracy needed to prep a $300 million project in Ukraine.
"We are very close now to actually getting physically stuff done," Mike Stenson, project director for Kingspan, said Thursday. "Subject to a couple of internal things, we will start building the first factory in July or August of this year, and then have it ready 15 to 18 months later."
Stenson first detailed plans for the multi-factory manufacturing campus a little over a year ago in an interview with Ukraine Rebuild News. At the time, the cost was projected at $280 million and construction was expected to begin in Q4 of 2024.
Since then, the company has undertaken the cumbersome and bureaucratic process of acquiring the land at a site near the western Ukrainian city of Lviv, getting the building permits, and carrying out other preparations.
"The process of getting approvals and progressing is incredibly bureaucratic," Stenson said in a meeting organized by the German-Ukrainian Chamber of Industry and Commerce, (AHK Ukraine). "That's the bad news. The good news is that, if you work through it, then it's possible to do even the complicated projects."
Stenson added that the delays have lined up the start of construction with a period many predict will witness the end of the war with Russia. If the process had moved much faster, he said, the company might have slowed it down because of the concern of starting amid an intense war.
"If we had all the building permits and the rest of it ready a year ago, we may have wanted to park it until we were clear about the end of the war," he said. "I think we're a bit clearer now. Obviously we don't have any insight into whether or when the war will stop, but we do believe that there will be, let's say, some sort of an improvement."
In the meantime, the company has also started a tender process through UK-based consultancy Gleeds to ensure the campus meets at least 50% of its energy needs with directly supplied renewable energy.
When construction is finished, the 50-hectare (124-acre) plot of land will manufacture products from all of Kingspan's product lines. It will be the only manufacturing campus of Kingspan's more than 200 sites in more than 80 countries to unite all the company's business lines in one place.
"It will take us seven or eight years to realize that in total, by the end of that, we look to have probably about 700 people on board," Stenson said. "But we will do it in gradual steps of 50 to 100 people per year over the over the next seven years."
EIB to allocate €100 million for district heating in Ukraine through Ukreximbank
The European Investment Bank (EIB) said on Wednesday its board paved the way for €100 million in funding to repair damaged municipal heating infrastructure in Ukraine.
The funding was announced as part of a €2.4 billion EIB financing for business investment, clean energy, transport, telecommunications and flood protection in Europe.
The EIB has not provided more details on the funding for Ukraine.
In a project disclosure document, however, the lender said it intends to disburse the funds through The State Export-Import Bank of Ukraine (Ukreximbank) aiming to support local authorities to restore destroyed heat generation capacity.
According to the document, the funding is part of €250 million in financing the EIB announced in December for municipal district heating and energy efficiency projects carried out by local authorities in Ukraine.
Schneider Electric vows to train 1 million Ukrainians in energy management basics
Schneider Electric Ukraine aims to train 1 million people in energy management basics in 2025, such as conservation and optimization of energy use, the company's CEO Mykhailo Bubnov said.
The company, which signed a memorandum to that effect with Ukraine's Ministry of Education and Science, is working with vocational education institutions to modernize training infrastructure.
It has also established a demonstration and training hub, and is developing educational courses on energy management, automation and digital technologies.
"The company's priorities for 2025 include achieving sustainable development goals, particularly supporting 1,000 key suppliers in reducing CO₂ emissions by half," Bubnov stated in an interview with Interfax-Ukraine.
Schneider Electric views Ukraine as a strategically important market, Bubnov said, adding that the medium-term strategy focuses on digital solutions to optimize energy consumption, reduce costs, and enhance energy independence for businesses and households.
"One of our key tasks is to create conditions for the widespread adoption of smart technologies," Bubnov said. "We believe that every household in Ukraine can become energy-independent by integrating solutions such as smart transformers or mini-wind generators."
Schneider Electric Ukraine operates commercial divisions in Kyiv, Dnipro, Lviv, Odesa, and Mykolaiv, along with a warehouse, service center, design bureau, and training facilities. Employing around 100 people, Schneider maintains a broad network of distributors and partners nationwide.
EBRD signs guarantee agreement for electric locomotives project in Ukraine
The European Bank for Reconstruction and Development (EBRD) and Ukraine's Ministry for Communities and Territories Development have signed a guarantee agreement for the project Renewal of the Electric Locomotive Fleet of Ukrainian Railways (Ukrzaliznytsia).
The agreement was signed between EBRD President Odile Renaud-Basso and Ukriane's Minister for Communities and Territories Development Oleksii Kuleba, during Renaud-Basso's visit to Kyiv.
"The project will help ensure stable rail freight operations for agricultural exports and critical imports, as well as passenger services that are vital for people, the economy and the continued functioning of the private sector, as well as for humanitarian efforts," Renaud-Basso said, as quoted by the ministry.
In December, the EBRD said it will provide a €300 million loan to Ukrainian Railways to finance the acquisition of electric locomotives to ensure stable railway cargo and passenger services. The loan is to be co-financed by a parallel investment grant of up to $190 million from the US.
Ukraine's Ministry for Communities and Territories Development has said it would use the EBRD loan to buy 50 electric locomotives, and the US grant for a further 30 locomotives.
UK to invest additional GBP 17 million via InnovateUkraine program to bolster clean energy solutions in Ukraine
The UK government will invest GBP17 million in the second investment round under InnovateUkraine, a bilateral program that focuses on supporting low-carbon solutions that increase Ukraine's energy resilience.
The second cohort will focus on technologies tailored towards smart green grids, renewable generation, renewable heat, green fuels, and low-carbon buildings and homes, among other areas, the UK government said in a press release.
Applications for the second round of the project will open in mid-March. InnovateUkraine 2 will use innovative collaborations between British, Ukrainian, and international businesses and research institutions, to develop sustainable energy solutions, according to the release.
UK announced the funding during the visit of Foreign Secretary David Lammy to Kyiv to launch InnovateUkraine 2. The first cohort of InnovateUkraine projects, with an investment of GBP 16 million, focused on creating innovative solutions for heating and powering buildings.
"I am proud that the UK is further increasing its funding to the Ukrainian energy sector," said UK's Ambassador to Ukraine Martin Harris. "This latest contribution underpins our commitments under the 100-Year Partnership, signed by the Prime Minister and President Zelenskyy in January."
In January, British Prime Minister Keir Starmer and Ukrainian President Volodymyr Zelensky signed a 100-year partnership agreement to deepen cooperation between the two countries in defense, economy, education, science, technology, and other areas.
ICDS: 2025 decisive year for Ukraine war
This year is expected to be the decisive phase of the war in Ukraine, as both sides reach the limits of their capabilities, with Ukraine facing severe manpower shortages and continued delays in Western military aid, Marek Kohv, head of security and resilience program at the International Centre for Defence and Security (ICDS), wrote in an op-ed.
To shift the battlefield momentum and strengthen Kyiv's position in potential negotiations, the West must intensify support by providing long-range missiles, air defense systems, and comprehensive training to the Ukrainian military, Kohv argued.
Geopolitical Monitor: Europe may have to escalate Ukraine war to protect itself
Europe must protect its security from the potential Russia's win in the war in Ukraine, even if doing so means escalating the conflict, Geopolitical Monitor contributor Sarah Neumann wrote in an op-ed.
A Russian victory in Ukraine could embolden Moscow's expansionist ambitions, raising serious concerns in countries such as Finland and Poland and jeopardizing Europe's security in the long run as well as marking the decline of Western dominance, Neumann wrote.
60% of Ukrainian media outlets says halt to US support will have 'catastrophic' impact, survey finds
Nearly 60% of Ukrainian media professionals believe the suspension of US support will have a "catastrophic" impact and result in the closure or substantial downsizing of many independent media outlets, a survey conducted by Kyiv-based non-governmental organization Institute of Mass Information (IMI) showed.
Another 30% of surveyed media professionals anticipated a significant negative impact but remained optimistic about finding alternative solutions to sustain their media outlets.
The survey, conducted between Jan 27 and Feb 2, gathered responses from 120 media representatives across Ukraine.
The results underscored the media's strong reliance on U.S. funding, revealing that 35% of outlets receive over 75% of their financing from American grants, while an additional 15.8% depend on U.S. funds for 50–75% of their budget.
The immediate impact of the funding suspension is already evident, with 7.5% of outlets reducing staff, 9.5% encountering office space challenges, 11% scaling back content production, and 10.5% cutting salaries or shifting employees to part-time work, according to the survey.
If grants are not reinstated within six months, 33% of media outlets and organizations stated they would be forced to shut down. A full year without international support could lead to the closure of 51% of surveyed outlets, the results showed.
However, 49% of media outlets surveyed by the IMI ruled out shutting down entirely, expressing their determination to continue operating, explore new solutions, and sustain their work even in the face of funding cuts or cessation.
Without grants for a year, 84.5% of surveyed media outlets anticipate reducing content production and downsizing their workforce.
On Monday, Reporters Without Borders (RSF) reported that US President Donald Trump had frozen more than $268 million allocated by Congress to support independent media and the free flow of information as part of his suspension of US foreign aid.
Social Media Posts
EBRD Chief in Kyiv
Ukrainian Economy Minister and First Deputy Prime Minister Yulia Svyrydenko posted about her meeting with Odile Renaud-Basso, president of the European Bank for Reconstruction and Development (EBRD), who visited Ukraine yesterday.
During the meeting, the two discussed the creation of private equity funds for sectors such as energy, industry and critical materials, as well as war-risk insurance, infrastructure projects, financing for the private sector and affordable housing.
New Lobbying Firm
Timur Bondaryev, head of Retail & Leisure at the Arzinger Law Firm in Kyiv, announced that the firm has created a new business unit, Arzinger Lobbying Solutions, to separate the core legal operations from government relations business.
"Arzinger has for many years been involved in major lobbying and GR - initiatives all across the sectors, assisting our clients to develop and implement sector specific regulatory framework," he wrote.
Targeting Rebuilders in CEE
Forvis Mazars in Ukraine, the professional services network, launched a highly targeted LinkedIn ad promoting its investment guides and other resources for companies in Central and Eastern European that are considering helping rebuild Ukraine.
"Despite the ongoing war, Ukraine is actively shaping its recovery and reconstruction efforts," the firm said. "The business landscape is evolving, and new opportunities are emerging for companies ready to be part of this process."
Aligning Laws with the EU
The Swiss-Ukrainian Reconstruction Agency (SURA) promoted an article by law firm Baker McKenzie Ukraine outlining the country's efforts to harmonize its laws with those of the European Union.
The country's progress in the area includes "significant results" in five areas, such as free circulation of industrial goods, smooth customs clearance, joining the single euro payment area, electronic trust services such as e-signatures, and elimination of roaming surplus for phone services between Ukraine and the EU.
Excise Goods Law
The European Business Association, whose members include major European companies in Ukraine, said it has appealed to the Ministry of Finance of Ukraine and other authorities to change legislation on the circulation of excise goods.
"The EBA proposes allowing the import of excise goods marked with paper excise stamps into Ukraine’s customs territory under transport documents or multimodal cargo transport documents issued before 1 January 2026. These changes would ensure equal operating conditions for importers and domestic producers."
URN Daily: Sense Bank and Ukrgasbank for sale? And US seeks to cancel $4.7 billion of Ukraine's debt
