Newsletter January 2024

Dear Colleagues,

We are delighted to share our monthly Business Sweden Ukraine Newsletter, aiming to keep you abreast of crucial business events in Ukraine that may be of interest to your organizations. We are honored to provide support to your companies as they contribute to the reconstruction efforts in Ukraine. Please feel free to reach out to us for any inquiries or clarifications; we are at your disposal.

We invite you to explore the January 2024 edition of our guide, "Rebuilding Ukraine: Opportunities for the Swedish Private Sector," available on Business Sweden’s dedicated Ukraine web page, and also attached to this e-mail. Take a closer look at the updated information on ongoing procurement opportunities, including details on new procurement bodies, and learn more about Team Sweden support available to Swedish companies engaged in business with Ukraine. Should you have any questions on how your organization can contribute to Ukraine’s reconstruction, do not hesitate to contact us.

Also, please save the date for an upcoming webinar “Rebuilding Ukraine’s Energy Sector: Opportunities for Swedish Businesses” on January 25, 2024, from 11:00 am to 12:15 pm (CET) via Teams. Hosted by Business Sweden in collaboration with the Ministry of Energy of Ukraine, this event will seek to underscore the remarkable potential for the Swedish private sector’s involvement in meeting the current needs of Ukraine’s energy system. Additionally, it will highlight the significant business opportunities that Ukraine offers in terms of trade and investment for energy companies. Further details and registration information will follow soon. We hope you can join us for this important discussion.

As we embark into the new year, we wish to draw your attention to recent key business and investment news in Ukraine:

Ukrainian Government:

• Despite Polish carriers blocking land border crossings last month, the Ukrainian economy grew by around 4% [±2%] in November compared to the same month last year. The expected growth for January-November 2023 is 5.5%. • At COP 28 Ukraine unveiled plans for energy decarbonization by 2030, targeting 27% final energy consumption from renewables, a 30% reduction in methane emissions, and a coal phase-out by 2035. Sweden in Ukraine:

• Sweden allocates its largest non-military support package to Ukraine, amounting to SEK 1.4 billion (EUR 120 million) for winter assistance. SEK 900 million is directed to the World Bank’s Ukraine Relief Trust Fund, supporting infrastructure in energy, housing, health care, and transport. • A Swedish wind farms developer, Arise acquires a 70% stake in Fenix Repower AS, focusing on solar and wind projects in Ukraine. Arise sees Ukraine as Europe’s last untapped market for renewable energy. International Cooperation:

• Japan provides USD 950 million to Ukraine under World Bank projects INSPIRE and HOPE, supporting recovery and social protection needs. • The EBRD increases its capital by EUR 4 billion, bringing it to EUR 34 billion, to continue supporting Ukraine’s real economy in wartime and reconstruction. • Ukrainian Transmission System Operator, NPC Ukrenergo, becomes the 40th member of ENTSO-E, enhancing cooperation among European Transmission System Operators. • Germany and EIB grant EUR 20 million to Ukraine for renewable energy technologies during COP28. • Ukraine receives a third tranche of about USD 900 million from the IMF under the Extended Fund Facility (EFF) Arrangement, ensuring macroeconomic stability under martial law. • The Ukraine Facility program’s special investment instrument to provide EUR 8 billion for reducing project financing risks, engaging the private sector and supporting public investment projects for economic growth. Ukraine’s Ministry of Economy emphasizes the plan’s focus on macroeconomic growth over 2024-2027, with EUR 50 billion allocated to Ukraine. We look forward to providing more insights in the coming months. If you have any further questions or contributions, please feel free to reach out. Your active participation is key to the success of our collective efforts.

Best Regards, Andreas Giallourakis and Yevhenii Shakotko

N.B: If you do not want to receive these send outs, please reply to me with an opt-out message. Feel free to share this newsletter with your network and let me know if you want to add any of your contacts to the send list. If you have news you’d like us to share in the next newsletter, do let us know.

BUSINESS SWEDEN Andreas Giallourakis Country Manager Ukraine M +46 703 909 473

Download our Ukraine Guide on our Ukraine web page

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