Dear Partners,

We are pleased to present the latest edition of our monthly Business Sweden Ukraine Newsletter, designed to keep you informed about significant business developments in Ukraine. It is a privilege to extend our support to your companies as they contribute to the reconstruction efforts in Ukraine. Please do not hesitate to reach out to us with any inquiries or clarifications; we are here to assist you.

Key Highlights

We are glad to announce the successful conclusion of several webinars:

• Joint webinar by Swedish Civil Contingencies Agency (MSB) and Business Sweden “Swedish support for Ukraine’s resilience: Support from MSB in coordinating and transporting material donations from business”, which took place on August 30, 2024. The recording of the webinar is now accessible on our website.

• Webinar by Business Sweden “Resilience and Reconstruction in Ukraine: Exploring Bilateral Support and Financial Tools in Germany, Poland, the UK and Ukraine”, which took place on September 10, 2024. At the webinar, Business Sweden Team introduced the "Bilateral Support and Finance Opportunity Identification Guide" designed for Swedish companies and subsidiaries looking to lend their expertise and solutions to Ukraine’s resilience and rebuilding efforts, which is available at the following link. The recording of the webinar is now accessible on our website.

• Joint webinar by Business Sweden and Nefco "Team Sweden Talks: Nefco’s Programmatic Activities in Ukraine – Opportunities for Swedish Companies in Municipal and Construction Sector", which took place on September 12, 2024. The recording of the webinar is now accessible on our website.

We also encourage you to participate in the 4th International Exhibition & Conference “Rebuild Ukraine: Construction & Energy” to be held in Warsaw, Poland on November 13-14, 2024. Interested participants are invited to register their interest at link or contact Mr. Peter Davidson, the responsible project manager, at peter.davidson@foreversustainable.se or +46 73 708 1501.

Please follow Event page on our website for more information on future events.

Tender Opportunities

We continue to encourage you to visit our Tender Opportunities page on our website, where we regularly update information on both international and local tenders relevant to Swedish companies. Stay informed and discover how your company can contribute to Ukraine’s reconstruction efforts by participating in current opportunities.

Currently, Nefco is conducting tenders for the following projects in Ukraine:

• Energy Efficiency in Municipal Buildings and Street Lighting in the city of Rivne.

• Reconstruction of Water Supply System for a Selected District in Mykolaiv city, Ukraine.

• Repair and Reconstruction of Damaged Critical Infrastructure.

• Upgrade of District Heating System in Vinnytsia.

The EBRD is conducting tenders for:

• Procurement of works for turnkey thermal modernisation of 29 public buildings in Kryvyi Rih (schools, kindergartens, hospitals) with predetermined targeted energy efficiency levels.

• Procurement of consultancy services for Project Implementation Support assignment, including procurement support, engineering & works supervision.

Key Updates

As we have approached the end of September, we would like to highlight important business and investment updates in Ukraine:

1. Ukrainian government

• In August 2024, Ukraine’s GDP grew by 3.5% [±1%] compared to August last year. According to the Ukrainian government, the main contribution to the growth of the economy was made by industry and positive dynamics in transport, construction and domestic trade. In addition, in August, for the first time in the past three months, businesses improved their near-term performance estimates. Consumer sentiment also improved for the first time in the last two months due to minimal power outages during the month. The growth of real GDP in 2024 is expected at the level of 3.5%.

• Ukrainian Export Credit Agency (the “ECA”) has signed the first war risk insurance contract for an investment loan. A Ukrainian commercial bank issued a loan for the purchase of a gas turbine generator, and the ECA provided coverage for this investment. Both an investor (Ukrainian or foreign) and bank may receive investment protection/insure their risks under the ECA. For more details regarding the procedure and eligibility criteria, please refer to the web-site.

• Large-scale privatization in Ukraine is gaining momentum: On September 18, 2024, the first auction was held as part of large privatization. Four-star Ukraine Hotel was successfully sold for UAH 2.511 bln (approximately SEK 616 mln).

• The Ukrainian government has simplified the process for foreign companies to participate in construction in Ukraine during the martial law. It will allow the companies to participate in the construction works, bypassing burdensome bureaucratic procedures. This applies to residential buildings over five floors (up to 100 meters), high-rise apartments, large public buildings, industrial facilities, and other similar structures.

2. International Cooperation

• A representative office of the Japan External Trade Organization (JETRO) to be opened in Ukraine, which is expected to deepen the development of the partnership and promote business cooperation between Ukrainian and Japanese companies. According to the Ukrainian government, Japan plans to provide USD 188 million to support Ukraine's economic recovery projects.

• EU allocates extra EUR 160 mln to Ukraine for energy security ahead of winter, among of which EUR 60 million in humanitarian aid will be allocated for shelters and heaters, and EUR 100 million from frozen Russian assets will be directed to repair work and renewable energy sources.

• EU has transferred EUR 400 mln of frozen russian assets for the purchase of Ukrainian-made weapons. These funds were used to pay for the production of Ukrainian self-propelled howitzers "Bohdana”. In the next tranche, an even larger amount will go directly to the Ukrainian defense industry.

3. Sweden in Ukraine

• The Swedish Government presented Sweden’s 17th military support package to Ukraine, worth SEK 4.6 bln. It includes donations of materiel, direct procurement, material units and financial contributions. Sweden's 17th military support package to Ukraine shifts focus to production over donations, with SEK 600 mln allocated for key procurements. These include 40mm ammunition for Combat Vehicle 90s, camouflage equipment for armored personnel carriers, and increased funding for small drones to meet Ukraine’s operational needs.

• The Swedish government has approved an additional SEK 500 million (approximately USD 49 million) in support for heating and electricity supply in Ukraine. According to World Bank calculations, the support could help generate electricity for 185,000 people, making this Sweden’s largest contribution yet to Ukrainian energy supply. The initiative encompasses two gas turbines for electricity production in the initial phase. The production facility will be protected so as to minimise the damaging effects of russian attacks.

• Sida, Avfall Sverige, and SALAR have signed an agreement to implement the "Strengthening of Municipal Waste Management in Ukraine" program (2024–2027). This SEK 160 million initiative aims to transform municipal waste management in Ukraine to meet EU standards. The program addresses Ukraine's needs in various sectors, focusing on improving waste management to enhance climate resilience, resource efficiency, the circular economy, environmental sustainability, and overall quality of life.

• On August 22, 2024, the Swedish government appointed Mr. Ulrik Tideström as special envoy for Ukraine’s reconstruction, business sector and development. One of the envoy's primary roles will be to represent the Swedish government in international donor coordination efforts, ensuring that support for Ukraine's rebuilding is both efficient and effective. Additionally, the envoy will focus on strengthening ties between Ukraine and the EU, as well as promoting the participation of Swedish businesses in Ukraine's reconstruction. This will be done in partnership with Business Sweden and other Team Sweden organizations, aiming to enhance Sweden's contribution to the recovery of Ukraine. Mr Tideström has taken up his new position on August 26, 2024.

4. Business Landscape in Ukraine

• A consortium headed by NJJ Holding has acquired Datagroup-Volia, Ukraine’s top fixed telecom and pay TV provider, as well as Lifecell, the nation's third-largest and fastest-growing mobile operator. This marks the first significant investment by a new market player and strategic investor since the full-scale russian invasion. The total value of the deal could surpass USD 650 mln.

We look forward to sharing more insights in the coming months. If you have any questions or contributions, please feel free to reach out. Your active involvement is key to our collective success.

Best Regards,

Business Sweden Kyiv Team