Please see below weekly overview of the most important news to keep you informed about significant business developments 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.

• 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.

• The Ukrainian government has initiated the privatization of "Ukrbud", one of the nation's major construction firms, by transferring all of its shares for auction. The auction is expected to take place in December 2024. As of the end of 2023, the assets of the company valued at approximately USD 7 mln.

• International Monetary Fund (IMF) and Ukraine have reached staff-level agreement on the Fifth Review of the 4-year Extended Fund Facility (EFF) Arrangement with access to over USD 15 billion. Subject to approval by the IMF Executive Board, Ukraine would have access to about USD 1.1 bln. As we have previously indicated, on June 28, 2024, the IMF completed the fourth review of the Ukraine’s EFF arrangement and concluded that Ukraine met all structural benchmarks for the fourth review, including anticorruption reforms and programs to support small and medium enterprises.

• The IMF forecasts that economic growth in Ukraine is expected to slow down in the second half of 2024 due to the impact of russia’s attacks on energy infrastructure and the ongoing effects of the war on the labor market and business expectations. The forecasted real GDP growth for 2024 is 3%, with inflation projected at 9%. The IMF has also noted that addressing the energy deficit ahead of the winter is critical, requiring coordinated efforts, including with international partners. The IMF forecasts economic growth of 2.5-3.5% for 2025, although the risks to the outlook remain exceptionally high.

• Metinvest, Ukraine’s largest private company, is set to start building a new EUR 2.5 bln steel plant in Piombino, Italy, by late this year or early next year. The facility will have an annual production capacity of 2.7 mln tons of steel. The company also plans to purchase or lease a steel plant in Eastern Europe, considering Romania, Italy at Poland.