THIS WEEK IN UKRAINE
5 December 2024
Ukraine Strengthens Partnerships with U.S. and Canada
On December 3, Ukraine signed key agreements with the U.S. and Canada. In Brussels, Foreign Minister Andryi Sibiha and U.S. Secretary of State Blinken signed a memorandum for U.S. assistance of up to $825 million to enhance Ukraine's energy resilience and support low-carbon economic reforms. Separately, Sibiha and Canadian Foreign Minister Mélanie Joly signed a bilateral agreement on classified information exchange to strengthen defense and security cooperation, reflecting the special partnership between the two nations.
Scholz and Zelensky Discuss Continued Defense and Economic Support for Ukraine
During German Chancellor Olaf Scholz's visit to Kyiv, he and President Volodymyr Zelensky discussed strengthening Ukraine's air defense, ongoing military aid, and joint weapons production. Germany remains Ukraine’s leading European supporter, providing €28 billion in assistance, including Patriot, IRIS-T, and Gepard systems, with further deliveries planned for 2025. Talks also emphasized Ukraine's EU and NATO integration, deemed crucial for European security.
Ukraine to Impose Sanctions on Georgian Government
Ukrainian President Volodymyr Zelensky announced plans to impose sanctions against Georgia’s government, condemning its actions as “shameful” and accusing it of aligning with Russia against Georgian people. This comes amid mass protests in Georgia after the government delayed EU membership talks until 2028 and restricted rights, leading to police crackdowns. Ukraine is collaborating with European partners to develop further responses.
Ukraine's Role in Strengthening EU Competitiveness
During his visit to Kyiv, European Council President António Costa emphasized Ukraine's potential to strengthen EU competitiveness if it joins the bloc. Key contributions could come from Ukraine’s natural resources, agriculture, energy, advanced technology, defense sector, and highly skilled workforce. Costa highlighted ongoing support for Ukraine, EU unity in decision-making, and sanctions to weaken Russia's war capabilities, stressing Ukraine's integration as a long-term strategic benefit for Europe.
EU and Ukraine Advance Transport Infrastructure Collaboration
Ukraine's Vice Prime Minister Oleksii Kuleba and DG MOVE's Magda Kopczynska discussed advancing Ukraine's transport infrastructure, focusing on port development, cross-border capacity, and EU integration. Key projects under the "Connecting Europe Facility" (CEF) program, co-funded at 50%, include railway expansion, border checkpoints, and air navigation restoration, with €52M in EU grants. This aligns with legislative alignment efforts as Ukraine progresses toward EU membership.
Ukraine Discusses Investment Opportunities with U.S. Businesses
First Deputy Prime Minister Yuliia Svyrydenko met with representatives from companies like BlackRock, Citi, Bayer, and others during her U.S. visit to attract investment to Ukraine. Discussions focused on energy, logistics, manufacturing, and defense sector development. Investors emphasized the need for policy predictability, reduced administrative barriers, and risk mitigation tools, which Ukraine addresses through privatization, public-private partnerships, and recovery initiatives.
Ukrainian AI-Driven Drone Startup Wins EIT Jumpstarter
Drone NonDestructiveTesting, a Ukrainian startup using AI and drones for real-time infrastructure diagnostics, won the Rebuild Ukraine category at the EIT Jumpstarter finals in Budapest. The technology identifies and ranks infrastructure defects to enhance safety and maintenance. This year’s program highlighted solutions for Ukraine’s recovery, with 10 Ukrainian startups shortlisted. The EIT Jumpstarter program transforms innovative ideas into market-ready startups, with 49 teams from 21 countries competing in 2024 across nine categories for €150,000 in grants, following seven months of business model development and a final pitch event in Budapest.
Ukrainian Real Estate Market: Trends and Risks
The Ukrainian real estate market, recovering after a sharp decline due to the full-scale war, remains a significant investment area. Experts at the "Zhyty na Vidsotky" (eng.: Living on Interest) conference for investors highlighted key trends: stable but reduced residential construction, with 500 new projects launched since 2022, mainly in Lviv, Kyiv, and western regions. Housing prices in primary markets have increased, particularly in cities like Ivano-Frankivsk (+56%) and Lviv (+42%). Challenges include project delays, security concerns, and market uncertainty. Developers emphasized adaptability and risk management, while some investors increasingly consider foreign markets. Long-term demand and pricing shifts are expected post-war, given supply constraints.