THIS WEEK IN UKRAINE
3 January 2025
Key Drivers and Risks for Ukraine's Economy in 2025
National Bank Governor Andriy Pyshnyy outlines economic prospects for 2025, emphasizing resilience despite war. Key achievements in 2024 include flexible inflation targeting, record IMF program reviews, and a 4% GDP growth forecast. Risks like inflation, labor shortages, and infrastructure damage persist, but $38.4B in international aid and robust banking support provide stability. Economic growth is expected at 4.3% in 2025, driven by domestic demand, external exports, and energy sector investments. Challenges include adapting labor markets and controlling inflation, with the NBU targeting a 5% rate. Optimism surrounds reform momentum and Ukraine's adaptability amid ongoing uncertainties.
Zelenskyy and Trudeau Discuss Ukraine Support
Ukrainian President Volodymyr Zelenskyy held a call with Canadian Prime Minister Justin Trudeau ahead of Canada’s G7 presidency. Discussions focused on strengthening sanctions against Russia, especially targeting propaganda and shadow fleets, and establishing a joint G7 task force for better coordination. Zelenskyy thanked Canada for defense aid, including NASAMS, and urged increased funding and localizing arms production. Both emphasized unity to secure lasting peace.
€3.3M IT Equipment Bolsters Ukraine's Defense
Ukraine's Defense Ministry received a €3.3 million equipment shipment from IT Coalition partners Estonia, the Netherlands, and Luxembourg. The package includes laptops, scanners, authentication keys, and tablets for military operations and digitalization efforts. Canada also contributed €100,000 in IT equipment. This support, under the Ramstein Contact Group, enhances Ukraine's IT, communications, and cybersecurity capabilities, strengthening its defense modernization.
Ukraine’s Startup Landscape in 2024: Insights and Trends
In 2024, Ukrainian startups raised $310.5M across 241 deals, with Creatio's $200M mega-round dominating. DefenceTech and AI were the top sectors, with nearly 50% of defence investments remaining undisclosed due to market realities. Key deals included Grammarly’s acquisition of Coda. Challenges like limited exits and venture funding persisted, but interest in AI and DefenceTech is set to grow in 2025. Experts foresee more Series A rounds, increased AI education, and global competition for talent. Meanwhile, uncertainty surrounds U.S. economic policies under a new presidency, impacting market trends.
Full State Compensation for Ukrainian Equipment
In 2024, Ukraine fully met its commitments under programs compensating 25% of agricultural equipment costs and 15% for other machinery like energy, mining, and demining equipment. These initiatives supported local producers, with over 5,300 units purchased and nearly 877 million UAH reimbursed to farmers. Over 1,000 jobs were created. The programs will continue in 2025, expanding eligible equipment and reinforcing the "Made in Ukraine" initiative.
Social Policy Committee’s 2024 Achievements
Ukraine’s Social Policy and Veterans' Rights Committee reviewed 381 legislative proposals in 2024, resulting in 25 bills passed, including 12 enacted as laws. Key laws address veterans' rights, social services, labor relations, and pensions. The committee conducted 29 meetings and prioritized adapting Ukraine's labor laws to EU standards for 2025, along with enhancing veteran support and social protections for vulnerable groups.
