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THIS WEEK IN UKRAINE

23 January 2025

President Zelenskyy's Diplomatic Engagements at Davos

Ukraine and UK Sign Historic 100-Year Partnership Agreement

Ukraine and the UK have signed a century-long partnership agreement in Kyiv, committing to annual UK military aid of at least $3.6B. The pact strengthens cooperation in defense, including NATO aircraft support, long-range weaponry, and investments in Ukraine's defense production. Key areas include joint naval fleets for Black Sea security and collaboration within the Joint Expeditionary Force (JEF). Economic ties will focus on nuclear energy, technology development, and replacing Russian tech. Cultural and educational programs include AI and drone expertise exchange, partnerships for 100 Ukrainian schools, and joint university initiatives.

Ukraine and Japan Strengthen Business Cooperation for 2025

Ukraine and Japan have updated their business collaboration priorities for 2025, focusing on joint ventures, industrial parks, and Japanese investment in Ukraine. Key initiatives include a JETRO-led Japanese business mission, joint automobile manufacturing clusters, heavy machinery for demining, and producing 500 school buses with Japanese support. Ukraine aims to leverage Japan's industrial expertise to scale its industry and serve as a gateway to the EU for Japanese companies. Both countries plan to showcase their partnership at Expo 2025 and the Ukraine Recovery Conference in Rome. 

Shield AI Opens Kyiv Office to Train Ukraine's Drone Forces

Silicon Valley defense startup Shield AI has opened a Kyiv office to support Ukraine’s Unmanned Systems Forces by training them to operate V-BAT drones. These advanced vertical take-off drones' function in GPS-denied and electronic warfare conditions, with proven versatility in Black Sea operations. Shield AI, valued at $2.8B in its last funding round, aims to raise $200M, potentially doubling its valuation to $5B. Investors include Palantir, Airbus, and Andreessen Horowitz. This collaboration underscores growing global investment in defense technologies amid heightened geopolitical tensions. 

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DTEK Invests €450M in Tyligulska Wind Power Plant Expansion

Ukrainian diversified energy holding company DTEK is investing €450M to expand the Tyligulska Wind Power Plant, increasing capacity from 114 MW to 500 MW with 64 additional Vestas wind turbines. This will make it Ukraine’s largest wind farm, capable of generating 1.7 TWh annually, enough to power 900,000 homes. Supported by €370M in financing from international banks and Denmark's EIFO, the project reflects DTEK’s commitment to green energy and energy security amid war. Completion is planned for late 2026, significantly reducing CO2 emissions by 2.1M tons annually and strengthening Ukraine’s low-carbon energy infrastructure. 

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