23 Jun 2023 13:50

IFC mobilizing private investments to upgrade, expand Ukrainian Danube Shipping Company's fleet

MOSCOW. June 23 (Interfax) - The International Finance Corporation (IFC) of the World Bank, in cooperation with the Ministry for Communities, Territories and Infrastructure Development of Ukraine, is mobilizing private investments for upgrading and expanding the fleet of the Ukrainian Danube Shipping Company (UDP), Ukrainian media outlets said with a reference to the website of the Ukrainian government.

The relevant agreement was signed by UDP and IFC in participation of Deputy Prime Minister for Restoration of Ukraine Alexander Kubrakov at the Ukraine Recovery Conference in London.

"The main objective of the agreement is to mobilize private investment to modernize and expand the fleet of Ukraine's main Danube carrier. The International Finance Corporation will also promote the implementation of European standards of corporate governance, compliance and financial transparency," the Ukrainian government said in a statement on its website.

The upgrade of UPD's fleet will enable expanding the capacities of the Danube's logistics ecosystem, the statement said. Cooperation between UDP and IFC, a member of the World Bank Group, will strengthen the resilience of the Ukrainian transport sector and increase Ukraine's export potential, it said.

At present, the Danube cluster is an important component of the international food security and Ukraine's economic integration with the European Union, as well as an alternative cargo turnover route while the main sea ports are blocked, it said.

IFC said earlier that it intends to support the Ukrainian Danube Shipping Company in upgrading and increasing its sea fleet in addition to other projects in the transport sector.

UDP is a state-owned private joint stock company. In 2022, UDP made profit from its operations, bringing all-time high dividends to the state budget worth over 146 billion hryvni.