Green metallurgy group discuss 46 proposed projects worth $7.4 bln during work on Ukraine Facility plan

MOSCOW. Dec 27 (Interfax) - Members of the green metallurgy working group, which helps draw up a plan for implementing the Ukraine Facility program and develop sectoral development strategies, have discussed businesses' proposals on 46 projects totaling $7.4 billion.

The group's efforts are coordinated by the Ukrainian Economy Ministry with analytical and consulting support from the Kiev School of Economics and is moderated by McKinsey, Ukrainian media said, citing the Economy Ministry's press release. More than 70 registered participants representing various metallurgical sectors, as well as associations, reform support offices, consultancies and banking institutions have joined the group's work.

The proposals submitted by businesses are important for the development of the metals industry and will be taken into consideration during the work on the aforementioned plan, Deputy Economy Minister Alexei Sobolev said.

"Metallurgy is one of the key elements of the economy. Historically, Ukraine has been among the 20 largest producers and exporters of metallurgical products, steel, cast iron and rolled products. We have the potential to meet the needs of the green metallurgy market in line with the global de-carbonization goals," Sobolev said.

Thirty-nine billion euros of the Ukraine Facility program's 50-billion-euro budget will be spent on maintaining Ukraine's macrofinancial stability, he said. At the same time, this specialized investment tool will enable investors to receive financing through the European Bank for Reconstruction and Development, the European Investment Bank and other international financial institutions. Eight billion euros has been earmarked in this program for these needs, in order to cover risks in priority sectors, a step that should help attract over 40 billion euros to the Ukrainian economy.

After three expert discussions, the group's participants submitted 38 proposals, 35 of which will undergo further consideration. They include 13 green steel and energy reform initiatives, six steel consumption initiatives, three circular economy initiatives, eight logistics improvement initiatives, and five initiatives dealing with financial resources.

The proposals were analyzed and 15 of them were recommended for implementation. Their objective is to harmonize legislation, promote state support for the industry's development and improve the investment climate and state regulation. Twelve other proposals require more detailed analysis, and seven initiatives have been taken into account by the energy and logistics sectors.

Businesses submitted proposals on 46 investment projects worth $7.4 billion to the working group. Twenty-nine of these projects deal with rolled products, seven focus on green steel, five deal with the recirculation of resources, and three are related to the mining sector. The green steel investment projects mostly seek to promote low-carbon production, introduce DRI/HBI technologies, manufacture value-added products, ensure the effective recirculation of resources and repeated recycling of production waste.

The sectoral working groups have been formed as part of the Good Governance Fund's Economic Hub: Sound PFM Policies and Vision for Growth project, implemented by Abt Britain and the Kiev School of Economics with the UK government's support (UK Aid).