19 Feb 2024 18:11

Japan to allocate up to $150 mln to BSTDB to support Ukrainian economy - first dep PM

MOSCOW. Feb 19 (Interfax) - Japan Bank for International Cooperation (JBIC) will provide up to $150 million to the Black Sea Trade and Development Bank (BSTDB) for recovery and economic development projects in Ukraine, Ukrainian media quoted Ukrainian First Deputy Prime Minister and Economy Minister Yulia Sviridenko as saying on social media.

"Cooperation between Ukraine and Japan is becoming ever closer. During the Tokyo economic development conference, 56 documents were signed to deepen our partnership and raise hundreds of millions of US dollars for Ukraine's reconstruction [...]. JBIC will provide a loan of $150 million to support the Ukrainian private sector through the Black Sea Trade and Development Bank," Sviridenko said.

The funds will be used for already approved projects.

The agreement between JBIC and the BSTDB will strengthen cooperation in agriculture, manufacturing, transport and logistics, digital infrastructure and medicine in Ukraine. Renewable energy projects will be of particular importance, Sviridenko said.

Sviridenko said the Nippon Export and Investment Insurance (NEXI) agency had launched a new program for Ukraine to cover investment and trade risks worth 1.25 billion euros. This will consist of two parts: 937.5 million euros to insure the investments of Japanese companies for a period of five years; and 312.5 million euros of credit to export of Japanese goods and services for a period of two years.

It is anticipated that Japan International Cooperation Agency (JICA) will provide around $20 to Ukrainian private investment fund Horizon Capital.

Sviridenko said key documents signed during the conference in Tokyo included a memorandum between the Ukrainian Economy Ministry and JICA. "From this moment we are joining forces to involve the Japanese private sector in the restoration of our state. JICA will help to draft business plans for investors interested in entering Ukraine, organize training and make recommendations to the government on how to improve the environment. Also, we will be carrying out pilot investment projects in Ukraine together," she said.

The Ukrainian Export Credit Agency signed a memorandum of cooperation with NEXI, which will deepen the relationship between the two, in particular in field reinsurance to support trade and investment, as well as facilitate information exchange and innovation, she said.

In addition, the Office for Export Promotion entered into an agreement with the Japan External Trade Organization (JETRO - Collaborate & Invest Japan) to attract Japanese companies to the Ukrainian market through joint events, business promotion, strengthening cooperation between startups and popularizing Ukrainian products on the Japanese market.