The topic was discussed in Kyiv at the Manufacturers’ Forum hosted by Forbes Ukraine. Why are banks and international institutions ready to finance new Ukrainian projects? Read more in Vikna, STB for the United News telethon.
"Manufacturers' Forum: Made in Ukraine" – an event by Forbes Ukraine dedicated to industry – took place in the capital. Since the start of the full-scale invasion, Ukraine's economy has shrunk by almost 30%. One of the hardest-hit industries, which had long provided stable foreign currency revenues through trade, is steelmaking.
"After the loss of Mariupol's assets and a general decline in production across Ukraine, we now produce only 4.8-5 million tonnes of steel per year, compared to around 10 million tonnes before the war. This represents 60–65% of Ukraine’s total production," explained Oleksandr MYRONENKO, Chief Operating Officer of Metinvest.
As a result, steel and ore exports bring in far less foreign currency than before Russia’s invasion in February 2022.
"In physical volumes, we ship twice as little as before. We need to invest in the restoration of two additional blast furnaces. It will allow us to return to pre-war output levels" said Oleksandr Myronenko.
According to Ukrainian bankers, energy projects are among the most promising areas for investments during wartime.
"Energy projects include wind power, solar power plants, and batteries for load control. There is also the '5-7-9' programme, which allows companies to reduce the cost of crediting," said Andrii MOISEIENKO, Member of the Board of Directors at JSC Ukreximbank responsible for corporate business. "In addition, there are state guarantees. Using state and portfolio guarantees, banks can finance riskier projects. Support also comes from international financial institutions, which take on part of the risk when a bank issues a loan.
The topic of business projects, in which investors and banks are ready to invest money, was discussed during the Manufacturers' Forum.
In particular, speakers highlighted the processing industry as a promising direction for investment of money, time, and human capital.
"Ukraine is a resource-based country, and that is not efficient. Raw materials can and should be processed into finished products and supplied worldwide. When you go to a shop and see goods that are not made in Ukraine, that is where investment opportunities lie, because we cannot keep importing everything from abroad," said Vasyl KHMELNYTSKYI, Founder of UFuture.
Start-ups in the processing sector can begin on a small scale. The key is to determine what value-added product to manufacture. According to Vasyl Khmelnytskyi, the country has plenty of raw materials to support such initiatives:
"A million-dollar business can begin with just a thousand or even five hundred dollars. Today, there are many websites selling new equipment costing three, five, seven, or ten thousand dollars. I would buy such equipment and produce what Ukraine currently does not make. I would start small and then expand, step by step. That is how I personally began, and today I have achieved a certain level of success."
