Business Recovery
LOCAL BUSINESS IN NEED OF SUPPORT
Local business activity has been severely affected by heavy shelling, which has also caused people to flee the area. Many businesses have lost their assets and employees. Some enterprises have been struggling to get access to loans, as very few banks will accept the financial risks of issuing loans to the enterprises operating close to the frontlines. The city and region of Mykolaiv need support in restarting its economy in order to generate jobs and taxes, and offer displaced people an opportunity to repatriate.
At a conference on 13 January 2023, attended by the Danish Minister for Development Cooperation and Global Climate Policy, Dan Jørgensen, the local business community described how improving the local economy is key to reconstruction. The support to local businesses therefore became the key focus of the next phase in the Mykolaiv-Denmark Partnership.
UKRAINE INVESTMENT FORUM IN DENMARK
On 26 May 2023, the Danish government held the first meeting of the Ukraine Investment Forum. Minister for Foreign Affairs Lars Løkke Rasmussen, Minister for Business Morten Bødskov and Minister for Development Cooperation and Global Climate Policy Dan Jørgensen, as well as senior members of the Ukrainian government and more than 100 Danish companies took part in the meeting. The goal was to provide support to Danish companies that are engaging in specific reconstruction projects in Ukraine.
As part of the Ukraine Fund, a state loan and guarantee scheme was established within Denmark's Export and Investment Fund (EIFO) with a capacity of DKK 1 billion (around EUR 133 million). Consequently, long-term loans and guarantees could be granted for Danish exports and investments in Ukraine.
Furthermore, DKK 170 million (about EUR 25 million) was set aside within the Ukraine Fund for critical public infrastructure through Danida Sustainable Infrastructure Finance (DSIF) and in key private sectors via the Investment Fund for Developing Countries (IFU). Additionally, a number of other business efforts were launched under the Ukraine Fund, including the strengthening of the Danish Ministry of Foreign Affairs' business-related advisory services.