Denmark allocating EUR 420M for Ukraine’s reconstruction, renewable energy

Ukraine and Denmark have signed a Memorandum of Understanding regarding long-term cooperation and Ukraine’s reconstruction efforts.

The relevant statement was made by the Ukrainian Economy Ministry, an Ukrinform correspondent reports.

According to the document, the Danish government will allocate about EUR 40 million to support the private sector involved in Ukraine’s reconstruction efforts, as well as EUR 380 million to support the critical infrastructure facilities running on renewable energy.

“We see the need to further strengthen commercial ties between Danish and Ukrainian businesses to support Ukraine’s economy and business community. The memorandum we have signed envisages cooperation with the private sector through the created mechanism, Ukraine Facility, with a system of loans and guarantees within the framework of the Export and Investment Fund of Denmark (EIFO), which is part of the Danish-Ukrainian Fund aimed at reducing the financial risks faced by the companies involved in Ukraine’s reconstruction efforts,” Ukrainian First Deputy Prime Minister, Economy Minister Yuliia Svyrydenko noted.

Following the agreements reached, the Danish government will direct new funding to the EIFO, promoting the new investment opportunities of at least DKK 300 million (about EUR 40 million). Hence, the total package of the Fund will amount to DKK 1.3 billion (or EUR 170 million).

Additionally, the parties will encourage dialogue between Danish foundations and relevant Ukrainian partners to support further cooperation in Ukraine’s reconstruction efforts.

The representatives of the two governments also agreed to promote meetings between Danish and Ukrainian businesses, namely through the Ukrainian Investment Forum, as well as facilitate the creation and implementation of loan and guarantee mechanisms in support of Ukraine.

Special attention will be paid to the green transformation of economy and the implementation of innovative solutions in the field of critical infrastructure, where Denmark is a global leader. In particular, in support of the critical infrastructure facilities running on renewable energy, the Danish government will allocate additional funding to the EIFO’s Ukraine Facility, totaling DKK 2.85 billion (about EUR 380 million).

Ukraine and Denmark will also strengthen cooperation in the field of shipbuilding and the reconstruction of sea port infrastructure.

A reminder that the Government of Denmark is allocating at least DKK 300 million (about USD 43 million) for the Danish companies investing in or implementing business projects in Ukraine.

Photo: Ukrainian Economy Ministry