Ukraine to attract up to $8B from Korea on preferential terms
As the Ministry of Economy of Ukraine informs, the document was signed within the framework of the Asian Leadership Conference during the visit of the Ukrainian delegation to the Republic of Korea. First Deputy Prime Minister – Minister of Economy Yulia Svyrydenko represented Ukraine at the signing ceremony.
According to her, Ukraine is on the list of priority countries for bilateral cooperation with the Republic of Korea within the Official Development Assistance (ODA) program.
"The possibility of receiving the first tranche from EDCF in the amount of up to $300 million will appear already in 2023 within three to four months upon signing the second stage of the agreement which is expected one month after today's extremely important event. The next tranche of up to $3 billion will become available in 2024 with a gradual increase in the limit to $8 billion as the pipeline of projects fills up. Ukraine will also be able to use Korean capabilities and experience for the post-war reconstruction of destroyed infrastructure, industrial, and civilian facilities," Svyrydenko emphasized.
It is noted that the funds will be attracted for a long-term period at minimal interest: the term of the loan can be up to 40 years at 0.15% per annum with a 10-year loan deferment. Loans will be provided by the Export-Import Bank of Korea within the framework of EDCF.
"We hope that all the formalities will be completed in the coming weeks and we will be able to present the first projects that can be financed by the Fund to the business communities of our countries," Svyrydenko noted.
To attract financing for specific projects, separate loan agreements will be concluded. For its part, the Korean government may provide grants and technical assistance for project preparation and evaluation.
In addition, it is planned to open an EDCF office in Ukraine.
"Implementation of the agreement will open up new opportunities for business cooperation of both countries. We count on the active participation of Korean business in the post-war reconstruction of our country, and today's signing will allow us to attract significant investments from South Korea for the location of new technological factories in Ukraine in strategically important industries in partnership with global Korean corporations," Svyrydenko stressed.
