Ukrainian Foreign Minister Dmytro Kuleba and Danish Foreign Minister Lars Lokke Rasmussen discussed how Denmark is helping to rebuild Ukraine in an op-ed on Bloomberg . Kuleba noted that investing in a war-torn country is a big risk, but as the Danes have shown, friendly governments can reduce these risks by supporting their companies, UNN reports.
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It is noted that Denmark has been a leader in providing commercial support to Ukraine. The Danish government has done this through the Danish-Ukrainian Fund, providing a wide range of commercial financing instruments and reducing risks for companies investing and trading with Ukrainian partners.
A particularly inspiring example is Denmark's efforts to rebuild Mykolaiv and its region on the northern shore of the Black Sea. We hope that Denmark's success can inspire more countries and private companies to follow suit.
The Ukrainian Foreign Minister noted that state funding is crucial to ensure that private investors are attracted. Currently, more than 100 Danish companies are doing business in Ukraine, and they are committed to long-term cooperation.
The Export Investment Fund of Denmark (EIFO) currently offers 100% risk coverage for Danish exporters when investing in Ukraine and 100% risk mitigation during the construction or production of export contracts. At the same time, EIFO provides financing and favorable loans for Ukrainian private companies and public institutions. It is noted that this initiative can currently provide loans and guarantees worth almost 140 million euros and has more than 15 different projects.
Several investments by private Danish companies would not have been possible without the risk capital backed by Danish financial institutions. They help companies relocate to Ukraine, and Ukrainian companies themselves are engaged in reconstruction.
This project creates jobs in Ukraine and Denmark. It opens new avenues for cooperation and innovation, and positions Danish companies for future opportunities in the Ukrainian EU market. This is beneficial for both parties to the cooperation.
The article notes that Denmark was investing in Ukraine even before the full-scale war. In 1989, when the collapse of the Soviet Union began, the Danish government established an Investment Fund for Central and Eastern Europe. The fund was managed by the Investment Fund for Developing Countries (IFU), which is still a significant foreign direct investor in Ukraine.
Thanks to IFU, Denmark had an active investment vehicle in Ukraine before the war. When Russia invaded in 2022, IFU was managing 14 active investments in our country, making it one of the largest investors in Ukraine among European development finance institutions.
According to the ministers, the Danish-Ukrainian Fund has now committed approximately EUR 15 million to continue IFU's support for the private sector-led recovery of the Ukrainian economy. This financing has already provided market expansion for several companies in Ukraine and created jobs, export revenues and significant tax revenues to support the economy. Denmark, as a pioneer, has set an example of supporting Ukraine on a commercial basis.
In times of war, the economy is as important as military aid. The stronger Ukraine's economic situation, the greater its chances of winning the war and restoring peace. That is why one of the priorities of Ukrainian diplomacy and Ukrainian-Danish cooperation is to encourage private investment and the development of small and medium-sized businesses in Ukraine. Every new opportunity for a Ukrainian company is a step towards victory and self-sufficiency for Ukraine.
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The article also explains the necessity and logic of further rebuilding Ukraine through investment. After all, in the long run, Ukraine needs to be rebuilt - psychologically and institutionally - to become a self-sufficient state and a member of the European Union. This requires private investment.
Ukraine does not want to be a donor-dependent country after the war, and it has the knowledge and resources to become a self-sustaining and developed economy. In addition, Ukraine is now an EU candidate, is engaged in reforms, and is ready to participate in EU accession negotiations.
At the same time, Russia intends to prevent all of this. It is targeting Ukraine's production facilities and civilian and commercial infrastructure, trying to undermine the country's economic backbone.