500 million euros for vital investments in Ukraine
Vienna (OTS) – Russia has been attacking Ukraine for more than 2 years, making any business with Ukrainian companies extremely risky for Austrian exporters and investors. With the Budget Accompanying Act 2024, the Ministry of Finance and OeKB have therefore created the conditions to support Austrian exports to Ukraine, which would otherwise not be possible due to the special risk situation.
The support is implemented through a special risk-based Ukraine facility that the Ministry of Finance has set up at OeKB. This is intended to provide 500 million euros over the next 5 years to cover business in Ukraine. By leveraging funds from international financing institutions, up to 1 billion euros could even be possible. Approximately 100 million euros per year are earmarked for new business. This also gives Austrian exporters opportunities to rebuild Ukraine.
Finance Minister Magnus Brunner: “The Russian war of aggression on Ukraine leads to severe human suffering and also brings with it massive problems for Ukrainian economic life. In addition to the domestic economy, the Ukrainian population and economy in particular benefit from our export support, as we actively contribute to the reconstruction of the country.”
In the existing and proven export promotion process, the Ministry of Finance is already facilitating export transactions worth 3-5 million euros in Ukraine with payment terms of up to 3 years through the settlement agency Oesterreichischekontrollebank AG (OeKB). This means that traditional business relationships in particular will continue to be maintained. Due to the special risk situation, transactions beyond this cannot be implemented as part of the normal export promotion process.
In the extremely difficult environment, coverage for business in annexed and contested areas is still excluded for risk reasons.
Since funds are limited and a broad risk diversification is to be achieved, including in the sectors supported, small to medium-sized transactions in the public sector will be possible in the first step on the basis of a state guarantee. “In this way we are enabling investments that are vital for Ukraine. These include, among other things, the supply of drinking water and heat, securing and rebuilding the transport sector with roads, bridges and railway infrastructure, as well as supply businesses and investments such as joint workshops for buses, trams and trains,” says Brunner.
Project applications under the Ukraine Facility can be submitted to OeKB from mid-May 2024.
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