KUKE & Oschadbank supporting investments in Ukraine
We commence cooperation with one of the largest banks in Ukraine - Oschadbank to jointly support the investments of Polish companies and their participation in the reconstruction of our neighbor's country. The memorandum of understanding was signed on the part of KUKE by: CEO Janusz Władyczak and Deputy CEO Katarzyna Kowalska, and on the part of Oschadbank by president of the Management Board Sergii Naumov and vice-president responsible for the corporate division Yuriy Katsion.
The agreement stipulates the cooperation between the parties to provide financial instruments guaranteed by the State Treasury of Poland regarding to financing and contracts of Polish and Ukrainian companies with the Polish goods component, namely:
- Coverage of receivables (short-term financing of Polish export);
- Coverage of investments (long-term financing of greenfield and brownfield investments as well as M&A);
- Coverage of infrastructure construction projects (up to 10 years) of government and municipalities of Ukraine, as well as projects by private Ukrainian and foreign entities in which Polish companies participate.
KUKE was the first export credit agency (ECA) in the world to restore the coverage of ST export credit and investments in Ukraine after the Russian aggression in February 2022.
“The reconstruction of Ukraine continues here and now, and the country must function as normally as possible. Therefore, we should not wait until hostilities cease and then act. We at KUKE have adopted this strategy from the very beginning, creating various solutions and safeguards for emerging risks, incuding the war risk. While we have always believed that the role of blend finance will be enormous, we see that the creation of funds with multilateral support consumes a lot of time and hardly mobilizes significant capital so far. KUKE was the first and remains one of the few institutions that provide such guarantees to business. So far, over 3,000 Polish companies have declared their willingness to invest in Ukraine and participate in the reconstruction process. We hope that our cooperation with Oschadbank will increase their opportunities to participate in projects related to the reconstruction of infrastructure or other projects aimed at modernizing the economy. Partnership with local entities may strengthen their position to compete effectively with firms from other countries and give them access to a market with extensive needs”.
"Oschadbank continues to form an international coalition to support Ukrainian business. The memorandum signed today stipulates that our Polish partners from KUKE will soon join us in guaranteeing investments in the Ukrainian economy. We already have several projects to guarantee financial obligations together with the EBRD, the European Investment Bank, and the Ukrainian Export Credit Agency. The involvement of a powerful Polish player in the field of export guarantees in these programs will increase the volume of such initiatives and help attract foreign investment for much larger projects that the Ukrainian economy needs today. We are very grateful to our Polish friends for their cooperation and willingness to help build Ukraine even during the full-scale aggression."
The agreement also enables cooperation between KUKE and Oschadbank in other areas that both parties consider mutually beneficial.