Ukraine plans new business loans and fund to cover war risks

Ukraine’s government set out plans for new business loans and war risk cover at talks with industry on 6 November. Prime Minister Sergii Koretskyi led the meeting, the Cabinet of Ministers said.

The planned fund would help insure firms against war risks. Ministers discussed how to pay for it, with a launch planned for 2027.

Business leaders said loans were hard to get outside the “5-7-9%” scheme. Koretskyi told the Ministry of Economy and Environment to meet state banks and start a new scheme as soon as possible.

The scheme would offer up to UAH 1 billion and cover 5.5% of interest, the Cabinet said. The government has passed a resolution for it, but the scheme has yet to start.

The Cabinet also said most VAT refunds to firms had resumed. Late funds from abroad had forced a brief cap on state spending.

New laws and funds from partners allowed payments to restart. Refunds came to UAH 25.9 billion in October and UAH 5.6 billion so far in November, the Cabinet said.

It said all refunds held back due to a lack of cash in the treasury account had been paid.

The Ministry of Energy is working on rules for firms facing power shortages. The aim is to keep firms running when they use power from abroad or their own generators.

Koretskyi also asked for a review of access for private locomotives to Ukrzaliznytsia’s rail lines. Easier checks on goods at the border were raised as a way to help exports.

The Cabinet said talks with the EU had sped up on higher quotas for Ukrainian metal goods and the CBAM mechanism.

“Made in Ukraine” schemes are due to continue in 2027. Funds are in the draft state budget, the Cabinet said.