EBRD to provide loan for developing mineral deposits in Ukraine – Cabinet

Ukraine's Cabinet of Ministers says the European Bank for Reconstruction and Development (EBRD) is ready to provide Ukraine with EUR 200 million in loan to verify the country's reserves of mineral deposits.

Ukrainian Prime Minister Denys Shmyhal and European Commission Vice-President for Inter-institutional Relations and Foresight Maroš Šefčovič discussed the issue during an online meeting on November 12, as reported by the Cabinet's press service on Friday.

The sides discussed ways to intensify cooperation between Ukraine and the European Commission in the field of building up a strategic partnership in this area.

According to Shmyhal, it is critical for Ukraine to initiate a joint project on the geological study of mineral ore mining and to prepare in 2021 to auction off several deposits that are included in the strategic list of the European Union.

"We have had preliminary talks with the EBRD about a possible project to verify Ukraine's reserves of mineral deposits. The EBRD is ready to provide approximately EUR 200 million. It would be important for Ukraine to get the EU assistance in considering a credit line at the level of the European Commission so that we, in synergy with the EBRD, could work on the issue. The project concerns not only verification of stocks but also the preparation of deposits for auction," the press service quoted Shmyhal as saying.

Read alsoPM Shmyhal: Government identifies 30 priority projects for 10 yearsThe prime minister stressed that the main goal of Ukraine-EU economic cooperation is the country's further integration into the EU internal market, as enshrined in the provisions of the Association Agreement. He noted that Ukraine supports the European Union's intentions to develop a strategic partnership with other countries.

"We are considering opportunities to develop approaches jointly with the EU to use Ukraine's potential in the extraction industry to help the EU and together build globally competitive value-added production chains in Europe," he said.

Shmyhal also welcomed the launch of the European Raw Materials Alliance (ERMA), expressing confidence that Ukrainian stakeholders would join the Alliance's activities and establish mutually beneficial cooperation with European partners."

Moreover, he suggested applying an innovative cluster approach to the development of cooperation in the raw materials sector.

"We could consider building a plant in Ukraine to produce batteries for electric cars or electric buses manufacturing that could be supplied to European countries and other world markets," he said

Background

On November 6, the Cabinet of Ministers presented the results of the audit of the domestic economy and the vectors of economic development until 2030. Among other things, the Prime Minister pointed out that in the following decade, Ukraine might sharply increase the development of mineral deposits, which could bring US$400 billion in additional GDP.