Kyiv School of Economics continues to work on the Ukraine Plan for the implementation of the Ukraine Facility program. Last week saw the inaugural meeting of the sectoral working group focused on green metallurgy. The group operates in conjunction with the Ministry of Economy of Ukraine and analytical consultation from KSE and McKinsey Ukraine, a consulting firm.

Creation of the sectoral working groups is one of the activities of the Good Governance Fund Project “Economic Hub: Sound PFM Policies and Vision for Growth,” which is supported by UK Aid from the UK Government. The project delivery partners are Abt Britain and Kyiv School of Economics.

“The guiding principle of the Ukraine Plan is to elevate the contribution of value-added production within the GDP structure, particularly in sectors like mechanical engineering and sustainable metallurgy. This serves as a direct path toward enhancing the standard of living to match that of EU nations. Ensuring the Plan’s comprehensiveness and equilibrium is of paramount importance. This approach ensures the economy’s growth is steady and free from any aberrations. Consequently, fostering a wide-ranging dialogue on forthcoming transformations and engaging key stakeholders, especially in the realm of green metallurgy, becomes a matter of critical significance,” emphasized Nadiia Bihun, Deputy Minister of Economy of Ukraine.

Maksym Fedoseienko, Head of Strategic Projects at KSE Institute, told about the organizational aspects of the group’s work. The proposals received from the participants of the sectoral group will be analysed and will become the basis for the further group’s activities.

“The successful execution of the Ukraine Plan hinges significantly on the active involvement of business delegates and experts in the ongoing discourse. The growth of the green metallurgy sector follows this same pattern. We anticipate a constructive dialogue that will lay the groundwork for shaping policies and instigating regulatory adjustments to the mutual advantage of all stakeholders in this endeavour,” — told Maksym Fedoseienko.

During the meeting, attendees deliberated on various concerns including access to financing and technology, regulatory and tariff policies within the sector, strategic investments to foster industry growth, state-sponsored aid for manufacturers, and the prospects of transitioning towards environmentally-friendly practices. Furthermore, government, business, and expert representatives brought up topics like crafting investment initiatives as part of the Ukraine Facility program, safeguarding domestic producers amidst market competition, setting industry development priorities, delineating the working group’s responsibilities, and outlining the trajectory of forthcoming gatherings.

The first stage of sectoral working group collaboration with businesses will continue until October 2023. During this period, proposals for the Ukraine Plan, essential for the implementation of the Ukraine Facility financial assistance program, will be formulated. The program will provide Ukraine with 50 billion euros from the European Commission during 2024-2027.