Kyiv School of Economics is actively engaged in the 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 mechanical engineering. The group operates in conjunction with the Office of the President of Ukraine, with oversight by the Ministry of Economy of Ukraine and analytical consultation from KSE and Kearney, 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.

Discussion participants included representatives from the Office of the President of Ukraine, the Ministry of Economy of Ukraine, and Kyiv School of Economics, moderated by Kearney.

“Mechanical engineering presents substantial potential in nurturing value-added industries and new employment opportunities, capitalizing on Ukraine’s established sector strength and its role in advancing various economic domains. The Government aims to harness the potential for localized production across multiple sectors during post-war recovery. The working group’s mandate, therefore, is to identify areas that can optimally bolster industry and overall economic growth,” stated Rostyslav Shurma, Deputy Head of the Office of the President of Ukraine.

Maksym Fedoseienko, Head of Strategic Projects at KSE Institute, who moderated the session, discussed the organizational facets of the sectoral group’s operations, along with its primary objectives. He emphasized that the valuable proposals and ideas put forth by discussion participants will underpin the group’s ongoing efforts, urging business representatives to engage in active discourse.

The question-and-answer segment delved into themes like establishing industrial park networks, creating favorable tax environments, professional workforce training, investment and military risk insurance, as well as forging partnerships with foreign investors.

“Our goal is to significantly enhance domestic mechanical engineering production. Within this sectoral working group, we are striving to pinpoint directions and projects that facilitate the establishment of contemporary technological manufacturing to meet domestic demand and venture into global markets,” said Nadiia Bihun, Deputy Minister of Economy of Ukraine.

Additionally, the discussion underscored finance accessibility, production localization, market participants’ payment capacity enhancement, potential legislative and regulatory alterations, and fostering R&D infrastructure in Ukraine.

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.