The Ukrainian government plans to establish an industrial revitalization fund worth tens of millions of dollars with Japan, according to Oleksiy Sobolev, Ukraine's Minister of Economy, Trade and Agriculture.
According to a report by the Nikkei newspaper today (June 23), Sobolev stated, "Ukrainian companies have approached Japanese firms to discuss cooperation and have begun negotiations on terms for procurement and investment." He added that details of the plan will be announced at the Ukraine Recovery Conference to be held in Poland on the 25th.
Japanese companies mentioned for potential participation in Ukraine's reconstruction include Hitachi, Toshiba, and Mitsubishi Heavy Industries, which specialize in industrial equipment production and infrastructure construction. They are expected to participate in the restoration of Ukraine's energy facilities and public-private infrastructure, which have been heavily destroyed by Russia.
Nikkei estimated that the total damage to Ukraine's production facilities caused by Russia exceeds $10 billion (approximately 15.4 trillion won).
The newspaper identified energy modernization, such as power grids, transportation infrastructure, mineral resources, green technology, and agricultural processing as areas with significant potential for cooperation with Japan.
Ukraine is reportedly planning to request subsidies and long-term loans for industrial revitalization from Japanese state-run institutions, including the Japan Bank for International Cooperation (JBIC) and the Japan International Cooperation Agency (JICA).
Ukraine is set to launch the "Ukraine Flagship Fund," a private equity fund established to support economic reconstruction and EU accession. The EU, France, Germany, Italy, and Poland are expected to invest in areas such as the development of Ukraine's mineral resources through this fund.
Minister Sobolev projected that the fund would reach $1 billion (approximately 1.5 trillion won) within the next few years, adding, "We are considering setting up a fund that would allow for contributions from Japan and Gulf countries in the Middle East."
Nikkei reported that alongside economic reconstruction, Ukraine is embarking on large-scale privatization, facility modernization, and governance improvements. The report noted that major companies such as the Odesa Port Plant, a chemical and fertilizer giant in the southern Odesa region, and titanium mining firms in the east are being considered for sale.
(Photo: AP, Yonhap News)