The Verkhovna Rada has adopted the Law on the ratification of the Agreement between the Government of Ukraine and the Government of the Republic of Korea on Loans from the Economic Development Cooperation Fund (EDCF). This opens up the possibility of financing long-term innovative economic projects and the participation of Korean companies in the recovery of Ukraine. This was announced by Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

“The EDCF financing agreement ratified by the Ukrainian Parliament opens the way to obtaining long-term and cheap loans, which, in turn, should help restore production capacity and create new jobs. This should accelerate Ukraine’s recovery and the implementation of a number of economic projects without waiting for the end of the war. Ukraine plans to use Korean experience for post-war reconstruction and expects Korean companies to take an active part in the restoration of our country, as well as in the creation of new technological production facilities in strategically important sectors of the economy,” said Yuliia Svyrydenko.

According to the Agreement, Ukraine or a resident business entity that has received a state guarantee has the right to attract long-term low-interest loans from the Export-Import Bank of Korea through the Economic Development Cooperation Fund (EDCF). At the first stage, such loans can be used to supply equipment.

And from 2025, it will be possible to attract infrastructure loans for reconstruction. There is already an agreement to provide Ukraine with the first USD 2 billion for reconstruction in the form of long-term low-interest loans through the EDCF.

The signing ceremony of the Agreement took place on 15 September 2023 in the presence of President of Ukraine Volodymyr Zelenskyy and Minister of Land, Infrastructure and Transport of Korea Won Hee-ryong.