Ukraine and Japan sign 56 agreements on recovery and economic development

Ukrainian Prime Minister Denys Shmyhal announced that Ukraine and Japan signed 56 cooperation documents during the Conference on Economic Development and Reconstruction in Tokyo, Rubryka reports.

"The documents include intergovernmental agreements, memoranda, agreements between businesses, and agreements with local government representatives," the Ukrainian PM reported.

According to Shmyhal, the countries also signed an intergovernmental convention on double taxation avoidance, which is crucial for Japanese businesses planning new projects in Ukraine.

More than a dozen agreements supporting Ukraine's reconstruction were signed with major Japanese organizations: JICA, JETRO, NEXI Export Credit Agency, and the Japan International Cooperation Agency.

The partners concluded grant agreements for recovery programs, along with several documents between the Ministry of Agrarian Policy of Ukraine and Japanese companies, involving the supply of various agricultural machinery and equipment to Ukraine.

"A memorandum of cooperation in education and technology was signed. Japan is a leader in these areas. It is important to build a genuine partnership," said Shmyhal.

He added that the Ukrainian gas operator Naftogaz and Japan agreed on a joint project in wind energy, and the operator of Ukraine's gas transmission system signed a memorandum for the modernization of gas compressor stations.

Other documents were also signed in the fields of energy, telecommunications, infrastructure construction, and ecology.

"Japan has already shown leadership in providing financial support to Ukraine. Now Japan must become one of the leaders in Ukrainian reconstruction and investment in our economy," said Shmyhal.

Background

Prime Minister of Ukraine Denys Shmyhal, leading a government delegation, began a visit to Tokyo. Shmyhal stressed that Ukraine is facilitating business contacts and strengthening intergovernmental dialogue.

According to Shmyhal, the Ukrainian government is studying the experience of Japanese modernization and analyzing everything that has allowed the Japanese economy to enter the top five in the world to create a "Ukrainian economic miracle."

During the Conference on Economic Development and Reconstruction in Tokyo, attended by Japanese Prime Minister Fumio Kishida, the head of the Ukrainian government outlined the main areas in which Ukraine proposes Japanese businesses to invest right now. These include energy, nuclear generation, gas extraction and storage, hydrogen energy projects, and hydro energy.

He also mentioned the agricultural sector. "Thanks to Japanese technology and investments, we can implement ambitious projects in the production of fertilizers and food production," said the Ukrainian prime minister.

He mentioned infrastructure, saying, "We are interested in the participation of Japanese investors in projects for the construction of highways and railways, bridges, as well as in the reconstruction of destroyed cities."

"Automotive industry. I invite leaders of the Japanese automotive industry to open production facilities in Ukraine," said Shmyhal.

As the Ukrainian PM pointed out, this also includes the extraction of minerals.

"Ukraine's subsoil contains up to a third of proven European lithium reserves. This resource allows for the creation of a closed cycle of electric vehicle production for export to the EU," said Shmyhal.

He also mentioned IT, digital technologies, and cybersecurity. "Ukraine offers some of the most favorable conditions in the world for IT companies regarding taxes and regulations."

"We invite Japanese businesses to be part of the 'Ukrainian economic miracle.' Those who invest in our economy today will receive incredible benefits and opportunities in the coming years," said Shmyhal.

As reported by Rubryka, Japanese Prime Minister Fumio Kishida stated at the opening of the conference in Tokyo that Japan will continue to provide diverse assistance to Ukraine in its reconstruction efforts and share its own recovery experience after devastating earthquakes.

What we know about the Ukraine Recovery Conference

The first conference took place at the end of April 2023 in the Italian capital, Rome, with representatives of over 150 domestic companies in attendance.

They met directly with Italian businessmen, discussed cooperation opportunities in various areas, and even concluded some contracts.

The second Ukraine Recovery Conference was held in London on June 21-22. During a virtual speech, President Zelensky outlined five key principles, including unity, stability, development, security, and democracy, which will form the basis of Ukraine's post-war reconstruction, made possible with international support.

The next reconstruction conference is taking place in Tokyo, Japan, with the participation of both countries' prime ministers on February 19-20, 2024.

Approximately 200 Japanese and Ukrainian companies are expected to participate in the Ukraine Recovery Conference in the Japanese capital of Tokyo on February 19-20.