Business News 15:53 27 Feb 2024

3 billion in 2 years: what local projects has the Ukrainian company BGV Group Management invested in?

BGV Group Management

Over the past two years, BGV Group and its owner, Gennady Butkevich, have invested nearly UAH 3 billion (US$79.2 million) in various Ukrainian projects. "Rubrika" outlines the areas where these investments have made an impact.

What is the problem?

Amidst the ongoing war, Ukraine requires investments more than ever to sustain economic development. Simultaneously, conflicts on the country's territory and overall instability have deterred most foreign investors who had shown interest in Ukraine for the past two years. The demand for economic incentives is increasing, but satisfying it is becoming increasingly challenging. In the first year of the war alone, capital investments in Ukraine dropped by almost UAH 300 billion — from almost UAH 700 billion in 2021 to UAH 400 billion in 2022.

What is the solution?

Investments from local players and Ukrainian companies. This not only provides immediate support but can also set a trend in investments, indicating to international players that investing in Ukrainian projects today is not only necessary but also feasible and successful.

One notable contributor to this movement is the group of companies BGV Group Management, among today's investors in Ukrainian projects.

What has been done in two years?

  • In March 2022, the company established the BGV Charity Fund, focusing on food and non-food humanitarian aid for Ukrainians, children's and educational charity initiatives, and supporting Ukraine's defenders.

Over nearly two years, the fund has delivered 373 trucks of humanitarian aid from Europe to Ukrainians. Overall, the BGV Charity Fund attracted about UAH 878 million in aid for Ukraine, including both direct financial assistance and commodity support from donor partners. Since the beginning of the full-scale invasion, the charity organization has allocated UAH 90 million for the needs of the Ukrainian military and distributed over 60,000 food kits to socially vulnerable Ukrainians. Also, more than 60,000 kits of baby products have been sent to families with infants under three years old across Ukraine. The fund's team has completed over 30 extensive projects supporting soldiers, assisting the population, and rebuilding infrastructure.

  • Investments in mining and processing of raw materials are among the group's leading priorities. The company holds licenses for exploring or extracting nine types of resources in various regions of Ukraine. During the full-fledged invasion, the BGV Group Management launched one of Ukraine's most modern gravel plants in the Zhytomyr region. The plant has an annual capacity of over 1.5 million tons of ore processing and features a new technology park and its own railway infrastructure. The approximate investment in exploration and the launch of the enterprise was USD 22 million.
  • Infrastructure development is another important direction for Hennadii Butkevych and his companies. In 2023, BGV started a project to organize the construction of a new stadium and sustainable residential complex in Zhytomyr amid the large-scale war. The company aims to develop sports and recreational infrastructure in the region at its own expense.

The group also plans to continue developing graphite and beryllium projects, which are critical for Ukraine as a whole, helping our country enter the supply chain of global and European markets for strategic raw materials.

*BGV Group Management, an investment company owned by Gennady Butkevich, specializes in developing businesses and projects across various sectors, including mining, processing, energy efficiency, retail, and development.

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