News Tag: investment
The CUTIS project improves government officials’ knowledge of international investment law

The CUTIS project held a 2-day webinar for government officials on international investment law.

The speaker – J. Anthony VanDuzer, Hyman Soloway Professor of Business and Trade Law, University of Ottawa.

The webinar provided an overview of the international investment regime, including bilateral investment treaties and investment chapters in free trade agreements, and current reform discussions. The emphasis was on policy implications rather than the technical detail of investment treaty provisions.

The first day was devoted to the substantive investor protection standards and investor-state dispute settlement (ISDS) arrangements in existing investment treaties along with a discussion of treaty practise and the issues that have arisen in practice.

Canada’s treaty practice and ISDS experience were used as a case study.

The second day was addressed possible reforms to investor protection standards and ISDS. The speaker canvassed treaty drafting strategies that are designed to better balance investor protection with the host state’s right to regulate compared to traditional treaty protections as well as alternatives to investment treaty protection. He also covered proposals for ISDS reform focussing on the reforms currently being discussed in UNCITRAL Working Group III, including the EU proposal for a multilateral investment court.

Resource World Magazine highlighted mining in Ukraine

Resource World Magazine – one of the leading media in the business of mining, oil, gas and green technologies with subscribers in 46 countries published the outputs of the Mining in Ukraine conference, organized by CUTIS Project and the Canada-Ukraine Chamber of Commerce (CUCC) within the framework of PDAC Convention on March 2nd, 2020 in Toronto.

The editor Ellsworth Dickson wrote an article about activities of the state-owned Ukrainian exploration company “Nadra Ukrayny”, represented at the conference by the Chairman Taras Kuzmych.

Please read the whole article below:

Ukraine state exploration company seeking partners

By Ellsworth Dickson

In a presentation at the recent Prospectors and Developers of Canada Convention in Toronto, Canada, Taras Kuzmych, Chairman of National Joint Stock Company (NJSC), Nadra Ukrany, outlined the many activities of the state-owned Ukrainian exploration company.

The company carries out geological exploration and invests in projects in the exploration and production sector in the country – mostly oil and gas projects but some mineral projects as well.

Although Nadra Ukrany has been in existence in one form or another for about 80 years, the current state company was formed in 2000 “….to improve minerals supply for country’s needs [and] to reserve and increase geological enterprises’ potential.”

Considering the tumultuous events Ukraine has had to endure during the 20th century, it is remarkable that the NJSC has explored over 1,800 oil fields, discovered over 350 hydrocarbon deposits, drilled over 1,000 wells and added 2.9 billion tons of fuel reserves with the result that both state-owned and private enterprises represent about 95% of hydrocarbons in Ukraine.

The company has noted that these include hundreds of oil and condensate deposits such as: Shebelinske, Yablunivske, Radchenkivske, Sahaydatske, Mihaylivske, Rybalske, Anastasiyivske that have been discovered, tested and put into operation.

Recently, the NJSC has been modernizing its corporate structure and auditing its Joint Activity Agreements. The company is currently offering a selection of blocks, minerals and cooperating frameworks to investors covering the entire country. Bidding by investors is competition based.

For the oil & gas sector, the NJSC is involved in geological exploration, field development and analysis of wells, environmental monitoring and impact analysis R&D, laboratory studies of core, drilling mud and related activities, including engineering and geological research.

Nadra Ukrany has also been involved with exploring and developing various mineral commodities, including the Dashukivske clay deposit, Muzhiyivske gold and polymetallic ore deposit, coal deposits of the Lviv-Volyn coal basin, native sulphur and potassium salt deposits in the Carpathian region of Ukraine, the Dnieper brown coal basin, the Klintsy native gold deposit (the first Ukrainian gold was extracted out of its ore), and even mineral waters as Naftusya, Morshinska, Polyana Kwasova and Shayanska, as well as numerous deposits of decorative and construction brick.

There are several ways foreign investors can participate such as a Production Sharing Agreement (PSA), a Production Enhancement Contract and Joint Activity.

One example that is available is a farm-in PSA opportunity in the Oleska Oil and Gas Project in western Ukraine. This would involve E&P of conventional and unconventional hydrocarbons. Other oil & gas opportunities are also available.

There are also partnership opportunities for mineral development as well, including titanium in the Zhytomyr region, zirconium in the Krasnorichenske ilmenite field and zirconium, vanadium and scandium in the Paromivske ilmenite field. Scandium is a rare and valuable metal capable of increasing the strength of aluminum to that of steel, making the alloy especially useful for aircraft applications.

Blessed with petroleum and mineral wealth, Ukraine is keen on developing its natural resources and is welcoming foreign investors to participate in a variety of projects.

New opportunities for foreign investors in the Ukrainian mining industry were presented in Canada

Prospectors & Developers Association of Canada (PDAC) Convention in Toronto is the world’s annual premier mining industry event, bringing together investors, analysts, mining executives, geologists, students, and government officials.

Attendance at the 88th PDAC 2020 Convention totaled 23,144, highlighting the resilience and innovation of the international mineral exploration and mining sector.

Over 132 countries were present at PDAC, including major mining companies from the United States, Canada, China, Brazil, Australia, India, and South Africa.

For the first time within the PDAC agenda, Canada Ukraine Trade and Investment Support Project (CUTIS) in conjunction with the Canada-Ukraine Chamber of Commerce (CUCC) organized a half-day event called “Mining in Ukraine”. Ukrainian State and private mining representatives, as well as Canadian and American mining companies doing business in Ukraine presented to over 80 potential investors. The speakers shared their knowledge about the Ukraine mining industry and potential opportunities.

Roman Opimakh, who serves as the Head of the State Service for Geology and Subsoil of Ukraine was one of the first Ukrainian government speakers. Opimakh highlighted that Ukraine is on its way of transforming State Service for Geology into the service-oriented agency. The plan is to restore trust in the agency by improving the efficiency of its operations and creating investment opportunities for foreign companies. The agency is currently working towards activating “dormant” licenses and lifting artificial regulatory barriers. To attract investments in the development of the Ukrainian mineral sector, the agency is improving access to the existing geological data and conducting e-auctions and PSA tender for mineral projects.

The next speaker, Matt Simpson, CEO of Canadian company Black Iron Inc., a publicly listed company on the TSX, provided an overview of the company’s Shymanivske Iron Ore Project located in Ukraine’s iron belt 8km from Kryvyi Rih, the city with 750,000 people. The site is 2 km from rail, 30 km from power and will have access to 5 ports – 230 km to 430 km from the site. Matt Simpson said that they will need to invest US$436 million for the construction of the mine and plan to produce 4 million tonnes per year of premium 68% iron ore product. The production is scheduled to begin in late 2022. The Company is working closely with the Government of Ukraine to get all the necessary approvals to begin construction. If the project is successful, Matt Simpson predicts that it will generate US$1.2 billion investment over the next 20 years.

Brian C. Savage, Chairman and CEO of Avellana Gold Ltd. a privately held mineral exploration and development company, provided an overview of its development activities in Ukraine. The company owns licenses for gold-polymetallic deposits located in the western, Transcarpathian region of Ukraine near the border with Romania and Hungary. The three licenses cover over 1,300 hectares of land. The company has completed a 3d resource model and is developing a life of mine plan that targets 1 million tonnes of underground mining. Brian Savage said that it will take another two years to bring the project into the production of gold and zinc.

Chairman of the Board of NJSC “Nadra of Ukraine” Taras Kuzmych presented the opportunities of cooperation with NJSC “Nadra of Ukraine”. In particular, Taras Kuzmych outlined the plans for the transformation of NJSC “Nadra of Ukraine” and on specific proposals for cooperation in the field of development of minerals.  In addition to presenting these potential investment projects, Taras Kuzmych stressed the readiness of NJSC “Nadra Ukrainy”, which has vast experience and local expertise, to assist foreign companies entering Ukraine.

Taras Kuzmych presented a detailed brief on frameworks of cooperation with NJSC “Nadra Ukraine” in the joint development of blocks. In particular, it can be conducted on the basis of Production Sharing Agreements (PSAs), Production Enhancement Contracts (PECs) or Joint Activities Agreements (JAAs).

Stanislav Letyvniuk, Development Director of Kislotoupor Group, which was established in 1996, provided an overview of its mining activities in Ukraine. Kislotoupor has been operating in Ukraine for the last 24 years producing and supplying clay, gypsum, and other raw materials for glass production. The Company has completed 7 successful projects in the mining industry 4 of which where greenfield. The production has been exported to more than 10 countries, including countries in Europe, Asia, and the CIS countries. The Company has started a collaboration with customers in North America. In addition, the Company offers consulting services in the areas of deposit analysis, from exploration to the preparation of a business plan and project support.

CUCC’s plan is to hold a similar event next year at PDAC 2021.

All speakers presentations are available on the CUTIS Trade & Investment Portal

Ukrainian mining is on the world stage

The world’s premier mineral exploration & mining convention will be held in Toronto on March 1-4. Approximately 1,100 exhibitors, 2,500 investors and 25,800 visitors from 132 countries will attend the PDAC Convention in Canada’s business capital.

The powerful mining industry of Ukraine will be represented in a separate event on March 2nd, organized by the Canada-Ukraine Trade and Investment Support Project in cooperation with the Canada-Ukraine Chamber of Commerce (CUCC).

Investment opportunities in Ukraine will be described by, among others, Roman Opimakh, Head of the State Service of Geology and Subsoil of Ukraine; Taras Kuzmych, Chairman of “Nadra Ukrayny”; Matt Simpson, CEO Black Iron Inc. (Shymanivske Iron Ore Project). The full list of speakers and the agenda of the “Mining in Ukraine” conference is available by the link

 

CUTIS held a training workshop on investment facilitation negotiations

CUTIS project conducted a two-day training workshop on investment facilitation negotiations in Kyiv on 26-27 November 2019.

The workshop was organized for trade and investment officials from the Ministry of Economic Development,Trade and Agriculture (MEDTA), Ukraine Investment Promotion Office (UkraineInvest) and other government agencies involving in investment review, approval and facilitation processes.

The key objective of the workshop is to support the Ukrainian government in preparing for investment facilitation negotiations under the WTO and other trade negotiating fora. Ukraine is actively negotiating free trade agreements with other countries (including Canada) which may include investment facilitation and other investment-related matters. As a result, it is important that Ukrainian trade negotiators and other stakeholders be prepared for investment facilitation negotiations.

Keynote speaker:

  • Wenguo Cai, Director, International Programs, CBoC
  • Oleksandra Brovko, Senior Trade and Investment Policy Expert, CUTIS

The workshop provided the background context on investment facilitation at the WTO and the background context on international investment agreements, including the historical developments and traditional treaty approaches to promoting foreign investment.

Elisabeth Tuerk, Chief, International Investment Agreements Section, UNCTAD presented the UNCTAD’s global action menu for investment facilitation.

Two CUTIS trade experts from Ottawa and Kyiv made presentations on some specific investment facilitation measures for potential inclusion in a multilateral investment facilitation agreement. A total of 10 investment facilitation measures were presented and discussed during the two-day workshop.

Finally, the workshop conducted a group activity and a plenary discussion, assessing Ukraine’s readiness for negotiating the investment facilitation agreement, and for implementing those investment facilitation measures.

(Українська) Україна — Канада: зерна майбутніх інвестицій

Sorry, this entry is only available in Ukrainian.

Study Tour in Geneva: Ukrainian delegation visited the World Trade Organization and the World Investment Forum

The Ukrainian delegation visited a number of international trade and financial organizations during the Study Tour on Services Trade and Investment Negotiations in Geneva organized by the Canada-Ukraine Trade and Investment Support Project (CUTIS). The delegation included officials from Ministry of Economic Development and Trade and National Commission for State Regulation in the Area of Financial Services Markets.

The main goal of the tour is to gain new knowledge in such important for Ukraine areas as services trading and foreign investments attracting. Besides, Ukrainian officials got the chance to exchange experience with colleagues from other countries.

The tour program was quite intensive. The Ukrainian delegation had the opportunity to visit the World Trade Organization (WTO), the World Bank Office, the United Nations Conference on Trade and Development, the International Institute for Sustainable Development, and the permanent missions of the EU, the USA, Canada, and Ukraine.

Marie Isabelle Pellan, WTO Counsellor in the Trade in services and Investment Division delivered a training session on “Energy-related and environmental services.” Services in the energy sector are of fundamental importance to economic and social development.

The Ukrainian delegation also attended the Investment Promotion Conference and visited the session “Talking Business: Eastern Europe and Central Asia” at the World Investment Forum in Geneva.

Besides, Ukrainian officials participated in the interactive breakfast organized by the World Economic Forum and ICTSD International Centre for Trade and Sustainable Development. Ukrainian delegates exchanged views on sustainable investment policies issues with colleagues from Zimbabwe, the Netherlands, Botswana, and Brazil.

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a 5-year (2016-2021) Canadian development assistance initiative designed to lower poverty in Ukraine through increasing exports from Ukraine to Canada and investment from Canada to Ukraine.

The CUTIS project implements U CAN EXPORT Export Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

CUTIS celebrates the first anniversary of the CUFTA and kicks off the CUTIS Investment Roadshow

The Canada-Ukraine Trade and Investment Support (CUTIS) project with the support of the Canada-Ukraine Chamber of Commerce in partnership with Crossways MK Consulting Inc. have organized the first ever Investment Roadshow. The main objective of CUTIS Investment Roadshow is to develop Canada-Ukraine investment collaboration.

Investment Roadshow is part of the celebration of the first anniversary of the Canada-Ukraine Free Trade Agreement (CUFTA), which came into force on August 1, 2017.

CUTIS project celebrated the first anniversary of the CUFTA on Monday, October 22, 2018 from 6:00 p.m. to 9:00 p.m. at the Design Exchange, Toronto.

Key notes were delivered by Stephan Kubiv, First Vice Prime Minister & Minister of Economic Development and Trade of Ukraine and Zenon Potoczny, President, Canada-Ukraine Chamber of Commerce.

“The success of the CUFTA is measured not only by striking new trade deals but also by ensuring that our agreements actually deliver, and we are on the right track. Most recently, Brookfield Asset Management announced their support of the Lviv Innovation District IT park, which will include office buildings, campuses and labs, kindergartens, shopping malls and the Ukrainian Catholic University. This $160 million dollar, 10-ha IT park is the biggest infrastructure project of the Lviv IT industry and was initiated by a group of Lviv based international IT companies, such as N-iX, SoftServe and Global Logic and the Lviv IT Cluster.” said Zenon Potoczny, president, Canada-Ukraine Chamber of Commerce.

On Tuesday, October 23rd and Wednesday, October 24th Toronto’s Bay Street players met Ukraine. 20 leading Ukrainian companies presented investment projects in four major sectors: Infrastructure, Natural Resources, Agriculture, and Information & Communications Technology.

The event informed investors about large lucrative projects, shared insights of CEO’s and Ukrainian Deputy Ministers, and provided opportunities to interact with decision makers on both sides of the commercial and geopolitical coin.

The selected 20 Ukrainian companies have been reviewed and examined by Crossways MK Consulting Inc. Toronto, Canada and SP Advisors, Kyiv, Ukraine.  Estimated total value of selected projects is USD 1.5 billion dollars.

“We pride ourselves on showcasing the right companies to the right people and creating an immersive setting that will drive stronger investor engagement,” said Markiyan Markevych, president, Crossways MK Consulting Inc. “An important component of the Investment Roadshow is to market Ukraine’s potential, and encourage opportunities for economic growth for both partners.”

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a 5-year (2016-2021) Canadian development assistance initiative designed to lower poverty in Ukraine through increasing exports from Ukraine to Canada and investment from Canada to Ukraine.

The CUTIS project implements U CAN EXPORT Export Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

Canadian company plans to invest $1,1 billion into a mining project in Krivyi Rih

Canadian company Black Iron is ready to invest $ 1.1 billion into the iron ore career near Kryviy Rih.

The result of a meeting between Canadian investors and the city authorities of Kryvy Rih are reported by “Pershiy Diloviy”.

According to the publication, this project could become the largest industrial investment in Ukraine over the last five years.

Black Iron plans to build a career in mining iron ore and processing plant on 112 hectares of Shimanovsky deposit near the Rudnikove village.

“According to the project, construction will be carried out by Ukrainian companies, but under the guidance of Canadian specialists. The development will be carried out in accordance with high standards and state-of-the-art technologies. The total of four companies in the world are built according to such standards,” – the message goes.

The issue of the allocation of a land area for the project, which is currently owned by the Ministry of Defense, remains unresolved. A Canadian company is ready to acquire a new similar area of land for Ukrainian military personnel and equip a similar proving ground for all NATO standards there.

CUFTA: Opening Doors concluded with events in Ottawa, Montreal & Toronto

On October, 11, 12 and 16 three last networking events of the CUTIS project’s CUFTA: Opening Doors tour happened in Ottawa, Montreal and Toronto.

All three events covered the benefits of the Canada-Ukraine Free Trade agreement (CUFTA) to Canadian business, its role in enhancing the role of women in Canada-Ukraine trade as well as Canadian business success stories in Ukraine and investment opportunities in Ukraine.

Ukrainian Ambassador to Canada Andriy Shevchenko joined the event in Ottawa and delivered his remarks about the prospects of the CUFTA.

“Opportunities of the free trade in Ukraine are real and Canadian firms are already enjoying the benefits”, – he emphasized.

The events in Ottawa, Montreal and Toronto were joined by distinguished quests: Diane Frances, world renown journalist and author, Wayne Gudbranson, CEO, Branham Group, Roman Masley, Managing Director at SHI Capital, Daniel Zaharychuk, Trade Commissioner, Eastern Europe & Eurasia, Government of Canada, Dr. Paul Melekhov, Vice-President, Eastern Europe, Pharmascience Inc., Oleh Khavroniuk, First Secretary for Economic Issues, Embassy of Ukraine in Canada and many others. All the meetings were moderated and supported by the CUTIS project experts and managers.

See photos from all three events below.

We hope meetings during the last month have inspired the Canadian business to look at Ukraine and analyze the potential benefits of the free trade. Our team continues to seek Canadian partners and investors who are ready to work with Ukrainian business.