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The Austrian state and business are actively involved in supporting Ukraine by helping to rebuild infrastructure and developing the sector of industry. Fruitful economic cooperation and European investment in the modernization of manufacturing enterprises, such as KCPM can drive post-war reconstruction.

Two important events in the economic relations between Kyiv and Vienna took place in May 2024: negotiations between the Heads of States and the creation of an Austrian government fund to support investment in Ukraine. Thus, President Volodymyr Zelenskyy and Federal Chancellor Karl Nehammer discussed the participation of Austrian businesses in the recovery of the Ukrainian economy during the war and agreed to coordinate future joint activities.

The Austrian Ministry of Finance has allocated half a billion euros for investors interested in rebuilding of vital infrastructure. According to Magnus Brunner, the Head of the Ministry, Russia`s armed aggression poses a risk to any business with Ukrainian companies for European stakeholders. Therefore, the Austrian government will allocate EUR 500 million over the next five years to support business activities in Ukraine. The potential attraction of funds from international financial institutions will add about a billion euros to the special fund. European donors are focused on industrial companies that are critical to the functioning of the national economy. The list of such entities includes Kyiv Cardboard and Paper Mill, the shareholder of which is Pulp Mill Holding (Austria).

Dr Heinz Zinner, the CEO and ultimate beneficiary of PMH, emphasizes that representatives of the European business community are interested in further investments in Ukraine and are cautiously optimistic regarding the future of economic cooperation. For example, many companies with Austrian capital did not leave the Ukrainian market even in the war time and provided over 20,000 jobs to Ukrainians, with their total investments exceeding EUR 1.6 billion last year.

 “Ukraine has a great potential in many aspects. I hope that it will receive support similar to that one, which Western European countries once received. I mean the Marshall Plan aimed at reconstruction and increasing production efficiency. Large-scale investments ultimately stimulated industry growth and became the key to economic prosperity in Europe,” Zinner said.

Last year, the Austrian shareholder invested over EUR 4 million in modernization of equipment and fulfillment of social obligations at Kyiv Cardboard and Paper Mill even during martial law and perturbations in the Ukrainian economy. This year, amid a recovery of the positive dynamics of the mill`s operations, another EUR 12.5 million has been allocated for further modernization of production facilities and development of the paper mill. However, the implementation of these plans depends on external factors, such as the security situation in the country, currency risks, logistical difficulties, etc.

The growth of production efficiency stimulated by investments enabled the company to increase its contribution to the state budget. Thus, in the first quarter of this year, Kyiv Cardboard and Paper Mill paid more than a third of a billion hryvnias in taxes and fees, and in 2023, the total payments to the budgets of all levels reached UAH 1.5 billion. Therefore, further deepening of mutual cooperation and restoration of investors` confidence in Austria are undoubtedly of the national interest and are an important vector for directing the efforts of both domestic business and government.

Based on the material of Comments.ua

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