The Korean company Posco International will actively participate in Ukraine's reconstruction projects. The future collaboration in both the private and public sectors was discussed during a meeting between Deputy Minister of Economy Oleksii Sobolev and the management of Posco International Ukraine. Priority areas for future cooperation include green metallurgy and the development of modern energy infrastructure.
Representatives of the Korean company emphasized their experience in implementing projects in Ukraine, particularly in the agricultural and energy sectors. They are now seeking ways to engage more actively in the reconstruction process and see the establishment of dialogue with the government to understand urgent needs as critical.
One of the upcoming projects that "Posco International Ukraine" intends to implement in Ukraine is the construction of a combined heat and power plant in Odessa, powered by RDF (Refuse-derived fuel). The initiative, valued at $106 million, will be carried out in cooperation with the Korean Economic Development and Cooperation Fund (EDCF).
"Last year, we signed a framework intergovernmental agreement with the Republic of Korea, under which Ukraine’s economy will receive $2.1 billion in concessional loans from EDCF. We are very interested in maximizing the use of these funds for reconstruction projects in the near future. Under the current agreements, these will only be public initiatives from the Unified Project Portfolio. However, we hope for further cooperation with the Korean government and the possibility of attracting concessional loans from the Fund for the private sector," said Deputy Minister of Economy Oleksii Sobolev.
One of the priority areas that Posco International plans to develop in Ukraine is green metallurgy. The company has over 20 years of experience in the field and sees potential in both investment in Ukraine's sector and providing technological and consulting assistance to the Ukrainian metallurgical business. This would help bring in advanced technologies and access to global markets.
According to Oleksii Sobolev, green metallurgy is one of the sectors outlined in Ukraine's plan for the Ukraine Facility, which is essential for reconstruction and economic growth. Ukraine has significant iron ore reserves, experience in metallurgy, and cheaper energy capacities compared to many countries. There is potential to become a leading producer of environmentally clean steel, a crucial component of the European decarbonization strategy. The experience of the Republic of Korea could significantly contribute to the development of such production in Ukraine and the subsequent replacement of Russian metallurgical exports with Ukrainian products.
The parties agreed to continue regular consultations between the Ministry of Economy and the Korean business community regarding the practical implementation of the green metallurgy project in Ukraine. The next steps include the technical and economic justification for the project and discussions on cooperation with Ukrainian companies.
