International Finance Corporation to support fleet renewal of Ukrainian Danube Shipping Company

The Ukrainian Danube Shipping Company and the International Finance Corporation signed an agreement at the Ukraine Recovery Conference 2023 in London in the presence of Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine and Minister for Communities, Territories and Infrastructure Development.

The main objective of the agreement is to mobilise private investment to modernise and expand the fleet of Ukraine’s main Danube carrier. The International Finance Corporation will also promote the implementation of European standards of corporate governance, compliance and financial transparency.

The renewal of the Ukrainian Danube Shipping Company’s fleet will expand the capabilities of the Danube logistics ecosystem.

Currently, the Danube cluster is an important component of global food security and Ukraine’s economic integration with the EU, as it provides an effective alternative route for cargo transport in the context of the blockade of major sea routes.

The cooperation between the Ukrainian Danube Shipping Company and the International Finance Corporation, a member of the World Bank Group, will strengthen the resilience of the Ukrainian transport sector and increase Ukraine’s export potential.

Background

The Ukrainian Danube Shipping Company (UDP) is a state-owned private joint stock company (PJSC). Following the full-scale russian invasion, UDP rebuilt its business model and implemented reforms to ensure transparent and efficient management. The company launched new lines of business, implemented a number of investment projects and began building and modernising its fleet. For the first time in its history, the Ukrainian Danube Shipping Company made a profit from its operations, resulting in a record dividend to the state budget of over UAH 146 million in 2022. The company’s transformation has opened up opportunities for attracting investment and strategic cooperation with international partners.

IC UAC according to the Ministry for Communities, Territories and Infrastructure Development of Ukraine