The International Finance Corporation (IFC), which is part of the World Bank Group, will facilitate the modernization and increase of the No Suggestions Available Ukrainian Danube Shipping Company’s fleet. The relevant cooperation agreement was signed at the Ukraine Recovery Conference in London on 21 June.
The No Suggestions Available Ukrainian Danube Shipping Company (UDP) announced this in a statement, the CFTS portal reports.
"The IFC supports the Ukrainian government in mobilizing private investment, including through projects such as the project with the Ukrainian Danube Shipping Company to modernize its fleet and increase the resilience of the transport sector and Ukraine's export potential," said Alfonso García Mora, the IFC’s vice president for Europe, Latin America, and the Caribbean.
The Ukrainian State Shipping Company’s CEO Dmytro Moskalenko said that the cooperation with the IFC will involve not only attracting investments in the ongoing program for modernization and expansion of its fleet. According to him, the UDP aims to meet the IFC's high standards of corporate policy, compliance, and financial transparency.
As previously reported, an IFC project team considers the Danube as one of the important components of food security and economic integration of Ukraine with the European Union.
The Ukrainian Danube Shipping Company notes in this regard, "The Danube is a global transport corridor, an alternative route for exporting Ukrainian agricultural products, a direct, the cheapest, and the most environmentally friendly access to the European market. The presence of a strong Ukrainian player should help expand the capabilities of the Danube logistics ecosystem."
The parties have not yet disclosed the expected amount of investment.
As reported earlier, Moskalenko stated in an interview with the CFTS in July 2022 that the Ukrainian Danube Shipping Company was operating 200 barges. He added that the company planned to increase the number of barges in its fleet to 220-225 in the medium term.
