DiXi Group and Beacon Events co-hosted a webinar on critical minerals, moderated by DiXi Group President Olena Pavlenko. The event focused on how to make Ukrainian CRM projects bankable. The discussion was attended by government officials, representatives of international financial institutions, investment firms and extractive companies, industry associations, and independent research organizations.
Speaking on the sector’s potential, participants emphasized that Ukraine already has experience in the extractive industry, companies actively engaged in project development, and a legislative and regulatory framework that continues to be improved. The Critical Minerals Strategy, the draft of which was developed by DiXi Group, is nearing adoption.
The Ukrainian representatives are convinced that Ukraine can become a logistical and processing center for international partners, playing a significant role in the midstream segment. Institutional funds, long-term financing and insurance instruments are highly required to achieve this goal.
Among the frameworks to help provide the necessary investment, the United States – Ukraine Reconstruction Investment Fund (URIF), the Ukraine Investment Framework and the future European Flagship Fund, as well as direct cooperation with the governments like the U.S., the UK, the EU member states, and their market players, were mentioned as achievable opportunity.
As discussed at the event, Ukraine is expected to focus on 4 to 6 key areas in the CRM sector. This includes the return to the global markets of titanium, uranium, graphite, and beryllium. When attracting investment in the extractive industry, it’s planned to use electronic auctions and production sharing agreements, the implementation of which has so far been successful.
However, Ukraine should be considered not as a mere resource base or a recipient of aid, but as a real commercial opportunity that has much to offer. For instance, CRM will increasingly be seen as an important component of the national defense strategies. In addition, many Ukrainian assets are brownfield sites with existing industrial culture and infrastructure, potentially shortening the path to production.
In this context, the URIF could become essential as a market maker to provide financing and act as minority shareholder to mitigate risks for private investors. As for the EU, it can play a key role in the promotion of designated strategic projects, namely by matchmaking with financial institutions. Discussions also focused on the necessity of war-risk insurance and political risk guarantees that should be provided to enhance bankability. Transition from non-binding expressions of interest to binding off-take agreements would also greatly benefit projects development in Ukraine.
Financial institutions stressed the importance of a coherent policy framework as well as strict adherence to environmental, social and governance (ESG) standards. They are not only interested in financing projects but also in contributing to the recovery and long-term growth by development of a responsible and competitive industry.
The webinar series is organized by Beacon Events in cooperation with DiXi Group.
DiXi Group’s participation was made possible with the financial support of the UK Agency for International Development under the project “Mainstreaming National Energy and Climate Plan for Ukraine’s Green Recovery and Strengthening the Green Transition Office” implementа ed by DIXI GROUP NGO.
