Ukraine will launch a project to manufacture Japanese pickup trucks using the SKD (Semi-Knocked Down) services. This is a joint project of several Ukrainian manufacturers and a Japanese engineering company. This was announced by Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine, during a business forum organised by the Japan External Trade Organisation.

“Together with Ukrainian partners, the Japanese company plans to start producing pickup trucks using semi-knocked down assembly services, and in the future, they plan to move to complete knock-down production (CKD). This is a good signal to other Japanese investors that localisation of their products in Ukraine is a mutually beneficial cooperation. During the meeting with more than 200 Japanese entrepreneurs, I called on other companies to open production facilities in Ukraine or localise their technologies in cooperation with Ukrainian companies,” Yuliia Svyrydenko said.

During the meeting with Japanese business representatives, First Deputy Prime Minister spoke about the available tools to support investors who are willing to enter the Ukrainian market. In particular, programmes under the Made in Ukraine policy.

Yuliia Svyrydenko noted that more than 40 key Japanese companies currently operate in Ukraine.

“Ukraine has a long-standing manufacturing and engineering tradition and a significant fleet of modern equipment, which makes Ukrainian industrial enterprises promising partners for production cooperation with Japanese companies. The Government, for its part, offers support in the form of compensation for projects with significant investments and tax and customs benefits within industrial parks. Ukraine is also working with its partners to develop instruments to insure against military risks,” Yuliia Svyrydenko added.

According to her, investors are currently offered war risk insurance from the U.S. International Development Finance Corporation (DFC), the Multilateral Investment Guarantee Agency (MIGA), the European Bank for Reconstruction and Development (EBRD), foreign export credit agencies and the Ukrainian ECA.

Yuliia Svyrydenko thanked Japan for its USD 36 million contribution to the Support for Ukraine’s Reconstruction and Economy Trust Fund (SURE TF). This strengthens the capabilities of the MIGA.

The minister also expressed her gratitude to the Japanese international cooperation agencies JICA and JICS for their support projects for Ukraine, including through placing orders with Ukrainian enterprises and implementing the principle of ‘help Ukraine with Ukrainian goods’, as well as to the Japanese Nippon Export and Investment Insurance (NEXI).

“Japan has allocated approximately EUR 1.25 billion through NEXI initiatives, providing reliable financial support for Japanese companies willing to invest and operate in the Ukrainian market. We look forward to strengthening cooperation between the Ukrainian Export Credit Agency and NEXI, especially in terms of capital mobilisation for the Ukrainian ECA, as well as further cooperation with Ukrainian businesses in key economic sectors to attract Japanese technologies,” Yuliia Svyrydenko added.