Mykolaiv region plans business support fund with support from Denmark

Flags of Ukraine and Denmark at Pier 8 in Mykolaiv, photo by NikVesti

Plans are underway in the Mykolaiv region to establish a revolving fund to help local businesses secure funding for recovery and development. This issue was discussed during a meeting of the joint committee with partners from Denmark.

This was announced by Vitalii Kim, head of the Mykolaiv Regional Military Administration.

According to him, during the meeting of the Steering Committee of the «Mykolaiv – Denmark» Partnership, the parties discussed further plans for cooperation and added two new areas to the agenda.

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The first is the creation of a revolving fund that will be able to provide financial support to enterprises that do not have sufficient financial indicators to obtain bank loans but require funds to resume operations following the consequences of the war.

It should be noted that a revolving fund is a financial mechanism whereby funds are provided to businesses in the form of loans or financing. Once this money is repaid, it is redirected to support other projects or companies.

«The first issue concerns the creation of a revolving fund that can finance businesses which lack the necessary financial ratios and cannot obtain a bank loan, yet urgently need to continue their recovery and operations,» clarified Vitalii Kim.

The second issue was preparations for the recovery of the tourism sector in the region. In particular, the parties discussed the possibility of funding the installation of special barrier structures, which may be required once the waters are opened for recreational use.

«Although our sea is currently closed, we must nevertheless consider the possibility of funding these barrier structures, which will be installed in the future when the sea reopens in order to launch tourism,» he added.

Mykolaiv Mayor Oleksandr Sienkevych clarified that the total budget of Denmark’s Transition Programme for Ukraine amounts to 2.8 billion Danish kroner (375 million euros). Of this sum, 60% of the funds — approximately 225 million euros — are planned to be allocated to Mykolaiv and the region.

It should be noted that Denmark is one of the main international partners of the Mykolaiv region. As of January 2025, since the start of the full-scale invasion, the region has received €340 million in aid from international partners, half of which was provided by Denmark.

Denmark’s cooperation with Mykolaiv

Back in March 2022, President Volodymyr Zelenskyy, speaking before the Danish Parliament, called on the country to take ‘patronage’ over Mykolaiv once the full-scale war had ended.

Just five months later — in August 2022 — Mykolaiv Mayor Oleksandr Sienkevych and Denmark’s Minister for International Development, Flemming Møller Mortensen, signed a memorandum of cooperation. It provides for joint work on developing reconstruction projects and attracting investors from various countries to help rebuild Mykolaiv. The Danish Embassy now also has an office in the city.

In January 2023, a meeting was held in Mykolaiv between representatives of Denmark and Ukraine to discuss plans for the city’s further reconstruction.

Throughout 2024, the Kingdom of Denmark has allocated funds for the reconstruction of the Mykolaiv region on several occasions, amounting to at least: $21 million, $17.2 million , €33.5 million, and €44 million.

In total, around 60% of the aid that Denmark provides to Ukraine goes to Mykolaiv and the region, said Ambassador Ole Egberg Mikkelsen. He also outlined his vision for the post-war reconstruction of Mykolaiv, featuring pedestrian-friendly conditions and cycling infrastructure.

While in Mykolaiv, the ambassador explained that, once the war is over, Denmark will help Mykolaiv to restore and modernise its shipbuilding capacity.

Denmark is also involved in the reconstruction of the Mykola Arkas Lyceum, preserving its authentic appearance, and the restoration of residential areas in Mykolaiv damaged by shelling.

The ambassador also supported the idea of creating a Danish quarter or park in Mykolaiv, though for now this remains merely an idea.

Denmark has also expressed interest in the privatisation of the Mykolaiv Alumina Plant.

In turn, Mykolaiv’s Deputy Mayor Serhii Korenev said that Denmark plans to assist the city over the next 10 years. The country intends to move away from ‘quick-win projects’ and invest 75 million euros in the region annually.