The European Commission has proposed funding nearly half of Ukraine’s needs up to 2027 with €50 billion, the organization’s president, Ursula von der Leyen, said at a donor conference in London on Wednesday.
According to the official, Ukraine’s remaining budget deficit until 2027 is about 60 billion euros, which, in addition to the rapid recovery needs of about 50 billion euros, will require a total of 110 billion euros until 2027.
“I have proposed to the EU member states [União Europeia] to cover 45% of this deficit, which represents a total of EUR 50 billion for Ukraine. We will work with Ukraine on a corresponding investment and reform plan. This plan could also become an anchor for all international donors, including the private sector,” he told participants.
Von der Leyen is said to have presented the creation of a new facility for Ukraine on Tuesday, financed by grants from the EU budget, loans from capital markets and proceeds from frozen Russian assets.
“We will come up with a proposal for these assets before the summer holidays,” he promised during a speech at the opening of the International Conference on the Recovery of Ukraine (URC 2023), which will take place in the British capital from Wednesday to Thursday.
The President of the European Commission also unveiled a new oral update on Ukraine’s progress towards EU membership in the areas of judicial reform, the fight against corruption, new laws for the media and for national minorities.
“This report shows that the goal is in sight and that we will work with Ukraine to cross the finish line. And with these reforms, Ukraine is also sending a strong message to private investors: they will improve the transparency, fairness and functioning of institutions they need to invest in Ukraine,” he stressed.
URC 2023 has more than 1,000 registered participants from at least 60 countries, around 40 of them at the ministerial level, as well as leaders from international organisations, civil society representatives and business leaders.
In 2023 alone, the World Bank estimated that Ukraine will need $14 billion (12.6 billion euros) for critical and priority reconstruction and rehabilitation investments.
At the URC 2022 summit, held in Lugano, Switzerland, the Ukrainian government presented a 10-year “National Recovery Plan for Ukraine” worth $750 billion.
British Prime Minister calls on private sector to invest in reconstruction
British Prime Minister Rishi Sunak on Wednesday called on the private sector to seize investment opportunities in Ukraine despite the war and help rebuild the country.
Speaking at the opening of the second Ukraine Recovery Conference (URC2023) in London, Sunak said Russia will have to pay for the destruction it has wrought in Ukraine since it invaded the neighboring country on February 24, 2022.
According to the Spanish agency EFE, international allies are looking for “legal ways” to write off Russian assets frozen for that purpose abroad.
But until that is possible, it is important for governments and especially the private sector to boost Ukraine’s recovery by investing “at the right time,” he argued.
“Before this terrible war, Ukraine was becoming a great economy, it was the breadbasket of Europe, a leader in energy (…), the technology sector had a record year in 2022,” he said.
“These opportunities still exist today,” said Sunak, explaining that he saw in Ukraine “an incredible spirit, of strength and courage, but also of ingenuity and innovation.”
Sunak announced that the United Kingdom will guarantee loans from the World Bank worth $3,000 million (€2.75 billion) for the reconstruction of Ukraine.
London will also offer a bilateral aid package of £240m (€280m) and an additional £250m (€290m) for UK investment in the country.
It also confirmed that about 400 companies from 38 countries, with a combined turnover of US$1.6 billion (EUR1.46 billion), have committed to participate in post-war reconstruction by signing a Business Pact for Ukraine .
According to the organization, the pact promotes trade, investment, knowledge sharing and corporate responsibility in Ukraine, thus ensuring reconstruction as a resilient, flexible and prosperous economy.
BT, Rolls-Royce, Virgin, Oracle, Sanofi, Philips, Hyundai Engineering and Citi are among the companies involved.
URC2023 will also discuss a war risk insurance framework to boost investor confidence and help unlock private investment for Ukraine’s reconstruction.
The two-day conference will be attended by more than 1,000 participants from at least 60 countries, including about 40 at the ministerial level, as well as leaders from international organisations, civil society representatives and business leaders.
At the first URC, held in Lugano, Switzerland, in 2022, the Ukrainian government presented a 10-year “National Recovery Plan for Ukraine”, worth USD 750 billion (about EUR 687 billion).
In 2023 alone, the World Bank admitted that Ukraine will need $14 billion (12.6 billion euros) for critical and priority reconstruction and rehabilitation investments.
Source: DN
