The Ukraine Recovery Conference (URC), held in London this week, has galvanised international backing for the country in the face of Putin’s ongoing attacks and raised over $60 billion towards Ukraine’s recovery and reconstruction.
This includes the UK’s new updated commitments of a further $3 billion of guarantees to unlock World Bank lending to Ukraine and £240 million of bilateral assistance.
The World Bank estimates Ukraine’s total recovery and reconstruction needs stand at $411 billion, with $14 billion required for priority reconstruction and recovery investments in 2023.
The URC, co-hosted by the UK and Ukraine, brought together a coalition of thousands of representatives from businesses, civil society and governments from 59 countries to commit support to Ukraine’s recovery as a modern, sustainable and resilient economy.
Foreign Secretary James Cleverly, who co-chaired the event, said:
The Ukraine Recovery Conference has sent a clear message that we not only stand with Ukraine through Putin’s attacks, but we will stand with Ukraine in peace. As Ukraine recovers and rebuilds, we support its ambitions to emerge with a stronger, more resilient, sustainable and innovative economy.
Commitments made at this event will go a long way to meeting Ukraine’s most urgent early recovery needs, but as Putin’s illegal war continues, the bill is only increasing. We, as an international community and a coalition of business, governments and civil society, must continue to focus our efforts to support Ukraine not just to defend its freedom, but in its recovery and reconstruction too.
Prime Minister of Ukraine Denys Shmyhal said:
We express our gratitude to the Government of the United Kingdom for organising the Ukraine Recovery Conference in London. We have felt an incredible level of support and readiness from Ukraine’s allies to assist us in commencing the rebuilding process this year.
The rapid recovery programme has 5 priorities, which are vital projects for the survival of our country and our citizens. At the conference, we also extensively discussed the involvement of private capital and investments, which will be at the core of our reconstruction endeavours. We sincerely thank all our partners for their support. We stand united in defence and united in recovery of Ukraine.
Key outcomes from the conference include:
Support for Ukraine’s immediate early recovery needs, with substantial progress by G7 and EU members states and global international financial institutions towards meeting the World Bank’s estimated $14 billion early recovery needs assessment, including:
- a landmark package of UK financial support for Ukraine, featuring $3 billion of additional guarantees to unlock World Bank lending over 3 years, and £240 million of bilateral assistance
- a commitment from the EU which if adopted by the European Parliament and Council of the EU, will mobilise up to €50 billion over 4 years in the form of both grants and loans
- $1.3 billion in US aid to Ukraine for the modernisation of Ukraine’s energy system and critical infrastructure.
Backing and commitments from international business and the private sector, including:
- nearly 500 companies from across the world, from 42 countries and 21 sectors, worth more than $5.2 trillion, including big names like Google, Siemens, Vodafone, Hitachi, Virgin Group, Rolls-Royce, and Philips signed up to the Ukraine Business Compact, signalling their intention to support Ukraine’s recovery
Wider measures enabling further investment for Ukraine, including:
- the European Bank for Reconstruction and Development (EBRD) announced its intention to raise between €3 billion to 5 billion of new capital from shareholders, backed by the UK, which could mobilise 4 times that amount to invest in Ukraine over coming years
- a new Ukraine Investment Platform of G7 and European Development Finance Institution in partnership with EBRD to help leverage private investment into Ukraine
- up to £250 million of new capital for the UK’s development finance institution, British International Investment (BII) to support investments over the next few years to advance Ukraine’s economic recovery
- new war risk insurance support for businesses helping Ukraine rebuild after Russia’s illegal invasion with up to £20 million of funding from the UK for the World Bank Multilateral Investment Guarantees Agency’s (MIGA) Ukraine-focused trust fund
Backing for the Government of Ukraine’s reform and tech and energy innovation ambitions, including:
- £1.5 million to the Government of Ukraine’s digital system for reconstruction management to increase the transparency of reconstruction projects
- £62 million in UK support to Ukraine’s energy sector, with a £10 million InnovateUkraine Green Energy Innovations Challenge Fund and £25 million to the International Finance Corporation (IFC) Ukraine Economic Resilience Action platform to bolster Ukraine’s energy security
- an agreement from the UK, Government of Ukraine and members of the G7+ on a Clean Energy Partnership to coordinate international efforts to rebuild a more modern, decentralised, and green energy system in Ukraine
- a £26 million loan backed by UK Export Finance allowing the Ukrainian government to start rebuilding 6 vital bridges damaged as a direct result of the illegal Russian invasion, reopening supply routes near the capital Kyiv
- a new UK-Ukraine TechBridge in London to bring together UK and Ukrainian innovators, entrepreneurs and the technology and financing industries to foster greater collaboration and drive forward recovery and reconstruction
- £25 million in UK funding to bolster Ukraine’s cyber defences
- a new UK-Ukraine-Estonia e-governance collaboration
Earlier this week, the UK also announced a new sanctions package. This includes legislation to enable sanctions to remain in place until Russia pays for the damage it has caused and a new route to allow sanctioned individuals to donate frozen funds to Ukrainian reconstruction.
A joint statement by the Governments Of Ukraine and the UK as co-costs of the London Ukraine Recovery Conference has been published at the close of the Conference and sets out how by helping Ukraine’s recovery and reform, the event will help unlock the country’s potential, aid the defeat of Russian aggression, as well as benefit global security, prosperity and the rule of law internationally.
Germany will host the Ukraine Recovery Conference in 2024 to build on the success of this week’s URC in London, and previous commitments at the Lugano Ukraine Recovery Conference in 2022.
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