We invite you to read the tenth Ukraine Rebuilding Digest with an overview of the recovery news from the Ukraine Rebuilding Alliance for 20-26 May.
The First Vice Prime Minister of Ukraine and Minister of Economy of Ukraine Yulia Svyrydenko discussed the current macro-financial situation, business support programmes and further joint steps to ensure economic growth with the International Monetary Fund (IMF) mission. The meeting was chaired by Alfred Kemmer, Director of the IMF’s European Department. The meeting was also attended by Oleksiy Sobolev, Deputy Minister of Economy of Ukraine.
Yulia Svyrydenko thanked the IMF for supporting Ukraine during the war, which has helped to ensure macroeconomic stability. She stressed that this stability is key to economic recovery, investment attraction and further economic growth. During the meeting, the parties discussed key areas of government activity, including the restoration and decentralisation of the energy sector, localisation of military production, increasing agricultural production and processing, expanding export opportunities and supporting the de-occupied territories.
Ukraine’s economic recovery slows down after energy sector hits
Ukraine’s economy is recovering despite the war and massive missile attacks by Russia. According to preliminary estimates by the Ministry of Economy, GDP growth in April 2024 was about 4.3% compared to April last year. As a result, in January-April 2024, growth is estimated at 4.4% compared to the same period last year.
The First Vice Prime Minister of Ukraine – Minister of Economy of Ukraine noted that in April 2024, the trend of economic recovery continued. This growth was supported by record exports of goods, increased demand for construction services due to budget funding for infrastructure rehabilitation, improved business sentiment and a pick-up in consumer activity. The stable operation of the sea corridor stimulated rail transport, steel production, and metal ore mining.
Austria to allocate €5 million to restore Ukrainian energy sector
The Austrian Ministry of Climate Protection has decided to allocate €5 million to Ukraine to rebuild the infrastructure damaged by Russia’s full-scale aggression. According to Der Standard, these funds will be distributed through the Energy Community and will be used to purchase urgently needed spare parts, generators, and repair lines.
Austrian Minister of Climate Protection Leonore Gewessler said that Austria, as a neutral country, is obliged to take the side of humanity in this war. She stressed that the purpose of the funding for Ukraine’s energy infrastructure is to ‘at least make the reconstruction a little easier’.
In addition, on 10 May, it became known that Belgium would also provide Ukraine with additional assistance in the amount of 9 million euros to restore the energy infrastructure damaged by Russian attacks.
Switzerland has allocated more than five billion euros for the restoration of Ukraine
Switzerland has decided to allocate 5 billion Swiss francs (more than 5 billion euros) for the reconstruction of Ukraine until 2036. This decision was taken by the Federal Council on 10 April and is a strong signal of solidarity with the affected Ukrainians, aimed at ensuring stability in Europe. The Swiss government believes that these funds will help prevent migration flows and provide the necessary resources for reconstruction work, which is estimated at around CHF 440 billion.
Switzerland is already supporting projects in Ukraine focused on rebuilding the damaged infrastructure, particularly in the energy, road and healthcare sectors. It is worth noting that Switzerland has been providing financial and humanitarian assistance to Ukraine since the beginning of Russia’s large-scale invasion, adhering to its neutrality policy since 1815, which excludes the supply of weapons and military assistance.
Transport summit takes place in Germany, discussions include Ukraine’s recovery
An international transport summit has begun in Leipzig, Germany, with at least 45 transport ministers in attendance. Ukraine is represented at the event by Deputy Minister of Communities, Territories and Infrastructure Development Serhiy Derkach.
In his statement, Derkach said that at the ITF Forum in Leipzig, he would be actively working with international partners for three days, paying special attention to the restoration of Ukraine and the development of transport links.
According to the official website of the International Transport Forum, the summit will last for three days, until 24 May. The main topics of discussion, in addition to Ukraine’s recovery, will be the role of the transport sector in ensuring environmental sustainability and the impact of climate change on this area.
How much does a square metre of reconstruction cost?
In January 2024, more than 27,000 apartment buildings were damaged or destroyed as a result of the hostilities in Ukraine. To restore them, there are government programmes that include monetary compensation for damaged housing, certificates for new housing for destroyed houses, and construction financing for private houses. Local programmes are also aimed at rebuilding housing at the local level. A study of reconstruction costs conducted by the monitoring portal Dozorro showed that the compensation tool is more cost-effective, transparent and efficient.
The analysis of housing reconstruction costs found that the development of standardised model projects could reduce the cost of project documentation and limit excessive costs for design solutions. It was also recommended to develop an effective platform for the publication of certificates of completion. Overall, an integrated approach that includes both state and local compensation programmes will make optimal use of budget funds and provide housing for those affected.
