We invite you to read the fourteenth Ukraine Rebuilding Digest with an overview of the recovery news from the Ukraine Rebuilding Alliance for 17—23 June.
Ukraine needs another $9.5 billion this year to finance priority recovery needs
In 2024, Ukraine faces a financing need of USD 9.5 billion to rebuild its defence, energy, housing and other strategic sectors. The total financing need for rapid recovery is estimated at USD 15.3 billion, of which about USD 5.5 billion has already been raised from the state budget and international donor support. This includes the restoration of damaged housing, agriculture, natural resources, digital technologies and the IT sector, which are critical to stabilising the economy in the context of the hybrid war with Russia.
Ukraine is actively working to improve its legal environment for attracting investment, in particular by improving access to financing for investment projects and providing insurance against military and political risks. The government is also implementing state support mechanisms, cooperating with international partners to ensure sustainable economic recovery and rapid development on the path to European integration and strengthening the country’s defence capabilities.
Ukraine Recovery Agency needs political protection
At an international conference in Berlin, Ursula von der Leyen announced the signing of €1.4 billion in agreements for Ukraine’s recovery. These agreements are part of a new support mechanism from 2024 to 2027, allowing the EU to provide up to €50 billion in flexible support. However, outrage over corruption in Ukraine is spreading in the West, where some perceive it to be more serious than it actually is.
In particular, it is argued that existing programmes need to be protected from political influence. The US has recently approved $61 billion in aid to Ukraine, existing government institutions need to be protected by law, and the independence of the Agency for the Restoration and Development of Infrastructure should be a condition for US and EU aid programmes.
Ukraine receives a new batch of specialised equipment from Germany to restore energy infrastructure
Ukraine has once again received support from Germany in the form of specialised equipment for the energy sector. This time, under the Ukrainian-German Energy Partnership, two Mercedes-Benz Arocs vehicles with a crane were delivered to the country. This specialised equipment is designed for repair work on power grids and has already been handed over to power engineers in Kharkiv, Mykolaiv and Ternopil regions. In total, the €2.3 million batch includes 16 units of equipment that will also be distributed to distribution system operators in Zaporizhzhia and Cherkasy regions, with additional units to be delivered to Kharkiv and Mykolaiv regions.
The meeting also discussed future areas of cooperation, including the development of distributed energy generation in Ukraine and the results of the recent Ukraine Recovery Conference in Berlin. German assistance in the energy sector is confirmed as practical and concrete and reflects the deep partnership between the two countries.
Recovery of the Ukrainian agricultural sector means stability of global food markets
Ukraine is facing serious challenges in rebuilding its agricultural sector after two years of war, which has caused significant damage. According to Taras Vysotskyi, Acting Minister of Agrarian Policy and Food of Ukraine, direct losses to the agricultural sector are estimated at over USD 10 billion. This includes losses due to the destruction of agricultural machinery worth USD 5.8 billion and the destruction of livestock farms worth over USD 250 million. During this period, international food prices increased by around 35%, further complicating the situation.
The recovery of Ukraine’s agricultural sector is essential to ensure not only domestic but also global food security, as the country is one of the world’s leading exporters of grains and oilseeds. Taras Vysotsky stressed the need for long-term support projects, in particular the EU’s Ukraine Facility financial support programme for Ukraine.
How to ensure a more equitable recovery of Ukraine. The role of communities and donors
The Berlin Recovery Conference (URC) was marked by a larger number of participants and an emphasis on the role of local communities in recovery. For the first time, the concept of “resilience” was added alongside “recovery”, indicating the need to ensure ongoing capacities to support defence, the economy and social sphere. The conference discussed the importance of infrastructure projects, economic resilience through support for the industrial sector, and the allocation of international financial resources to create jobs and support communities. Particular attention was paid to equitable reconstruction, taking into account the interests of the most affected groups, including veterans, rescuers and medical workers.
