We invite you to read the eighteenth Ukraine Rebuilding Digest with an overview of the recovery news from the Ukraine Rebuilding Alliance for 29 July to 18 August.
Government allocates almost ₴3 billion to restore frontline settlements
The Cabinet of Ministers of Ukraine has decided to allocate UAH 2.7 billion for a pilot project to restore a number of settlements in the frontline regions. During the Cabinet meeting, Prime Minister Denys Shmyhal said that the funds would be used for the comprehensive reconstruction of communities, which will accelerate the return of residents and the development of the local economy. The reconstruction is planned in such settlements as Yahidne in Chernihiv region, Posad-Pokrovske in Kherson region, Tsyrkuny in Kharkiv region and Trostyanets in Sumy region.
In addition, the government adopted a resolution allowing regional military administrations (RMAs) to act as construction customers for pilot projects. The State Regional Development Strategy for 2021-2027 has also been updated to reflect the challenges of the war and the recommendations of the European Union. The government’s main goals include creating conditions for the return of Ukrainians home, restoring and building infrastructure, integrating defenders into society, increasing the capacity of local governments, and synchronising regional development policy with other sectoral policies.
1200 skilled professionals for Ukraine’s recovery: results of a year of cooperation
The Skills4Recovery programme, supported by the Ministry of Economy and the Ministry of Education and Science of Ukraine, has trained 1,200 skilled professionals to rebuild the country, focusing on key sectors such as construction, logistics, agriculture and IT. By the end of 2024, more than 2,000 Ukrainians will have been trained in 23 professions under the programme, helping to address the imbalance in the labour market and economic recovery.
Over the year, Skills4Recovery has strengthened more than 20 vocational education institutions in 11 regions of Ukraine, providing them with modern equipment and training for 230 teachers and managers. The programme also supports vulnerable groups, provides professional development counselling and helps integrate graduates into the labour market, which is key to the country’s economic stability.
Ukrainian business slows down sharply in recovery
The pace of recovery in Ukrainian business slowed sharply in July 2024, mainly due to power outages. According to a monthly survey by the Institute for Economic Research and Policy Consulting (IER), businesses downgraded their six-month expectations: the business activity recovery index fell threefold, and the share of enterprises operating at full capacity almost halved. Power outages remain a major obstacle for businesses, worsening to a level similar to November 2022.
In addition to power supply, workplace insecurity and labour shortages caused by the mobilisation and departure of employees have become significant problems. The share of companies facing difficulties in finding qualified workers increased to 50.8%. Despite these challenges, long-term business plans have improved somewhat: the share of companies planning to expand their operations increased from 13.3% to 15.3%.
The unemployed will be involved in the army of recovery
The Government will intensify the involvement of the unemployed in the ‘Army of Recovery’ of Ukraine through participation in socially useful works that will be of a defence and social nature. As part of this mechanism, the unemployed will perform tasks such as setting up checkpoints, clearing rubble, collecting firewood, restoring damaged buildings and providing assistance to internally displaced persons. The government will pay the minimum wage (UAH 6,700), which is often higher than unemployment benefits.
The organisers of such work will be the military command in cooperation with regional military administrations. All able-bodied persons, including registered unemployed and internally displaced persons without health restrictions, will be involved in socially useful tasks. To date, this work is already being actively implemented in Sumy and Chernihiv regions, involving more than 470 unemployed people.
Working with international partners on a roadmap for Ukraine’s green recovery
At the first meeting of the Steering Committee of the Green Recovery Platform for Ukraine, priority areas of work were discussed with representatives of UNEP, UNECE, OECD and government officials from Ukraine. The initiative to create the Platform is owned by Ukraine and Germany, and its main goal is to bring together knowledge, experience and financial instruments to support Ukraine’s green development. The Platform will complement, rather than duplicate, existing international efforts by working on a comprehensive plan for the country’s development that covers issues not covered by other arrangements.
A key outcome of the first meeting was the development of the structure of the Activity Matrix, which will serve as a roadmap for joint work. The matrix will include activities in various areas, such as waste management, chemical safety, biodiversity, investment cases, and others. It is expected that in September, UNEP, UNECE and OECD will agree on the Platform’s work directions for the end of the year, and in autumn, the first stakeholder meeting will be held to exchange views and identify priorities, which will also contribute to Ukraine’s preparation for EU accession.
EU strategically supports regional development in Ukraine
On 13 August, the Cabinet of Ministers of Ukraine approved the State Strategy for Regional Development for 2021-2027, which will be a key tool to overcome the consequences of the war and help the country recover on its path to EU membership. The preparation of the Strategy received significant support from the EU, including advisory assistance and contributions from key donors such as the EU, Switzerland and the Ministry of Communities, Territories and Infrastructure of Ukraine.
The adoption of the Strategy is part of the implementation of the recommendations of the 2023 Enlargement Report and is in line with Ukraine’s Plan for Q3 2024. The Strategy is aimed at continuing decentralisation, restoring local self-government in the de-occupied territories and developing multi-level governance. The EU supports the key areas of the Strategy, including the reintegration of veterans and the restoration of infrastructure, especially with regard to security, accessibility and the interests of citizens.
In the future, it is planned to develop an Action Plan for the Strategy, which will contain concrete steps for its implementation, supported by an active dialogue between the EU and Ukrainian government agencies.
