We invite you to read the third Ukraine Rebuilding Digest with an overview of the recovery news from the Ukraine Rebuilding Alliance for 8-14 April.
Germany to set up private fund to rebuild Ukraine
The German government has approved the creation of an international private investment fund for Ukraine’s recovery. According to Svenja Schulze, Minister of Economic Cooperation and Development of Germany, public funds will not be enough, and private investors will play an important role.
According to the World Bank’s latest forecasts, Ukraine needs about $486 billion to compensate for the damage caused by the war with Russia.
According to the head of the economic ministry, increasing investment in Ukraine is a top priority for the upcoming Ukraine Recovery Conference scheduled for 11 June in Germany.
Restoring Ukrainian industry to European standards. First successes
The first steps towards the greening of Ukrainian industry have already been taken. Thanks to the Best Available Techniques and Management Practices (BATP) for Ukraine project implemented by GIZ on behalf of the German government, Ukrainian industrialists received grants for modernisation. Business projects that complied with the principles of Directive 2010/75/EU were selected through a competition. Ukrainian companies submitted 25 applications, of which the six best were selected. The winning companies will receive non-repayable assistance of up to EUR 2 million. The grant programme also provides for the attraction of credit resources from Ukrainian banks and the use of companies’ own funds to co-finance projects worth up to EUR 10 million. Let’s talk more about how these funds are spent.
The company’s management notes that no commercial biogas project has yet been implemented in Ukraine by industrial companies, although this has become common practice in the European Union. At the same time, alcohol is used in the production of high value-added products, such as medicines, fuels, solvents, chemicals, alcoholic beverages, etc.
Under the new law, Ukraine will be able to develop and scale up financial mechanisms involving company funds, international grant aid and loans from Ukrainian and foreign banks to make modernisation cheaper for businesses. International businesses need clear rules for making investments. In its view, this is a great chance to raise funds for modernisation through high-quality grant projects.
“Currently, it is about $700 billion.” Partners agree that everyone will rebuild Ukraine
President of Ukraine Volodymyr Zelenskyy revealed his plans for post-war reconstruction at a meeting with students of Chernivtsi universities on Friday, 12 April. He said that Ukraine’s partners had agreed to take part in the country’s recovery from the war with Russia.
Zelenskyy said that there is already a reconstruction plan, but the exact amount of costs cannot be named until the end of the war. According to him, various estimates indicate a sum of about $700 billion, but the real figures will be known only after the conflict is over. It is noted that all partners agree to join the efforts to restore Ukraine and are ready to allocate the necessary funds.
G7 countries reaffirm support for Ukraine in restoring and developing infrastructure
The transport ministers of the Group of Seven countries have signed a declaration of support for Ukraine in restoring and developing its infrastructure. According to a Facebook post from the Ministry of Communities, Territories and Infrastructure of Ukraine, the G7 countries reaffirmed their readiness to strengthen cross-border communication and integrate Ukraine’s transport network through the development of new railway connections with the European gauge.
In a declaration adopted during the G7 Transport Ministers’ Summit, which was attended by Oleksandr Kubrakov, Vice Prime Minister for the Restoration of Ukraine, Minister of Communities, Territories and Infrastructure of Ukraine, the ministers confirmed that rebuilding Ukraine is a key priority.
They also announced the creation of a G7 Supply Chain Working Group to focus on current transport challenges. At a meeting in Milan on 11-13 April 2024, ministers discussed future mobility prospects and highlighted the need to rebuild Ukraine’s energy and transport sectors, as well as investment opportunities for international businesses.
At least $14.2bn needed to restore medical infrastructure in Ukraine destroyed by aggressor
At least $14.2 billion is needed to restore the damaged medical infrastructure in Ukraine destroyed by the aggressor, the Ministry of Health has said. This estimate includes the cost of restoring infrastructure, additional costs under the medical guarantee programme, and damage to public health.
In 2024, these needs alone will require UAH 0.9 billion. These funds are planned to be used for primary healthcare and minor repairs of healthcare facilities, in particular in the de-occupied territories.
The investments will also help accelerate the restoration of damaged medical facilities, as well as the development and modernisation of outdated rehabilitation and psychiatric facilities.
Switzerland plans to allocate EUR 5 billion for Ukraine’s recovery
The Swiss Federal Council has decided to allocate about EUR 5 billion for the reconstruction of Ukraine until 2036. As a first step, €1.5 billion will be allocated from the international cooperation budget until 2028.
Switzerland is already supporting projects in Ukraine aimed at restoring civilian infrastructure in the energy, infrastructure and healthcare sectors. Over the next twelve years, the Federal Council plans to increase its support for the recovery in Ukraine.
It is noted that Switzerland has already spent approximately CHF 3 billion (almost EUR 3 billion) to help people affected by the war in Ukraine.
The innovation spiral in the context of Ukraine’s recovery
The innovation spiral is a unique mechanism for stimulating systemic change.It assumes that in the knowledge economy, the boundaries between different sectors are blurred, and the interaction between them – around knowledge sharing and production – flows dynamically in all directions and creates an innovative environment. It is applied to projects funded by the European Union and is an integral part of the country’s sustainable development.
Overall, the innovation spiral is a powerful tool for Ukraine’s recovery and development, but its successful implementation requires coordination of efforts by all stakeholders and the creation of a favourable environment for innovation and entrepreneurship.
Research has shown that institutions have virtually no organic cooperation in the format of a single innovation cycle. To overcome this shortcoming, it is important to manage the innovation cycle according to the “five spiral” model, where there is organic cooperative cooperation between universities, industry, government agencies, society and the environmental aspect.
