Medium-term recovery plan for Ukraine will be prepared jointly with EU – European Commission Vice President
Ukraine will develop a medium-term recovery plan in cooperation with the EU.
Source: Valdis Dombrovskis, Vice President of the European Commission, during the Ukraine Recovery Conference in London
Details: Commenting on the initiative announced earlier this year to provide Ukraine with a EUR 50 billion financial reserve for 2024-2027, Dombrovskis explained what areas the recovery plan would cover.
Quote: "This plan would bring together necessary investments and reforms not only to help with reconstruction but indeed also help with the green and digital transformation of the economy and to help with reforms necessary for Ukraine towards joining the EU," Dombrovskis said.
Details: He said that in this context, the issue of military investment insurance is becoming more relevant.
"And that’s actually one of the topics of today’s conference, including the question of war insurance because clearly, in current circumstances, for businesses to go to Ukraine, to invest, do different kind of economic activities, the question is about covering the country risk and covering the war insurance," explained the EC Vice President.
He noted that this makes it so crucial that the EBRD is now taking the initiative to launch an experimental war insurance scheme.
"We are going to sign the agreement to work on this pilot scheme later today to cover the estimated finance needs," Dombrovskis said.
He said the EU was also working on a pilot project to guarantee export credits to Ukraine.
Dombrovskis mentioned other initiatives, including a EUR 100 million guarantee from the European Commission for the European Investment Bank's project to repair infrastructure and provide support to businesses, and announced the signing of two other agreements to support small and medium businesses in Ukraine.
The official also added that in addition to raising donor support at the level of governments and IFIs, the new EU package is aimed at mobilising the private sector to support Ukraine's recovery.
Background: The EU promises to cover 45% of Ukraine's financing needs by 2027. According to EC President Ursula von der Leyen, the deficit in the Ukrainian financial system will be around EUR 60 billion by 2027. The rapid recovery requirements will amount to about EUR 50 billion, meaning the overall deficit will be EUR 110 billion by 2027.
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