Results of the International Ukraine Recovery Conference 2022

On July 5, the International Ukraine Recovery Conference ended in Lugano, Switzerland, which was attended by 1,000 participants from 40 countries.

At URC2022 many proposals regarding the future post-war reconstruction of Ukraine were raised. Below are the main figures regarding Ukraine’s economy update, recovery mechanisms and aid packages for Ukraine from the participating States:

UKRAINE’S ECONOMY

• $95.5 billion is a preliminary estimate of the damages already caused to Ukraine as a result of Russian aggression.

• Nearly 30% of the pre-war level is now the monthly Ukrainian export of agricultural products.

• 1 million hectares – is planned to allocate for irrigation projects for 2022-2032 years.

• 7% – annual GDP growth over 10 years is foreseen in the draft recovery plan of Ukraine.

RECOVERY

7 principles of recovery of Ukraine are presented in the Lugano Declaration.

1. Partnership. The recovery process is led and driven by Ukraine and conducted in partnership with its international partners. The recovery effort has to be based on accountability for progress track and financial flows.

2. Focus on reforms. The recovery process has to contribute to accelerating, deepening, broadening and achieving Ukraine’s reform efforts in line with Ukraine’s European path.

3. Transparency. The recovery process has to ensure an independent judiciary and anti-corruption efforts and provide for accountability.

4. Democratic participation. The recovery process has to be a whole-of-society effort. It shall be based in democratic participation by the population, local self-governance and effective decentralization.

5. Multi-stakeholder engagement. The recovery process has to facilitate collaboration between national and international actors, including from the private sector, civil society, academia and local government.

6. Equality. The recovery process has to be inclusive and ensure gender equality and respect for human rights and benefit all.

7. Sustainability. Recovery and reforms will not be limited to infrastructure and institutions, they will also include social, economic, and environmental aspects in accordance with the concept of recovery based on the principle of “better than before”.

• $750 billion is a preliminary estimate of the implementation of Ukraine’s recovery plan, which provides for the implementation of 850 projects. Of these, 580 projects with $350 billion valye are planned for 2023-2025, and 270 projects with $400 billion value are scheduled for 2026-2032.

• 15 national programs are included in the draft recovery plan. The first stage requires $60-65 billion.

• Currently, 4 groups of regions are distinguished in Ukraine subject to recovery tasks: front-line, supporting, backing and de-occupied.

• $150-250 billion investments are foreseen in the National Program for the Restoration and Modernization of Housing and Infrastructure of the Regions. In particular, it provides for the localization of the production of windows (5-6 million units per year), glass (300 thousand tons per year) and thermal insulation materials (13 million cubic meters per year).

• $35 billion is needed to implement the projects of the National Program for the Restoration and Modernization of Social Infrastructure.

• $17.4 billion is required to implement Fast Recovery plan of priority works to restore the social infrastructure of Ukraine.

INTERNATIONAL ASSISTANCE

• EUR 6 million is aid package for Ukraine’s recovery from Sweden (of which EUR 1 million is designated for nuclear safety equipment, and EUR 0.5 million – for demining efforts).

• EUR 200 million is aid package to Ukraine from the Netherlands through the IMF fund mechanism for the current needs of state authorities.

• EUR 13.5 million is aid package to Ukraine from Denmark.

• 100 million francs is aid package to Ukraine from Switzerland until the end of 2023 (of which 15 million francs are intended for digital transformation).

• UAH 300 million is aid from the national mobile operator “Kyivstar” to restore Ukraine’s digital infrastructure. The next Ukraine Recovery Conference will be held in the United Kingdom in 2023 (URC2023).