According to the Prime Minister of Ukraine, the country needs a stimulus package of 750 billion dollars to survive the destruction caused by the Russian attack.
Guidelines for the reconstruction of Ukraine and its financing will be drawn up in a two-day meeting in Lugano, Switzerland, which started on Monday. This is despite the fact that the war continues and estimates of the need for support are only preliminary.
Prime Minister of Ukraine Denys Shmyhal said on Monday that the country needs a stimulus package of 750 billion dollars, or about 717 billion euros. According to him, the infrastructure alone has suffered damages of one hundred billion dollars.
The Prime Minister also insisted that the funds seized from Russia must be used for the reconstruction of Ukraine.
The chairman of the commission Ursula von der Leyen according to which the EU sets up a working group to coordinate the reconstruction. The group maps investment needs and coordinates work and resources.
In addition to states, the working group will include international organizations and institutions, the private sector and also civil society.
– Russia’s goal is to destroy Ukraine militarily, politically and economically. We cannot and will not let that happen, said von der Leyen in Lugano.
President of Ukraine Volodymyr Zelensky has previously warned that the project will be “really gigantic”.
– Reconstruction is a common task of the entire democratic world, said Zelensky, who participated in the meeting remotely on Monday.
Ukraine has drawn up an extensive plan for reconstruction, and in Switzerland it is planned to create a preliminary proposal on how to move forward with the plan. In addition to state leadership, representatives of international organizations and the private sector will participate in the meeting.
For a long time, more than 100,000 buildings were affected
The Kyiv School of Economics has also estimated that the buildings and infrastructure alone have so far suffered more than one hundred billion dollars in damage, reports The Guardian.
More than 250 businesses have been destroyed, damaged or taken over, more than 650 healthcare units and almost 1,200 educational facilities. An estimated 120,000 homes have been destroyed.
The final extent of the reconstruction depends both on the outcome and length of the war, and on whether the worst-affected eastern Ukraine remains under Russian control.
The damage caused to the Ukrainian economy is estimated at 600 billion dollars.
An American media company According to Bloomberg (you will switch to another service) Ukraine’s reconstruction plan of hundreds of billions includes investments in infrastructure and security, as well as investments in climate solutions and diversification of energy production.
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With the help of the fund, financing of small and medium-sized companies would be guaranteed. The initial capital of 20 billion would be collected from the EU budget and donations from member countries. In addition to direct support, it would be loans and guarantees. The amount of investments could reach 100 billion euros.
The joint Gateway Trust Fund of the EU and Ukraine would assist, for example, in the construction of bridges and water systems, especially in cities whose population has grown due to internal displacement.
At the same time, the EU requires reforms to the structures of society and work to reduce corruption from Ukraine, which wants to become a member.