Financing state budget deficit, bln UAH
Source: Open4Business.com.ua and experts.news
Structure of approved ukrainian state budget expenditures for this year
Source: Open4Business.com.ua and experts.news
Ukraine, the European Commission, Switzerland, Norway, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) signed a Statement of Intent to restart the private insurance market to support Ukraine’s sustainability and recovery, Prime Minister Denis Schmigal said
“Rebuilding Ukraine will be the largest recovery project since World War II. We are involving all of our international partners in this process, as well as the private sector. It will be the engine of Ukraine’s reconstruction. Today on the margins of the conference in London, together with the European Commission, Switzerland, Norway, the EIB and the EBRD signed a Statement of Intent to restart the private insurance market to support the sustainability and recovery of Ukraine,” Shmygal wrote in the Telegram channel.
According to him, it will kick-start business insurance against military risks when investing in Ukraine.
“At the expense of donor support will be able to attract Ukrainian and international insurance and reinsurance companies again. Such an important step will help in the return of foreign investment in Ukraine. It means economic recovery, jobs and taxes to support our army,” he concluded.
Australian businessman, head of investment company Tattarang and Fortescue Metals Andrew Forrest will invest $ 500 million in the Development Fund for Ukraine UDF, created together with the investment company BlackRock, said the Ministry of Economy of Ukraine from the Conference on Reconstruction in London.
According to a release on its website, Forrest will be a strategic advisor on the creation of UDF and its investment groups – green strategic metals, green iron, green hydrogen and green electricity – and will serve on an advisory panel for the Ukrainian government.
Forrest, in turn, speaking at the conference, urged other global investors to see Ukraine as an excellent long-term investment opportunity.
It is specified that the idea of UDF was conceived and developed by Forrest and inspired by the World War II Marshall Plan, and back in March 2022 he approached Larry Fink, head of BlackRock, to get advisory support for the creation of the investment vehicle.
His plans to be an anchor investor and invest $500 million in a green energy fund first became publicly known in November 2022.
In May 2023, the Ministry of Economy of Ukraine announced the appointment of BlackRock FMA as a consultant on the design of the Ukraine Development Fund.
“We should not seek to rebuild what Ukraine was with its outdated Soviet-era infrastructure…We will build a future that is digital, green, fair and free of corruption,” Forrest said at the conference.
The press release notes that Forrests Minderoo Foundation has already contributed millions of dollars to help the Ukrainian people, including funding the first humanitarian grain shipment from Ukraine in August and providing critical storage facilities for farmers whose crops would otherwise have died. In addition, 180 generators were provided to provide power.
The European Bank for Reconstruction and Development (EBRD) and 19 financial development institutions (DFIs) signed a Memorandum of Understanding at the Conference on Reconstruction of Ukraine in London to promote joint investments in the private sector of the Ukrainian economy.
“The signing of this memorandum … was the next step in the implementation of the agreement between the EBRD and the G7 DFIs to create a common platform for investment in Ukraine, which was announced at the G7 meeting in Tokyo last month,” the bank said in a press release.
It is noted that the main goal of creating the joint platform between the EBRD and DFI is to promote co-financing by strengthening cooperation and dialogue between partners in the context of providing assistance for reconstruction of Ukraine.
It is noted that the priority of investment initiatives will be given to the private sector of Ukraine’s economy.
“Ukraine’s financial needs during the recovery phase will be very significant, and therefore will require the combined efforts of financial institutions. To maximize the efficiency and effectiveness of their activities, Ukraine’s partners must ensure careful coordination among themselves. The private sector will play an extremely important role in the recovery of the Ukrainian economy,” stressed the EBRD.
The Bank points out that it is ready to work together with the DFI to improve the efficiency and quality of assistance to Ukraine and neighboring countries affected by Russia’s military aggression.
It is specified that the memorandum was signed by British International Investment, Cassa Depositi e Prestiti, DEG (Deutsche Investitions- und Entwicklungsgesellschaft), Development Finance Institute Canada (DFIC), Japan Bank for International Cooperation, Japan International Cooperation Agency, Proparco, USA International Development Finance Corporation, Belgium Investment Company for developing countries.
Also in this list are Compañía Española de financiación del desarrollo (Cofides), Finnfund, Investment Fund for Developing Countries, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden, Norfund, Oesterreichische Entwicklungsbank, Sociedade para o Financiamento do desenvolvimento, instituicao financeira de credito, Swiss Investment Fund for Developing Markets and Swedfund international.
Aid to Ukraine is very different from other humanitarian projects and should largely be aimed at helping to develop private businesses and stimulating investment, Norwegian Foreign Minister Anniken Huitfeldt said at Ukraine Recovery Conference in London on Wednesday.
“When providing the assistance to Ukraine, we must make sure that local businesses will benefit. Therefore, we announced a donation of EUR 25 million to provide more insurances and guarantee mechanisms so that companies are willing to invest,” she said.
Huitfeldt said this is part of the Norwegian program worth EUR 7 billion for Ukraine.
She also noted the importance of a sound legal system, commitment to fighting corruption and burden-sharing when it comes to investment risk, and cited the decentralization reform as positive.
Earlier at the conference, Vice-President of the European Commission Valdis Dombrovskis announced the signing on that day of an agreement to launch an experimental military insurance scheme. He said the EU is also working on a pilot project for export credit guarantee schemes to Ukraine.
