Business news from Ukraine

UN establishes Ukraine Community Recovery Fund

The United Nations in Ukraine, in coordination with the government, has established a flexible Ukraine Community Recovery Fund (UCRF), which has already attracted $7.25 million for mine action.

“The fund is designed to support an inclusive, locally-driven approach that is fully aligned with the early recovery priorities identified in the third Rapid Damage and Needs Assessment (RDNA-3),” the UN website says in a presentation of the fund’s mine action.

It is specified that the UCRF, established in November 2023, is expected to raise $300 million over five years. By the beginning of May this year, $11.74 million had been received, including $7.25 million for demining: Denmark – $5.76 million (DKK40 million) and South Korea – $1.25 million.

It is emphasized that mine action is a key condition for the restoration of housing, energy, social infrastructure and investment in local economic development at the community level. The full-scale invasion of Ukraine by the Russian Federation has led to the fact that up to 30% of the country’s territory is likely to be contaminated with unexploded ordnance, landmines and cluster munitions.

According to UN materials, the first mine action project of the fund will be the construction of a logistics base for humanitarian demining for the SES. The feasibility study, designs for all necessary works and site preparation are estimated at $1.18 million. With separate funding for the second phase, construction can be completed by the second quarter of 2025.

It is expected that this facility will significantly increase the efficiency and effectiveness of SES demining operations throughout Ukraine and enable it to better defuse explosive ordnance in affected communities.

It is also planned to establish the position of a senior advisor on mine action and community recovery, who will advise all stakeholders on improving the effectiveness of mine action for affected communities.

It is noted that the UCRF Mine Action Window is a tool through which the UN will stimulate strategic mine action efforts, address gaps in needs in targeted communities and pilot innovative mine action initiatives.

According to the RDNA-3, an investment of at least $300 million per year over the next five years is required for explosive ordnance survey and clearance. To sustain this level of financial commitment, national and international partners will need to work together to maximize the effectiveness of traditional mine action approaches, while implementing cost-effective, high-impact solutions and considering private partnerships as a way forward.

“UCRF’s Mine Action Window is aligned with the Government of Ukraine’s National Mine Action Strategy and focuses on its three pillars – demining, mine action training and victim assistance.

The UCRF Secretariat is located in the Office of the UN Resident Coordinator in Kyiv.

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