Business news from Ukraine

Switzerland to allocate CHF5 bln for Ukraine’s recovery by 2036

At a meeting on Wednesday, the Swiss Federal Council decided to allocate CHF5 billion ($5.53 billion) for Ukraine’s economic development and long-term recovery until 2036 as part of strengthening existing cooperation, the Swiss government portal reports.

“As a first step, it is planned to attract about CHF1.5 billion from the international cooperation budget until 2028. This amount clearly demonstrates Switzerland’s solidarity with the people affected by the war in Ukraine and will increase stability on the European continent,” the statement said.

Citing the World Bank’s estimate, it is reported that the funds needed for reconstruction in Ukraine are estimated at $486 billion (about CHF440 billion). “Switzerland is already supporting projects in Ukraine aimed at restoring the destroyed civilian infrastructure in the energy, roads, and health sectors. In addition, Switzerland and Ukraine jointly launched the process of political recovery on a large scale at the Ukraine Recovery Conference in Lugano in July 2022,” the statement said.

According to the government, Switzerland has already spent about CHF3 billion on these and other measures to support people affected by the war in Ukraine. About CHF425 million of this amount was received from the international cooperation budget, and the rest (about CHF2.5 billion) was spent by the State Secretariat for Migration on reception and support of people with S protection status in Switzerland.

Over the next 12 years, the Swiss Federal Council intends to intensify its support for Ukraine’s recovery and develop cooperation with the private sector. “Given the current financial situation of the Swiss federal government, the Federal Council has proposed a phased approach: support for Ukraine from the international cooperation budget will amount to CHF 1.5 billion by 2028. In 2029-2036, the Federal Council also intends to study support for Ukraine’s recovery from the international cooperation budget until 2028. The Federal Council also intends to explore other sources (other than international cooperation) from which the remaining CHF3.5 billion can be obtained,” the statement said.

At its meeting on Wednesday, the Federal Council also commissioned the development of a program for Ukraine, which should provide targeted and effective support and be based on the seven Lugano principles: partnership, reform focus, transparency, accountability and the rule of law, democratic participation, multi-stakeholder engagement, gender equality and inclusiveness, and sustainability.

Switzerland to hold high-level conference on Ukraine settlement in mid-June

Switzerland intends to hold a high-level conference on a settlement in Ukraine in mid-June, Bloomberg reported on Monday, citing sources.

“The conference may take place on June 16-17, but it is not yet clear how many countries will participate,” the agency informs, noting that it could be 80-100 countries, representing mainly the “global South.”

According to the agency’s interlocutors, the key issue is China’s participation, which will allow Switzerland to “ensure the credibility of the initiative.”

A representative of the Swiss Foreign Ministry noted that the date and venue of the conference are still unknown. The agency’s sources said it could be held in the Swiss city of Lucerne.

“In addition to the positions of Ukraine, Russia and Europe, it is important to hear the opinion of the “global South”, which will play a key role in the possible inclusion of Russia in this process. That is why we maintain close contacts with China, India, Brazil, South Africa and Saudi Arabia,” the Swiss Foreign Ministry spokesman added.

Bloomberg notes that several countries insist on Russia’s participation in the conference, but Kyiv wants to reach an agreement on key principles that “will form the basis for a future agreement” before engaging Moscow in the dialogue.

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Zelenskyy tells Erdogan that he does not see Russia at Peace Summit in Switzerland

President of Ukraine Volodymyr Zelenskyy has said that Ukraine and its partners do not consider the possibility of Russian representatives attending the inaugural Peace Summit to be held in Switzerland.

“Today we talked a lot about our Formula for Peace. I am grateful for the support of Mr. President. I informed Mr. President about the preparation of the global Peace Summit at the level of leaders, which is being organized in Switzerland – the inaugural Peace Summit,” he said during a press conference with the Turkish President in Istanbul.

According to Zelenskyy, “it is obvious that Turkey’s special role deserves to be demonstrated at the Peace Summit and in the joint work of the world majority to fully implement the Peace Formula.”

“As for the format of the inaugural Summit itself, we do not see any representatives of Russia at this Summit. We do not see how people who block, destroy and kill everything can be invited. We want to get a result. The result of a just peace, and a just peace for Ukraine,” the President of Ukraine said.

Therefore, Zelenskyy noted, “first, the civilized countries of the world will develop a detailed plan and have a result (based on the results of the first Peace Summit – IF-U).”

“And only then will they involve representatives of Russia – those who will be ready for a just peace,” he concluded.

Earlier, during a press conference with Zelenskyy, Turkish President Recep Tayyip Erdogan said that Turkey was ready to host a peace summit, but with the participation of Russia.

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Switzerland to allocate 1.5 bln francs for Ukraine’s recovery

Switzerland plans to allocate 1.5 billion francs for the restoration of Ukraine for the period from 2025 to 2028 as part of its international cooperation strategy, said Viola Amherd, President of the Swiss Confederation.

“Switzerland is placing great emphasis on the recovery of Ukraine. The principles laid down at the Lugano conference serve as a political compass for recovery. Switzerland has planned 1.5 billion francs in support of Ukraine for the period from 2025 to 2028 as part of its international cooperation strategy,” Amherd said at a press conference with the President of Ukraine in Switzerland on Monday.

She also noted that she had discussed with Zelenskyy the issue of humanitarian demining in Ukraine and food security related to the restriction of grain and food exports through the Black Sea due to Russian aggression.

“If such a large exporting country as Ukraine harvests less crops and food, it will have major negative consequences. In this regard, we discussed the UN’s efforts to facilitate the unimpeded export of food and fertilizers from Ukraine through the Black Sea. Russia’s decision not to continue the grain initiative poses a threat to food security around the world,” Amherd said.

For his part, the President of Ukraine, answering the question of what facilities the Swiss funds will be used to restore, said that Ukraine needs to strengthen its energy system and build bomb shelters.

“You know that many representatives of the Swiss government have been to Ukraine many times. They have seen that thousands of Ukrainian schools, Ukrainian children are under constant risk of missile attacks, ballistic missiles, and Iranian drones. That’s why the issue of bomb shelters and safety for children is very important,” he said.

He also reminded that “Ukraine has experienced several blackouts, and it was very difficult, but this winter we are stronger, and this must be strengthened.”

“There should be a decentralized energy system, and it should be safe. As well as water supply,” the President summarized.

Sweden and Switzerland to provide $13 mln for Grain from Ukraine program

Sweden will support the Grain from Ukraine initiative to ensure food security by providing an additional SEK 100 million (approximately $9.6 million) through the UN World Food Program (WFP), Swedish Prime Minister Ulf Kristersson said in a live webcast of the initiative’s summit in Kyiv on November 25.

For his part, Swiss President Alain Berset, who attended the summit, announced that Switzerland would contribute to the relief effort by providing CHF 3 million (about $3.4 million) to the World Food Program.

“As a result of Russia’s military aggression, agricultural production in Ukraine has fallen by 45%; about 11 million people in the country are dependent on food aid,” the Swiss Embassy in Ukraine said in a Facebook post.

“It is admirable how Ukraine is defending its country against Russia’s ongoing aggression and at the same time contributing to the global food supply. We support Ukraine’s efforts to export grain and other agricultural products to world markets and to the most vulnerable countries,” the Swedish government’s website quoted the Prime Minister as saying.

It is specified that since Russia’s full-scale invasion of Ukraine in February 2022, Sweden has allocated more than SEK 28 billion for various efforts to support Ukraine.

Lithuanian Prime Minister Ingrida Šimonite announced an additional EUR 2 million at the summit. Another EUR 3 million was provided by Finland.

Following the summit, President of Ukraine Volodymyr Zelenskyy said that last year, the Grain from Ukraine program managed to attract about $180 million, while this year it has raised more than $100 million.

“This is support for other countries and support for Ukrainian exports and farmers. This is very important. I think we will be able to double this figure,” the President of Ukraine said.

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Switzerland has blocked re-export of Leopard 1 tanks to Ukraine

The Swiss authorities said that they rejected a request by arms manufacturing company Ruag AG for permission to sell nearly a hundred Leopard 1 A5 tanks to Germany for their subsequent transfer to Ukraine.
“The Federal Council on June 28 rejected a request from Ruag AG concerning the export of 96 Leopard 1 A5 tanks destined for Ukraine, as it is contrary to current legislation,” the Swiss Federal Council said in a statement issued Wednesday.
The council explained that such a sale would violate Swiss law in force. In addition, the deal “would violate Switzerland’s position on neutrality.”
Ruag AG submitted an export request to the authorities on June 27 for the resale of 96 used and inoperable Leopard 1 A5 tanks. The tanks are currently in storage in Italy and need to be repaired in Germany before being shipped elsewhere.
The Leopard 1 was the main battle tank of the FRG until the 1980s. It was produced from 1965 to 1984 and was in service with the Federal Republic of Germany until 2010. More than a dozen countries still have it in their armed forces, including Greece, Turkey, Brazil, Italy, Chile, Australia and Canada; the tank is continuously upgraded. Totally more than 4.7 thousand tanks of this model were produced. The tank is equipped with a 105mm rifled gun with a load of 60 rounds. The tank is equipped with optical stereoscopic rangefinder, binocular, monocular with night channel and telescopic sights. Speed of the Leopard 1 on a highway is 62 km/h, range – 600 km.

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