From Japan to the EU: the reconstruction of Ukraine between cooperation and rivalry

23 February 2024 - 13:00

twitter whatsapp

Japan is ready to support Ukraine in the reconstruction of the country. The European Union and the United States are also in the running.

From Japan to the EU: the reconstruction of Ukraine between cooperation and rivalry

Several hundred billion dollars will be needed to rebuild Ukraine, devastated by two years of war against Russia. Estimates struggle to agree on an exact figure, even if the latest United Nations study spoke of an overall cost of around 486 billion dollars between now and the next ten years, up from the estimated 411 billion one year ago.

The road ahead is therefore long and tortuous. However, there is no shortage of leading actors eager to get involved. In addition to the United States and various European governments, Japan has also stepped forward to contribute its companies to support the reconstruction of Kyiv.

On February 19, in Tokyo, an agreement between over 50 cooperation was signed at the Japan-Ukraine Conference for the Promotion of Economic Growth and Reconstruction. The conference was jointly hosted by the governments of both countries, Keidanren - a Japanese business lobby - and the Japan External Trade Organization (JETRO).

Promoting economic reconstruction is not charity, but “an investment in the future for Ukraine, Japan, and the world,” said Japanese Prime Minister Fumio Kishida in his opening speech. “Using knowledge from post-war and disaster reconstruction efforts, as well as advanced technology and private sector know-how, Japan’s public and private sectors will work together with a Japanese approach,” Kishida added.

Japan is involved in the reconstruction of Ukraine

Ukrainian Prime Minister Denys Shmyhal said that war-torn Ukraine offers new business opportunities in at least six sectors, including energy, infrastructure and car manufactury. All areas in which Japan can excel. “Companies that invest in the Ukrainian economy now will be able to obtain advantages and opportunities in the coming years that you cannot imagine,” continued Shmyhal.

Nikkei Asian Review explained that, for example, agricultural machinery manufacturers Kubota and Yanmar Holdings have committed to supporting the Ukrainian agricultural sector. How? Signing a memorandum of understanding with the Ministry of Agrarian Policy and Food of Ukraine on cooperation in agricultural machinery to improve the yield and productivity of agricultural enterprises.

The trading company Sumitomo Corp and industrial equipment manufacturer Kawasaki Heavy Industries should instead support the modernization of Kyiv’s gas transportation network. At the same time, Rakuten Symphony, a company of the Rakuten Group, has signed an agreement with the Ukrainian telecommunications operator Kyivstar for the development of infrastructure for 5G data networks.

On the automotive front, Shmyhal finally declared that Japanese car manufacturers should exploit Ukraine’s large lithium deposits to create electric vehicle production plants there.

The presence of the USA and the EU

In June 2023 the European Commission presented a plan to help Ukraine manage its daily operations and finance its reconstruction. It is expected to provide Kyiv with up to 50 billion euros in financial support from 2024 to 2027: 33 billion euros in loans and 17 billion in grants, which will be managed through a new special tool called Ukrainian Reserve. In such a scenario, Ukraine could serve as a European hub for energy storage.

At the same time, the United States could continue to militarily support the Ukrainian government, in complementarity with the EU, but also enter the energy and technological sectors. In any case, the risk to be avoided is that a sort of competition could arise between the Western bloc and Japan. The Ukrainian cake must be divided according to rational and functional criteria.

Original article published on Italy 2024-03-01 06:54:00. Original title: Dal Giappone all’Ue: la ricostruzione dell’Ucraina tra cooperazione e rivalità

Trading online

Fai Trading Online senza rischi con un conto demo gratuito: puoi operare su Forex, Borsa, Indici, Materie prime e Criptovalute.