The German government has adopted a Key Issues paper focused on wrapping heads around how to pay for Ukraine’s reconstruction, which is estimated at 450 billion euro, or more.
The German government adopted a 15-point plan seen as the backbone of Ukraine’s reconstruction in the face of the Russian invasion. The move comes as part of the preparation for the Ukraine Recovery Conference, which will be held in Berlin on June 11-12 at the invitation of German Chancellor Olaf Scholz and President of Ukraine Volodymyr Zelenskyy.
The idea underlying the points is that Ukraine’s reconstruction is too big even for governments alone to handle. Berlin sees a partnership of government and the investment community to deploy the funds necessary.
Estimates for the total to be employed ranges from 450 billion to one trillion euro.
“Ukraine needs more than weapons to survive in this war. It is also important that the economy continues to run and that the country can finance reconstruction. Favorable financing for small and medium-sized Ukrainian enterprises is one of the most effective levers for reconstruction,” said Federal Minister Svenja Schulze.
The 15 points include:
1. Interlinking foreign trade promotion, development cooperation, bilateral, European and multilateral instruments
2. Improved interaction between foreign trade promotion and development cooperation instruments
3. Rapid implementation of the EU Ukraine Mobilization Facility
4. International coordination for optimal use of public resources
5. Increasing the dialogue between the private sector and international donor cooperation
6. Supporting capacity building of the Ukrainian national support system for private capital mobilization
7. Investment and export guarantees make it easier for German exporters and Investors the way to Ukraine
8. Campaign for the lifting of further Ukrainian restrictions on foreign exchange transactions
9. Grant financing to support Ukrainian companies
10. Loans for German and Ukrainian companies through Deutsche Investment and development company (DEG)
11. Providing a private capital mobilization tool for institutional investors, philanthropists and foundations in Ukrainian Key sectors
12. Mobilization of private foundations and donation initiatives for reconstruction
13. Promoting a functioning economic environment and moving closer to EU standard
14. Greater integration of Ukraine into the EU’s (commodities) trade within the framework the EU Critical Raw Materials Act
15. Common European approach to the use of interest income from sanctioned assets of the Russian Central Bank
