After one year from Russian invasion of Ukraineunder the ruins of the war and the great destruction caused by bombardments in many cities, the leadership Ukrainian looking for the starting point of a mission that seems titanic today: restoration of the country.

“Some of our allies in Europe have argued that the need to start recovery at this stage is not so obvious, but it is clear to us that it should begin within a year,” he says. Politico Deputy Prime Minister of the Government of Ukraine Yulia Sviridenko.

President of Ukraine Vladimir Zelensky referred to the large economic costs that fall on Ukraine due to the destruction of homes and infrastructure. A recent estimate puts at least $138 billion in damage, while Zelenskiy himself says the process of rebuilding the country could cost more than $1 trillion. dollars.

“The biggest renovation since World War II”

G. Sviridenko claims that the restoration of Ukraine it will be the largest since the Second World War, and he emphasizes: “we must start now.”

Of course, first of all, Ukraine must provide insurance guarantees for the construction of infrastructure in the face of the risk of new Russian strikes, and hence new catastrophes.

According to the Ukrainian vice-president, this issue is considered “vital”. And that’s because the construction company’s first question is how to secure its assets. In any case, G. Sviridenko makes it clear that insurance companies will need state support.

The Minister for Development and Trade reports that Ukraine is already in extensive negotiations with the US, as well as with the UK and the European Union. on how to reliably assess risk, taking into account wartime guarantees.

Kyiv is also in talks with MIGA (Multilateral Investment Guarantee Agency) as well as other organizations about the necessary insurance “tools” to pave the way for reconstruction.

At the same time, Ukraine is negotiating with the UK Economic Export Agency, which, according to Sviridenko, is ready to take on part of the restoration work, as well as with the French state bank Bpifrance.

Kyiv expressed the desire that the credit mechanisms of the EU countries be involved. in the process of reconstruction, as well as to expand credit limits for the implementation of projects. In fact, G. Sviridenko adds, this issue was raised by Ukrainian officials before the EU commissioners. during their visit to Kyiv earlier this month.

Despite the fact that reconstruction projects require political stability, the Ukrainian side wants the projects to be on the “paths” of implementation, so that they do not start on the “victory day”, as Deputy Minister of Finance Taras Kachka noted, “but they have already launched.”

From the most productive economic year to war

Ukraine in 2021 recorded the most economically productive year since its independence from the Soviet Union in 1991. However, in 2022, everything has changed. The country’s economy shrank by 30%, millions of deposits were destroyed, consumption plummeted, and the massive destruction of industry by Russian bombing caused severe damage and loss to the country’s productive fabric.

For Sviridenko, Ukraine really needs its citizens who fled because of the war to return, while at the same time the economy gets back on track. “We sincerely appreciate the financial support we receive from our allies, but we should be on our feet by now.“.

Ukraine’s economic recovery plan aims to shake up a range of activities that could add value to the country’s economy, starting with agricultural production.

“Ukraine’s economic recovery strategy will put a lot of emphasis on developing agriculture and manufacturing,” says the vice president of Ukraine, adding that “what happened with the blocked ports perfectly highlights the extent to which the international economy depends on Ukraine.” “. “We must prove that we are still a major food exporter.he emphasizes.

In peacetime, Ukrainian food exportswhich were mainly carried out from the ports of the Black Seacovered the needs of 400 million people. At the same time, Ukrainian farmers supplied a tenth of wheat production and 50% of sunflower oil production to international markets.

OUR Russian invasion and the “blockage” of merchant ship traffic in the Black Sea brought Ukrainian exports to absolute zero in March 2022. Since July, with the mediation of the UN, the export of Ukrainian food products has resumed. However, while this agreement remains fragile, the country’s economic future is seen as equally uncertain.

In previous years, Ukraine has sought to further develop its economic activities, but the blockade of seaports by Russia has become a huge stumbling block.

Ukraine has nowhere to reduce the volume of agricultural production and thus become a dependent country. “That’s why we need to focus on processing– emphasizes Sviridenko, adding that the government is trying to achieve this through grants.

The Vice President of Ukraine believes that the role of the European Union is, on the one hand, to support Ukrainian business, and on the other hand, to enable European companies to invest in Ukraine. He also called on the allied bloc to expand sanctions against Russia.

“Our entry into the European market, as well as EU integration. on the Ukrainian market are a requirement and a condition for the next steps of full integration,” Sviridenko notes.

OUR European Union granted Ukraine candidate status last June, but at a recent summit, European leaders did not set a clear timeline for completing talks, given that the country’s vast agricultural economy would greatly expand the EU’s agricultural subsidy budget.

Source: Politico