The European Union plans to set up a solidarity trust fund to finance the reconstruction of war-torn Ukraine.
How do we bring it all back?
The West will help
Kubrakov said the reconstruction of the infrastructure could be carried out within two years. Prime Minister Denis Shmvgal says Ukraine will be restored after the war especially at the expense of confiscated property and reparations from the Russian Federation.
“The budget for the restoration is, first of all, taken assets and reparations from Russia. Second, it is a special fund for the restoration of Ukraine, which now all international partners are ready to create , and we’re working on the architecture of this. funds. We understand the need for funds. They’re really hundreds of billions of dollars, which both the world and Europe are willing to give today, “Shmygal said.
The EU is already planning such a fund, and, according to Bloomberg, EU member states have already been told that they should expect to cover most of the costs of this fund.
The European Commission told diplomats it was working on an EU instrument focused on Ukraine’s long -term needs, not a multilateral instrument, because the bloc would pay most of the bill, according to people familiar with the discussion.
Created after the COVID-19 recovery fund for member countries, it will fund investments and reforms in the agreement with the government of Ukraine, but it is not clear how much will be provided through grants or loans.
As the war was still going on, European Commission representatives declined to give figures, but EU ambassadors were told that this number would be hundreds of billions of euros over decades.
Approaching the EU
The topic of post -war reconstruction and possible reparations is expected to get attention in the coming weeks as officials in Brussels and Washington plan to discuss ways to financially support Kyiv and ensure large amounts of money. is not available in the wrong way.
On Thursday, the World Bank will hold a ministerial session in Ukraine during the spring meetings of the International Monetary Fund in Washington. It is expected that European Commission Vice-President Valdis Dombrovskis will take part in it.
As they say, even after the war, there will be significant barriers to the approval of relevant decisions, corruption in Ukraine and the lack of reliable administrative mechanisms are the most serious of them.
The Netherlands has proposed to use any new reconstruction tool to help put in place government structures in Ukraine that will bring it closer to the EU.
As a first step, the commission, together with the World Bank, will conduct a thorough assessment of Ukraine’s financial needs.
Most of the initial assistance will go to rebuilding infrastructure and supporting the provision of public services. Ukrainian President Volodymyr Zelensky tells European Commission President Ursula von der Leyen that the Ukrainian government needs $ 5 to $ 7 billion per month to reimburse salaries and other social expenses.
The Commission is also considering extending bailout guarantees to companies. According to Ukraine, almost one-third of businesses have completely stopped their activities, and 45% have reduced production.
currency of Russia
The West is actively discussing not only the confiscation of official Russian assets in favor of Ukraine, but also the illegal fate of the Russian elite.
“It is realistic. Remember, Nazi Germany had assets in the US, and they were taken and used to pay the victims of the Nazi regime. So there is a precedent. We also know that this happened in Iraq. Iraq has large oil reserves, (after the war with Kuwait) it was allowed to export oil, but it was obliged to direct part of the proceeds from these supplies to pay Kuwait for 30 years. In total, Iraq paid approximately $ 50 billion during this period. There are other examples – Afghanistan, which has assets in the United States. Once the Taliban recently came to power, these assets were seized and transferred to other needs. So it is possible, to have such an experience. I don’t know how to do it with respect to Russia, it will be a difficult legal process. But in theory it is feasible, “said economist Yuriy Gorodnichenko.
In three stages
According to Volodymyr Zelensky, we have a historic moment when Ukraine can solve many old problems: to make high-quality urban planning where it does not exist, to take into account the real traffic flows , to guarantee energy savings, environmental friendliness. of materials, and inclusion.
“The challenge is not just to physically rebuild houses, bridges and roads, businesses and infrastructure; not just by giving back to people all they have lost and giving them a new foundation in life, ”Zelensky said.
He said that last year the task was announced to provide housing for all veterans in the queue, and then moved on to providing housing for all of our military. Now this plan has actually been expanded to statewide scale and detailed, incorporating it into the energy modernization program for housing.
Three stages are planned. Initially, temporary shelters should be provided to all migrants. There will be temporary housing until the homes of the refugees are returned or until people receive compensation: in square meters or money.
In the second stage, they will bring back what the Russian occupiers tried to destroy: all the cities, all the affected communities.
In the third phase, they will provide housing for everyone who defends or defends the state, works for the interest of society, but still does not have their own housing.
“Everyone and everyone in Ukraine has the right to their own housing, their own house or their own apartment. Each whose dwelling was destroyed by the invaders, and all who lined up for many years. All of our people deserve to live in a modern environment. I have no doubt that we can not only restore what was destroyed, but also restore justice for those who violated the right to housing, ”Zelensky said.
He announced that leading architects, all potential of our state and international support are already involved in the implementation of this project.
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Source: korrespondent
