Ukraine's Path to EU: Recovery, Reconstruction, Modernisation
Through the Ukraine Facility, the EU aims to support Ukraine's recovery and modernisation, mobilise investments, and assist in reforms for EU accession. Key objectives include financing needs, private sector investment, and societal support. Pillars focus on supporting Ukraine's plan, investment framework, and assistance programs to foster economic recovery and stability. The Pillar 2 Investment Framework seeks to mobilise investments for reconstruction and modernisation through various support mechanisms. Opportunities for private sector-led reconstruction are highlighted, focusing on key sectors outlined in the Ukraine Plan.
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Presentation Transcript
Recovery - Reconstruction - Modernisation of Ukraine on the way to the EU Katar na Mathernova , Ambassador of the EU to Ukraine
Key objectives of the new Ukraine Facility: Support Ukraine s financing needs for the State to deliver uninterrupted services (schools, hospitals, social benefits, etc.) Support recovery, reconstruction & modernisation Mobilise investments in Ukraine s private sector for economic recovery and reconstruction Support Ukraine s reforms on the way to EU accession Broaden support to Ukrainian society, including helping address the social consequences of the war
UKRAINE FACILITY Pillar 1 Support to Ukraine Plan Pillar 2 Ukraine Investment Framework Pillar 3 Assistance programmes De-risking mechanism available to investors through International Financial Institutions to scale up investments, crowd-in financing and private capital Technical assistance to the Government (EU acquis, structural reforms)- 3 bn (tbc) EU support to Ukraine s Plan through grants and loans to the State budget - 39 bn (tbc) Capacity building of the authorities at national, regional and local level Support to address the urgent financial needs of the State to maintain macro-financial stability Support to public & private sector investment in Ukraine Support to civil society Support to investments to foster recovery, reconstruction and modernisation 8 bn (tbc) translating into 8.9 bn of guarantee capacity and 1.76 bn of blending, to mobilise up to 50 bn in additional loans and private capital investments. Support to reforms needed for EU accession
Pillar 2: Ukraine Investment Framework Objective: mobilise investments for economic recovery, reconstruction and modernisation of Ukraine Examples: lending to sovereign entities, private investment projects, support to Ukrainian SMEs to invest, support to municipalities having borrowing capacities or to State-Owned Entreprises. Type of support: combination of blending grants and guarantees. Strategic orientations for the Investment Framework will be given by the Ukraine Plan. Implementation: via European and International Financing Institutions (EBRD, EIB, KfW, AFD, BGK, IFC, etc.). Guarantee capacity tbc: 8.9 billion (with 70% provisioning); Blending grants: 1.7 billion
Opportunities for private sector-led reconstruction Outstanding economic resilience creates the platform for private sector-led economic recovery FDI attraction priority for the government and international partners The Ukraine Plan prioritises sectors such as Energy, Agribusiness, Transport and Logistics, Green Steel, and Critical Materials. Also social sectors housing, health, education, municipal services Aim to attract higher added value industry investment/enter European and international value chains
Enabling environment for FDI for reconstruction and economic growth Historic December 2023 European Council decision to open accession negotiations Active EU accession negotiations and boosting the Deep and Comprehensive Free Trade Agreement (DCFTA)/more access to the EU internal market Government committed to accelerating business environment reforms as stipulated in the Ukraine plan e.g. deregulation, access to finance and SME support, harmonisation of legislation and standards with the EU acquis Development of new industries and infrastructure that reflect Ukraine s deepening integration with European markets and supply chains
UKRAINE FACILITY recovery - reconstruction - modernisation of Ukraine
