Sustainable economic growth and rapid recovery are impossible without attracting private investment: Ministry of Finance's leadership at the Rebuilding Ukraine Panel
On June 18, representatives of the Ministry of Finance of Ukraine participated in a Rebuilding Ukraine panel at the Invisso Conference in London, UK.
The discussion was joined by Deputy Minister of Finance Olga Zykova and Government Commissioner for Public Debt Management Yuriy Butsa.
The event annually brings together business representatives, investors, financial experts and policymakers to debate, discuss and find possible solutions to financial challenges and economic prospects.
The agenda included the current financial and economic situation in Ukraine, the role of the private sector and Ukraine's cooperation with development banks and international financial institutions in the recovery process.
The delegation of the Ministry of Finance of Ukraine emphasised that the recovery process requires not only the support of partner countries and IFIs but also the attraction of private investments.
According to the RDNA3 report developed by the Government of Ukraine in cooperation with international partners, Ukraine needs USD 15.3 billion for rapid recovery in 2024. Of this amount, about USD 5.5 billion has already been financed from the State Budget and donor support. Thus, Ukraine needs another USD 9.5 billion to finance the priority recovery needs. These include the defence industry, energy, housing reconstruction, agriculture, natural resources, digital technologies, and the IT sector.
Due to the constantly increasing need for rapid recovery in the face of systematic russian terror, Ukraine is facing a new reality that requires an adaptive recovery approach. It includes building back better principles, the green recovery, involving adopting best practices in engineering, construction, transfer of technologies, private sector involvement, accountability for resource use, and economic recovery on Ukraine's path to EU and NATO membership.
Deputy Minister of Finance Olga Zykova spoke about the critical role of consolidating efforts with partners towards creating a favourable investment environment, which will further contribute to sustainable economic growth and recovery:
"Creating a favourable environment for investment involves improving access to financing for investment projects, providing war and political risk insurance, and introducing state support mechanisms. The Government of Ukraine is actively cooperating with several partners and is committed to implementing steps to improve this process."
In particular, under the investment component of the EU's Ukraine Facility, the Ukraine Investment Framework is being implemented to mobilise investments to support the Ukrainian private sector by providing budget guarantees and other financial instruments of international economic development institutions.
Established by the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group, the SURE Trust Fund helps raise funds that, in turn, contribute to the implementation of war risk insurance projects in Ukraine. Since the beginning of the full-scale war, MIGA has provided Ukraine with guarantees totalling about USD 200 million. The donors are Japan, the United Kingdom, Norway, and Belgium.
Within the framework of the Multi-agency Donor Coordination Platform for Ukraine, the Government is engaging the private sector through the recently established Business Advisory Council. The goal is to ensure donor coordination is based on private sector perspectives and recommendations to improve the investment climate, support Ukrainian businesses, and mobilise resources for economic cooperation and recovery.
Also, the State Program of the Business Development Fund "Affordable Loans 5-7-9%", supported by the Credit Institute for Reconstruction (KfW), has been successfully implemented.