Ukraine’s allies want to make Russia pay for reconstruction

Russia will have to pay for the reconstruction of Ukraineconsidered American and European leaders meeting in London on Wednesday, at an international conference that captured pledges of billions of dollars to boost the ukrainian economy decimated by the war.

“Let’s be clear: Russia is the cause of Ukraine’s destruction. And Russia will end up bearing the cost of reconstruction.” stated the US Secretary of State, Antony Blinken, when announcing additional aid from his country, for US$1.3 billion, destined mainly for essential infrastructures.

The President of the European Commission, Ursula von der Leyen, also considered that “The aggressor must be held responsible.”

“It is clear that Russia he must pay for the destruction he has inflicted. That is why we are working with our allies to explore legal ways to use Russian assets.” frozen, for tens of billions of dollars, said British Prime Minister Rishi Sunak.

Leaders and representatives of more than 60 countries began a two-day meeting in the British capital that seeks to mobilize funds to sustain the economy of a country subjected to a devastating war for 16 months.

“Every day of Russian aggression brings new ruins, thousands and thousands of houses destroyed, industries devastated, lives burned”Ukrainian President Volodimir Zelensky said by videoconference as his army tries to retake territories seized by the Russians since the start of the invasion in February 2022 with a major counteroffensive.

Later his prime minister, Denis Shmigal, estimated at US$ 1.5 billion alone the environmental damage caused by the destruction earlier this month from the Kakhovka hydroelectric dam on the Dnieper River, which caused severe flooding.

This “preliminary estimate (…) does not include losses in agriculture, infrastructure, housing or the cost of rebuilding the plant itself”he declared at a press conference in London.

“Marshall plan”

The World Bank He estimated the immediate needs of Ukraine to repair the damage caused by the war at US$14 billion.

But the broader recovery of the economy was assessed in US$ 441,000 million by a recent study by the World Bank, the UN, the European Union and the Ukrainian government. This figure will increase as the conflict continues.

The head of the German government, Olaf Scholz, compared in December the help Ukraine needs to the “Marshall Plan” deployed by the United States to rebuild Europe after the Second World War.

His foreign minister, Annalena Baerbock, promised on Wednesday “An additional 381 million euros for humanitarian aid in 2023 for everything from generators to food to tents”bringing the German contribution, including military aid, to 16.8 billion euros (US$18.35 billion).

Before the start of the conference, the United Kingdom announced a new support plan worth US$3 billion over the next three years, in the form of loan guarantees from the World Bank to finance Ukrainian public services.

This will take non-military British aid to 4.7 billion pounds ($6 billion), including 240 million of pounds of bilateral aid for humanitarian projects and demining.

“The reconstruction of the Ukrainian economy is as important as its military strategy”said Sunak, in an appeal to investors around the world.

Involve the private sector

This is the second conference for the reconstruction of Ukraine, after the one held last year in Lugano (Switzerland) and seeks to involve the private sector.

This meeting is also the occasion to officially launch the “Ukraine Business compact”, initiative that invites companies from all over the world to commit to supporting the reconstruction of the country, together with the main financial institutions.

The World Bank recently pledged $200 million to restore the Ukrainian power grid, raising to US$ 23,000 million of dollars its financing since the beginning of the conflict, in the form of loans or grants.

He European Bank for Reconstruction and Development (EBRD) also pledged to allocate 3,000 million euros (US$ 3,270 million) in 2022 and 2023 to Ukraine, of which 1.7 billion last year was applied mainly to energy and transport.

Source: AFP