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Ukraine. According to Prime Minister Denys Shmyhal, the funds will help cover the costs of repairing damaged energy infrastructure facilities and support the Ukrainian power grid's stability. The money will also be used to restore the provision of municipal and basic services to populations in affected communities. As the head of government specified, Ukraine has received €1.05B from the EIB and the European Commission within the framework of the Emergency Support package in two months. Another €540M will be paid by restoring financing of joint projects.
Brussels wants to allocate billions of euros to supply weapons. The EU plans to allocate €10B to €12B for military aid to Ukraine by 2027, reported by Welt am Sonntag. It is noted that Brussels wants to allocate the funds to supply weapons to Ukraine and expand military aid in the coming months. As well, the €5.7B financial reserve, the so-called European Peace Fund (EFF), may be significantly increased. In addition to the new training mission, it also partially finances the supply of weapons. An allocation of €10B to €12B by 2027 is under discussion. However, a final decision has yet to be made. EU foreign ministers will officially approve the decision at a meeting in Luxembourg in mid-October.
The government expects to launch the International Trust Fund for the Reconstruction of Ukraine. Minister of Economy of Ukraine Yulia Svyridenko met with Arup Banerjee, Regional Director of the World Bank, to discuss the creation of a fund for Ukraine’s recovery, cooperation in promoting investment in the Ukrainian economy, and current government programs to stimulate business and create jobs. Banerjee assured Svyridenko that the creation and operation of the fund will be discussed at the next meeting of the WB Board of Directors at the end of October. At the same time, Svyridenko said that Ukraine also needs to increase investment, which can occur even during the war and serve to stimulate the economy. According to Svyridenko, Ukraine expects that the International Finance Corporation (IFC) will submit a package of financial assistance to attract investors for approval by the Board of Directors of the WB in November. The package will provide $1B in financing.
6.1.4 Budget dynamics - privatisation
Denationalization of the economy has brought the government UAH 45B.
More than 800 state-owned objects worth about UAH 45B ($1.2B) were transferred to the State Property Fund of Ukraine (SPFU). As the Ministry of Economy explained, the burden on the state departments under which these objects were managed is significantly reduced. As previously noted by President Zelenskyy, most of the enterprises are unprofitable and subsidized by the state. Eventually, some of these enterprises will be listed for privatization, attract investments, and operate within Ukraine's economy. Other enterprises will remain under state management or be leased. State companies that do not have the potential for development will be liquidated, reducing the state’s budget costs. Among the objects transferred to SPFU management are: state enterprises, corporations, state institutions, research centers, and other entities.
Currently, Ukraine's investment portfolio is worth $400B. Ukraine has formed a broad investment menu with more than 500 investment projects and opportunities in 10 sectors of the economy with a total potential of more than $400B, Prime Minister of Ukraine Denys Shmyhal said at the opening of the V
37 UKRAINE Country Report November 2022 www.intellinews.com