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implemented within the Ukraine Investment Framework (UIF). The first stage programs were approved by the European Commission at the Ukraine Recovery Conference in Berlin. The €1.4B in financing includes:
● €1.05B for guarantees to expand existing MFI programs
● €289M for mixed financing and grants
● €55.5M for technical assistance in finalizing investment projects and submitting financing applications
At the same time, the Ministry of Economy notes that many projects still have insufficient readiness and require further development. Therefore, the government is working on launching the Project Preparation Facility to increase the number of projects that are ready to attract financing. At the first stage, the programs will support Ukraine's recovery and reconstruction in three areas: energy, infrastructure, and support for small and medium-sized enterprises. Private and state companies and municipalities can receive financing directly from IFIs and local partner banks through the programs.
Nato countries are considering several options for Kyiv's long-term financing but are struggling to come to an agreement. Many allies in the Alliance are shyingaway from adopting specific multi-year spending commitments on aid for Ukraine. However, some allies are wary of formalizing the pledge with a specific number and want to promise to continue providing support at the previous level. At the same time, others do not want to publish the exact figures of their donations, fearing that it could reveal information about the true extent of their aid. The multi-year plan was proposed at the end of May and should be presented to President Zelenskiy at the Nato leaders' summit in Washington in early July. Abandoning the original idea of allocating $100B over five years, Stoltenberg proposed annual commitments of $42.7B (€40B). The Allies may be able to strike a deal if the funds count towards Nato's existing commitment to spend at least 2% of GDP on defence. However, this could lead to a reduction in Nato's internal defence spending, especially if the finance ministries are not able to agree to an increase in the overall expenditure level.
By the end of the year, Ukraine will receive at least $65B from the US, the G7, the EU, and the IMF. The Ukrainian government expects to receive $7.9B in credit support from the US, Minister of Economy Yuliya Svyridenko said. At a meeting of the Economic and Financial Affairs Council, the EU finance ministers discussed practical issues regarding the implementation of the G7's decision to extend Ukraine a $50B loan secured by Russian assets. They will continue their work in July so that Ukraine can receive the money by the end of the year. The Minister of Economy of Italy said that EU countries plan to provide up to 60% of the loan. His statement contradicts the words of the country's prime minister, who announced that EU countries will not participate in funding the loan. Meanwhile, the EC reported that the European Peace Fund could receive the first €1.5B in profits from frozen Russian assets before the EU bodies go on summer vacation. By the end of the year, Ukraine could receive up to €3B from this source, and this week it will receive €1.9B in pre-financing through the Ukraine Facility. Also, Ukraine expects to receive $2.2B from the IMF as part of the EFF program by the end of June.
By the end of the year, Ukraine needs another $9.5B for urgent recovery.According to the Ministry of Finance, Ukraine needs another $9.5B this year to finance its priority recovery needs. In particular, the money is needed for the defence industry, the energy system, the restoration of damaged housing, agriculture, natural resources, digital technologies, and the
74 UKRAINE Country Report July 2024 www.intellinews.com