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Ukraine demonstrates economic stability, but for rapid growth, it needs $12-13B in investments immediately, without waiting for the war's end. In turn, the EU signed the first €1.4B guarantee agreement within the investment component of the Ukraine Facility program. Thus, the bloc has launched the Ukraine Investment Framework, which will help to facilitate Ukraine’s recovery, particularly in terms of energy infrastructure. In addition, the EC signed new technical assistance programs worth more than €100M to help promote reforms in Ukraine.
Ukraine needs up to $30B in annual investment, and the government has identified five priorities for rapid recovery. Ukraine needs from $10 to $30B in annual investments for the next 10 years, Prime Minister Denys Shmyhal said. "Our budget deficit is about 20% of GDP. It is important that the support is predictable and stable," he said. At the same time, the government of Ukraine continues to take measures to increase its budget revenues. "Last year, GDP recovered by 5.3%. In the first four months of this year, the growth was 4.4%. There is an increase in exports and investments," noted Shmyhal. He emphasized that one of the priorities should be the transfer of frozen Russian sovereign assets for Ukraine’s stability and recovery. Also, for rapid economic recovery in wartime conditions, it is crucial for Ukraine to establish a long-term systematic financial support plan through 2027. Shmyhal noted that the five priorities of rapid recovery are: housing reconstruction, humanitarian demining, critical infrastructure restoration, the economy, and the energy sector.
This year, Ukraine can receive €1.7B in profits from Russian assets frozen in Belgium, said President Zelenskiy in Brussels. In October 2023, the Government of Belgium announced that the country had created a special fund to support Ukraine, which would be filled from frozen Russian asset taxation.
Secretary General Jens Stoltenberg is scrapping plans to set up a $100bn fund to aid Ukraine over five years after facing rejection from alliance members, Bloomberg reported on June 7 citing people familiar with the matter. Stoltenberg's new proposal reportedly suggests that allies spend at least 40bn euros ($43bn) per year on lethal and non-lethal aid for Kyiv. This would match the average annual contributions since the beginning of Russia's full-scale invasion, Bloomberg's sources said. Nato will reportedly determine the sums of donations for each country based on a percentage of their gross domestic product. The US is expected to contribute about a half of the assistance, according to Bloomberg.
• US Aid
US to announce $150 million military aid package to Ukraine, AP reports. The new package, which is set to unveiled on Tuesday, will include new HIMARS (High Mobility Artillery Rocket System) rockets, anti-armor weaponry, small arms and grenades, as well as 155 mm and 105 mm artillery shells, AP reported, citing its sources
The US will provide Ukraine with a new assistance package worth $225mn for rebuilding the country’s electric power capabilities, US President Joe Biden said on June 7. "I’ve announced six packages of significant funding. Today I’m also signing an additional package for $225mn to help you reconstruct the electric grid," the US leader, who is visiting France, said during a meeting with Ukrainian President Vladimir Zelenskiy. Biden also apologized to Zelenskiy for the delay of a major assistance package, which was held up for several months in Congress. "I apologize for the weeks of not
76 UKRAINE Country Report July 2024 www.intellinews.com