Page 37 - UKRRptAug23

facilities, and port and border infrastructure. In addition, USAID will expand support for small and medium-sized agricultural businesses to enable access to financing and resources to facilitate planting and harvesting in 2023. USAID recalled that the Russian Federation's aggression against Ukraine has caused more than $6.6B in direct losses to the country's agricultural sector. The US government has already allocated $350M to the AGRI-Ukraine initiative, which supports more than 30% of farmers registered in Ukraine.
Ukraine is preparing a recovery plan based on the €50B promised by the EU. The Government of Ukraine has started preparing a recovery, reconstruction, and modernization plan (Ukraine Plan), which is necessary to receive financial assistance from the EU after 2023, the Ministry of Economy reported. More than a dozen industry working groups will be created for its development. Their findings will form the basis of the sectoral development programs of the Ukraine Plan, which will attract tens ofbns of euros to the economy during 2024-2027. "Its phased implementation will not only allow for the receipt of €50B in aid over four years but will also contribute to attracting additional investments for almost the same amount (€50B)," said the head of the ministry, Yuliya Svyridenko. The plan is intended to provide the structure for the vision of Ukraine's post-war recovery and development. Future reforms and sectors that need priority funding should also be prescribed. Part of the funds will go to cover the budget deficit and part to recovery, but most of it will be directed to the private sector and the implementation of strategic investment projects.
The EU launches another €20B special fund for Ukraine. The EU is working on creating a special fund to help the Ukrainian army over the next four years, worth up to €20B, reported Politico. This proposal would not involve direct payments to the EU for arms. Brussels will help countries cover their costs of purchasing and donating items such as ammunition, missiles, and tanks. The EU began using this approach immediately after the full-scale Russian invasion, but a new proposal from the EU diplomatic service will strengthen this strategy despite its obstacles. First, the price will be a serious liability for the EU, and secondly, before the Russian Federation's aggression, the concept of the EU subsidizing the supply of weapons to a war zone was unthinkable. Still, the practice can now be in place for many years. The European External Action Service has also developed a plan for several security commitments the EU can make to Ukraine in the coming years. All this complements the EU's proposal to allocate €50B to Ukraine for recovery in 2024-2027.
The EU is preparing a long-term security support plan for Ukraine. The European External Affairs Service has developed a draft plan that recommends that the EU undertake a full package of obligations regarding the security of Ukraine for many years. According to Politico, the proposals cover a wide range: ensuring a "steady" flow of weapons, continuing military exercises and training, sharing intelligence, and helping to establish ties between Ukrainian and European defence companies. The document also states that Ukraine's membership in the EU also acts as an obligation in the security field. In addition, it is noted that the block should provide long-term financial support for Ukraine's recovery. Moreover, Brussels is encouraging EU countries to send their weapons to Ukraine, offering partial compensation for such donations. This compensation system is the basis of the EU's long-term military support for Ukraine, and officials will soon propose a plan to create a special cash fund for such efforts, which will run until 2027.
37 UKRAINE Country Report August 2023 www.intellinews.com