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The report from these financial institutions highlights specific sectors where reforms hold significant potential:
Agriculture: Reforms in this sector could attract $30bn in private investment.
Food Products and Beverages: Approximately $16bn in private investment opportunities can be realised through reforms in this industry.
Transport and Logistics: Restoration efforts in this sector could attract $7bn, while additional needs for expansion and development may reach $41bn.
Energy and Mining Industry: Reforms in the energy sector could unlock $36bn in private investment, while the mining industry may see investments of up to $132bn.
Restoration and New Housing/Construction: The restoration of infrastructure and facilities could attract $30bn in private investment, while new housing and construction projects hold the potential for $60bn in investments.
How to raise the hundreds of billions of dollars needed to rebuild Ukraine is a pressing issue, after the EU has more or less totally written off the idea of seizing the Central Bank of Russia (CBR) frozen $300bn as legally unworkable.
The EU has proposed a €50bn four-year support programme and the US has already spent some $45bn on support, but long-term it is very unlikely that Ukraine’s Western partners will come up with sufficient funds to cover the whole $411bbn bill.
The answer has been to turn to the private sector, as was highlighted at the Ukraine Recovery conference held in London in June. But private investors are worried about Ukraine’s corruption problem that has always held back foreign direct investment (FDI). Ukrainian President Volodymyr Zelenskiy is fully aware of this and as bne IntelliNews has reported has launched the most comprehensive anti-graft programme since independence, but there is still a long way to go.
Attracting investors is a work in progress. Kyiv will present a new Ukraine Plan to the EU in November that is more detailed and will bring more investment if implemented. While the study suggests there is going to be a significant shortfall in funds needed to complete the rebuild of Ukraine post-war, every little bit helps and the more reforms Ukraine can make, the more investment it will attract.
2.7 Politics - misc
● International Politics
The US assures Ukraine of its continued support under any conditions, and most Ukrainians are convinced of this aid’s independence from
15 UKRAINE Country Report November 2023 www.intellinews.com