June 21st in London marks the start of the Ukraine Recovery Conference – a large event dedicated to the reconstruction of Ukraine during and after the war with Russia.
The Conference is held jointly by the UK and Ukraine in London, as a continuation of the cycle of annual events with the last one conducted in Lugano, Switzerland. This year, URC 2023 focuses on mobilising international support for Ukraine’s economic and social stabilisation and recovery from the effects of war, including through emergency assistance for immediate needs and financing private sector participation in the reconstruction process.
URC 2023 showcased the strength and potential of the private sector in supporting Ukraine to “build back better”, working alongside a broad coalition of governments, international organisations and civil society.
URC 2023 brought together Leaders, Ministers, and representatives of 59 states, 32 international organisations and international financial institutions, over 500 businesses, and 130 civil society organisations.
Discussions focussed on how the private sector can play a leading role by applying its expertise and supporting Ukraine’s recovery, and invited investors to consider specific sectors and opportunities. To support this, Ukraine set out how it continues to implement an ambitious reform agenda and look for ways to support investment in Ukraine and reduce risk.
TechUkraine was represented at URC by Director Nataly Veremeeva.
UK Involvement
According to the press release of Department for Business and Trade, Foreign, Commonwealth & Development Office, new tech and war risk insurance support announced for businesses helping Ukraine rebuild after Russia’s illegal invasion.
- UK hosts private companies and international partners at major Ukraine Recovery Conference to discuss how to better support Ukraine’s reconstruction
- Government pledges up to £20 million boost for insurance for companies operating in Ukraine, unlocking crucial flow of private investment
- Business and Trade Secretary Kemi Badenoch to tell businesses government dedicated to unblocking issues which stop them unleashing their full entrepreneurial potential in Ukraine
The UK has today announced a funding boost of up to £20 million for the World Bank’s Multilateral Investment Guarantees Agency (MIGA) to help support more private sector investment in Ukraine to help the country rebuild.
Russia’s invasion has had a devastating toll on Ukraine’s infrastructure, anticipated to cost $411 billion and take more than 10 years to reconstruct. A lack of insurance options that cover war-related losses is preventing a crucial flow of private investment.
Thanks to the UK’s funding, investors will have greater access to MIGA’s SURE Trust Fund to de-risk investments in projects which address Ukraine’s immediate reconstruction needs.
The announcement came as more than 1,000 people across the private sector, public sector and international community attended the Ukraine Recovery Conference in London.
A new insurance collaboration between private sector leaders – supported by Government’s UK-Ukraine Private Finance Partnership – will complement this work. Professional services firm Aon and Lloyd’s insurance market have today announced they will join forces with the Vienna Insurance Group, one of the largest insurers operating in Ukraine, to deliver fast-track access to foreign reinsurance capacity to support Ukraine’s recovery.
International and domestic companies working in Ukraine with manufacturing and construction risk exposure, excluding war cover, will be supported through this commitment. Building reinsurance capacity is key to ensuring businesses can continue day to day, supporting Ukraine’s normal economic activity.
European Union Agreements
According. to European Commission Press-release, at the Ukraine Recovery Conference 2023 in London, President of the European Commission, Ursula von der Leyen, presented the details of the Commission’s proposal for a new Ukraine Facility that, if adopted by the European Parliament and Council of the EU, will mobilise up to €50 billion over four years in the form of both grants and loans. The Facility will support Ukraine’s efforts to sustain macro-financial stability, promote recovery as well as rebuild and modernise the country, whilst also implementing key reforms on its EU accession track between 2024 and 2027. The Facility underscores the EU’s steadfast commitment to supporting Ukraine in the face of Russia’s ongoing war of aggression and on its path towards EU membership.
In the margins of Conference, Executive Vice-President of the European Commission Valdis Dombrovskis, together with the President of the European Investment Bank (EIB), Werner Hoyer, the President of the European Bank for Reconstruction and Development (EBRD), Odile Renaud-Basso, and the Managing Director of the International Finance Corporation (IFC), Makhtar Diop, signed agreements worth over €800 million to mobilise private investment for the recovery and reconstruction of Ukraine’s economy. The agreements, which are supported by the European Fund for Sustainable Development Plus, the financing arm of NDICI-Global Europe, underscore the joint international commitment to mobilise the private sector for Ukraine’s recovery and reconstruction. These agreements are separate to the new Ukraine Facility, which is expected to be operational in 2024.
Also, in the margins of the Ukraine Recovery Conference 2023 in London, the first in person meeting of the Steering Committee of the Multi-agency Donor Coordination Platform for Ukraine co-chaired by the European Commission, the United States and Ukraine advanced on its extensive work to ensure that Ukraine’s urgent priority needs for 2023 are met and matched by donor commitments. The Steering Committee also discussed next steps for further coordination on Ukraine’s reform agenda. The EU will work with Ukraine on a plan for investments and reforms to be supported under the new Ukraine Facility, that can serve to guide other donors’ assistance for Ukraine.
Other countries have also shown considerable support and determination to help Europe and Ukraine as its integral part overcome this challenge.
First Day Conclusions from our representative, Nataly Veremeeva
“The level of support of Ukraine is stunning. URC organizers have managed to bring to London an unimaginable number of high-level delegates, who all discussed one topic – Ukraine rebuilding and shaping better future for the whole world. The opening speeches of our political allies show their strength and determination to support Ukraine, ensure international investments on the government level and provide all the support needed to welcome Ukraine in the circle of democratic developed countries, where it belongs,” — Nataly comments.
During the first day, Ukrainian international partners expressed their support for Ukraine in the war once again and announced several aid packages. Among them, France is preparing civilian assistance package and additional 40 mln euros, Canada announced an additional 20 mln grant for climate change projects, Germany will provide Ukraine 381 million euros for humanitarian assistance.
Such questions as environmental restoration for life, technologies for transformation, statements of international organizations, the role of regions in rebuilding Ukraine, accelerating de-mining activities in Ukraine were discussed during the second, and the last day of the conference.
Overall the conference gave a powerful boost to further efforts to supporting Ukrainian economy and also fostering further international collaboration.
Previously, UK-Ukraine TechBridge was launched one day prior to the Conference by Business and Trade Minister Nusrat Ghani ahead of its full rollout later this year. In partnership with the Government of Ukraine and private sector partners, the UK has developed the initiative from a Ukrainian proposal predating Russia’s full-scale invasion.
