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19
October
2022

Priorities, conditions for financing Ukraine’s reconstruction to be considered under auspices of G7 conference in Berlin on Oct 25

KYIV. Oct 19 (Interfax-Ukraine) – Chancellor Scholz, in his given capacity as German Presidency of the G7, and European Commission President von der Leyen will convene the expertise of world-renowned specialists from different relevant international organisations, national governments, think tanks and academic institutions, together with the Ukrainian government, with the view to further shaping ongoing discussions on the recovery, reconstruction and modernisation of Ukraine.

“The International Expert Conference is intended to underline that the international community is united and resolute in its support to Ukraine, and will continue to support Ukraine beyond its immediate needs, and on its path to EU accession,” the German government said on its website.

According to it, it also carries the message that, given the scale of the challenge at stake, the recovery needs to be an inclusive multi-stakeholder process including both public and private sectors of all international partners.

Federal Chancellor Olaf Scholz and EU Commission President Ursula von der Leyen will be opening the event. The keynote speech will be held by the Ukrainian President Volodymyr Zelensky. This will be followed by an opening plenary with the participation of Ukrainian Prime Minister Shmyhal, offering international perspectives on Ukraine’s geopolitical and economic outlook and the scale of the recovery and reconstruction needs.

“Estimates on costs already circulate, but there is no agreed upfront figure, while costs rise with each day of the ongoing war. Current estimates also vary largely depending on the timeframe and the extent of what is considered as ‘recovery’ (early recovery/humanitarian assistance). The Conference will therefore, among others, discuss how to prioritise and sequence different needs and which financing options are available,” the documents explain the emphasis of the conference on the terms of financing, not its cost.

It is supposed that these discussions will contribute to shaping the way ahead for Ukraine, including the design and implementation of the national recovery planning as well as the prioritising to be put in place by the Ukrainian government and people.

“The International Expert Conference has no inherent pledging segment. Participating institutions are however free to announce or confirm their support for recovery, as many have already done so in other contexts,” it also said.

Is specified that the International Expert Conference is not a decision-making body, so there won’t be any political agreements endorsed. The expertise generated by the Conference will contribute to further shaping the process of recovery, reconstruction and modernisation of Ukraine. “Recommendations from the International Expert Conference will be taken to the relevant political fora at an appropriate juncture, which will be decided politically,” the documents say.

The German government recalls that the initial impulse for the Conference was the G7 Elmau Summit on 27 June 2022, which was followed by the following statement: “We stand ready to support an international reconstruction plan, drawn up and implemented by Ukraine in close coordination with bilateral and multilateral partners and organisations in support of a sustainable, resilient, inclusive, and green economic recovery which enhances strong democratic institutions, rule of law, and anti-corruption measures.”

After that, on July 4-5, 2022, Switzerland jointly with Ukraine held an international conference on the restoration of Ukraine (URC 2022) in Lugano, where Ukraine presented its draft detailed national recovery plan for the first time, and international partners were invited to comment on it in writing during the summer, which many did. UK is hosting URC 2023.