Ukraine hopes to find a footing again through economic aid from Western countries
Major Western countries have pledged billions in support for restoration of Ukraine in the Ukraine Recovery Conference 2024 jointly hosted by the UK and Ukraine in London on June 21-22, 2024. The conference aims to mobilize international fundings to help Ukraine cope with the devastating effects of the war and stabilize the country again on the path to recovery.
According to World Bank estimates, Ukraine’s reconstruction comes at a hefty, staggering cost of over $411 billion, needed to completely shake off the after effects of the war, and it seeks to raise an initial amount of $40 billion in the first stage of the ‘Green Marshall Plan’ for recovery. The commencing focus is on rebuilding a green iron and steel industry, steering away from its pre-war reliance on coal for generation of iron and steel, with a grand vision of building a 50 million tonnes green steel industry.
UK-Ukraine host remarks of the conference
Ukrainian President Volodymyr Zelenskyy, while addressing the conference, asserted that Ukraine has united Europe like never before, in terms of unity of values. He strengthened his bid for Ukraine’s full membership of the organization NATO. He also added that Ukraine is expanding its stronger ties with countries like the US, UK, Japan, and the European Union (EU). UK Prime Minister Rishi Sunak, in his keynote address, declared that Russia has to pay for the damage and destruction it has unleashed, and that efforts are on to find lawful avenues to make use of the frozen and seized Russian assets. The Allies are determined to make Russia bear the cost of war losses and ruination.
Image Source: AP News
Aid by Western Allies
Ukraine’s Allies made substantial pledges worth billions in the conference. US Secretary of State Antony Blinken announced a new aid package of $1.3 billion, which will be divided into various parts to address development in different domains.
Roughly USD 657 will be poured into enhancing infrastructure such as rail lines, bridges and ports to boost trade. $520 million will be used to redevelop Ukraine’s ramshackled energy grid. Another $ 100 million will be for transitioning to better digital technology. The US has already contributed $63 billion since the inception of the war in February 2022. The European commission has promised $55 billion over the years till 2027, whereas the UK has pledged an aid of over $3 billion in loan guarantees in the span of next three years. The UK government has also passed a loan equalizing 26.3 million pounds focused on reconstruction of bridges near Kyiv.
International financial organizations have also stepped up, with the World Bank providing $3.8 billion worth loan guarantees and the International Monetary Fund (IMF) pitching in $15 billion over a span of four years, as part of a G7 commitment of $115 billion. The Indian-origin World Bank president, Ajay Banga, said that over 400 companies worldwide from 38 countries have also pledged support to Ukrainian reconstruction.
Image Source: BBC
Turkey has also reiterated its full fledged support to Ukraine in protecting its independence, sovereignty and territorial integrity and coping with its economic and humanitarian crises. It has recapitulated its commitment to the Memorandum of Understanding (MoU) that was signed between Erdogan and Zelenskyy last year.
Ukraine has given an unanticipated tough fight so far, mostly riding on the military, financial and ideological support provided by its allies. Now, its hopes for a reconstructed, stronger, better resilient future depends largely on the support and financial aid by its Western allies, transitioning from vision to agreements to real projects.
