Ukraine is getting another recovery fund, but this time, it’s coming from Europe.
European Commission President Ursula von der Leyen announced the creation of the European Flagship Fund for the Reconstruction of Ukraine on Thursday during a speech at the Ukraine Recovery Conference in Rome.
“[It will be] the largest equity fund globally to support reconstruction. It will, together with the private sector, kickstart investment in energy, transport, critical raw materials, dual-use industries,” von der Leyen said.
“We are taking a stake in Ukraine’s future by leveraging public money to bring large-scale private sector investments and help the rebuilding of the country,” she added.
As for who will contribute to the fund, von der Leyen named Italy, Germany, France, Poland and the European Investment Bank and added, “I trust others will be eager to join. The people of Ukraine are ready to drive their country’s economy into the future. The time to invest is now.”
She did not specify how much the fund aims to collect. Ukraine needs at least $40 billion in external financing in 2026, as it continues to allocate most of its state budget to defense needs, Ukrainian Finance Minister Serhii Marchenko said Wednesday.
Ukraine needs regular and predictable external support to maintain the financial stability it has achieved with its partners since 2022. This also lays the foundation for the country’s successful reconstruction,” Marchenko added.
Russia’s ongoing full-scale invasion has devastated towns and cities across Ukraine and shows no sign of ending as the Kremlin’s military continues to bombard the country on a nightly basis.
In April, Ukraine’s government signed a deal with the Trump administration to establish an American-Ukrainian Reconstruction Investment Fund, which will draw on cash from Ukraine’s natural resources development projects.
While in Rome, von der Leyen also celebrated that Europe has become the largest donor for Ukraine, providing €165 billion and planning to keep supporting Ukraine at least until 2028.
“This year alone, we will cover 84 percent of the external financing needed. As part of this support, I can announce €1 billion payment in macro financial support. I can also announce a payment of more than €3 billion from the Ukraine facility,” von der Leyen said.
Over the next decade, Ukraine needs an estimated $524 billion (around €450 billion) for reconstruction caused by relentless Russian attacks, the Ukrainian economy ministry reported in February.
Ukrainian President Volodymyr Zelenskyy said investments in reconstruction are beneficial not just for Ukraine but for Europe too, as Kyiv can share its robust and cost-effective military technologies that could strengthen the EU in the face of Russian aggression.
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