Ukraine drafting €50 billion recovery blueprint after EU pledge
Photo: OP

The Cabinet of Ministers has started preparing a recovery, reconstruction and modernization plan ("Ukraine Plan"), which will be necessary to receive financial assistance from the European Union after 2023, reported the Ministry of Economy.

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For its development, more than a dozen industry working groups will be created, with which businesses, associations and specialized experts will be involved.

Their findings will form the basis of the sectoral development programs of the "Ukraine Plan", which will allow attracting tens of billions of euros to the economy during 2024-2027.

"Its phased implementation will allow us not only to receive EUR 50 billion in assistance over the next 4 years, but also to help attract almost as much additional investment from partners – EUR 50 billion," said Economy Minister Yuliia Svyrydenko.

The plan should structure the vision of post-war recovery and development of Ukraine. Future reforms and sectors that need priority funding should also be listed there.

According to Svyrydenko, the implementation of the plan will allow to return the GDP to the level of 2021 and additionally increase it by 10%.

"We already know what these funds will be used for – part of them will cover the budget deficit, part of them will be used for recovery, but most of them should be directed to the private sector, to the implementation of strategic investment projects," said Svyrydenko.

On June 20, within the framework of the Ukraine Recovery Conference in London, the European Commission presented a new "Instrument for Ukraine" (Ukraine Facility), which provides for the allocation of 50 billion euros in 2024-2027. Money in the form of grants and loans will be provided based on the implementation of the "Ukraine Plan", which will be supported by a number of conditions and a payment schedule agreed with the European Union.

The European Parliament and the EU Council must agree to the European Commission's proposal, and Ukraine must submit its plan. After evaluating the plan, the European Commission will propose to the Council of the EU to adopt the plan and establish the conditions that Ukraine must fulfill in order to receive assistance within the framework of the financial instrument.