Minister Marchenko: Ukraine needs $14B to cover urgent needs

Minister of Finance of Ukraine Serh Marchenko said this at the first event within the framework of the newly created Ukraine Reconstruction Platform via video link, an Ukrinform correspondent reports.

Marchenko recalled that last week the World Bank assessed Ukraine's losses as a result of Russian aggression and announced that the need for recovery was estimated at $411 billion.

"The most critical needs for 2023 already total $14 billion. We are now actively looking for possible sources to finance this need," said the minister.

He explained that this sum is needed not only for the reconstruction of housing, social infrastructure, schos, hospitals, and orphanages but also for the restoration of business and the creation of conditions for it.

According to Marchenko, Ukraine identified five priorities for recovery at this stage: energy infrastructure, humanitarian demining, housing reconstruction, critical and social infrastructure, support for small and medium-sized enterprises.

Since last October, the energy infrastructure of Ukraine has suffered 14 missile attacks, almost half of the power plants have been damaged, Marchenko informed, calling it "energy terror". Recently, key power supply capabilities have been restored, but there is still a need to repair the destroyed infrastructure, he noted.

According to the minister, 250,000 sq km in Ukraine – the territory larger than the territory of Great Britain – "are at risk of being mined". At least $400 million is needed for demining this year.

He added that 8.1 million Ukrainians had been forced to go abroad, 5.4 million became internally displaced. Many refugees want to return home but simply have nowhere to live. "It is critically important to find an portunity to build housing, the need is estimated at $1.9 billion," Marchenko said.

According to him, $5.7 billion will be needed in 2023 to restore bridges, roads, educational institutions, and other social infrastructure facilities.

Ukraine will not be able to put the economy back on its feet without attracting investments from outside, the minister noted. Experts estimate the need for support to be provided to businesses at $2.7 billion.

"These are the most critical issues," Marchenko explained. He underscored the importance of the Interdepartmental Donor Coordination Platform, of which he is one of the leaders. Its second meeting will be held on April 5. In particular, the World Bank report on the damage caused by Russian aggression to Ukraine will be discussed. Also, by this time, it is planned to prepare specific projects that will be presented to partners.

Marchenko called the launch of the Ukraine Reconstruction Platform in Berlin on March 27 an extremely important event: "We are interested in the develment of such platforms, the invvement of business in the process of reconstruction of Ukraine."

Read also: Ukraine Reconstruction Platform launched in Berlin

The minister pointed to the unprecedented scale of threats and challenges facing Ukraine which has to repel the aggression of the country "which is ten times stronger economically and financially than us." But at the same time, Ukraine has been fighting for a year, including thanks to the support of our partners.

The German Federal Government is one of Ukraine’s main partners in the fight for independence, Marchenko emphasized. He added that last year our country had received $1.6 billion in grant aid from the German government, and only the United States provided more.

Photo: Ministry of Finance