Scale of Ukraine’s reconstruction costs revealed — Analysis
Bloomberg reports that the EU is expected to contribute half a billion euros in a draft plan.
Bloomberg reports on Sunday that Ukraine wants foreign aid to help rebuild the country.
According to anonymous sources, a 2,000-page plan is being presented for the rebuilding of the Ukrainian economy at a conference taking place in Lugano (Switzerland) this week.
The EU will reportedly offer over 500 billion euros ($523 billion), the report claimed, and a donors’ conference could be held as soon as November in the Czech Republic, which assumed the rotating half-year EU presidency this month.
Bloomberg announced that Ursula von der Leyen (President of European Commission) will be attending the Lugano Conference. Bloomberg reports that she will present the EU-led effort to raise funds from potential donors, such as the G7 and multilateral organisations, Switzerland, Norway. Sources also said Bloomberg that they believe the EU will borrow money in order to finance the costs, much like it did for its response to the Covid-19 pandemic.
Last month, Ukraine was granted EU candidate status. Officials in Europe claimed that it was symbolic to support Kiev during its fight against Russia. It is seen by many in Kiev as an important step toward joining the union. They are now discussing the potential benefits their country would reap as full members.
Ukrainian Foreign Minister Dmitry Kuleba said they should follow Poland’s example on how to get subsidies from the joint EU budget. Warsaw “learned to take European money and spent it in a way to get more,”According to the minister, the Ukrainians need to do the exact same.
Due to Ukraine’s large population, he said that significant changes will be required by the EU to adapt to it. “How will the balance of power change in the European Union by, say, a tandem of Ukraine and Poland?”He sat down and mused. “That would be a new reality.”
“It’s cool that this upcoming reform will account for the future Ukrainian membership. Megacool,”The top diplomat spoke to Levyi Bereg’s news agency.
Last week, Volodymyr Zeleksny, president of Ukraine, told NATO in Madrid that Kiev must have $5 billion monthly to finance its budget deficit. According to the Ukrainian leader, Kiev won’t give territory to Russia in return for peace and claims an increased supply of Western arms to Ukraine could change the tides against Russia.
Last week, Russia reported seizing the entire territory claimed by the Lugansk People’s Republic. Russian Defense Minister Sergey Shoigu claimed Monday that Ukraine lost over 5,500 troops during two weeks’ fighting in the east. This includes more than 2,000 dead.
Russia launched its offensive in Ukraine on February 24, citing Kiev’s failure to implement the Minsk agreements, designed to give the regions of Donetsk and Lugansk special status within the Ukrainian state. In 2014, the protocols were signed for the first time, through France and Germany. Former Ukrainian President Petro Poroshenko has since admitted that Kiev’s main goal was to use the ceasefire to buy time and “create powerful armed forces.”
The Kremlin recognised the Donbass republics in February 2022 as independent states. It demanded Ukraine declare itself neutral and not join any Western military bloc. Kiev claims that the Russian offensive wasn’t provoked.
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