About $6 billion to use for the rebuilding and development of Ukrainian steel industry
The National Recovery Council has published a “Ukraine Recovery Plan”, according to which by 2032 more than $750 billion of investments to attract in Ukraine. The document is published on the Ukraine Recovery Conference website.
Danylo Getmantsev, head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, in an interview with UNIAN, said that funds will be raised not only from donors, but also in the form of private investment. At the first stage, it is planned to attract about $60-65 billion for stability, excluding funds for security and defense.
“First, these funds are needed to ensure macro-financial stability, to cover the budget deficit, and this is probably the majority of them. Macro-financial stability is a need number one. If we do not receive money for our social obligations or support of the balance of payments, we will have quite deplorable results,” he said.
In general, the plan includes 15 goals that require funding in 2022, and the achievement of which will directly depend on the stability of the state in wartime.
According to Danylo Getmantsev, the main goals of investments, in addition to macro-financial stability, are investments in the development of logistics, as well as preparation for the winter season.
“We must break the bottleneck that prevents us from shipping goods abroad. We also need to modernize housing and energy saving, primarily in terms of reducing gas consumption, which is strategic for us,” said the head of the Committee.
In addition, the National Program contains about $6 billion of investments in the restoration and development of Ukrainian metallurgy. In particular, $0.7 billion for the construction and modernization of ore and pellets facilities, $1.5 billion for DRI facilities development, $1 billion for the production of 2.5-5 million tons of green steel with EAFs.
It is planned to allocate more than $2.4 billion for the development capacities at the borders with the EU, and more than $35.4 billion for short-term reconstruction and modernization of infrastructure.
The next two stages include the attracting contributions and grants for 2023-2025 for $100-150 billion, and for 2026-2032 – another $100-150 billion. Also, $100-150 billion of loans are expected on each stage. Private investments – $50 billion in the second stage, and $200 billion in the third.
“These are the investments that we need and we are counting on. But in the plan itself there are also state funds. We understand that without them some programs cannot be implemented at all,” Getmantsev summed up.
In Europe it is estimated that the post-war reconstruction of Ukraine could cost €1 trillion, or $1.1 trillion, which will be allocated as external assistance. At the same time, they understand that it is Europe that “will have to play the biggest role” in the process of Ukraine’s recovery.
Earlier GMK Center reported, back in mid-May, the European Commission approved Ukraine’s Recovery Plan. European Union will rely on the plan that is being developed by the National Council for Post-War Reconstruction.