August 13, 2022

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EU announces creation of “Solidarity Fund for Ukraine” | War in Ukraine

L ‘European union Creates a solidarity fund for Ukraine for the immediate support and reconstruction of a democratic UkraineHe made the announcement on Twitter after a video conference call with leaders of several European countries, including US President Joe Biden, Canadian Prime Minister Justin Trudeau and the Secretary-General.North Atlantic Treaty OrganizationJens Stoltenberg, in particular.

According to Bloomberg, Most of the initial aid will go to rebuilding infrastructure and public services. The European Commission is also reportedly considering extending guarantees to help businesses.

The European Commission told European diplomats that the initiative was centered on the long-term needs of the country. Without accurately calculating the amount needed for Ukraine’s reconstruction, when the war continues to cause significant damage, it will be worth hundreds of billions of euros in aid needed for decades.

A few days ago, an economic adviser to Ukrainian President Volodymyr Jagansky estimated that the country would need $ 1.260 billion to recover from the losses caused by the Russian invasion and bombings.

One of President Jehansky’s staunch allies has called on European nations to act. Quoted on Twitter by the Polish delegationEuropean unionThe Prime Minister of this country, Mateusz Morawiecki, called on the European Commission Start immediately These funds and Raising new European funds.

The plan was already raised during a summit last monthEuropean union Dedicated to the war in Ukraine. At the end of the meeting, the European Council agreed in a press release Set up a Solidarity Foundation fund to rebuild democratic UkraineOnce the Russian occupation was stopped. The council has called Participate with its international partners And asked Arrangements will begin without delay.

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Earlier this month, Roberto Metzola, President of the European Parliament, visited Kiev and promised.European union To help Ukraine Re-create [ses] Cities and [ses] Villages.

According to BloombergThis aid package will be similar to the recovery fund set up for member states following COVIT-19.

Analysts from Center for Economic Policy Research For their part, they compared Ukraine’s future reconstruction efforts to other projects put forward in the past, such as the Marshall Plan, which aims to finance Europe’s reconstruction after World War II.

European Commission warns European ambassadorsEuropean union Will bear the bulk of the bill, so it indicates that it is not betting on the multilateral instrument. Bloomberg.

The draft EU initiative does not yet predict how much help will come from grants and loans.

The Commission will first conduct an in-depth funding assessment in collaboration with the World Bank.

Last week it estimated that Ukraine’s GDP will fall by 45% this year.

World Bank and IMF in bed in Ukraine

The World Bank will also be held in Washington on Thursday Group discussion on the next phase of economic assistance to Ukraine.

The meeting will be attended by its chairman David Malpas and the managing director of the International Monetary Fund Krystalina Georgieva, as well as Ukrainian officials including Prime Minister Denis Simigal, Finance Minister Sergei Marchenko and Central Bank Governor Grillo Shevchenko.

Ukraine should have a debt burden Significantly reducedOn Tuesday, Mr. Malpas argued.

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Valeria Gondreva, former governor of the National Bank of Ukraine, who recently spoke to the Economic Think Tank in Washington, was quoted by a British newspaper. Tea TelegraphHe also stressed Catastrophic loss What was the economic damage caused by Russian troops in Ukraine? Not just for today, but for years to come.

There are export capabilities Completely destroyed And Major ports are busy, She explained. He estimates the current bill is about $ 710 billion, including $ 340 billion for infrastructure alone.

In the face of a war, costs can eventually be reached Trillions Dollars, she said.

Among other things, Ms. Gondreva put forward the idea of ​​using disabled Russian assets to revive the Ukrainian economy.

On Monday, Ukrainian President Volodymyr Zhelensky said I hope he will get the candidate status for the membership post for his countryEuropean union In the coming weeksThanks to Brussels for the speed of the process.