$1 trillion project. How the West is going to restore Ukraine

Ivan Zubov

On Monday, July 4, a conference began in the Swiss city of Lugano, at which the countries of the European Union, the G7, Switzerland and Norway discuss a plan to restore Ukraine. It will consist of a wide range of projects, investments in infrastructure, digital economy, diversification of energy resources, security and climate. At the same time, the Ukrainian state will have to guarantee the implementation of reforms so that the funds are not stolen.

President of Ukraine Volodymyr Zelensky delivered a video message to the participants of the conference, RIA Novosti reports . In particular, he said:

“We are proposing our national Recovery Plan, on the basis of which it will be possible to implement every initiative, every idea, as well as rationally and specifically in the Ukrainian interests to use the funds that will be directed to restoration. The restoration of Ukraine will be the greatest contribution to the maintenance of global peace of all. We can prove that the democratic world is stronger, that Europe is more powerful, that our values cannot be destroyed. And we will definitely do it ... "

According to this plan , over 10 years, the Ukrainian authorities intend to implement 850 projects in various fields. Their implementation will require more than 750 billion dollars. It is expected that the annual GDP growth will be more than 7%.

At the first stage, in 2023-2025, it is planned to implement 580 projects with funding of more than $350 billion. In the second - 2026-2032 - there will be 270 projects with funding of more than $400 billion.

However, apparently, the amount for the restoration of Ukraine will be even higher. This follows from the editorial column, which was published specially for the beginning of the conference by the economic agency Bloomberg. In it, experts called for the immediate start of reconstruction, which, according to their estimates, will cost the world community more than $1 trillion.

“While it makes little sense to rebuild a structure that will be shelled again, Ukraine's allies can do a lot now. The construction of pontoon bridges and other temporary vital infrastructure could help move millions of pounds of grain out of the country. Farmers and agro-enterprises need support for sowing,” reads, in particular, in this text.

The European Union intends, according to the agency, to contribute the bulk of assistance in the amount of about $500 billion. This money will come, according to the plan of experts: through loans, grants or joint borrowing in the markets, as was the case during covid. The Bloomberg editors insist that these should be grants, as in the Marshall plan, while part of the amount should be paid at the expense of confiscated Russian assets.

True, analysts warn that there is a danger of growing dissatisfaction among Europeans against the backdrop of record inflation on this continent. And after all, the amount of 500 billion dollars is approximately three-year expenditures of the EU budget.