Ukraine has five emergency recovery priorities for $17 bln in 2023

Energy, housing, demining, critical social infrastructure and assistance to private businesses are the top five priorities for Ukraine’s emergency recovery in 2023, for which $17 billion are to be raised, Prime Minister Denys Shmyhal said in a video conference speech at a business forum for the fast recovery of Ukraine in Luxembourg.

“We expect the world to continue to show high support,” the head of the Ukrainian government stressed, expressing hope that the donor coordination platform created last week will play an important role in attracting this $17 billion in addition to financing the $38 billion state budget deficit.

Shmyhal specified that in the case of the energy sector, it is not only about restoring the energy infrastructure after 13 massive missile attacks and dozens of local ones that destroyed or damaged more than 400 facilities, but also about reorganizing it into a more decentralized one and more resistant to such attacks.

Speaking about the second priority, the prime minister pointed out that over 150,000 residential buildings have been destroyed, and the estimated damage in this area alone exceeds $55 billion.

According to him, in terms of demining, current estimates give it five years or more, while it needs to be done faster.

Shmyhal added that without the restoration of critical social infrastructure – roads, bridges, schools, hospitals, public utilities – it will also be impossible to live in cities.

Finally, noting the fifth priority – helping private businesses – the prime minister recalled the direct losses of private businesses last year in the amount of $13 billion, while indirect losses exceeded $33 billion. According to him, the government supports businesses with concessional loans and grants, but more is needed.

The premier stressed that the need for financing the recovery confirmed by the World Bank was $350 billion back in June last year, and is currently estimated at $600-700 billion.

Shmyhal urged the governments of the partner countries to follow the example of Canada and confiscate the frozen Russian assets and transfer them to Ukraine for restoration, as they should become the main source.