Berlin's Ukraine Reconstruction Conference spurs economic initiatives.
Vice Prime Minister of Ukraine, Julia Svirydchenko, expressed her gratitude to international partners for their efforts, stating that they are "a crucial factor in shaping Ukraine's future and strengthening our current resistance." Svenja Schulze, German Federal Development Minister from the SPD, emphasized the importance of guiding Ukraine towards a stable economy to end the ongoing war and rebuild destroyed areas.
During a two-day conference in Berlin, key discussions centered around reconstruction in Ukraine—both addressing immediate issues tied to Russian attacks and the long-term development of the country. The intention was to connect individuals from the economy, society, and municipalities for an effective response.
A significant part of the conference centered around supporting small and medium-sized businesses (SMEs), accounting for a remarkable 2/3 of value creation and 80% of jobs in Ukraine, as per the Federal Ministry for Economic Cooperation and Development. Germany, alongside twelve other countries and 17 development organizations/banks, agreed to form an alliance to assist SMEs.
This alliance aims to "grasp hold of small and medium-sized companies during the war and prepare them for reconstruction," as stated by the Development Ministry. Its founding members intend to contribute through financial investments, political counsel, or capacity-building measures.
The alliance promises over seven billion euros in total for existing and upcoming programs. Approximately 4.5 billion of this came from new programs.
Germany also committed an added 50 million euros to the Ukraine Energy Support Fund, as indicated by Ukranian Energy Minister, German Galushchenko. Germany has previously invested over 275 million euros to ensure a stable Ukrainian energy supply, a notable target for Russian aggression. Galushchenko announced, "Germany remains the largest donor."
President Volodymyr Zelenskyy expressed concern that Russian attacks had destroyed half of Ukraine's electricity generation capacity since last winter during the conference's opening speech.
On Wednesday, Economics Minister Robert Habeck (Greens) reassured German exporters and investors in Ukraine, stating that Germany would willingly shoulder additional financial and political risks for these entities. This action aims to boost trade and reconstruction in the country, according to Habeck.
The World Bank revealed the estimated expenses for reconstructing Ukraine at around half a trillion US dollars over a decade. Germany's Chancellor, Olaf Scholz (SPD), highlighted the significance of investing private capital in a conference address on Tuesday.
An additional outcome of the conference involves Rheinmetall's plans to produce Lynx armored vehicles in Ukraine. This announcement was made by Oleksander Kamyschin, Ukraine's Minister for Strategic Industries, in an interview with "Handelsblatt". Kamyschin further predicted, "This year, we will produce the first Lynx".
The Berlin Conference served as the starting point for a series of international meetings dedicated to Ukraine's future, with heads of state and government from the G7 countries gathering in Italy on Thursday. Ukraine's path forward, including potential peace options, will be addressed at a conference in Switzerland from Saturday.
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- At the Ukraine Reconstruction Conference in Berlin, German Federal Development Minister Svenja Schulze emphasized the importance of economic initiatives to help Ukraine build a stable future and rebuild damaged areas.
- Svenja Schulze from the SPD acknowledged the crucial role of international partners in strengthening Ukraine's current resistance and shaping its future during the Ukraine Reconstruction Conference.
- The Ukraine Reconstruction Conference in Berlin brought together individuals from various sectors, such as the economy, society, and municipalities, to discuss effective responses to Ukraine's reconstruction needs.
- The Alliance for supporting small and medium-sized businesses (SMEs) in Ukraine, formed by 13 countries and 17 development organizations/banks during the Ukraine Reconstruction Conference, aims to help these companies during the war and prepare them for reconstruction.
- Vice Prime Minister of Ukraine, Julia Svirydchenko, expressed gratitude to Germany and other partners for their help in shaping Ukraine's future and strengthening its current resistance at the Ukraine Reconstruction Conference.
- During a two-day Ukraine Reconstruction Conference in Berlin, participants focused on both immediate issues associated with Russian attacks and long-term development plans for Ukraine, recognizing the significant role of SMEs in the country's economy.
- Germany, along with its alliance partners, will invest over seven billion euros in existing and upcoming programs to support small and medium-sized businesses in Ukraine, according to Svenja Schulze from the SPD, emphasizing the importance of the Ukraine Reconstruction Conference for Ukraine's future.
