International Ukraine Recovery Conference 2023: Western Allies Promise to Make Russia Pay for Invading Ukraine
The International Ukraine Recovery Conference 2023, the second to be held since the Russian invasion in February last year, saw leaders and representatives from more than 60 countries come together to fund the country’s reconstruction from the ravages of war. The World Bank has estimated that Ukraine’s immediate needs to repair the damage caused by the bitter fighting will cost $14 billion. However, a recent study by the World Bank, the UN, the European Union, and the Ukrainian government said that the wider recovery of the economy would cost $411 billion.
Russia is Causing Ukraine’s Destruction
US Secretary of State Antony Blinken told delegates at the London conference that “Russia is causing Ukraine’s destruction,” and “Russia will eventually bear the cost of Ukraine’s reconstruction.” UK Prime Minister Rishi Sunak voiced a similar message, promising to keep tough sanctions in place “until Russia pays up” and to use seized assets to get Ukraine back on its feet.
Ukraine’s President Volodymyr Zelensky is overseeing a military fight-back using Western-supplied heavy weaponry to regain territory lost to Russian forces since last year. He told the conference by video link that “every day of Russian aggression brings new ruins, thousands and thousands of destroyed houses, devastated industries, burnt lives.” However, Zelensky set out his stall for future investment in Ukraine, saying that despite the devastation, the country was ripe for development in sectors from technology and green agriculture to clean energy.
Long-Term Support Needed
Leaders and representatives from more than 60 countries are attending the International Ukraine Recovery Conference 2023. The first, in Lugano, Switzerland, last July saw allies commit to supporting Ukraine through what is expected to be an eye-wateringly expensive and decades-long recovery. Sunak told delegates that Kyiv’s allies would support Ukraine “on the battlefield and beyond” for as long as it takes. Zelensky underscored the need for long-term support. “Some people believe this is a Hollywood movie and expect results now,” he told the BBC in a separate interview. “It’s not. What’s at stake is people’s lives,” he added.
Government and Private-Sector Firms to Join the Reconstruction Effort
As well as government support from around the world, it is hoped that more private-sector firms will join the reconstruction effort. Delegates include captains of industry from major multinationals and corporations, many of whom have signed up to a new Ukraine Business Compact. It encourages trade, investment, and expertise-sharing to Ukraine on the back of promises from Zelensky to tackle barriers such as corruption and financial and legal transparency.
More than 400 companies from 38 countries, with a combined market capitalization of $4.9 trillion, have already promised to back Ukraine’s recovery and reconstruction, Sunak said. A new London-based insurance scheme would help to underwrite risky investments in Ukraine, he said, “removing one of the biggest barriers and giving investors the confidence they need to act.”
Conclusion
The International Ukraine Recovery Conference 2023 saw leaders and representatives from more than 60 countries come together to fund the country’s reconstruction from the ravages of war. The World Bank has estimated that Ukraine’s immediate needs to repair the damage caused by the bitter fighting will cost $14 billion. However, a recent study by the World Bank, the UN, the European Union, and the Ukrainian government said that the wider recovery of the economy would cost $411 billion. Western allies have promised to make Russia pay for invading Ukraine and to keep tough sanctions in place until Russia pays up. It is hoped that more private-sector firms will join the reconstruction effort, with more than 400 companies from 38 countries, with a combined market capitalization of $4.9 trillion, already promising to back Ukraine’s recovery and reconstruction.