Prime Minister Denys Shmyhal announced that $1 trillion is needed for the comprehensive reconstruction and modernization of Ukraine over the next 14 years. The corresponding strategy was presented by the head of government during the URC2025 conference.
This is reported by Business • Media
Two Funds for Ukraine’s Recovery
The Ukrainian recovery plan includes the establishment of two separate funds. The first is the “Ukraine Fund” with a volume of $540 billion, which aligns with World Bank estimates regarding the cost of the country’s recovery. Funds for this fund are expected to come from confiscated assets of the Russian Federation, as well as from a special tax on the export of Russian raw materials. The fund will be administered by the Ukrainian side.
The second mechanism will be the European Structural Fund for supporting Ukraine, which will amount to $460 billion. Its goal is to attract investments from private European businesses for the development of production and industry in Ukraine.
Benefits for All of Europe and Role in Security
Denys Shmyhal emphasized that the implementation of projects within both funds will benefit not only Ukraine but also contribute to the development of the European economy and business.
“We invite our European partners to invest in European defense through co-financing the Ukrainian army. Military expenditures currently amount to $100-120 billion. In peacetime, and without considering arms production, maintaining the Ukrainian military will cost €50 billion per year. We expect that half of this amount will be provided by the EU,” the Prime Minister emphasized, adding that Ukraine is ready to be a guarantor of European security.
It is expected that cooperation with EU partners in defense financing will ensure stability on the continent and enhance the level of security in Europe.