Although the situation on the frontline is difficult and the war is not over, both Ukrainian officials and European partners look into possibilities for the post-war recovery of Ukraine. In this issue, we will look into the initiatives, aimed at setting the main directions for Ukraine’s recovery.

EU Ukraine Relief and Recovery Plan

On May 18, European Commission issued an official communication on Ukraine’s Relief and Recovery Plan.

While condemning Russian aggression in Ukraine, the plan provides a list of both immediate relief actions, as well as provides a framework for long-term post-war recovery.

In terms of immediate relief measures, it is considered to provide Ukraine with additional financial assistance in the form of loans with the aim to ensure the macro-economic stability of Ukraine. The total sum of the loans to be provided is up to EUR 9 billion.

In terms of long-term post-war recovery, the plan envisages that it will be based on the following four pillars:

• Rebuilding the country’s infrastructure, health services, housing, and schools according to the most recent European standards;
• Modernization of state and strengthening of institutions;
• Implementing structural reforms aimed at further EU integration;
• Supporting economic recovery by promoting sustainable and inclusive economic competitiveness, sustainable trade, and private sector development, while contributing to the green and digital transition of the country.

It is important to note that the assistance to be provided to Ukraine in the long term will be conditioned on broad reform agenda, aimed at ensuring that Ukraine’s reconstruction will be in line with the European green and digital agenda in order to strengthen Ukrainian institutions and strengthen respect to fundamental principles of the rule of law, including on anti-corruption, judiciary, public administration and good governance.

National Council for Recovery under the President of Ukraine

A comprehensive recovery plan is being developed on the national level as well. On April 21, the President of Ukraine issued Decree no. 266/2022 On the Setting up of the National Council for Post-War Recovery of Ukraine. According to the Decree, the Council is created in order to develop a comprehensive recovery plan, including proposals regarding priority reforms and strategic initiatives. The composition of the Council is approved by the President and includes Co-Chairs (Prime Minister of Ukraine and Head of Presidential Office), the Secretary of the Council, and other members (ministers, deputy heads of Presidential Office, heads of parliamentary committees). The Council meets at least twice a month to discuss the progress in the development of the recovery plan.

To develop specific proposals, the Council organizes Working Groups, which develop proposals for the recovery plan in specific directions. While the Council itself is rather a political body, Working Groups are rather expert ones, involving not only state offi cials but also experts, scientists, and representatives of business associations.

Key directions for the development of a recovery plan

According to the Provision of the National Council for Post-War Recovery, the working groups are organized in the following directions:

• European integration;
• Audit of damages, caused by the war;
• Recovery and development of infrastructure;
• Economic bloc: recovery and development of the economy; functioning of the financial system and its reforming and development;
• Defense and security bloc: development of defense industry; modernization and development of the sphere of security and defense;
• Social bloc: the return of the temporarily displaced persons (in particular, those who moved abroad, and their integration into the society); veteran rights protection; education and science; youth and sport; culture and information policy; healthcare; social protection; protection of children who were temporary displaced abroad;
• Energy security;
• Public administration bloc: state administration; justice; anti-corruption policy;
• Construction, urban planning, modernization of regions and cities;
• New agrarian policy;
• Digitalization;
• Ecologic security.

The Provision enables the Council to create additional working groups to cover additional directions. As of today, there are 23 expert groups within this Council, which are completing their previous work and submitting it to the Council.

Overall, the Recovery Plan has to be aimed not only at the loan to be given, but also at setting up the environment for the private investment flow to Ukraine.