The scale of post-war reconstruction and modernization of Ukraine, as well as its future accession to the European Union, accompanied by resolute reforms even in the face of the struggle against Russian aggression, create new and enormous opportunities for international investors. This was stated on Wednesday during the seminar "Ukraine-India: Investments and Opportunities for a Better Future," held within the framework of the Global Summit Vibrant Gujarat - 2024 in India (Gujarat) by Seppo Nurmi, the Acting Chargé d'Affaires of the EU in India.
"The EU supports Ukraine in financial recovery processes, including the proposed creation of a Ukrainian Fund of 50 billion euros, providing technologies and assistance, as well as mobilizing and supporting private investments that can be used for recovery. We intend to address key aspects and risks and help with reforms to improve the business climate," noted the EU representative.
"The most important thing that defines the present and future of Ukraine is the recent decision of the European Union to start negotiations with Ukraine on EU accession. Therefore, Ukraine's future in the European Union opens up significant opportunities for companies not only in Ukraine but throughout the EU," added Nurmi.
He emphasized that one of the most crucial factors for attracting foreign investments and private capital is security, stability, and social balance in the country.
"We (EU) are working to define future security commitments for Ukraine that will help Ukraine defend itself in the long term against any future aggression or destabilization attempts. At the same time, reconstruction efforts will require serious human resources and financial investments. This can increase trade between countries and people-to-people contacts," said the European diplomat.
He reminded that Russian aggression led to unprecedented destruction of civil infrastructure in Ukraine. According to the World Bank estimate conducted in March 2023, Ukraine's reconstruction needs at that time exceeded $411 billion. This includes rebuilding the housing sector and critical infrastructure, restoring transportation networks, energy, and the social protection system.
According to Nurmi, there are other areas that require systemic investments and form the basis for future cooperation. This includes humanitarian demining, especially necessary for agricultural recovery, the development of the healthcare system, including post-war rehabilitation and mental health support, as well as the defense sector and the development of innovative cooperation.
As the European diplomat emphasized, since the previous assessment of the inflicted damage, Russia has caused new destruction in Ukraine, including the destruction of the Kakhovska Hydroelectric Power Station dam, which has inflicted significant damage to infrastructure, agriculture, and the environment. Therefore, the figures for the inflicted damage, as can be expected, will significantly increase during the next assessment by the World Bank, which will be conducted in March of this year. This amount of damage requires enormous investments in the recovery processes and, accordingly, opens up significant prospects for development.
