Major conglomerates, international corporations, retail chains, and businesses worldwide have pledged support for Ukraine’s recovery efforts in a powerful show of solidarity. The commitment comes as the UK announces a significant financial package, including $3 billion of World Bank loan guarantees, to bolster Ukraine’s economic stability in the face of ongoing Russian aggression.
The financial support will play a crucial role in sustaining vital public services, such as schools and hospitals, which are essential for the well-being of Ukrainian citizens. As the first bilateral package of multi-year fiscal assistance provided by a G7 country, the UK’s commitment underscores its unwavering dedication to Ukraine’s present and future. With this announcement, the UK’s non-military assistance to Ukraine surpasses £4.7 billion, comprising £4.1 billion of fiscal support and £640 million of bilateral assistance.
Notably, over 400 companies from 38 countries, boasting a combined annual revenue exceeding $1.6 trillion, have pledged support for Ukraine’s recovery and reconstruction. Spearheaded by the UK, the Ukraine Business Compact has garnered participation from major conglomerates, international corporations, retail chains, and renowned companies like Virgin, Sanofi, Philips, Hyundai Engineering, and Citi.
The Ukraine Business Compact aims to promote trade, investment, peer-to-peer expertise sharing, and responsible business practices in Ukraine. Its objective is to facilitate the country’s transformation into a resilient, agile, and prosperous economy. As part of the two-day conference, the Prime Minister will also introduce the London Conference Framework for War Risk Insurance, which has the backing of G7 members.
The framework outlines measures to de-risk immediate investment and enhance investor confidence, providing guidance for collaboration with commercial insurance markets to unlock private investments necessary for Ukraine’s long-term reconstruction. The UK has already taken steps to support this framework by allocating up to £20 million of funding to the Multilateral Investment Guarantees Agency. These funds will provide guarantees and insurance for ongoing reconstruction projects amid the conflict.
Furthermore, the Prime Minister will announce a substantial commitment of up to £250 million in new capital for the UK’s Development Finance Institution, British International Investment (BII). This funding demonstrates the UK’s long-term confidence in Ukraine and aims to stimulate private sector investment in major infrastructure projects, energy markets, financial services, and agriculture throughout the country.
The BII funding is an addition to the £240 million increase in UK aid for Ukraine this year, dedicated to life-saving initiatives such as mine clearance, disaster relief kits, reform programs, and energy projects. A significant portion of this funding, £127 million, will be directed toward providing humanitarian support to those residing near the front lines of Russia’s invasion, in collaboration with partners like the UN and Red Cross.
The overall increase in aid brings the UK’s total assistance package to £347 million since the onset of the invasion. This uplift includes £16 million recently allocated in response to the devastating Nova Kakhovka dam disaster, which affected over 42,000 people in the Kherson area. The floods caused significant damage, submerging approximately 100,000 hectares of vital agricultural land crucial for grain and oil seed production in the region.
Additionally, the uplift comprises £10.5 million, announced by the Prime Minister during the European Political Community conference in Moldova. This funding is intended to support Ukrainian refugees and the communities hosting them, providing essential aid and assistance.
The combined efforts of global businesses and the UK government demonstrate a resolute commitment to Ukraine’s recovery and a determination to alleviate the consequences of the ongoing conflict. By combining financial support, expertise sharing, and responsible business practices, these efforts aim to assist Ukraine in rebuilding a prosperous and resilient future.
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