The United Kingdom Prime Minister Rishi Sunak, on Wednesday (June 21) said Russia “must pay” for the “destruction” inflicted on Ukraine and pledged billions of dollars to help Kyiv with its recovery and to rebuild. In line with this, Sunak also announced the launch of a war insurance framework which would spur companies to invest.
Meanwhile, Kyiv’s allies in the West, including the United States and European Union, have pledged to send billions of dollars worth of aid to Ukraine as governments and private investors met to fund the war-torn country’s reconstruction. The two-day conference in London brought together more than 1,000 public and private sector decision-makers from across 60 countries.
‘Russia must pay’: UK PM Sunak
Speaking at the Ukraine Recovery Conference in London, the UK PM said, “It’s clear Russia must pay for the destruction that they’ve inflicted. So we’re working with allies to explore lawful routes to use Russian assets.” This comes as the UK proposed new legislation on Monday which would “keep sanctions in place until Russia pays up”.
Sunak also went on to announce loan guarantees worth $3 billion over three years as a part of a “multi-year commitment to support Ukraine’s economy,” which would also allow Kyiv to unlock World Bank loans to help bolster its public services like schools and hospitals.
Meanwhile, the International Monetary Fund (IMF) announced a $15 billion plan for Ukraine over the next four years which is part of a $115 billion commitment by the Group of Seven (G7) nations and its partners, said the UK PM.
Additionally, he also announced the London Conference Framework for War Risk insurance which could pave the way for de-risking investment without giving any further details. “Together with our allies we will maintain our support for Ukraine’s defence and for the counteroffensive, and we’ll stand with Ukraine for as long as it takes as they continue to win this war,” said Sunak.
The UK will also provide an extra $306 million in development aid funding for humanitarian projects. Furthermore, the UK PM said more than 400 companies from 38 countries had signed up for the Ukraine Business Compact, a statement of support for the war-torn country’s recovery.
US announces $1.3 billion additional aid
Addressing the conference, US Secretary of State Antony Blinken, “Recovery is about laying the foundation for Ukraine to thrive as a secure, independent country, fully integrated with Europe, connected to markets around the world.” He added, “Let’s be clear: Russia is causing Ukraine’s destruction.”
The top US diplomat then announced that with the support of Congress, Washington will provide more than $1.3 billion in additional aid to help Ukraine. This would be in addition to the more than $20 billion in economic and development assistance that Washington has provided to Kyiv, said Blinken.
EU and others
European Commission president Ursula von der Leyen said the EU would provide Ukraine with 50 billion euros between 2024-27.
Ajay Banga, president of the World Bank Group, UK’s $3 billion of additional guarantees would allow his group to continue to help “people rebuild their lives after devastation”. This comes as the World Bank has put an estimate of $14 billion on Ukraine’s immediate needs for repairing the damage.
Will it be enough?
A recent study by the World Bank, United Nations, EU and the Ukrainian government showed that the wider recovery of the war-torn country’s economy would cost $441 billion.
Meanwhile, Kyiv on Wednesday said that the damages to the environment from the recent breach of the Russian-held Kakhovka dam in southern Ukraine will be an estimated $1.5 billion. “Every day Russia is inflicting new losses on Ukraine,” said the Ukrainian Prime Minister Denys Shmygal at the conference in London.
He added, that the cost of reconstruction “will grow, especially after the Russians blew up the Kakhovka hydroelectric power plant.”
Rostyslav Shurma, a deputy head of President Volodymyr Zelensky’s office, told Reuters ahead of the conference in London, that Kyiv has sought $40 billion to fund the first part of a “Green Marshall Plan” to rebuild its economy.
The plan in question would first focus on the country’s iron and steel industry which accounted for a third of export revenues and employed around 600,000 people in 2021, contributing at least 10 per cent to the country’s GDP.
The Ukrainian PM urged the Western countries to pledge over $6 billion more to help it rebuild over the next 12 months as shellings and strikes in Ukraine destroyed homes, hospitals and other critical infrastructure.
Ukrainian president addresses the conference
“Every day of Russian aggression brings new ruins, thousands and thousands of destroyed houses, devastated industries, burnt lives,” said Zelensky to the delegates in London via video link. He also went on to talk about how despite the devastation from the war the country was ripe for development in various sectors including technology, green agriculture, and clean energy.
“The world is watching to see if we will restore normal life in such a way that our transformation will land an ideological defeat on the aggressor,” said the Ukrainian president. He added, “We protect Ukraine, and thus we protect freedom. And when we build Ukraine, we’ll build freedom.”
EU announces new sanctions package against Russia
Hours after the British PM said that the UK will introduce legislation to keep Russian assets frozen till Russia “pays up” compensation to Ukraine. The EU also approved an 11th package of sanctions against Moscow.
The announcement was made by Sweden which holds the 27-nation bloc’s rotating presidency and said it was approved at a meeting of EU ambassadors in Brussels, Belgium.
However, some EU diplomats have said that the countries are close to reaching a limit on sanctions against Moscow and the bloc’s attention is also shifting from imposing additional sanctions to closing the loopholes in the existing ones.
Speaking about the sanctions, the EU chief during the conference in London said the 27-nation bloc’s lawmakers will soon outline a plan for how to use the proceeds from seized Russian assets, “because the perpetrator has to be held accountable,” she added.
(With inputs from agencies)
You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.
For all the latest business News Click Here
