About 100 billion dollars will cost the reconstruction of Ukrainian infrastructure from war damages – we learn from the analysis of the German Marshall Fund (GMF). The New York Times reports that the document stresses the need for stricter monitoring of aid funds and strengthening of anti-corruption mechanisms in Ukraine.
The American newspaper describes a report prepared by a German Marshall Fund think tank commissioned by the German government. The Washington-based organization made recommendations for financing reconstruction Ukraine. An international conference on the reconstruction of Ukraine is scheduled for October 25 in Berlin – “NYT” recalls. It adds that the GMF analysis is already being discussed among donor countries.
How much will the reconstruction of the Ukrainian infrastructure cost?
According to the document, the G7 countries are to appoint a person who will hold the post of coordinator of the reconstruction of Ukraine. Ideally, it should be someone America, with established status in the world – added. To save time, existing institutions should be used to finance the reconstruction of Ukraine, as well as various multilateral forms of financial cooperation, which will allow limiting the influence of representatives. Russia and China among international firms – further advises the GMF report.
The document urges Ukraine to adopt stricter oversight of finances, as well as strengthen the legal system and judiciary to reduce the potential for corruption. The response to Russian aggression must be the vision of an “independent, democratic, modernized and European Ukraine,” the report said. It said transferring such large funds would require foreign oversight and Ukraine must understand this.
For the reconstruction of Ukraine, it is also necessary to maintain the functioning of Ukrainian state enterprises, which – according to the estimates of the International Monetary Fund – will cost about 5-6 billion dollars a month – “NYT” notes. It says donor states need guarantees that large sums of taxpayer money will continue to flow to a country notorious for corruption.
The proposed aid to Ukraine’s reconstruction should be phased in and adjusted to the situation before and after a possible peace agreement, the GMF report says. According to the think tank, the US, which spends the most on military aid to Ukraine, should focus on this type of support, while other G7 countries should finance reconstruction and modernization. Likewise, at first, non-European countries should be more involved in helping them, and they will take their place over time. European union.
“No one wants Ukraine to become a failed state”
Given the state of the Ukrainian budget, GMF experts write that most aid should be in the form of grants or very long-term loans. They say that EU countries in particular should decide on a specific financial aid as soon as possible, as other countries will follow the solutions adopted in Brussels.
According to the “NYT”, the major EU countries will oppose financial assistance to Ukraine by paying the common debt, explaining that the funds obtained in this way should be used within the community.
The GMF report describes the idea of seizing Russia’s central bank reserves frozen in the West to fund Ukraine’s reconstruction and reaching $300 billion in the short term as unrealistic and legally questionable.
According to GMF experts, the reconstruction of Ukraine should begin soon. Despite war conditions, it was necessary to introduce certain guarantees and insurances for private companies participating in the reconstruction project.
– Without rapid reconstruction, Ukraine will not start accession negotiations with the EU and will not be a livable country (…); Nobody wants Ukraine to become a failed state – emphasized Jakob Funk Kierkegaard, one of the authors of the report.
Main photo source: EPA KOZLOVSERGEY
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