Ukraine plans to create an investment fund worth €16 billion

Ukraine plans to create an investment fund worth €16 billion, the source of which will be funds from international financial institutions. Communities and businesses that have suffered significant losses as a result of the war will be able to turn to it.

The head of the Verkhovna Rada Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning Olena Shulyak informed about this at a meeting with the Confederation of Builders of Ukraine.

According to her, this fund is planned to be launched as part of the second component of the Ukraine Facility program, under which Ukraine will receive €50 billion from the EU. International and European financial institutions, such as the European Bank for Reconstruction and Development, the European Investment Bank, the Development Bank of the Council of Europe and the World Bank, will contribute to the financing of this fund.

"It will be able to become a significant support for the development of business, in particular, one that sees itself in the development of the construction sector. We will wait to see how this fund works so that it helps the construction industry as well," Shulyak said.

The MP emphasized that for Ukrainian companies working in the field of construction, the recovery of the country can be an opportunity to restore business, because the reconstruction of destroyed objects in Ukraine will require construction materials and equipment worth more than $62.8 billion.

According to the latest studies, she emphasized that in some categories of construction products necessary for reconstruction, a surplus has arisen in Ukraine. For example, in the category of paint and varnish products, bricks, aerated concrete, Euroruberoid, asphalt concrete, sand, ceramic tiles, plaster, crushed stone, rolled pipes, sanitary ware, monolithic reinforced concrete and rolled metal.

At the same time, there is only 56% of the concrete required for reconstruction, 70% of the required replacement, 77% of the polyvinyl chloride profile, 86% of cement and no glass at all. Therefore, it can be an opportunity to resuscitate a business that wants to either work or resume work in these categories.

However, there are still significant challenges that the sector needs to overcome in order to operate at full capacity.

"In wartime conditions, enterprises cannot solve these challenges on their own. Therefore, government, donor countries and international financial organizations can play an important supporting role. If they demonstrate confidence that the Ukrainian building materials sector can meet the needs of the countryʼs recovery, it can increase the confidence of investors and the banking capacity of enterprises in this sector," Shulyak said.

One of the instruments of such assistance can be the investment fund created within the framework of the Ukraine Facility. In order for the business of one or another community to be able to join this investment fund, each community must first of all create conditions for entrepreneurs and for the development of business in its territory.

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