Moscow calls plans illegal
EU wants to use Russian assets to build Ukraine
06/21/2023, 10:31 p.m
A study estimates the cost of rebuilding Ukraine’s economy at around $441 billion. But there is still no end in sight to the Russian war of aggression – so the costs are likely to rise. In its search for financial means, the EU wants to hold the aggressor accountable.
The EU wants to use frozen Russian assets to help Ukraine. The EU Commission will present a plan for this before the summer break, said EU Commission chief Ursula von der Leyen at a reconstruction conference for Ukraine in London. She added: “The perpetrator must be held accountable”.
Federal Foreign Minister Annalena Baerbock made a similar statement on the sidelines of the conference. For the reconstruction of Ukraine, it is essential that Moscow is held accountable in the medium term, the minister told journalists. Russia caused the damage in Ukraine. She added: “Anyone who breaks all the rules of international law, the United Nations Charter, must be held responsible and ultimately have to pay for this reconstruction and the damage it has caused.”
The Russian ambassador in London, Andrei Kelin, described such plans as illegal in an interview broadcast by British broadcaster Sky News that evening. “Nobody can use this money, it’s state money,” Kelin said of the approximately $350 billion (almost €320 billion) that Western states have frozen in Russian funds.
Allies want to increase financial aid
At the two-day conference, hosted by Ukraine and the UK, government officials from more than 60 countries will discuss ways to support Ukraine’s economy. In addition to state aid, they also rely on private companies and investors. A recent joint study by the World Bank, the UN, the EU and the Ukrainian government estimates the cost of rebuilding Ukraine’s economy at around US$441 billion (€403 billion).
The sum is likely to increase in view of the ongoing war. After the destruction of the Kakhovka dam in southern Ukraine, the Ukrainian government estimates the damage to the environment at 1.5 billion dollars. These “preliminary estimates” do not include “losses to agriculture, infrastructure, shelter, and the cost of rebuilding the power plant itself,” Ukrainian Prime Minister Denys Shmyhal said in London.
Several allies promised Kiev an increase in their financial aid. Federal Foreign Minister Baerbock promised Ukraine further humanitarian aid from Germany in the amount of 381 million euros for 2023. The US announced an additional $1.3 billion for the reconstruction and modernization of Ukraine’s infrastructure. Britain pledged $3 billion in loan guarantees over the next three years, primarily to support public services.
The conference for the reconstruction of Ukraine is the second of its kind. Last July, representatives from 40 countries and 14 international organizations discussed a kind of Marshall Plan for war-torn Ukraine in Lugano, Switzerland. Next year the conference will take place in Germany.