- Major conglomerates, international corporations, retail
chains and businesses across the world signal their backing for
Ukraine at recovery conference held in London
- Comes as the UK announces landmark package of financial
support for the country, including $3 billion of additional
guarantees to unlock World Bank lending, and £240 million of
bilateral assistance
- Prime Minister also signals expansion of British
International Investment in Ukraine, bolstering funding up to
£250 million.
The UK will today set out a
major package of financial support for Ukraine, including $3
billion of World Bank loan guarantees to bolster Ukraine’s
economic stability as it continues to push back Russian
forces.
The funding will support vital
public services, including the cost of running schools and
hospitals.
It is the first bilateral
package of multi-year fiscal assistance to be set out by a G7
country, underlining the UK’s unwavering commitment to the
country, both now and in the future. It brings the UK’s
non-military assistance to Ukraine to more than £4.7 billion,
including £4.1 billion of fiscal support and £640 million of
bilateral assistance.
In his opening address
at the Ukraine Recovery Conference today [Wednesday], the Prime
Minister will say:
“As we’ve seen in Bakhmut and
Mariupol, what Russia cannot take it will seek to destroy. They
want to do the same to Ukraine’s economy.
“The scale of the challenge is real, the war brought a 29% fall
in Ukraine’s GDP last year, but just look at the streets of Kyiv,
despite the threat of attack, people are getting on with their
lives – and getting on with business.
“President Zelenskyy’s government is determined to drive reforms
to become more open, more transparent, and ready for investment.
This is a vibrant, dynamic, creative, European country that
refuses to be subdued.
“So, together with our allies we will maintain our support for
Ukraine’s defence and for the counter offensive, and we’ll stand
with Ukraine for as long as it takes as they continue to win this
war.
“I’m proud that today we’re announcing a multiyear commitment to
support Ukraine’s economy, and over the next three years, we will
provide loan guarantees worth $3 billion.”
President of the World Bank Group, Ajay Banga, said:
“The UK Government’s generous guarantees to the
World Bank Group will support the people of Ukraine at a critical
moment.
“The World Bank Group is designed to do hard things like helping
people rebuild their lives after devastation. With this support,
we will keep delivering on that mission and help Ukrainians
imagine a life after the war.”
The UK’s support is backed by a major signal of intent from world
leading businesses, with more than 400 companies, from 38
countries, with a combined annual revenue of over $1.6 trillion,
pledging to back Ukraine’s recovery and reconstruction in the
wake of Russia’s illegal invasion.
Major conglomerates, international corporations and retail chains
are among those who have signed up to the Ukraine Business
Compact, which is spearheaded by the UK, as part of the two-day
conference. Virgin, Sanofi, Philips, Hyundai Engineering and Citi
are among the companies involved.
The compact encourages trade, investment, peer-to-peer expertise
sharing and responsible business practice in Ukraine, ensuring it
can rebuild as a resilient, agile and prosperous economy.
The Prime Minister will add:
“We’ll stand with Ukraine as they win the peace and
harness all their ingenuity and defiance to build the future they
deserve.
“The question for us today is what can we do to support this – to
fast-track recovery and help Ukraine unleash its potential. We
must bring to bear a partnership of governments, international
financial institutions, and business leaders, all of us here
today, to make this happen.
“The British government will continue to play its full part.”
The Prime Minister will also launch the London Conference
Framework for War Risk Insurance at the summit, which will be
backed by G7 members.
The framework outlines support for immediate de-risking measures
to increase investor confidence and will guide efforts in working
with the commercial insurance markets to unlock private
investment to meet Ukraine's long-term reconstruction needs.
The UK is already delivering on the framework by releasing up to
£20 million of funding for the Multilateral Investment Guarantees
Agency to provide guarantees and insurance for reconstruction
projects now while the conflict is ongoing.
The Prime Minister will also announce a major commitment of up to
£250 million of new capital for the UK’s Development Finance
Institution - British International Investment (BII).
The funding signals the UK’s long-term confidence and backing for
the country and will support private sector investment in major
infrastructure projects, energy markets, financial services and
agriculture across the country.
The BII funding is in addition to a £240 million boost in UK aid
for Ukraine this year, which will fund life-saving projects,
including mine-clearance and disaster relief kits, as well as
reform programmes and energy projects. More than half of the
funding, £127 million, will be directed to life-saving
humanitarian support, including for those living around the front
line of Russia’s barbaric invasion, through partners such as the
UN and Red Cross.
The increase will take the total assistance package provided by
the UK to £347 million since the start of the invasion. The
uplift includes £16 million announced earlier this month in
response to the devastating impact of the Nova Kakhovka dam
disaster, which has had an untold impact on more than 42,000
people in the Kherson area.
The floods submerged an estimated 100,000 hectares of
agricultural area, important for grain and oil seed production in
the region.
The uplift also includes £10.5 million announced by the Prime
Minister for Ukrainian refugees and the communities that host
them at the European Policial Community conference in Moldova
last month.
