Mobilising investments for Ukraine reconstruction: Strengthening the Team Europe approach

Summary

The European Union (EU), its member states and financial institutions for development have been at the forefront of the international community efforts in supporting Ukraine’s defence against the Russian aggression, providing humanitarian aid and supporting Ukraine’s recovery and reconstruction efforts. This paper looks at the different ways of mobilising investments for Ukraine and argues for stronger Team Europe efforts in Ukraine aligned with the EU interests, from geostrategic, security, political and economic perspectives.

The overall EU support, estimated at around €53 billion, takes many forms, including a significant macro-financial assistance package worth €18 billion. The EU is also a pivot actor in the Multi-agency Donor Coordination Platform, and European financial institutions for development, including the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), have collectively already mobilised nearly €7 billion for Ukraine.

Yet, Ukraine’s needs are gigantic and the EU should do more and more effectively, notably with the private sector. The EU should actively seek to strengthen its Team Europe approach in Ukraine, better harnessing its broad range of development, commercial, public and private institutions and initiatives to mobilise at-scale strategic public and private investments for the reconstruction of Ukraine. This should include adopting  stronger coordination platforms and co-investment mechanisms, notably through the EIB and EBRD, combined with appropriate risk-mitigation mechanisms, including private reinsurance. Further, the EU support efforts should be aligned with the needs and priorities of Ukraine and the EU values, principles, standards and geostrategic, security and economic interests.