‘Colossal’ work ahead, as Ukraine recovery meet to open in Lugano

Flags of the delegations at the Palazzo dei Congressi before the Ukraine Recovery Conference in Lugano, Switzerland, on July 3. PHOTO: EPA-EFE

LUGANO, SWITZERLAND (REUTERS, AFP) – Leaders from dozens of countries, international organisations and the private sector gathered in Switzerland on Monday (July 4) to hash out a “Marshall Plan” to rebuild war-ravaged Ukraine. 

Ukrainian President Volodymyr Zelensky, who will take part virtually, warned on Sunday that the work ahead in the areas that have been liberated alone was “really colossal”.

“And we will have to free over 2,000 villages and towns in the east and south of Ukraine,” he said.

The two-day conference, held under tight security in the picturesque southern Swiss city of Lugano, had been planned well before Russia launched its full-scale invasion on Feb 24.

It had originally been slated to discuss reforms in Ukraine. But once the Russian bombs began to fall, it was repurposed to focus on reconstruction.

As billions of dollars in aid flows into Ukraine, however, lingering concerns about widespread corruption in the country mean far-reaching reforms remain in focus and will be a condition for any recovery plan decided here.

‘Roadmap’

Lugano is not a pledging conference, but will instead attempt to lay out the principles and priorities for a rebuilding process aimed to begin even as Russia’s war in Ukraine continues to rage.

Ukraine’s ambassador to Switzerland Artem Rybchenko said ahead of the conference that it would help create “the roadmap” to his country’s recovery.

Mr Zelensky had initially been scheduled to come and co-host the event, alongside his Swiss counterpart Ignazio Cassis. But now he is due to give his address on Monday afternoon via video link.

But Ukrainian Prime Minister Denys Shmyhal made a rare trip out of Ukraine since the war began to attend, and was met at the airport on Sunday by Mr Cassis and other regional leaders.

Five other government ministers were also among the around 100 Ukrainians who made the long and perilous journey, although Foreign Minister Dmytro Kuleba reportedly had to cancel at the last moment due to an illness.

In all, around 1,000 people were scheduled to participate in the conference, including European Commission President Ursula von der Leyen, several government chiefs and numerous ministers.

‘Marshall Plan’

Questions have been raised about the value in discussing reconstruction when there is no end in sight to the war.

But Mr Robert Mardini, director-general of the International Committee of the Red Cross, told the RTS broadcaster that while the reconstruction itself could only happen fully after the bombs have stopped, it is vital to give “a positive perspective to civilians who have lost their homes, and who are struggling with anxiety and uncertainty for the future”.

Others stress the need to begin laying the groundwork well in advance, as was done with the wildly successful Marshall Plan, a United States initiative that pumped vast sums in foreign aid into Western Europe to help the continent rebuild and recover after World War II.

The task is daunting. Rebuilding Ukraine, which four months into the war has already seen devastating destruction, is expected to cost hundreds of billions of dollars.
The effort will require “colossal investments”, Mr Zelensky acknowledged at the weekend.

Kyiv School of Economics (KSE) has estimated the damage done so far to buildings and infrastructure at nearly US$104 billion (S$145 billion). It estimated that at least 45 million sq m of housing, 256 enterprises, 656 medical institutions and 1,177 educational institutions had been damaged, destroyed or seized, while Ukraine’s economy had already suffered losses of up to US$600 billion.

Could last decades

Mr Simon Pidoux, the Swiss ambassador in charge of the conference, said it was too early to try to estimate all the needs, insisting Lugano instead should provide “a compass” for the work ahead.

“I think the effort will last for years if not decades,” he said.

While not a donor conference, a number of participants are expected to make new pledges and propose frameworks for providing more funds.

The European Investment Bank will, for instance, propose the creation of a new Ukraine trust fund, which with investments from EU and non-EU states could eventually swell to 100 billion euros (S$145 billion), according to sources familiar with the draft plans.

The proposal, which is due to be announced Monday afternoon, aims to create a platform able to generate investment towards reconstruction, and also towards Ukraine’s EU accession goals, they said.

British Foreign Secretary Liz Truss is, meanwhile, due to set out her country’s vision for the rebuilding, according to a statement.

In her comments to the conference on Monday, she is expected to highlight the importance of Ukraine’s full recovery from “Russia’s war of aggression”. 

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