The World Bank has mobilized $81 billion to aid Ukraine’s recovery, focusing on essential services, infrastructure repair, and future growth planning, amid ongoing conflict.
The Ukraine Recovery Conference took place in Rome from July 10-11, drawing government officials, international organizations, and financial institutions to discuss strategies for aiding Ukraine, a nation still gripped by conflict. Ukrainian President Volodymyr Zelensky attended the event alongside Anna Bjerde, Managing Director of Operations at the World Bank, who provided insights into the bank’s efforts in an interview with Vatican News.
Bjerde highlighted the World Bank Group’s extensive efforts over the past three years to support Ukraine amidst its ongoing crisis. The bank has not only provided substantial financial aid from its resources but also facilitated partnerships with Ukraine’s key development partners through platforms and trust funds directed at channeling further resources.
According to Bjerde, the World Bank’s efforts focus on three primary areas: supporting the Ukrainian government in delivering essential services such as education, healthcare, and social programs; aiding the swift recovery and repair of damaged infrastructure, particularly in sectors such as energy and housing; and engaging in thorough diagnostics and economic modeling to pinpoint areas primed for future growth. Altogether, the World Bank has mobilized approximately $81 billion in funding for Ukraine, incorporating both public and private resources.
The energy sector has been a critical area of focus, as noted by Bjerde. In February, the World Bank published its fourth damage and needs assessment for Ukraine, indicating that the country will require $524 billion over the upcoming decade for recovery and reconstruction. The assessment revealed a staggering 70% increase in damage to Ukraine’s energy infrastructure compared to the previous year. Efforts by the World Bank have prioritized supplying essential repair equipment and promoting renewable energy initiatives through private sector projects, notably in wind energy.
Trade in Ukraine has been severely disrupted due to the conflict and intermittent blockades of the Black Sea. The World Bank has played a key role in reinforcing railway and road infrastructure while simplifying trade processes. These measures have facilitated an increase in Ukraine’s export activity and attracted direct investment, a vital step towards economic stabilization.
Agriculture, another cornerstone of Ukraine’s economy, has benefited from direct World Bank support to local farmers, thereby boosting agricultural production and yields. This improvement not only bolsters Ukraine’s export capacities but also enhances food security and economic livelihood within the country.
Industrial activities have been similarly impacted by the war, with the World Bank concentrating on enhancing energy transport connectivity in collaboration with other partners and investing in infrastructure projects. Efforts are underway to provide access to finance, improve business environments, and de-risk investments to maintain operations. The resilience of Ukraine’s domestic private sector and state-owned enterprises has been a positive note amidst the challenges.
Bjerde also noted the importance of raising international awareness about Ukraine’s needs and the potential opportunities available for international companies looking to engage in trade and investment with Ukraine. The World Bank is assisting interested companies through various financial avenues, including trade finance and blended finance options, aiming to draw further investments and financial support.
While the economic and infrastructural challenges are significant, stories of resilience emanate from Ukraine. Bjerde shared her admiration for the people working on Ukraine’s railway system, a critical lifeline during the conflict, and the dedication of teachers, healthcare professionals, and officials. These individuals often operate under night-time conditions and in bomb shelters, driven by a shared sense of national identity and purpose.
Reflecting on her personal experiences in Ukraine, Bjerde expressed her awe at the bravery and determination she has witnessed, which not only inspires the World Bank team based in Kyiv but also fuels continued commitment to supporting Ukraine’s recovery and future growth.
The Ukraine Recovery Conference underscored the united international effort to assist Ukraine and highlighted the significant role the World Bank continues to play in catalyzing the nation’s comprehensive recovery strategy.