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Not by London alone: what is a common feature of successful cases upon post-war reconstruction? 

Reconstruction of Ukraine will require enormous human and financial resources. As of March 2023, reconstruction of Ukraine will cost 411 billion USD, i.e. 2.6-fold exceeding GDP of Ukraine in 2022. 

Over the past 60 years, no conflict or disaster has provided more recovery funds than the Marshall Plan: ca. 140 billion USD (calculated as of 2022). As for Ukraine, it is a unique case. 

Recovery will affect all areas of social life: now both state and business are discussing specific mechanisms for reconstruction of Ukraine. Legal aspects of reconstruction are one of the keystones to understanding the intricacies of future recovery. Below are some aspects to keep in mind. 

1. Time is money 

It usually took at least 5-10 years for countries that were able to recover from a war (return to pre-war GDP level), but many countries either did not recover at all or took decades to rebuild. 

Average amount of financial assistance received by post-conflict countries for reconstruction makes up 40% of their losses. 

For simplicity, financial sources for recovery can be defined as follows: 

  • State budget of Ukraine 
  • Donors 
  • Development banks 
  • Confiscated Russian assets and reparations 
  • Private money of investors 

Each source has its limitations and requires specific solutions. 

Ukraine’s state budget is currently out of resources for recovery, because everything is spent to social and defense needs. Sovereign donors, international financial organizations and development banks have their own conditions and time limits. As shown by world-known cases of post-war reconstruction, for the first 5-10 years international donors cover only ca. 50% of the budget of the respective country. 

Average amount of financial assistance received by post-conflict countries for reconstruction makes up 40% of their losses. Confiscation of russian assets and reparations is a unique case of imposing sanctions. Recently, the Government of the Netherlands officially approved creation of the Register of damages caused to Ukraine by russian aggression. This Register will contain information about all damages caused by the war to citizens, enterprises and the state of Ukraine. It should become the first component of a comprehensive compensation mechanism designed to secure that the aggressor state will pay in favor of Ukraine full compensation for incurred damage in accordance with the international law. However, lawyers are well aware that it will take years, not months. 

2. Money is not a guarantee of success 

Although post-war recovery is insufficiently covered by academic research, most experts believe that the amount of recovery aid is usually not related to success/failure of a country’s subsequent economic development. In a nutshell, if one has money for reconstruction, it does not always facilitate quick and sustainable recovery. 

For example, both social and commercial infrastructure is one of the obvious priorities to begin rebuilding. However, such cases as reconstruction of Afghanistan and Iraq prove that rapid infrastructure restoration does not always facilitate magical recovery of the economy. When the amounts of donor money eventually dwindle, but private business has not yet restarted, there is still a long way to go before full recovery. In order not to lose the chance, aid should be quite quickly transformed into economic development. 

2. Institutional capacity is a non-obvious factor 

Recently, EBRD published the latest report Regional Economic Prospects which predicted one of the optimistic scenarios for reconstruction of Ukraine. A five-year recovery requires for GDP sustainable growth by 14% per year and attracting 50 billion USD in investment every year. 

Over the past 13 years, Ukraine has almost never grown more than 5% of real GDP annually. Single surges occurred after falls, being provoked either by global trend (2008) or by crises in Ukraine. Therefore, the outlined scenario looks a bit fantastic. Indeed, EBRD notes that only less than a third of economies managed to recover for such a short period of five years. Others have worked for decades. Both the State and the Office of Reforms expect annual GDP growth not lower than 7% (survival point) and up to 10% as a moderately optimistic scenario. 

One of the success factors emphasized by the EBRD is Ukraine’s institutional ability to accept and properly use aid (socalled absorption capacity). Visible progress depends on actual ability to process everything that donors are ready to give Ukraine, followed by re-launching economy. However, it is necessary to start with building a management structure that is ready to develop and involve partners in complex projects. In a nutshell, a new type of effective public administration is first and foremost. 

Ukraine has an excellent example of up-to-date digital approach to reconstruction project management: DREAM (Digital Reconstruction Environment for Accountable Management). This is an effective tool for reconstruction project transparent management based on the principle of open data and a single window for project financing, management and control. It is implemented by the main responsible bodies, namely the Ministry of Reconstruction, the Ministry of Digital Transformation and the Agency for Reconstruction. 

3. An important aspect of recovery 

Social considerations are paramount in view of reconstruction. Encouraging the private sector is important, inter alia, for combatting unemployment, demographic crisis and brain drain. Restoring a better labor market and a competitive economy to which immigrants should want to return – that is a challenge for the Ukrainian government. 

The need for comprehensive education reform suitable for the digital economy in future and social reform for reintegration of veterans should be stimulated by renewal of Ukraine’s extremely outdated labor and social legislation. Ukraine still applies the outdated Soviet Labor Code, which does not comply with demands of up-to-date digital economy, creative industries and inclusiveness criteria. 

4. Can EU integration accelerate recovery? 

Integration into global economic system has a major impact on recovery and economic development. Ukraine received EU candidate status on June 23, 2022, and is planning to join the EU within 2-3 years. 

Recently, the Supreme Council of Ukraine created a project office aimed at harmonization of Ukrainian legislation with EU rules. It covers four priority areas of European integration review of Ukrainian legislation: environment, intellectual property, financial services, consumer rights and health care. Therefore, all these industries will soon face regulatory modernization and the corresponding challenges of adapting business operations to the new requirements. 

5. Is there a magic pill? 

Successful cases of reconstruction have one common feature: engagement in private business restoration (for example, Croatia or Korea after 1961). Both local business entities and foreign investors will be a key engine to stimulate the economy while donor money is still available. 

However, there are bottlenecks for involving the private sector. First, until the war is over, is insurance against military and political risks. Donors, jointly with Ukraine and international insurance industry, should offer low-cost insurance solutions so that the bravest ones could be the first to make investments. Insurance solutions offered by MIGA and allied export-import agencies are discussed as the only ones available so far but are not treated as a significant game-changer. If so, many strategic investors will just wait until the war is over. 

On the other hand, there are currently obvious national champions in investment. Infrastructure and energy sectors focused on renewable energy sources and ecological reconstruction now rank first, followed by traditionally strong sectors such as IT, agriculture and manufacturing. New leaders such as logistics, defense, healthcare and education will not be left behind. For instance, demining, defense technology and medicine in terms of prosthetics are called the new unicorns to watch and to invest in. A special taxation regime is being discussed for some of them, which will certainly facilitate rapid growth of new industry ecosystems. 

In addition, the discussion upon launching new tools for investment promotion is ongoing. First tool is an investment fund that will help attract international private money to Ukraine with the state support and by means of certain quasi-state guarantees. As declared recently, Ukraine will cooperate with BlackRock and J.P. Morgan for the purpose of creating an investment attraction structure that will become a pilot investment driver for the first projects and will help open Ukraine to global business. Second tool is the state fund of the national welfare of Ukraine which will manage selected state assets in accordance with global standards. 

What can motivate the foreign capital flow to Ukraine en masse? Liberalization/deregulation reforms and the rule of law are keystones for that purpose. Top three priorities include tax and law enforcement reforms, as well as continuing judicial reform. Anti-corruption reform is still a top priority, as it was urgently necessary even before outbreak of the war. 

Finally, if Ukraine implements all the expected changes and reforms, it may become the most attractive European country for impact investors. It means investments to be focused on facilities creating measurable positive change in the industry in addition to net financial return. Impact investors are also known as ESG investors because they consider environmental, social and corporate governance standards and the subsequent impact on ecology and communities. Such investors are desperately needed in Ukraine for obvious reasons: Ukraine should not rebuild the past but should take a leap into the future for sustainable, innovative and inclusive reconstruction of the country. Therefore, to become a focal point for investors who will contribute to the growth of whole new industries – that is a national strategy of Ukraine for decades. 

https://biz.nv.ua/ukr/experts/uspih-vidbudovi-ukrajini-shcho-vazhlivo-rozumiti-ostanni-novini-50335303.html

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THREE KEY CONCLUSIONS ABOUT THE RECONSTRUCTION OF UKRAINE FROM THE CONFERENCE IN LONDON

The largest event for the reconstruction of Ukraine URC-2023 took place in London. Europeans have already called it another form of counteroffensive, referring to strengthening the economy and strategic planning for further support.

Moreover, during the conference, a number of countries announced additional help with weapons: Latvia will supply helicopters, Germany promised to provide missiles for Patriot and special equipment, Estonia and Iceland will provide us with a field hospital, equipment for paramedics and counter-UAS technologies.

However, the key takeaway from London is that billions of dollars and euros in aid will come at the cost of serious anti-corruption measures. In order to receive money from international partners for reconstruction, efforts must be made in reforms.

In order for Kyiv not to take “one step forward – two steps back,” on the eve of the G7 conference in London, they made a statement with clear deadlines. By September 30, Ukraine must restore declarations and public access to the register of declarations, reporting of political parties, as well as strengthen the capacity of National Anti-Corruption Bureau of Ukraine and Specialized Anti-Corruption Prosecutor’s Office.

Despite the friendly and favorable tone of the speeches, international partners, including business, allude to strengthening the fight against corruption and speeding up reforms. The emphasis is on the judicial one.

While the outcome of the conference in Lugano was a shocking for many 750-billion-dollar reconstruction plan and a declaration with basic principles; after the URC in Berlin Ukraine received 18 billion euros of support for 2023 – distinctively the conference in London became one of the most successful in terms of not only financial guarantees, but also strategic recovery.

Let’s analyze the key results of London, which also constitute challenges for Ukraine.

Number One. 60 Billion Euros

Ukraine’s needs by 2027 will amount to EUR 110 billion. Covering most of them, EUR 60 billion, is the result of the conference in London. These are grants, loans, and frozen Russian assets.

In particular, the EU will provide Ukraine with EUR 50 billion over the next four years.

Announcing this amount, the president of the European Commission, Ursula von der Leyen, emphasized that Ukraine will become a member of the EU, and “Ukrainian reforms will receive European investments.” “For every step you take towards us, the European Union must take a step towards Ukraine. You need to ensure transparency,” she noted, naming two key conditions: reforms and implementation of the European Commission’s recommendations.

Fifty billion will come through a special financing instrument the Ukraine Facility. It will have a European audit and control system, and a special independent Audit Commission will check the use of funds.

Ukraine Facility resources will be directed to financial stability, reconstruction and modernization of infrastructure, creation of a favorable investment environment. It is important that one of the goals of the instrument is to strengthen the rule of law and the fight against fraud and corruption, as well as promoting the development of an independent judiciary.

Thus, the Ukrainian government will be able to receive EU funds for the reconstruction and support of the economy, provided that this happens in parallel with anti-corruption measures.

In addition to EU support, the US will allocate USD 1.3 billion to Ukraine for energy and infrastructure needs, USD 3 billion will come in a package of economic aid from the UK, while another batch of more than USD 6 billion will be provided as a support from a number of other countries and international financial institutions.

On the margins of the London Conference, during the discussion of sums, it was repeatedly said that it was necessary to “put an end to nepotism and corruption.”

Number Two. Reconstruction Control System

“The dream of Ukrainians is also our dream,” said Ursula von der Leyen during her speech. Symbolically, on the same day, Ukraine presented the public module of the DREAM reconstruction management ecosystem, which works according to the “everyone sees everything” principle.

DREAM will allow monitoring every stage of the implementation of reconstruction projects: from the amount of funds involved and tenders to their completion. Simply put, every British or American can see exactly which objects their countries finance and what exactly the funds are spent on.

The data is presented in the form of graphs, tables, and diagrams, you can view information by communities or regions. Moreover, internationals themselves can choose projects for financing and monitor their implementation. This is important for the empowerment of communities and their direct inclusion in reconstruction processes.

More than 6,000 projects have already been entered into the system. The system will be fully functional in 2024.

Since the West constantly emphasizes the principles of transparency and accountability during the use of reconstruction funds, the electronic system can significantly strengthen Ukraine here.

However, the issue of transparency in the allocation of funds remains important. After all, the activities of commissions and funds are not always public, Ukrainians can find out about most of the expenses already by the fact of making decisions.

Number Three (with reservations). Anti-corruption progress

The European Commission provided a verbal preliminary assessment of Ukraine’s implementation of the recommendations on the way to EU membership, noting “significant steps forward” and progress in the implementation of reforms.

However, this result is with reservations, because currently Ukraine has been credited with fulfilling two of the seven recommendations. These are the conditions for the reform of the judiciary and mass media.

Reforming the Constitutional Court of Ukraine is marked as “good progress.”

There is “some progress” in the fight against de-oligarchization, the adoption of a law on the rights of national minorities, as well as in the fight against corruption, money laundering and law enforcement reform, where “it is necessary to strengthen the anti-money laundering system.” I would like to remind you that the State Anti-corruption Program for 2023 envisages a competition for the head of the National Police as the first step towards police reform. Also, the European Commission, after a year of full-scale war with a number of corruption scandals and dismissals among top officials, emphasizes that the fight against corruption is “at a high level.”

A number of signed agreements and memoranda, the creation of a business coalition for reconstruction of more than 400 international companies, and a serious step to insure military and political risks can be added to the results of London.

However, the three above-mentioned results are key to the simultaneous implementation of reforms, combating corruption, and building trust in Ukraine on the part of international partners.

After all, it is corruption that can slow down reconstruction and the attraction of public funds and private investments. The public continues to advocate for accountability tools, open registries, and transparent procurement.
Therefore, one of the priorities of the Ukrainian government, even during the war, is the fight against corruption and anti-corruption reforms. And this fundamentally distinguishes us from Russia.

https://zn.ua/eng/three-key-conclusions-about-the-reconstruction-of-ukraine-from-the-conference-in-london-.html?fbclid=IwAR1EifRwwyRt3ZlYJjwp4PAi_K_WFOnLag4oXT0RQCXARX5jcTpo_gRe_vQ

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Dreaming of Odesa Expo

Odesa did well in its bid to host Expo 2030, but in the end it was excluded. Still, we can dream of what might have been. Because even dreams deferred have been known to materialize.

Last night I dreamed of a journey to the future and of finding myself in the summer of 2030 in Odesa, in the middle of the Universal EXPO. Seven years earlier Ukraine had miraculously won the competition to host the international event, and today I see a completely transformed city. Odesa is literally overrun by tourists. They have filled hotels and restaurants since April and will continue until October. About half a million visitors a week, half Ukrainians and half from all over the world, who come to see the Pearl of the Black Sea, the maritime capital of Ukraine. But, above all, to visit the country famous for the courage of its soldiers, who repulsed the second largest army in the world and defeated a country 28 times its size.

Around me there is an explosion of social life, with cultural events organized by the 150 foreign countries that have built a pavilion on the exhibition site and brought their music, dances and national products. An amazing experience for a city accustomed to a high season of only three months, with no international events taking place in either spring or autumn.
Now, however, there are not enough hotels in the city for this flood of tourists, nor spaces for cultural events. Many private individuals have offered their apartments for rent, while old buildings, headquarters of 19th-century banks, abandoned for decades, have been renovated and furnished to host events. Despite this, many tourists had to book throughout the region, even in Chisinau, the capital of Moldova, and nearby Mykolaiv. In this city famous for its shipyards, Danish companies have built a new international airport. The connections between these cities are incomparable to those before the war. The high-speed train has been in operation since just a year, linking Odesa to Chisinau (90 minutes), Mykolaiv (20 minutes) and Kyiv (150 minutes). This is why many international tourists, who come for the Expo, also go to the Ukrainian capital.
The site chosen for the Expo is in an ideal position, easily accessible from the historic center. You can get there in a few minutes by taxi or tram. It was called the “irrigation fields” and there was a legend that it had been filled with the skeletons of people killed in the mafia gang war of the 1990s. But when the land was cleared only a few animal bones were found. After the Expo, the site will be used for hosting trade fairs, including the first Ukrainian gastronomy fair, to promote Ukraine’s products for export.

The most amazing thing is that you can already figure out what legacy EXPO will leave, in addition to having extended the tourist season from three to six months. Many foreign countries have put Odesa on the map of their cultural and trade relations. In fact, if before there were just 30 foreign consulates, today they have already risen to 60, to guard the gateway of Ukrainian exports with their diplomatic network.

But Expo has also revitalized some historical jewels of the city, such as the Kuyalnik spa, located in the estuary of the lagoon near the city, which was in a state of semi-abandoned. The resort frequented by kings and queens at the beginning of 20th century for taking mud baths was taken over by a French group, which renovated it in time to attract some visitors to the new beauty farm. In addition, a Spanish group has built the first marina in Odesa, with services for sailing ships and yachts, and a club with restaurant. It was an unforgivable shortcoming for a seaside city.

Finally, the famous Potemkin staircase, which until recently had sadly ended up against the metal fence of a traffic artery, is now connected to the cruise dock with a pedestrian bridge designed by a studio famous British architects. Thanks to this passage, people go on foot to visit the new museum of the sea, with an augmented reality section, dedicated to the film “Battleship Potemkin,” and a restaurant with a panoramic view. A flagship of the city, it was built in place of the horrible post-Soviet “Hotel Odessa,” which was torn down after years of neglect.

While in my dreams I was making this pleasant journey into the future, I was awakened by the smell of coffee fresh out of my Italian coffee maker, coming from the kitchen of my house in Odesa. I opened my eyes and immediately recalled the exclusion of my city from the tender for Expo.

The only consolation for me is the fact getting this far in the competition was already a difficult undertaking, and an accomplishment. Ukraine needed the vote of many African, South American and Asian countries – a good deal of them still without a Ukrainian ambassador. What’s more, in many of these countries the diplomatic influence of the Russian Federation is strong, which certainly would not have favoured a vote for Odesa. Too bad, it was just a beautiful dream.

https://www.kyivpost.com/post/18511


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Ukrainian Danube Shipping Company to renew fleet with World Bank financing

Ukrainian Danube Shipping and the International Finance Corporation (IFC), which is part of the World Bank Group, signed an agreement on attracting private investment for the modernization and expansion of the fleet at the Ukraine Recovery Conference in London, reported the press service of the Ministry of Community Development, Territories and Infrastructure.

The International Financial Corporation will also promote the implementation of European standards of corporate policy, compliance, and financial transparency in the Danube Shipping Company.

Renewing the fleet of the Ukrainian Danube Shipping Company will allow to expand the capabilities of the logistics ecosystem of the Danube. The Danube cluster is an effective alternative route for cargo circulation in conditions of blocking of the main sea routes.

Ukrainian Danube Shipping Company is a state-owned private joint-stock company.

After the full-scale invasion of Russia, the company rebuilt its business model, introduced reforms for transparent and efficient management. Ukrainian Danube Shipping Company launched new lines of activity, implemented a number of investment projects, started construction and modernization of the fleet, the ministry notes.

For the first time in its history, Danube Shipping received a profit from its activities, as a result of which the state budget received record dividends in 2022 – more than UAH 146 million ($4 million).

At the beginning of May 2023, Ukraine received an additional $1.5 billion from the Danube ports after the liberation of Snake Island in the Black Sea.

On June 21, a ship with a record deadweight of 24,000 tons entered the port of Izmail in southern Ukraine.



https://biz.liga.net/en/ekonomika/transport/novosti/dunayskoe-parohodstvo-dogovorilos-so-vsemirnym-bankom-ob-obnovlenii-flota


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30 million USD: investment into new production in Ukraine by Philip Morris

As reported by RBC-Ukraine (see link to press release), Philip Morris International invests over 30 million US dollars in launching a new production in Lviv region. Preparatory work on the future factory will start just in July 2023.
The company notes that the production will facilitate complete satisfaction of domestic demand.
The company expects starting production process just in the first quarter 2024. The new factory will employ over 250 people engaged mostly in production. Employment will be primarily offered to employees of the company’s Kharkiv plant.
Massimo Andolina, president of the company’s European region, says, “We are proud to announce this new investment in Ukraine. Our new enterprise will secure reliable supply of products and employment opportunities for Ukrainians. But this is more than just an investment in infrastructure and expansion of our company’s capacities. In fact, it shows our commitment to Ukraine and its people. Such investment is a powerful signal to other international investors – confidence in economy of Ukraine, the Ukrainian people and the future of Ukraine”.
For his part, Maksym Barabash, Philip Morris Ukraine Director General, added that investments in the new enterprise once again show the company’s support for Ukraine.
He notes, “Such investment embodies our commitment as a long-term economic partner of the country. New production at the location proposed by UkraineInvest will create jobs, satisfy the Ukrainian market demand with quality products and support the Ukrainian economy in a difficult time. We are not waiting for end of the war – we are investing now”.
Philip Morris Ukraine has been operating on the Ukrainian market since 1994. For this time, the company invested over 700 million US dollars in the economy of Ukraine. In 2022, Philip Morris Ukraine paid 25.3 billion UAH as taxes in the Ukrainian budget.

https://www.rbc.ua/rus/news/kiyivskiy-oblasti-poshkodzheno-lep-cherez-1687250272.html

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Mechanisms and Sources of Funding for Ukraine’s Recovery

On 26 June, the conference “Mechanisms and Sources of Funding for Ukraine’s Recovery” will be held in Luxembourg.
 
Representatives of business, the European Commission, private investors, IPAs, and experts from the European legal and financial sector will discuss investment mechanisms and financing opportunities for Ukrainian projects, start-ups, and businesses. Experts from the European legal and financial sector will present the main mechanisms and instruments of financing for Ukraine’s recovery.
 
Yevhenii Shakotko, Deputy Executive Director of UkraineInvest will be opening the conference
 
The format of the event is hybrid. The organisers: UkrainePlatform ThinkTank, Fund AML with a support of Arendt and Medernach
 
For reference: About 50 European and Ukrainian professionals from all sectors of the economy have joined forces to challenge the existing narratives of doing business in Ukraine. They have created the UkrainePlatform think tank, which represents an initiative aimed at aligning corporate governance, the regulatory framework and the investment environment for the future reconstruction of Ukraine. Currently, 4 working groups are working on various topics, including anti-corruption, procurement, corporate governance, compliance, anti-money laundering, investment structuring, green transition and innovation.
 
Registration: https://shorturl.at/fxM04
Programme: https://shorturl.at/xzT03

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International Register of Damage Caused by the Agression of the Russian Federation Against Ukraine: An agreement has been signed

In brief

On 17 May 2023, at the Council of Europe Summit, the European Union and 43 other countries signed the agreement on the Register of Damage Caused by the Aggression of the Russian Federation Against Ukraine (“Register”).

The Register constitutes the first component of a future international compensation mechanism, which is intended to compensate damages caused by the Russian Federation’s aggression against Ukraine.

The signing of the agreement was preceded by the Resolution of the Committee of Ministers of the Council of Europe dated 12 May 2023 establishing the Enlarged Partial Agreement on the Register and the Statute of the Register.

About the Register

The Statute provides that the Register will be created as a legal entity under the national law of the Kingdom of the Netherlands and Ukraine with its seat in The Hague (the Netherlands). The statutory functions of the Register are as follows:

  • Receive and process information on damage claims and evidence.
  • Classify and organize such claims.
  • Assess and determine the eligibility of such claims for inclusion in the Register.
  • Record the eligible claims for the purposes of their future examination and adjudication.

As can be seen from the provisions of the Statute, the right to submit a damage claim should be granted to natural and legal persons, as well as the State of Ukraine, including its regional and local authorities, and state-owned or controlled entities that suffered damage, loss or injury that was caused on or after 24 February 2022 in the territory of Ukraine by the Russian Federation’s internationally wrongful acts in or against Ukraine.

It should be noted that the Register should have no authority to adjudicate claims, including determining responsibility and allocating any payments or compensation. Such authorities will be granted to other bodies established within the framework of international compensation mechanism.

Such a mechanism may provide for the establishment of a claims commission and a compensation fund authorized, accordingly, to adjudicate claims and/or pay compensation for damage.

In addition, the document also provides for the establishment of a satellite office of the Register in Ukraine for the purpose of facilitating contact with potential claimants in Ukraine, in particular, with regard to the existence and purpose of the Register, the procedure for filing claims for damage, etc.

Conclusions and recommendations

As of today, the Register is in the creation stage. The Statute of the Register provides that the date from which the Register shall be open for submitting claims will be determined later. It also provides that the eligibility criteria for recording claims in the Register shall be determined in the rules and regulations of the Register.

In light of the above, we recommend following the publication of information on the opening of the Register and the eligibility criteria for the purposes of correct completion and timely submission of claims for damage.


https://eba.com.ua/en/mizhnarodnyj-reyestr-zbytkiv-zavdanyh-agresiyeyu-rf-proty-ukrayiny-pidpysano-ugodu-pro-stvorennya/

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Council of Europe Summit creates register of damage for Ukraine as first step towards an international compensation mechanism for victims of Russian aggression

On the second day of the Council of Europe Summit in Reykjavik, Iceland, Marija Pejčinović Burić, Secretary General of the Council of Europe, Katrín Jakobsdóttir, Prime Minister of Iceland, Mark Rutte, Prime Minister of the Netherlands, Thórdís Kolbrún Reykfjörd Gylfadóttir, Minister for Foreign Affairs of Iceland and President of the Council of Europe’s Committee of Ministers, Denys Shmyhal, Prime Minister of Ukraine, and Denis Malyuska, Minister of Justice of Ukraine, have announced the establishment of the Register of Damage Caused by the Aggression of the Russian Federation Against Ukraine through an Enlarged Partial Agreement.

44 countries and the European Union have joined or indicated their intention to join the Register set up by the participants to the Summit of the Heads of State and Government of the Council of Europe held in Reykjavik on 16-17 May 2023. (*)

“Support and solidarity with Ukraine is one of the main priorities of the Icelandic Presidency and we have worked hard to ensure that the outcome of the Reykjavik Summit addresses the need for comprehensive accountability for Russia’s aggression against Ukraine,” said Katrín Jakobsdóttir. She emphasised that “the Council of Europe can and should play an important role in ensuring accountability. The Register is an important step towards accountability for crimes committed in Russia’s brutal war and a strong message of support to Ukraine.”

Marija Pejčinović Burić said “the decision to set up the Register of Damage under the auspices of the Council of Europe is an historic decision”. She said “it will support victims in recording their losses and is vital for any compensation mechanism. Supported by a very large coalition of member and non-member states, and by the EU, it is one of the first legally binding decisions to hold Russia accountable for its acts.”

The European Union, represented by the President of the European Council, Charles Michel, and the President of the European Commission, Ursula von der Leyen, has provided a substantial contribution towards the startup costs. The Register will have its seat in The Hague (the Netherlands), with a satellite office in Ukraine and Mark Rutte underlined that “Russia must be held accountable, including for damage suffered by Ukraine and its people. We are therefore proud that the seat of the Register of Damage will be in The Hague, the legal capital of the world”. The Register is established for an initial period of three years and will serve as a record of evidence and claims information on damage, loss or injury caused by the Russian aggression against Ukraine. It paves the way towards a future international comprehensive compensation mechanism for the victims of the Russian aggression.

Denys Shmyhal said that “Ukraine welcomes the establishment of the Register of Damage. We are grateful to the Council of Europe and all the participating states for such a high level of support. We invite other states, from all corners of the world, to join the Register of Damage as a sign of support for the important issue of Russia’s accountability for its war against Ukraine. The Register is an important milestone on the road to justice and reparations for Ukraine and the Ukrainians who have suffered so much from this war. The hard work begins now – we need to ensure that the Register becomes operational soon, so that victims of Russian aggression could submit their claims. We also emphasise that the establishment of the Register is only the first step towards the establishment of a comprehensive compensation mechanism that will ensure that Russia pays full reparations to Ukraine in accordance with international law, including by means of its internationally located assets. We look forward to working with our partners on this important issue.”



https://www.coe.int/en/web/portal/-/council-of-europe-summit-creates-register-of-damage-for-ukraine-as-first-step-towards-an-international-compensation-mechanism-for-victims-of-russian-aggression

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Interlegal as the Client’s legal advisor upon EBRD financing

Transaction cost: 2 million EUR

Practices: Investments & Transactions, Corporate & Tax

___________________________________________________________________

Interlegal acted as the Ukrainian company’s legal advisor, while the latter received a long-term loan amounting to 2 million EUR from the European Bank for Reconstruction and Development.

This loan will be aimed at restoring a recreation of Odesa mall “Riviera shopping city” owned by the Client affected by shelling by the russian army.

Interlegal lawyers drafted a complex legal opinion for EBRD regarding compliance of financial transactions with the Ukrainian law and their performance in Ukraine. Interlegal lawyers Dmytro Bondar and Irina Maltseva, associate attorney Marta Sverdlykivska, managed by associated partner Karyna Gorovaya and partner Artem Skorobogatov, led the case.

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Denmark opened an investment fund for Ukraine amounting to 133 million USD

Denmark launched a special investment fund for Ukraine amounting to 1 billion DKK, i.e. ca. 133 million USD, as reported by the Ministry of Economy of Ukraine under the results of the Investment Forum in Copenhagen. 

Yuliia Svyrydenko, the Minister of Economy of Ukraine, explains that such investment fund will finance projects with Danish technologies and innovative solutions involved, available both to public and private sectors. 

Oleksandr Hryban, the Deputy Minister, notes that Ukraine sees great prospects in applying and placing Danish companies in Ukraine in priority industries, such as renewable energy, building materials, utility recovery technologies, as well as defense technologies and dual-purpose technologies. 

Forum speakers have announced on approval of financing for two pilot projects in agriculture and agrarian processing. Funds will be granted to war-affected companies in the south of Ukraine: for instance, Nibulon will receive 25 million EUR, while Agrofusion will gain 15 million EUR. 

Also, loans will be provided to agricultural companies located in Mykolaiv near the front line, aimed to restore destroyed production facilities by purchasing equipment from Danish exporters. 

Yuliia Svyrydenko notes that from the beginning of the full-scale war Denmark granted military aid to Ukraine equal to 1.4 billion USD, as well as sent humanitarian aid, including macro-financial, in the amount of 212 million USD. 

https://hromadske.ua/posts/daniya-vidkrila-investicijnij-fond-dlya-ukrayini-na-dollar133-mln?fbclid=IwAR2eYUlmD-NHvrRRmmMH7E-WJM73U2BGd7MjGXxAl8GVvM7PEaOJM8jMJn0