From survival to economic growth, Ukraine is making its way during the war

Back in early February 2022, the team at Ukraine’s Ministry of Infrastructure was actively working to continue implementing ambitious projects to build our country. In 2021, the state "Big Construction" program allowed us to build 5,000 kilometres of roads, and generate more than 2.6 per cent of national GDP growth. Therefore, at the beginning of 2022, we were already working on the construction of another 5,500 kilometres of roads which would allow us to increase economic growth and stitch up the country logistically. In the same year, we planned to develop a network of regional airports in nine cities, engage in global modernization of maritime infrastructure, upgrade road checkpoints on the borders with the European Union countries, and overhaul the railway passenger and freight transportation system. The implementation of these large-scale projects since 2021 has proven to be appropriate and effective, with a positive economic, social, and logistical effect. However, Russia's full-scale invasion of Ukraine has radically changed the lives not only of citizens, but also the state, for which the country's defence and war-related issues have remained a key priority for almost two years. From crisis management to strategic decisions From the first day of full-scale war, the entire state mechanism instantly switched to a 24/7 work format performing the most critical tasks here and now. The organization of evacuation trains to the west of the country, logistics of military cargo, emergency restoration of infrastructure facilities, and other activities became the key focus of our ministerial team, and required narrowing the planning horizons from years to weeks, or even days. However, after the situation on the front line stabilized and the government returned to a more sustainable approach, the key task we faced was to rebuild the country despite the war. Therefore, the renewed Ministry for Restoration has moved on to developing and implementing comprehensive, systemic solutions and strategic planning. First of all, we are talking about economic recovery, which is impossible without developing export logistics. In the context of the Russian blockade of Ukraine's Black Sea deep-water ports and, as a result, the complication of exports of Ukrainian agricultural products to the world, we are working to develop alternative export corridors through the Danube port cluster, optimize port operations, and build additional railway and road infrastructure on the borders with the EU and Moldova. Another focus of our attention is the development and implementation of the State Strategy for Regional Development, as well as the creation of a comprehensive recovery program that takes into account all current infrastructure, economic, and demographic problems. An equally important priority for the ministry is transparent and accountable recovery with anti-corruption safeguards. Thus, together with the United Nations Development Program, we have developed a comprehensive Anti-Corruption Program that minimizes more than 50 corruption risks in the ministry and in priority areas related to the recovery. Building trust with international partners While in 2022 we focused on urgent projects, this year we are focusing on the restoration of residential, critical, and social infrastructure. In 2024, we plan to work on projects that will allow Ukraine to recover economically. In this context, we attach particular importance to business. At the same time, the Government of Ukraine realizes that co-operation with the commercial sector is a two-way street, where the state also plays the role of a partner that can be relied on with confidence. That is why our team has already launched the Business Advisory Group which holds close consultations with representatives of Ukrainian and foreign companies on business problems and challenges, and suggests ways to overcome obstacles. We understand that without the trust of international partners in Ukraine, the reconstruction process could take decades. Therefore, we are proactive in building bridges of understanding and support. Oleksandr Kubrakov is Ukraine’s deputy prime minister for restoration, and minister for communities, territories, and infrastructure development. Photograph courtesy of the Government of Ukraine During this year's Ukraine Recovery Conference in London, U.K., where Canada was one of the leading organizers, we also joined the Ukraine Business Compact initiative which aims to strengthen the business community's support for peace in Ukraine, and to define common expectations for successful results of the country's recovery efforts. Any international or Ukrainian business has the opportunity to join the treaty, committing to support Ukraine's recovery and reconstruction and, at the same time, gaining the opportunity to invest in businesses in Ukraine and co-operate with Ukrainian companies. What does Ukraine offer the world? More than 37 per cent of the total damage to Ukraine since February 2022 has been to residential buildings, another 26 per cent to infrastructure, and eight per cent to business assets and industry, according to a World Bank report from March 2023. According to Ukrainian and international analysts, after the war ends, Ukraine will become the largest construction site in the world. At the same time, there is a shortage of production capacity in Ukraine for a number of goods needed during reconstruction. For example, there is no production of plate glass in Ukraine today, despite a demand of 27 million square metres per year. The only existing plant, Proletarius, is under occupation in the Donetsk region. The situation is similar with concrete production. Even though there are more than 300 concrete producers in Ukraine, today they can provide only 12 million cubic metres of product per year, while the need is about 22 million cubic metres per year during the reconstruction phase. We will also experience a serious shortage in the production of cement, mineral wool, PVC profiles, and a number of other products. The entry of Canadian businesses into this market will provide them with large sales markets and stable commercial profitability. Another fundamental task for Ukraine and, at the same time, a business opportunity for investors is to ensure national energy independence. Last winter demonstrated the importance of energy decentralization in regions and territorial communities as well as creation of a network of diversified sources of electricity supply. There are currently 124 facilities in Ukraine that are ready to be restored using renewable energy sources or other environmental technologies such as biomass or waste energy generation, as well as hydropower and geothermal power plants. At the same time, local communities have broad institutional and financial capacities to co-operate with businesses and donors. Given the growing need for energy diversification, this area will become increasingly important. Why does Canada's aid to Ukraine matter? When writing about the ability of the Ukrainian state to work effectively and rebuild the country, even in the face of a full-scale war, I realize that this would not have been possible without the crucial external assistance we receive from our strategic partners such as Canada and its people. From strong military support for the Armed Forces of Ukraine with equipment, weapons, training, and participation in the implementation of the Ukrainian peace formula; political support for Ukraine on major international platforms; to the implementation of technical assistance projects, Canada's position in support of Ukraine has remained strong and resolute since the first day of the full-scale invasion. The Ukrainian government is convinced that communities play a leading role in the process of reconstruction and economic development of post-war Ukraine, as the priorities for recovery are best understood and experienced at the local level. And I am extremely pleased to note that the views of the Canadian government are in line with our vision. That is why this year, the Community-led Inclusive Recovery Initiative (CLIR), implemented in Ukraine by the SURGe project and funded by Global Affairs Canada, started its work in Ukraine. CLIR experts are already working in the most-affected communities, assisting local authorities in strategic management, development of recovery plans and programs, attraction of investments, inclusive recovery, implementation of sustainable development principles, and other areas where Canada has unique expertise and successful experience. The updated Free Trade Agreement between the two countries deserves special attention, and is an additional argument in favour of strengthening bilateral economic and logistics co-operation. Ratification of this document by the Canadian Parliament will allow the peoples of both countries to become even closer, despite the physical distance of thousands of kilometres. Today, all our efforts are aimed at winning the war against Russia. However, this victory will also be a joint victory of all the countries that help us defeat the enemy every day with military, financial, technical, and investment support. We can confidently say that Canada is one of the leaders in supporting Ukraine and is only increasing the level of assistance. I am sincerely grateful to the Canadian government and the Canadian people for your contribution to the development of an independent and successful Ukraine. And I am certain that we will have even more joint victories and opportunities ahead. Oleksandr Kubrakov is Ukraine’s deputy prime minister for restoration, and minister for communities, territories, and infrastructure development. The Hill Times

From survival to economic growth, Ukraine is making its way during the war

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From survival to economic growth, Ukraine is making its way during the war

Ukraine’s ability to rebuild the country, even in the face of a full-scale war, would not have been possible without the crucial external assistance we receive from our strategic partners like Canada.

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