Kyiv, 12 February 2024 – The United Nations Development Programme (UNDP) and UkraineInvest have jointly announced the release of a report called "Innovative Investments for the Economic Recovery of Ukraine." The report proposes ways to respond to the profound economic challenges posed by the war in Ukraine.
The war has led to tragic loss of life and widespread destruction, severely impacting Ukraine's economy. As of 2022, hostilities have caused direct physical destruction worth U.S. $135 billion, or over 60% of the country’s pre-war GDP, according to the Ukraine Rapid Damage and Needs Assessment 2. This destruction encompasses residential buildings, transportation infrastructure, energy systems, and businesses. The projected cost for reconstruction and recovery is estimated at around $411 billion.
To address these dire circumstances, the report aims to identify effective mechanisms for achieving Ukraine’s sustainable recovery and transformation. It highlights innovative investment strategies to support local small- and medium-sized enterprises, engage international companies, and create specialized investment vehicles. These strategies aim at promoting economic stability and fostering growth, providing a roadmap for Ukraine's recovery and transformation, with a focus on sustainable development and international cooperation.
The report also emphasizes the role of environmentally and socially responsible investing principles in attracting investments. It suggests that such principles can guide venture capital firms and private equity funds towards opportunities that not only yield financial returns, but also contribute to sustainable development and the social good in Ukraine. This approach aligns investment strategies with broader environmental and social objectives, reflecting a growing trend towards responsible investing that supports Ukraine's recovery and long-term resilience.
"The challenges Ukraine faces are unprecedented,” said Jaco Cilliers, UNDP Resident Representative in Ukraine. “Yet, with innovative investment strategies, we can turn these challenges into opportunities for growth and stability. This report is a vital tool in guiding our collective efforts towards rebuilding a stronger, more resilient Ukraine."
Echoing this sentiment, Oleksandr Melnychenko, Acting Executive Director of UkraineInvest stated: "While the path toward recovery will be lengthy, it is achievable through thoughtful investment and global collaboration. Our goal is not merely to rebuild, but to fundamentally enhance Ukraine's economic framework. This report outlines the roadmap for that journey.”
This comprehensive report will be an essential resource for governments, international organizations, development finance institutions, donors, and global investment leaders. It provides a framework for creating specialized investment vehicles to promote economic stability and foster growth in Ukraine.
This collaborative effort between UNDP and UkraineInvest showcases a shared vision for a prosperous Ukraine. By pooling expertise and resources, the organizations have crafted a blueprint that both addresses immediate economic challenges and also lays the groundwork for sustainable development.
As Ukraine navigates its recovery, this report demonstrates how innovative thinking and international cooperation can underscore the global community's commitment to supporting Ukraine through these challenging times.
The full report, "Innovative Investments for the Economic Recovery of Ukraine," is available for download here. Stakeholders worldwide are encouraged to utilize these insights to contribute to Ukraine's economic revival.
Media enquiries: Yuliia Samus, Head of Communications, UNDP in Ukraine; e-mail: email@example.com