Ukraine: Federal Council wants to involve private sector more in recovery efforts
Bern, 26.06.2024 - The Swiss private sector is to play a key role in Ukraine's recovery. Switzerland's Federal Council plans to make CHF 500 million available over the next four years to better involve the private sector in these efforts. The funds will come from the CHF 1.5 billion earmarked for Ukraine in the International Cooperation Strategy 2025–28. In addition, the Federal Council intends to provide CHF 66 million to support early recovery in the east of the country as well as the reconstruction and modernisation of basic infrastructure in the areas of energy security, water supply and public transport. All of this was decided by the Federal Council at its meeting on 26 June 2024.
Swiss companies can make an important contribution to the reconstruction process in Ukraine with their expertise and specialist knowledge as well as with innovative and high-quality products. The Federal Council is therefore having measures drawn up that provide for the involvement of the private sector in general and the Swiss private sector in particular. Numerous projects can be based on the existing legal basis for international cooperation. Other projects require a new legal basis, in particular for targeted cooperation with Swiss companies. This legal basis is to be developed in the coming months.
The Federal Council will make CHF 500 million available for these measures. The funds, if approved by Parliament as expected, will come from the CHF 1.5 billion earmarked for Ukraine and the region in the Dispatch on the International Cooperation Strategy 2025–28.
On 10 April 2024, the Federal Council instructed the FDFA and EAER to draw up a joint Ukraine country programme with monitoring mechanisms. This programme should ensure targeted and effective support and be grounded in the seven Lugano Principles (partnership, reform focus, transparency/accountability/rule of law, democratic participation, multi-stakeholder engagement, gender equality/inclusion, sustainability). The strategic implementation of the country programme is to be managed by a project unit headed by a Federal Council delegate for Ukraine. At its meeting today, the Federal Council took note of the progress made in setting up the project unit and designing the country programme.
Contributions to three projects
Since the war began, millions of Ukrainians have been displaced, the Ukrainian economy has been weakened and residential buildings and infrastructure have been severely damaged. In order to support Ukraine in this time of need, the Federal Council has allocated financial aid to three projects run by the Swiss Agency for Development and Cooperation (SDC) and the State Secretariat for Economic Affairs (SECO) within the framework of funds already approved.
- Through the Partnership Fund for a Resilient Ukraine (PRFU), the SDC is supporting the civilian population in eastern Ukraine, particularly near the front line. These areas are avoided by many donors because of the risks posed by the ongoing fighting. In 2021, Switzerland launched the Fund together with Canada, Sweden, the UK, the US and the Ukrainian government, and has since supported it with CHF 8 million. The Federal Council has committed CHF 25 million to the Fund for the 2024–27 period.
- Despite the great need for infrastructure projects in Ukraine, there is a lack of specific preparatory studies for reconstruction projects. The project preparation programme is currently addressing this bottleneck by providing funding for high-quality project preparation and implementation. Swiss companies have proven expertise that can be utilised in these preparatory studies. The programme also strengthens established Swiss-Ukrainian business networks that promote knowledge-sharing and the long-term engagement of Swiss companies in Ukraine.
- The third project focuses on support for the Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P Fund). The E5P Fund is managed by the European Bank for Reconstruction and Development (EBRD). Its aim is to improve energy efficiency in public buildings, modernise district heating networks and propel the development of renewable energies in Ukraine. The projects approved to date as part of the E5P Fund focus on cities with a total population of over 8 million.
The second and third projects, run by SECO and geared towards the reconstruction and modernisation of basic infrastructure in the areas of energy security, water supply and public transport, will receive a total of CHF 41 million thanks to the Federal Council's decision.
Address for enquiries
For further information:
FDFA Communication
Tel. Press service +41 460 55 55
kommunikation@eda.admin.ch
EAER GS Communication
info@gs-wbf.admin.ch
Publisher
The Federal Council
https://www.admin.ch/gov/en/start.html
Federal Department of Foreign Affairs
https://www.eda.admin.ch/eda/en/home.html
Federal Department of Economic Affairs, Education and Research
http://www.wbf.admin.ch
State Secretariat for Economic Affairs
http://www.seco.admin.ch
