US and EU plan to mobilize 800 billion USD to rebuild Ukraine

Lam Anh |

The US and EU are building a roadmap to mobilize 800 billion USD from both the public and private sectors to revive Ukraine immediately after reaching a ceasefire agreement.

On January 24, according to information from Politico, an 18-page confidential document circulating among Western leaders revealed details of this strategy. The plan is built on close cooperation between the European Union (EU), the US and global financial institutions such as the World Bank (WB) and the International Monetary Fund (IMF).

The core goal is to attract investment capital from both the public and private sectors to serve the reconstruction of Ukraine in the post-conflict period. According to the roadmap outlined in the document, the parties committed to mobilize at least 500 billion USD of investment capital in the next 10 years.

This huge budget will not only come from government aid but also rely on activating private capital flows through international guarantee and cooperation mechanisms. In addition, another unidentified financial resource will also be disbursed through the "US-Ukraine Reconstruction Investment Fund", a mechanism designed to focus on key infrastructure projects.

Information about this financial scale coincides with previous revelations from Hungarian Prime Minister Viktor Orban. After attending the EU's emergency summit in Brussels, the Hungarian leader said that European heads of state had received a confidential file containing detailed financial requests from the Kiev government.

According to Mr. Orban, the total financial demand that Ukraine proposes is up to 1,500 billion USD. In the allocation structure of this amount, 700 billion USD is proposed for military aid to ensure national defense and security, while the remaining 800 billion USD will be used for the reconstruction of the country in a decade.

Also at this conference, European Commission President Ursula von der Leyen presented to the leaders a specific financial roadmap. The plan not only stops at committing to allocating 800 billion USD in 10 years but is also linked to an important political goal: Accelerating the institutional reform process so that Ukraine can officially join the European Union, with the expected time being 2027.

Observers believe that mobilizing such large capital sources requires high policy consensus between the two sides of the Atlantic, in the context that the global economy is still facing many unpredictable fluctuations.

Lam Anh
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