London Conference: Allies Rally for Massive Business Investment to Revitalize Ukraine

Representatives from numerous countries are convening in London today to address the substantial task of rebuilding Ukraine, estimated by the World Bank to require over $400 billion—an amount that escalates daily due to the ongoing 16-month war. US Secretary of State Antony Blinken will unveil a new aid package from the United States during the Ukraine Recovery Conference, serving as both a fundraising platform and a message to Russia that Ukraine's allies are committed for the long haul.

Notable figures in attendance include Blinken, UK Prime Minister Rishi Sunak, and European Commission President Ursula von der Leyen, all hoping to secure significant business support for Ukraine. British Foreign Secretary James Cleverly emphasized the conference's focus on encouraging private sector investments in Ukraine's reconstruction and recovery while ensuring long-term security by demonstrating the effectiveness and safety of such investments.

While the fight against corruption is a priority, Ukraine's Western allies have not explicitly tied funding to anti-corruption measures. Blinken asserted that post-war Ukraine must possess "the strongest possible economy" and "the strongest democracy possible" to attract the urgently needed investment. Consequently, the conference aims to create an ideal environment for investment by addressing corruption and implementing favorable conditions.

Over 60 countries are represented by politicians, diplomats, and business leaders attending the two-day event, with companies such as BT, Virgin, Philips, and Hyundai Engineering already committing to investing in Ukraine. The magnitude of Ukraine's needs is staggering, with many advocating for a modern-day equivalent of the Marshall Plan that facilitated Europe's reconstruction after World War II. Russian attacks had already devastated Ukraine's infrastructure, and this month's collapse of the Kakhovka dam due to an explosion added to the crisis by flooding thousands of hectares and displacing numerous individuals.

Sunak, opening the conference alongside Ukrainian President Volodymyr Zelenskyy, will call for investments in technology and green energy to help create "a financially stronger and technologically advanced Ukraine." The United Kingdom has pledged £240 million ($305 million) in aid and £3 billion ($3.8 billion) in World Bank loan guarantees for Ukraine.

The UK also seeks progress in securing wartime risk insurance for companies investing in Ukraine, although the details of this plan remain unclear. Last year, at the recovery conference in Switzerland, Ukraine requested that the frozen Russian assets held by Western nations since the invasion be utilized for its recovery. This proposal is still being discussed, but Britain has taken a step forward by extending sanctions on Russia, ensuring that the frozen funds remain inaccessible until Ukraine receives compensation for the invasion. Cleverly emphasized the notion of "natural justice" that Russia should be held accountable and pay for the damage caused.

Achim Steiner, the head of the United Nations Development Programme and the top UN official at the conference, stressed that reconstruction cannot wait until the war is over. He noted that reconstruction is not solely a future endeavor but also encompasses planting the seeds of recovery, both as a physical and psychological strategy, even during the most challenging times and crises.

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