The Steering Committee of the Multi-agency Donor Coordination Platform for Ukraine met today for the first time in expanded format with new members and observers, to discuss Ukraine’s budget needs for 2024, priority critical repairs and rapid recovery needs, private sector engagement, and reforms and conditionalities.
New members are the Republic of Korea, the Netherlands, Norway, and Sweden, while Denmark, Estonia, Latvia, Lithuania, Poland and Spain joined as observers.
Ukraine’s Prime Minister Denys Shmyhal opened the meeting by thanking partners for their support in 2023, including the European Union as one of Ukraine’s biggest donors, and encouraging partners to continue supporting Ukraine in 2024. He welcomed new Platform members and observers and emphasized Ukraine’s commitment to reforms, including in the context of EU accession.
Ukraine’s Finance Minister Marchenko presented Ukraine’s 2024 budget needs. He outlined national measures taken to address the situation and thanked the donors for their commitments to cover part of the 2024 budgetary needs. The International Monetary Fund updated the Platform members on its programme, and Italy informed on its side about the latest discussions in the G7 finance track. Steering Committee members acknowledged the urgency reiterated their commitment to supporting Ukraine and discussed ways to help address Ukraine’s budgetary needs in early 2024.
The Commission informed the Steering Committee about the recent political agreement reached on the €50 billion Ukraine Facility, which will provide stable and predictable funding for Ukraine for the period 2024-2027. The Steering Committee welcomed the Facility, which will substantially contribute towards meeting Ukraine’s 2024 budget needs, while supporting Ukraine on its European path.
In this context, the Government of Ukraine presented the Ukraine reform matrix and updated on the preparations of the Ukraine Plan, which will underpin disbursements under the Ukraine Facility. The Ukraine Plan is a medium-term growth strategy for the country aimed at providing a coherent roadmap for Ukraine’s reforms and investments, helping rebuild and modernize, facilitating EU accession, and strengthening macro-financial stability. The Steering Committee members reiterated their commitment to coordinate on reforms under the Platform to maximise Ukraine’s reform efforts.
The Government of Ukraine also informed about its progress during 2023 on the use of donor funding for priority critical repairs and rapid recovery needs and outlined its priority needs for 2024. The World Bank presented preliminary results of the new Rapid Damage and Needs Assessment, which will be published on 15 February.
The Steering Committee agreed on the importance of bringing private sector perspectives to the Platform to further support Ukraine’s recovery and reconstruction and discussed the possible establishment of a Business Advisory Council.
The Steering Committee will continue to meet regularly, with the next Steering Committee meeting foreseen in spring.
Background
The Multi-agency Donor Coordination Platform for Ukraine was launched on 26 January 2023 and has held eight meetings so far. It brings together high-level officials from Ukraine, the EU, the G7 countries as permanent members. As of February 2024, it includes four additional temporary members, namely the Republic of Korea, The Netherlands, Norway, and Sweden as well as observers from six EU Member States - Denmark, Estonia, Latvia, Lithuania, Poland and Spain. To join the Platform as temporary members states have contributed since February 2022, or have committed to contribute, at least 0.1% of the country’s 2022 GDP and at least USD 1 billion. To join as observers states have contributed since February 2022, or have committed to contribute, at least 0.05% of the country’s 2022 GDP or at least USD 300 million (USD 200 million for EU Member States). Membership and observer status are contingent on continued support to Ukraine and will be reassessed on a regular basis. International Financial Institutions, such as the European Investment Bank, the European Bank for Reconstruction and Development, the International Monetary Fund and the World Bank, also participate in the platform to coordinate efforts to address Ukraine’s financing needs, both in the short to medium-term.
The meeting was opened by Ukraine’s Prime Minister Shmyhal and the G7 Presidency and co-chaired by the European Commission Director-General for Neighbourhood and Enlargement Negotiations Gert Jan Koopman, the Minister of Finance of Ukraine Sergii Marchenko together with the US Deputy National Security Advisor for International Economics Mike Pyle. The Deputy Prime Minister for Restoration of Ukraine and Minister for Communities, Territories and Infrastructure Development of Ukraine Oleksandr Kubrakov, the Deputy Minister of Economy of Ukraine for Digital Development, Digital Transformations and Digitalisation Oleksii Sobolev and the Deputy Minister of Economy of Ukraine Volodymyr Kuzyo also participated at the meeting.
For More Information
Details
- Publication date
- 14 February 2024
- Author
- Directorate-General for Neighbourhood and Enlargement Negotiations