The Ukraine Recovery Conference (URC) 2024, held in Berlin on June 11-12, marked a significant step forward in the international community's support for Ukraine amid the ongoing war with Russia.

The conference brought together over 3,400 participants from various sectors, including national and local governments, businesses, and civil society organizations. The event aimed to consolidate sustainable international support for Ukraine’s recovery, reconstruction, reform, and modernization efforts.

Events later in the week, including the G7 summit and the Ukraine peace summit, further confirmed the international community’s commitment to assisting Ukraine in overcoming the ongoing crisis.

This year’s conference was a continuation of the 2017 Ukraine Reform Conference in London, and bilateral and multilateral events in Lugano (2022 and 2023), Toronto and Paris (2022), Rome, Berlin and Warsaw (2023) as well as last year’s Ukraine Recovery Conference in London. Lawyers from Dentons participated in most of these events.

Below is a brief summary of key announcements and agreements to aid Ukraine’s recovery based on publicly available information and insights of our lawyers who participated in the event.

Key announcements and agreements

European Bank for Reconstruction and Development (EBRD) commitments

One of the major highlights of the conference was the EBRD's announcement of €600 million in new funding commitments and de-risking tools. This brings the total EBRD financing deployed in wartime Ukraine to €4.5 billion. Notably, the EBRD signed multiple financing agreements, including:

• €300 million in emergency support for the energy sector to address the immediate energy crisis exacerbated by Russian attacks on Ukraine's energy infrastructure.
• €517 million from the European Union to support Ukraine's economy and recovery through EBRD programs.
• €60 million loan for a greenfield biofuels project and equity investment in renewable energy. These projects underscore the focus on sustainable and renewable energy solutions.
• €70 million in local-currency loans and risk-sharing facilities with Ukrainian banks to boost access to finance for small and medium-sized enterprises (SMEs).

The EBRD also announced a joint venture with GOLDBECK SOLAR Investment to construct up to 500 MW of solar power plants in Ukraine over the next three to five years.

International aid and investments

The conference saw the announcement of over €16 billion in more than 110 international agreements and assistance. Significant contributions included:

• €1.4 billion in guarantee and grant agreements under the Ukraine Facility program.
• €7 billion SME Resilience Alliance to support the resilience and growth of Ukrainian SMEs.
• €700 million Skills Alliance retraining program to address structural unemployment and support workforce development in Ukraine.
• €350 million in guarantees and €17.5 million in technical assistanсe from EU via IFC to accelerate and scale-up investments in renewable energy such as wind power projects, battery energy storage systems, transport, digital sector, and industrial investments.
• €430 million program of EIB group to restore the housing sector. The first program will focus on repairing war-damaged residential buildings, and the second will be a credit program and extensive grant resources from the European Commission.
• $350 million war risk insurance program to facilitate foreign investment in Ukraine during the war. The program, in partnership with the US International Development Finance Corporation (DFC), includes US$50 million to reinsure policies issued by Ukrainian companies and US$300 million to insure military risks in the healthcare and agriculture sectors.

Focus areas of the conference

The URC 2024 extended the dimensions of Ukraine's recovery to four key areas:

1. Business development: The conference launched several initiatives to stimulate economic growth and private sector involvement by offering mechanisms to derisk investments and provide access to financing. This includes investments in renewable energy, biofuels, and significant support for SMEs.
2. European integration: With Ukraine's EU candidate status, substantial support was directed towards meeting EU accession requirements and facilitating integration processes. On June 14, 2024, the EU approved in principle the negotiating framework for the accession of Ukraine and Moldova to the EU. Huge emphasis was given to sustainable recovery of a competitive economy as well as funds to achieve these targets in various sectors.
3. Municipal and regional development: Agreements were signed to improve infrastructure and essential services in cities like Mykolaiv, Lutsk, Kharkiv, Kyiv, Kryvyi Rih, and Zhytomyr. These included projects for water infrastructure, housing, district heating systems, public transport and export logistics.
4. Human capital development: Initiatives such as the Human Capital Resilience Charter and the Skills Alliance for Ukraine were launched to support returnee workers and veterans and promote inclusive recovery.

High-profile support and future prospects

German Chancellor Olaf Scholz and European Commission President Ursula von der Leyen emphasized the importance of Ukraine's reconstruction for both Ukraine and the EU. Von der Leyen announced that Ukraine would receive €1.9 billion through the Ukraine Facility by the end of June, with a significant portion directed towards urgent power system repairs and defense.

Ukrainian President Volodymyr Zelenskyy highlighted the immediate need for energy infrastructure repairs and long-term investment. He stressed that foreign investments in Ukraine's energy sector could yield high returns and create substantial economic opportunities.

A few days later at the Ukraine peace summit in Switzerland, US Vice President Kamala Harris announced a new energy aid package, consisting of $500M in new funding for energy assistance and redirecting $324M of previously announced funds to Ukraine's emergency energy needs.

The news from the US comes a few days after the G7 leaders adopted a declaration outlining the use of proceeds from frozen Russian assets to give Ukraine $50 billion in loans. This plan aims to ensure Ukraine can continue its defense against Russia and signals Western resolve. The funds will come from loans by G7 members and the EU, backed by interest from the frozen assets, with repayment expected from either interest or future reparations by Russia. The disbursement of funds, intended for various purposes including military and humanitarian support, is planned to start by the end of the year, although there are still unresolved details and potential risks related to the ongoing status of the frozen assets.

The weekend brought additional support for Ukraine at the Ukraine Peace Summit in Switzerland, at which representatives from 78 countries agreed that Ukraine’s territorial integrity must be the basis for any peace agreement with Russia. The conference marked a preliminary step towards diplomacy but faced challenges due to the absence of key developing nations from the final document. Despite varied participation, the summit underscored the necessity for international cooperation to resolve the conflict.

Conclusion

The main events of last week – the Ukraine Recovery Conference 2024 in Germany, the G7 summit in Italy and the Ukraine peace summit in Switzerland - demonstrated a robust international commitment to supporting Ukraine's recovery and long-term development. The agreements and initiatives announced at the URC reflect a comprehensive approach, addressing immediate needs while laying the groundwork for sustainable growth and integration into the European Union. As Ukraine continues to navigate the challenges posed by the ongoing conflict, the support and collaboration fostered at URC 2024 - and confirmed by the participants of the G7 and the peace summit - will be crucial in building a resilient and prosperous future.

More information about the results of the URC 2024 can be found on the URC’s website: URC 2024 Conference Results.

The Dentons Global Task Force on Ukraine Transformation continues to monitor developments and opportunities relevant to Ukraine's transformation and rebuilding efforts. For more information, please visit the Hub webpage and reach out to our key contacts should you have any questions.