Switzerland approves bilateral Ukraine reconstruction deal

Today, June 25, the Swiss Federal Council approved a draft bilateral cooperation agreement between Switzerland and Ukraine on the country's reconstruction.
The draft agreement will establish a legal framework for greater involvement of the Swiss private sector in Ukraine's recovery process.

It is reported that the agreement will be signed at the 2025 Ukraine Recovery Conference, which will take place in Rome. After the signing, the Federal Council will begin the consultation process and submit the corresponding mandate to the Swiss Parliament for ratification.

Ukraine's reconstruction

The Swiss government emphasizes that rebuilding Ukraine presents significant challenges. As noted by officials, already in the summer of 2024, the Federal Council developed a series of measures to encourage greater involvement of the Swiss private sector, complementing humanitarian aid and traditional international cooperation projects in Ukraine.

"At present, work with the private sector is limited to Swiss companies already established in Ukraine. A new legal basis will be required in order for Swiss companies that are not yet present in Ukraine to take part in this endeavour. To this end, the Federal Council has approved this agreement today," the government added.

It is reported that the agreement will allow Switzerland to provide Ukraine with non-repayable financial aid for purchasing goods and services from Swiss companies for reconstruction projects.

Support will primarily be provided in sectors that are priorities for Ukraine, where Swiss international cooperation is already active, and where Switzerland holds a competitive advantage. These sectors include:

• energy,

• transport,

• mobility,

• machinery,

• equipment,

• construction,

• water management,

• disaster prevention and response.

The agreement stipulates that Ukraine will play a key role in selecting the projects. As noted, Kyiv will define its reconstruction needs and provide a list of goods and services it requires from Switzerland. These goods and services will be procured in accordance with Swiss public procurement law.

The bilateral agreement underscores Switzerland's long-term commitment to Ukraine's reconstruction. It is planned that Swiss Federal Council Delegate for Ukraine Jacques Gerber and Ukraine's First Deputy Prime Minister and Minister of Economy, Yuliia Svyrydenko will sign the agreement on the sidelines of the fourth Ukraine Recovery Conference, scheduled for July 10–11, 2025, in Rome.

Last week, the Swiss People's Party submitted a proposal to the National Council to fully revoke the S protection status for Ukrainian refugees.

The party argues that significant areas of Ukrainian territory have been spared from active fighting and can be considered stabilized.

Meanwhile, at the beginning of the month, the Swiss Senate eased strict controls on arms exports — a move aimed at supporting the country's increasingly isolated defense industry.