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Ukraine's Green Marshall Plan: $40 billion to revitalize economy

Ukraine's Green Marshall Plan: $40 billion to revitalize economy Photo: Rostyslav Shurma, deputy head of President Volodymyr Zelenskiy's office
Author: RBC Ukraine

Ukraine requires approximately $40 billion to implement the first phase of the "Green Marshall Plan" to revitalize the country's economy, said Rostyslav Shurma, deputy head of President Volodymyr Zelenskiy's office, in an interview with Reuters.

At the initial stage of economic recovery, the focus will be on the steel industry, which accounted for around 10% of Ukraine's GDP in 2021 and constituted one-third of its export revenue. The sector employed approximately 600,000 people. It also contributed to 15% of the country's carbon emissions, but now there is an opportunity to establish an industry based on renewable energy sources.

"If you have to rebuild, it is logical to rebuild green in line with new technologies... Our vision is to build a 50 million tonnes green steel industry in Ukraine," he stated.

Modernizing the steel industry will enable Ukraine to become the world's cheapest supplier of environmentally friendly steel. It will significantly support Europe's efforts to reduce harmful atmospheric emissions and serve as a driving force for investment in wind, solar, and nuclear energy.

To help attract $20-40 billion in initial funding, Ukraine plans to create a coalition of industry representatives from the public and private sectors to develop a sector development plan.

The preparatory work will take about one and a half years. However, according to Shurma, solid construction will only begin after the end of the war.

The Marshall Plan

The "Marshall Plan" is a program for reconstructing European countries after World War II. The plan was proposed in 1947 by U.S. Secretary of State George Marshall and went into effect in April 1948. Seventeen European countries participated in the implementation of the project.

Rebuilding Ukraine's economy after the war

According to the World Bank's estimates, the reconstruction of Ukraine will cost $411 billion, three times the country's GDP.

Earlier, Prime Minister of Ukraine Denys Shmyhal discussed preparations for the Ukraine Renewal Conference in London with his Polish partner Mateusz Morawiecki.

During the event, policymakers and financiers will address issues related to short-term financing for the country and explore long-term efforts for Ukraine's economic recovery.

Additionally, the Cabinet of Ministers of Ukrainian has created a new position of Deputy Prime Minister for Reconstruction to ensure a high-quality approach to planning reconstruction projects and programs.