Nicosia supports EIB fund for Ukraine’s reconstruction

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Ukraine’s reconstruction requires a large-scale coordinated effort by the international community, and Cyprus will contribute, having also been a victim of foreign invasion, said Finance Minister Makis Keravnos.

Keravnos was at a signature ceremony where 16 countries expressed their intent to participate in the European Investment Bank’s “EU for Ukraine Fund” (EU4U), held in Brussels on Thursday.

The Fund is expected to mobilise over €400 million.

Initial pledges to the Fund from France, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Slovakia, Spain and the Netherlands total €377.3 mln.

Belgium, Croatia, Cyprus, Denmark, Estonia and Greece also announced contributions to the Fund, with the amounts to be finalised.

“Given the damaging effects of Russia’s aggression in Ukraine, EU efforts to support Ukraine’s reconstruction must continue,” the Minister for Finance said.

“The reconstruction of Ukraine will require a large-scale coordinated and collective effort by all actors in the international community.

“In times of crisis, international solidarity is crucial.

“Today, Cyprus as a victim of the illegal Turkish invasion and continued military occupation of its territory, declares its intention to participate in the EIB’s EU4U fund and reiterates its undivided support and solidarity to the Ukrainian people.

“The Republic of Cyprus provides significant humanitarian aid to Ukrainian displaced persons who are hosted on our island,” Keravnos said.

According to the EIB, the Fund will serve as a temporary bridge solution until longer-term EU measures become available.

The Fund will facilitate the deployment of both public and private sector projects, focusing mainly on municipal infrastructure such as schools and hospitals, transport networks, water and wastewater treatment facilities, digital and cybersecurity capability, and improved access to finance for Ukrainian entrepreneurs.

Since the start of Russia’s war of aggression, the EU and European financial institutions, in a Team Europe approach, are making around €53 billion in financial, humanitarian, emergency, budget and military support available.

In March, the Government of Ukraine, the World Bank Group, the European Commission, and the United Nations estimated that the cost of reconstruction and recovery in Ukraine has grown to €383 bln.

The estimate covers the one year from Russia’s invasion of Ukraine on February 24, 2022, to the war’s first anniversary on February 24, 2023.

The cost of reconstruction and recovery is expected to stretch over 10 years and combines both needs for public and private funds.