Ukraine "Needs $750 Billion for Postwar Reconstruction"... Reconstruction Conference with 38 Countries

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] An international conference for the reconstruction of Ukraine was held in Switzerland, where the Ukrainian government estimated that more than 970 trillion won in reconstruction costs will be needed for post-war recovery. The Ukrainian government stated that a significant portion of the costs could be covered by utilizing assets of the Russian government or Russian oligarchs frozen or seized overseas.

On the 4th (local time), the first high-level international conference discussing Ukraine's reconstruction and recovery, the "Ukraine Reconstruction Conference," was held in Lugano, Switzerland. The meeting was attended by senior representatives from 38 governments worldwide, as well as 14 international organizations including the European Union (EU) and the World Bank (WB). South Korea was represented by Lee Do-hoon, the 2nd Vice Minister of Foreign Affairs.

Denys Shmyhal, Prime Minister of Ukraine, stated at the reconstruction conference, "It is estimated that $750 billion (approximately 972 trillion won) will be required to rebuild Ukraine," adding, "Of this, $300 billion to $500 billion could be covered by assets of the Russian government or oligarchs frozen worldwide."

With the war still ongoing mainly in the eastern Donbas region of Ukraine, the restoration of infrastructure and housing destroyed by the war is cited as the most urgent issue. The scale of damage to Ukraine's major infrastructure is known to exceed $100 billion. Additionally, about 5.5 million refugees who had fled abroad are returning to Ukraine, mainly to the stabilized northern regions, and are facing housing shortages.

Ursula von der Leyen, President of the European Commission, who attended the meeting, explained, "The European Commission will establish a platform for Ukraine's reconstruction," adding, "Through this platform, projects needed by Ukraine and the required investment amounts will be consolidated, project progress will be coordinated, and necessary resources will be mobilized."

However, regarding the seizure of Russian assets and their use for reconstruction costs, voices cautioning prudence have emerged, as there are many legal and political issues to resolve. U.S. Treasury Secretary Janet Yellen emphasized, "Seizing assets of the Russian central bank must be done only through cooperation with allies and should not be taken lightly."

This content was produced with the assistance of AI translation services.