Prime Minister Denys Shmyhal announced that approximately $1 trillion in investments is needed for the full reconstruction and modernization of Ukraine over the next 14 years. He made this statement during his speech at the URC2025 conference.
This is reported by Finway
Two Funds for Ukraine’s Development
The Ukrainian strategy involves the creation of two key funds. The first is the “Ukraine Fund” with a volume of $540 billion, which will be responsible for financing the country’s reconstruction according to World Bank estimates. The formation of this fund is planned to be financed by confiscated assets of the Russian Federation, as well as a special tax on the export of Russian raw materials. Ukraine will administer the fund.
The second mechanism is the European Structural Fund to support the recovery of Ukraine, with a volume of $460 billion. It will focus on attracting investments from the European private sector aimed at developing production capacity in Ukraine. According to the Prime Minister, the implementation of initiatives by these funds will benefit not only Ukraine but also strengthen the entire economy and business of Europe.
European Investments in Security
“We are offering our European partners to invest in European defense through co-financing the Ukrainian army. Military expenditures currently amount to $100-120 billion. In peacetime, without considering arms production, maintaining the Ukrainian military will cost €50 billion per year. We expect that half of this amount will be provided by the EU,” emphasized the Prime Minister, adding that Ukraine is ready to become a guarantor of European security.
Ukraine has also expressed its readiness to be a security guarantor for all of Europe, calling on partners for joint funding of defense needs. It is expected that the European Union will cover at least half of the costs of maintaining the Ukrainian army in peacetime, which amounts to about €25 billion annually.