Ukraine presents concept for creating two funds worth USD 1 trillion for reconstruction and modernisation: Prime Minister
To support the reconstruction and modernisation of Ukraine, the country has developed a concept that involves establishing two funds with a combined value of USD 1 trillion. This was announced by Prime Minister Denys Shmyhal during his speech at the ministerial-level Ukraine Donor Platform meeting as part of the Ukraine Recovery Conference (URC-2025).
“The first is the Ukraine Fund, valued at USD 540 billion, as this is the estimated cost of Ukraine’s reconstruction according to the World Bank,” Denys Shmyhal emphasised. According to him, this fund will be administered by Ukraine and funded through confiscated russian assets and a special tax on russian raw material exports.
“The second is the European Structural Fund to Support Ukraine, worth USD 460 billion,” the Prime Minister noted. According to him, this fund will include investments from the European private sector to develop production facilities in Ukraine.
“Projects implemented through these funds will benefit not only Ukraine but also the entire European economy and business,” Denys Shmyhal stressed.
During his speech, Denys Shmyhal highlighted two strategic priorities for the Government and Ukraine as a whole: maintaining and intensifying sanctions pressure on russia, and securing sufficient financial resources to enable Ukraine to counter russian aggression and its associated challenges.
“Thanks to joint efforts with our partners, Ukraine has overcome most financial challenges. We have launched the ERA financial mechanism to utilise frozen russian assets, are implementing the IMF programme, and have sufficient resources to cover the state budget deficit in 2025,” the Prime Minister stated.
Denys Shmyhal also addressed the critical topic of securing financial support for 2026 and 2027.
“We are preparing for various scenarios. We propose that our European partners invest in European defence by co-financing the Ukrainian army. Military expenditures currently amount to USD 100–120 billion. In peacetime, excluding weapon production, maintaining the Ukrainian armed forces will cost EUR 50 billion annually. We expect the EU to cover half of this amount,” the Prime Minister underscored. He added that Ukraine is ready to serve as a guarantor of European security.