The UK has today announced a funding boost of up to £20 million for the World Bank’s Multilateral Investment Guarantees Agency (MIGA) to help support more private sector investment in
Ukraine to help the country rebuild.
Russia’s invasion has had a devastating toll on Ukraine’s infrastructure, anticipated to cost $411 billion and take more than 10 years to reconstruct. A lack of insurance options that cover war-related losses is preventing a crucial flow of private investment.
Thanks to the UK’s funding, investors will have greater access to MIGA’s SURE Trust Fund to de-risk investments in projects which address Ukraine’s immediate reconstruction needs.
The announcement came as more than 1,000 people across the private sector, public sector and international community attended the Ukraine Recovery Conference in London.
Business and Trade Secretary Kemi Badenoch said:
Rallying businesses to action is at the heart of Ukraine’s recovery and tackling the war insurance gap is fundamental to providing companies with the security they need to unlock their full entrepreneurial and ambitious potential.
The UK stands firm in its support for Ukraine and its recovery from Putin’s illegal invasion. We must work together, in collaboration with global partners and organisations, to succeed in this unparalleled reconstruction effort.
Business and Trade Minister Nusrat Ghani said:
Our announcements today give businesses and investors the fundamental tools they need to get directly involved in Ukraine’s recovery from this horrific war.
From war insurance, building connections between businesses, and deepening collaboration in tech, the Department for Business and Trade is committed to supporting Ukraine’s long-term reconstruction needs.
During the Ukraine Recovery Conference, the UK will publish the London Conference Framework, coordinated with international partners, to address the immediate insurance gap and drive action to scale up backing for Ukraine’s recovery.
A new insurance collaboration between private sector leaders – supported by Government’s UK-Ukraine Private Finance Partnership – will complement this work. Professional services firm Aon and Lloyd’s insurance market have today announced they will join forces with the Vienna Insurance Group, one of the largest insurers operating in Ukraine, to deliver fast-track access to foreign reinsurance capacity to support Ukraine’s recovery.
International and domestic companies working in Ukraine with manufacturing and construction risk exposure, excluding war cover, will be supported through this commitment. Building reinsurance capacity is key to ensuring businesses can continue day to day, supporting Ukraine’s normal economic activity.
Alongside this, the Department for Business and Trade has launched two separate initiatives to bolster Ukraine’s business community.
A new UK-Ukraine TechBridge was launched on Tuesday evening by Business and Trade Minister Nusrat Ghani ahead of its full rollout later this year. In partnership with the Government of Ukraine and private sector partners, the UK has developed the initiative from a Ukrainian proposal predating Russia’s full-scale invasion.
It will bring together the UK and Ukrainian tech sectors in a permanent physical space in London to harness opportunities for innovation and collaboration. The programme will have a focus on digital and business skills, ensuring ongoing professional development across the tech sector.
The Department has also created Business Bridge Ukraine, a digital platform which connects Ukrainian businesses to global companies, enabling virtual networking and supporting recovery through sustainable and long-lasting commercial relationships.
Julian David, CEO at techUK, said:
We are delighted to announce today that we are taking our partnership with the Ukrainian tech sector to the next level. Through the launch of the UK-Ukraine Tech Bridge and our Memorandum of Understanding with our sister association, IT Ukraine, techUK is committed to help supercharge a tech-led recovery for the Ukrainian economy and society.
Today marks the beginning of a new era of close cooperation between the UK tech sector and an incredibly dynamic, resilient, and competitive Ukrainian digital economy.
Andriy Dekhtyar, Founder of Ukrainian company Rozdoum, said:
The acquisition of Rozdoum by Adaptavist highlights the potential success of cross-border tech collaboration between the UK and Ukraine. Our relationship with Adaptavist has developed since 2017 and we’ve learned that our shared values make us a valuable partnership.
Becoming part of The Adaptavist Group has provided Rozdoum with the security of being part of a larger, international group company, which has enabled us to accelerate our growth and strive for more with their added support and expertise.
In unison with the UK’s National Institute for Health and Care Excellence and the Ukraine Ministry of Health, the Department for Business and Trade is also leading a programme of work to support ongoing healthcare reforms in Ukraine to expand access to innovative medicines for the citizens of Ukraine. Photo by Noobuster007, Wikimedia commons.