World Leaders Meet to Discuss Marshall Plan for Ukraine

National leaders are set to meet in Berlin on Tuesday, Oct. 25, for a conference described as a “Marshall Plan” to rebuild Ukraine after Russia’s invasion. The event was initiated by German Chancellor Olaf Scholz and the European Commission.

Representatives from G7 and G20 member states, international organizations, civil society, and business leaders are expected to attend.

Ukrainian Prime Minister Denys Shmyhal told German national newspaper FAZ in an interview that the losses suffered by Ukraine as a result of Russia’s full-scale invasion had already reached “more than $750 billion”.

The conference, however, is not about getting cash pledges. According to the hosts, the main aim of the conference is to develop a comprehensive program, just like the U.S. Marshall Aid program was for rebuilding Europe after World War Two.

In August, the World Bank, European Commission, and Ukrainian government presented a report, according to which the damage caused to Ukraine in the period up to June 1 was estimated at over $252 billion, and the cost of rebuilding the country and its economy stood at $ 348.5 billion.

However, these figures were announced before the recent devastating large-scale Russian attack on Ukraine’s energy facilities.

According to Karlis Smits, World Bank Lead Economist and Program Leader for Economic Policy for Eastern Europe (Belarus, Moldova, and Ukraine), the World Bank will assist Ukraine in the post-war recovery process. He noted that providing access to Ukrainian markets and developing its export capacity is equally critical for providing Ukraine with financial resources.

“First, the private sector has to recover, which is a priority. It is difficult due to the fact, that domestic demand will be depressed after the war, so having external demand to support the private sector is critical. If you look at the Marshall Plan as an example, it consisted of many resources. Still, another essential element was providing access to markets and developing markets for export capacity,” Smits stated in an exclusive interview with Kyiv Post on Oct.  12.

The post-war Marshall Plan was a financial assistance program for European countries, which helped them to recover quickly from World War Two. It was initiated by U.S.  Secretary of State George Marshall.