Reconstruction Conference Focuses on Rebuilding Ukraine as Investment Opportunity
The Ukraine Recovery Conference 2024 (URC2024) took place in Berlin, Germany from June 11-12, with Ukrainian President Volodymyr Zelensky in attendance. It is the second such conference, with the first taking place in London, England in June 2023. The conference said it is "dedicated to the swift recovery and long-term reconstruction of Ukraine" and that the "key goal of the URC2024 was to mobilize continued international support for recovery, reconstruction, reform, and modernization of Ukraine. This includes providing emergency assistance for immediate needs, implementing rapid recovery projects and creating attractive conditions for businesses to unlock the private sector investments in Ukraine, and civil society to actively engage in the reconstruction process."
The reconstruction conference did not deal with the need for peace negotiations as the basis for successful reconstruction, but was positioned as "an integral part of international diplomatic efforts such as the upcoming G7 Summit in Italy, as well as the Summit on Peace for Ukraine hosted by Switzerland."
As was the case in 2023, this year's conference was also organized on the basis of putting private business interests in the first place as the basis for rebuilding Ukraine, not the Ukrainian people and what is needed to ensure their well-being. The conference listed four "thematic dimensions" as follows:
- Business Dimension -- Mobilizing the Private Sector for Reconstruction and Economic Growth;
- Human Dimension -- Social Recovery and Human Capital for the Future of Ukraine;
- Local and Regional Dimension -- Recovery of Municipalities and Regions; and
- European Union (EU) Dimension -- EU Accession and Related Reforms.
A statement issued following the conference said that it "offered business representatives a forum to seize new opportunities, announce new collaborations and strengthen existing partnerships. With the support of its international partners, the forum presented a comprehensive set of existing and new measures and incentives designed to facilitate and de-risk investments and trade under the current circumstances. These measures include guarantees from G7 countries and the EU, political and risk insurance tools, commercial reinsurance projects, state-sponsored programs for investment support, streamlined processes for construction and infrastructure projects, long-term housing finance, tax incentives and access to affordable project financing." The conference promoted "Flagship projects of international business [that] showcased their success stories of doing business in Ukraine in key sectors such as defence, manufacturing and energy."
Underscoring the neo-liberal, capital-centred approach to reconstruction is the wording of the statement that "For the first time, the URC2024 also placed the human dimension at the centre of the discussion." It said, "The URC2024 promoted solutions for the mobilization of human capital for reconstruction, as well as for social cohesion and inclusiveness issues. Participants discussed topics such as education, health care and the provision of social services and infrastructure, as well as advancing mine action, the role of the cultural sector and the integration of veterans, internally displaced persons and returnees." Left unsaid is that putting private business interests in first place is not compatible with the sound provision of education, health care, social services and infrastructure, as the neo-liberal anti-social offensive around the world has shown.
Regarding the "Local and Regional Dimension" the statement said, "The URC2024 also involved around 200 local and regional actors for the first time, acknowledging their crucial role in reconstruction. Participants discussed how increased and sound distribution of financial resources, capacity building and partnerships can boost recovery. Participants showcased their needs, recovery project proposals and best practices for creating liveable resilient communities by promoting sustainable urban development, housing, energy and thermal efficiency, quick and smart winterization solutions, and strengthening local self-government for integration into the EU, and economic activity."
The "EU Dimension" is aimed at keeping Ukraine in line with so-called European values and EU demands to achieve membership on the basis of "reforms, economic growth, investment security and the sustainable recovery of a competitive economy. It also supports stable political institutions and guarantees human rights and the rule of law, as well as functioning public service institutions." Integrating Ukraine into the EU, the conference claims, would "significantly contribute to regional stability and peace, justice, freedom and security across Europe. Ukraine's progress towards EU integration exemplifies the transformative power of the EU's values and standards, reinforcing the EU's role in promoting stability, prosperity and democratic governance in the region."
All of this talk about reconstruction takes places without mentioning the elephant in the room -- Ukraine's massive debt and its takeover lock, stock and barrel by narrow private interests.
On June 18, media reports inform that Ukraine "has suffered a setback in its quest to complete the outline of a debt restructuring before the end-of-August expiry of a two-year payment freeze agreed by private holders of near $20 billion in outstanding international bonds.
This raises the spectre, Reuters says, that it might slip into default.
"Earmarked
for restructuring are all international bonds issued before February of
2014 -- including a $3 billion Eurobond that was issued under English
law and is owed to Russia, and still subject to court proceedings," Reuters says. The last two years alone have seen:
2023
March - The Group of Creditors of Ukraine (GCU) including Canada, France, Germany, Japan, Britain and the U.S. provides financing assurances in support of an expected loan from the International Monetary Fund. This includes the extension until 2027 of a previously-agreed payment moratorium.
March - The IMF board approves a four-year $15.6 billion loan program for Ukraine to support the country's economy.
November - In its 2024 budget, Ukraine details an expected $44 billion deficit.
2024
March - Reuters reports Ukraine's overseas bondholders are in talks to form a creditor committee ahead of debt rework talks. The formation of the group is made official in April.
April - A sweeping foreign aid package passes in the U.S. Congress after months of delay, clearing the way for $61 billion in funding for Ukraine.
May - Ukraine pushes to agree on a restructuring with its private creditors ahead of expiration of a payment freeze.
June - The Group of Seven agrees to provide Ukraine with $50 billion in loans by using interest earned on frozen Russian assets.
June - Ukraine says it was unable to reach an agreement during formal talks with a group of bondholders over restructuring its commercial debt, pushing the country closer to default. Finance Minister Serhiy Marchenko says, opens new tatalks will continue and he expects the government to reach an agreement by August 1.
All of it makes talk about Ukrainian sovereignty nonsense as the country has been taken over lock, stock and barrel by narrow private interests. What doesn't belong to the banks and bondholders belongs to other oligopolies such as those which have taken over Ukraine's agricultural production. Open Democracy in October 2023 revealed that ten private companies controlled 71 per cent of the Ukrainian agricultural market, including, “in addition to the Ukrainian oligarchy, multinational corporations such as Archer Daniels Midland (ADM), Bunge, Cargill, Louis Dreyfus and the Chinese state-owned company COFCO.” This is just a small piece of the story when it comes to the neo-liberal take-over of Ukraine.
This article was published in
Volume 54 Number 37 - June 18, 2024
Article Link:
https://cpcml.ca/Tmlm2024/Articles/MS54379.HTM
Website: www.cpcml.ca Email: editor@cpcml.ca