CoR Plenary (June 2022)

Cities in the rest of Europe are prepared to help in Ukraine’s reconstruction, through city-to-city partnerships and in close cooperation with city associations. Ever since the outbreak of war on 24 February 2022, city leaders have played a crucial role in Europe’s response to Russian aggression. It has primarily been to cities that the more than seven million Ukrainian refugees have fled. City leaders have responded by condemning the Russian attacks, by welcoming refugees, by engaging in solidarity actions to maintain public pressure against the war, and by sending direct aid to Ukraine. And now, following these actions, taken in response to short term needs, city leaders are coming together to prepare the ground for a longer term approach.

The EU stands united in its unwavering support to Ukraine in the face of Russia’s unprovoked and unjustified invasion, and cruel and ruthless warfare. The EU has stepped up its political, humanitarian, financial and military support to Ukraine and is imposing massive sanctions against the Kremlin to cripple its war machine. Since the start of the invasion, the EU has mobilised €4.1 billion in macro-financial assistance, budget support, emergency assistance, crisis response and humanitarian aid to support Ukraine. €1.5 billion in military assistance under the European Peace Facility to support Ukrainian Armed Forces to defend their population and territorial integrity have also been provided. The EU and its Member States will work with the International and European financial institutions and international organisations, as well as like-minded partners to continue providing relief to help Ukraine meet urgent financing needs and keep basic services going and once peace returns to rebuild a free and democratic Ukraine.

The European Commission has set out plans in a Communication for the EU's immediate response to address Ukraine's financing gap, as well as the longer-term reconstruction framework. This Communication follows from the European Council call to address the consequences of the war in Ukraine via a dedicated Europe-led effort.

The Russian war on Ukraine has shattered long-held views that war was 'a thing of the past' on the European continent. The new security situation has sparked debates in capitals all over Europe on security and defence arrangements, policies and strategic orientation. While it has become commonplace to argue that the EU has made substantial progress on European defence cooperation since 2016, the Strategic Compass, adopted in March 2022, represents a 'sea change' in EU defence landscape, according to High Representative of the Union for Foreign Affairs and Security Policy/Vice-President of the European Commission (HR/VP), Josep Borrell. The return of war to Europe has given Member States the strongest push in decades to make progress on common European security and defence. The Versailles Declaration promised significant progress and all eyes subsequently turned to the defence-focused European Council meeting in May 2022, to see whether EU leaders would take the first steps to live up to these expectations.

Russia's invasion of Ukraine has already destroyed billions of dollars' worth of infrastructure, blocked exports from key Black Sea ports, and displaced more than 12 million people. The World Bank predicts the war will cause Ukraine's economy to shrink by 45% this year. And as Russian forces now focus on the Donbass region, the war shows no signs of letting up. But Ukrainian and Western leaders are already talking about what it would take to rebuild Ukraine, if and when the war ends.

Postwar rebuilding will be a monumental task for Ukraine. Politicians and economists from Ukraine and around the world have already started discussing the cost of Putin’s war and what rebuilding might look like. Prime Minister Denys Shmyhal and the Ukrainian cabinet are working on the “U-24” reconstruction plan. A key question concerns where rebuilding should start. Which priorities should be advanced to make Ukraine a stronger and more developed nation in the postwar future? I asked three experts to weigh in and respond to this question.

Despite the ongoing conflict in Ukraine—currently concentrated in the eastern region of the country—conversations around what reconstruction will look like are already taking place. The reconstruction of a free and independent Ukraine will require a new partnership with the West. Ukraine will survive as a sovereign state, but there are many uncertainties along the way. Now is the time to start identifying the most pressing challenges for Ukraine’s economic reconstruction and how European countries and the United States can support these efforts.

The war Russia is waging in Ukraine is a humanitarian disaster, and its social and economic repercussions are being felt worldwide. The OECD Council has condemned Russia in the strongest possible terms and is working on a new strategy to support Ukraine, building on a Memorandum of Understanding established with the country in 2014 and renewed in 2021. The OECD Development Centre stands ready to support these efforts, providing expertise in a wide range of policy domains. This DevTalk is meant as a dialogue to explore ways for the OECD to help the Ukrainian economy and its people. It will bring together OECD and Development Centre members (delegations and experts in capitals), as well as the Secretariat. Drawing on insights from four leading experts, participants will discuss Ukraine’s economic and social transformation prior to 2022, the impact of the war, priorities for reconstruction, and the international support needed to realise its vision.