17 Apr 2023 11:01

Ukraine expecting $54 mln from Netherlands and Switzerland via IFC program, grant from Japan worth $400 mln

MOSCOW. April 17 (Interfax) - The International Finance Corporation's (IFC) $2 billion program to increase support for Ukraine's private sector and strengthen its economic resilience has received new financial assistance from the Netherlands and Switzerland, Ukrainian media said quoted IFC as saying.

"The Netherlands is allocating $43 million to support the agricultural sector in Ukraine and provide emergency liquidity for private companies in critical sectors related to agriculture. Switzerland will allocate $11 million to support small agricultural enterprises," the press release said.

Before the military operation, the private sector produced about 70% of Ukraine's GDP. Meanwhile, despite the closure of many micro and small enterprises, the private sector continues to support strategic export flows and pay taxes, the IFC said.

The private sector also has a critical role to play in the reconstruction of the country, whose financial needs, according to estimates for February 2023, total $411 billion, which is far more than the government and donors can raise on their own, the press release said.

In turn, the Deputy Prime Minister - Minister for the Development of Communities, Territories and Infrastructure Alexander Kubrakov and Senior Deputy Head of the Japan International Cooperation Agency JICA, Hideya Kobayashi signed an agreement on the allocation of a $400 million grant, the agreement for which was approved at the end of March 2023, Ukrainian media reported, citing the press service of the Ministry of Restoration of Ukraine.

The funds will be allocated as part of an emergency recovery program aimed at critical infrastructure, including transportation services, energy, medical equipment, the agricultural sector, and the utility sector at the local government level.

"In addition, the Japanese government will allocate $70 million in grant support for the restoration of Ukraine via the mechanism of the UN Development Program. In all, at the beginning of the year, an agreement was reached between Ukraine and Japan to allocate more than $600 million for the restoration of Ukraine," the press service said.