The Ukraine Daily Rebuild (Sept 23, 2024)

Just The Facts. The latest events related to the reconstruction of Ukraine.
Reporter's Notepad. Exclusive reporting and notes on stakeholder meetings.
That's What You Think. Summaries of new opinion pieces from influential media outlets, pundits and intellectuals around the world.
Sober Second Thought. Reporting on new academic and think tank studies related to the reconstruction of Ukraine.
Nuance & Detail. Important, influential or particularly insightful social media posts that illuminate the mood and plans of Ukraine and the rebuilders.

Aid Inflows

EU to lend Ukraine up to €35 billion under G7 plan, von der Leyen says

The European Union will provide Ukraine a loan of up to €35 billion as part of a $50-billion pledge by the G7, European Commission President Ursula von der Leyen said Friday in a post on X during a visit to Kyiv.

In June, the G7 leaders agreed to issue a $50 billion loan to Ukraine by the end of the year, to be repaid with future profits from frozen Russian foreign reserves. The support package has in the meantime lost momentum due to safeguards demanded by the United States and fears of Hungary blocking it.

The EU plan stills taps the profits from the frozen assets, estimated at up to €3 billion per year, while skipping the often heated debate that accompanies direct spending.

Von der Leyen arrived in Ukraine's capital to discuss Europe's support in various areas "from winter preparedness to defense, to accession and progress on the G7 loans," she said in a separate post on X.

Norway adds $5.7 billion to financial support plan for Ukraine for disbursement by 2030

Norway allocated an extra 60 billion Norwegian crowns ($5.7 billion) in financial aid for Ukraine, extending its aid programme for the country an additional three years, until 2030.

The allocation raises Norway's total commitment to Ukraine to 135 billion crowns by 2030 for support both its its war against Russia and the reconstruction, Prime Minister Jonas Gahr Støre said on Friday, reported Panorama Nyheter. Norway had initially allocated 75 billion crowns in 2023, to be handed out over a five-year period.

The prime minister said the money could be used to achieve either military or civilian goals as it's objective is not specific beyond boosting Ukraine's "resilience."

"If there is a need to focus on reconstruction, then we can turn the layout and working methods in that direction," he said. "I hope we can look in the direction of a reconstruction fund, but we are not there today."

UNDP crisis chief emphasizes job training, energy supply aid for Ukraine reconstruction in visit to Kyiv

UNDP Crisis Chief Shoko Noda emphasized skills training, energy supply restoration, small business support and debris clearing in the reconstruction of Ukraine in her visit Friday to Kyiv.

Noda, who's also the UN assistant secretary-general, said that early recovery intiatives such as these, rather than just humanitarian aid, are necessary for rebuilding lives in a country where the poverty rate has surged to 24.1% currently from 5.5% before the war.

“In crisis, humanitarian support saves lives. But early recovery work is equally important – it enables people to restart their lives and support themselves. It is the foundation for a resilient Ukraine,” Shoda said in a UNDP press release.

Noda, from Japan, visited a debris recycling station in the Kyiv suburb of Bucha, met with the female handlers of a team of 16 technical search dogs and spoike about recover efforts with senior officials from Kyiv, Odesa and Mykolaiv on her visit, the UNDP said.

Diplomacy

Quad leaders voice 'deepest concern' over war in Ukraine, warn of impact on poorest countries

Leaders of the US, Australia, India and Japan - the so-called Quad nations - jointly voiced the "deepest concern" over the ongoing war in Ukraine, warned of spillover effects on the world's poorest nations, and rebuked Russia for talk of nuclear war.

After a summit in Wilmington, Delaware on Saturday, the leaders also called for adherence to the United Nations Charter, particularly respect for sovereignty and territorial integrity.

"We express our deepest concern over the war raging in Ukraine including the terrible and tragic humanitarian consequences," the leaders said. "Each of us has visited Ukraine since the war began, and seen this first-hand; we reiterate the need for a comprehensive, just, and lasting peace in line with international law, consistent with the purposes and principles of the UN Charter, including respect for sovereignty and territorial integrity."

The leaders also addressed the situation in Gaza, missile launches by North Korea and other issues and stated that the Quad, which was elevated to the national leadership level four years ago, "is more strategically aligned than ever."

Ukraine to open new consulates in Slovakia, Romania to ease reconstruction, serve refugees

Ukraine plans to open new consulates in Slovaka and Romania to help cooperate with post-war reconstruction efforts and better serve the refugees currently living in those countries, Ukrainian Foreign Minister Andriy Sybiha said.

After trips last week to both Eastern European nations, Sybiga said he also agreed with neighboring Romania to consider joint border controls to simplify procedures and organized bilateral meetings with Slovakia for October on cooperation in energy and other areas.

Sybiha, who also voted neighboring Moldova last week, said in a Facebook post on Friday that "neighbors are important to us strategically, in the context of the integration of Ukraine into the EU and NATO. Important decisions ahead. Historic steps towards NATO. Joining the European Union."

Ukraine's Kyiv region to start online platform to attract investors from Italy

Ukraine's Kyiv region will establish an online platform with one of the regions of Italy to attract investments and boost business cooperation, Chief of the Kyiv Regional Military Administration Ruslan Kravchenko said.

Kyiv region already has a memorandum of cooperation with the Italian region of Tuscany, aimed at promoting closer ties in health care and education, Kravchenko said in a post on Facebook on Sunday after a meeting with newly appointed Ambassador of Italy to Ukraine Carlo Formosa.

"However, we intend to expand cooperation with other regions of Italy, particularly in the economic sphere. Despite the war, we are working to attract investors, as a strong economy is an important component of our victory," Kravchenko noted.

Kravchenko also said the proposed platform will increase the turnover between the regions and the countries. "I hope that such an opportunity may turn out to be attractive for other regions, and we will be able to expand this practice," he stated.

Ukraine Government

Ukraine's EBA business association says proposed tax hikes could incentivize shadow economy

Ukraine-based European Business Association (EBA) has protested tax hikes recently adopted by the country's parliament at first reading, arguing any additional taxation could damage the competitive environment by practically incentivizing the shadow economy.

The tax bill raises the war tax on individuals to 5% from the current 1.5%, sets higher taxes for the self-employed, retroactively doubles taxes on bank profits in 2024 to 50%, and sets taxes on the profits of other financial institutions to 25%, among other changes.

"Any additional taxation of compliant businesses, including the increase in military tax, could distort the competitive environment, as it would become economically disadvantageous to operate 'in the white'," the EBA said in a press release on Thursday. "Companies that remain in the shadow economy gain economic advantages compared to those that pay taxes."

The EBA cited data from the Institute of Socio-Economic Transformation indicating that the state budget is short about UAH 400 billion ($9.67 billion) due to the shadow sector.

Ukraine bans military, government personnel from using Telegram app, citing fear of Russian spying

Ukraine's National Security and Defence Council has banned military personnel and government officials from using the Telegram app, citing fears that Russia could potentially spy on communications.

Uaine intelligence chief Kyrylo Budanov "provided substantiated evidence that russian special services have access to personal correspondence of Telegram users, even deleted messages, as well as their personal data," the council said after a meeting Friday.

"In order to minimise these threats, it was decided to ban the installation and use of Telegram on the official devices of government officials, military personnel, employees of the security and defence sector, as well as enterprises operating critical infrastructure," it said.

Energy

Ukrainian officials visit Massachusetts to study thermal network serving multiple buildings

A delegation from Ukraine, including ministers, mayors, and energy regulators, visited Massachusetts to study geothermal energy systems as part of their plans for post-war reconstruction, The Boston Globe reported.

The group came to learn about the first geothermal heating network installed in the US by a gas utility, which they hope to replicate in Ukraine to create energy-resilient cities after the conflict, the newspaper said.

“First we need to liberate the land, then we must design plans for our cities ... or for the ruins, rather,” said Roman Nitsovych, research director at the Ukrainian think tank DiXi Group, which organized the trip. “The government is preoccupied with fire-fighting and short-term concerns, but someone needs to be thinking about the future.”

The Ukrainians visited Framingham to learn how developers, public officials and climate activists teamed up with utility company Eversource to link multiple buildings to the same thermal network — and persuade a gas company to build the infrastructure for a renewable energy source, the article said.

Ukraine says it expects Russian attacks on nuclear facility, calls for increased IAEA monitoring

Ukrainian Foreign Affairs Minister Andriy Sybiha issued a public warning that Russia is planning to hit nuclear power plants (NPPs) and other nuclear-related facilities in the lead-up to winter.

"According to Ukrainian intelligence, Kremlin is preparing strikes on Ukrainian nuclear energy critical objects ahead of winter," Sybiha said in a post on X on Saturday. "In particular, it concerns open distribution devices at NPPs & transmission substations, critical for the safe operation of nuclear energy."

The claim comes shortly after Ukraine's Energy Ministry called on the International Atomic Energy Agency (IAEA) to accelerate deployment of monitoring missions at critical nuclear power plant substations.

Ukrainian Energy Minister Herman Galushchenko said on Wednesday that he asked the IAEA to "assess the safety of nuclear and radiation facilities, documenting operational events, and the consequences of potential and actual damage to the safety of nuclear power plants and technologically related infrastructure."

Reconstruction

Thousands of Polish firms apply for financing to participate in Ukraine's reconstruction

More than 3,000 Polish companies have applied so far for project financing to take part in the post-war rebuilding of Ukraine, the Polish government envoy for Ukraine's reconstruction Paweł Kowal told news agency PAP on Saturday.

"They are not always big firms, but very agile and efficient ones, and they need project financing," Kowal said.

Kowal said Polish firms are especially interested in Ukraine's energy sector and offering training, noting that many applications have also been received from companies in the medical sector.

Poland is set to play a major role in Ukraine's reconstruction after the UN in September last year said it would establish a UN Office for Project Services (UNOPS) in Warsaw to support recovery efforts in Ukraine. Earlier this year, the establishment of UNOPS' subsidiary office in Poland's southeastern city of Rzeszów, some 100 km from the Ukrainian border, was announced.

Rail freight price hikes will boost cost of materials needed for reconstruction, industry leaders warn

The prices of construction materials for Ukraine's reconstruction will rise if Ukrainian railway operator Ukrainian Railways increases rail freight tariffs, warned Konstantin Saliy, president of the Ukrainian Union of Construction Material Manufacturers.

Saliy said the construction industry is already operating at a loss and called for tariff policy changes to protect both consumers and manufacturers in a struggling economy, said consultancy GMK Center in its news section on Friday.

Ukrainian Railways last week indicated it plans to raise tarrifs on some types or freight, prompting widespread protest among Ukrainian industry leaders. Tarriffs rose 70% in 2022.

"We often hear inquiries from journalists and people about whether construction materials will be discounted during the restoration, whether the industry will support Ukrainians. I want to say: after such "friendly" steps taken by Ukrzaliznytsia, no discounts can be expected. Because even concrete systems and other products are manufactured from quarries. We have now reached the point where when our manufacturers make defense structures, the decision is often made to deliver the necessary materials by road. Because no one knows whether Ukrzaliznytsia will deliver wagons for this order on time, and what will happen with the tariffs," Saliy explained.

Ukraine needs foreign workers for reconstruction after 40% drop in domestic workforce, lawmaker says

Ukraine needs to import foreign labor to deal with the reconstruction of the country after the domestic workforce shrank 40% due to the refugee crisis and military mobilization since 2020, said Elena Shulyak, head of the Ukrainian Parliament's committee on local governance.

Encouraging refugees to return to Ukraine, local skills training, boosting the local birthrate and other measures to increase the local workforce will help but are not enough to meet demand for labor, Shulyak wrote in an essay for online magazine Glavcom.

"A more effective and quick solution can be the involvement of foreign migrants," she wrote. "It may seem controversial, but many developed countries, in particular the EU, solve the problem of aging population and labor shortage in this way. If a truly powerful post-war recovery awaits Ukraine, then there is actually no alternative to this process.

Finland opts out of UN 'gender-responsive' alliance for Ukraine reconstruction, sparking opposition protest

Finnish Minister for Foreign Trade and Development Ville Tavio has opted Finland out of a gender-equality alliance intended to prioritize gender in Ukraine's reconstruction, local news media reported.

The withdrawal from "Alliance for Gender-Responsive and Inclusive Recovery," launched in June 2024 by UN Women Ukraine, was confirmed by Finnish Prime Minister Petteri Orpo, who said the decision falls under Tavio's jurisdiction. The minister has not publicly explained his decision.

Finnish broadcaster MTV reported Friday, citing unnamed sources, that Tavio's decided top withdraw from the alliance because it also "intends to promote the causes of gender and sexual minorities."

The move has drawn heavy criticism from opposition leaders, particularly from the Social Democratic Party (SDP), which plans to propose a no-confidence motion against Tavio, reported Yle news.

Czech Republic agrees to cooperate with South Korea on projects for reconstruction of Ukraine

The Czech Republic and South Korea agreed to cooperate on their efforts toward the reconstruction of Ukraine in a visit to Prague by Korean Foreign Affairs Minister Cho Tae-yul, the Czech government said Friday.

"Cooperation between our two countries has expanded to include another important area, namely assistance to Ukraine," Czech Foreign Affairs Minister Jan Lipavsky said in a press release.

He added that "both sides show that they are ready to cooperate in the reconstruction of the country and also support the involvement of the private sector."

Long-Form Journalism

Ukraine’s great scientific project advances in the only city that is safe from bombs

Spanish newspaper El Pais highlights the efforts of Ukrainian scientists to create a DNA profile of 20,000 Ukrainians to try to keep the practice of science alive in the country despite the war.

The DNA collection project, partly run from Ozhhorod, which El Pais says is the only Ukrainian city never hit by a Russian missile, seeks to answer questions such as why kidney ailments surge in war-time and delve into the immune-depletion effects of stress.

'Our husbands didn't go to war for Ukraine so we can sit around crying'

The BBC highlights the plight of war widows and mental health issues in Ukraine in a feature story focused on a program to help the widows deal with grief through painting.

The article cites Ukrainian Health Ministry data indicating that the number of patients complaining of mental health problems this year has doubled, and antidepressant sales have jumped by almost 50% since 2021.

A study published in the medical journal The Lancet, meanwhile, suggests that 54% of Ukrainians (including refugees) have PTSD. Severe anxiety is prevalent among 21%, and high levels of stress among 18%.

Exclusive URN Interview:

Ukraine Rebuild Newswire held an exclusive interview with Bart Gruyaert, project director for Ukraine of Neo-Eco, the French company famous for recycling war rubble and industrial waste into building materials.

In the interview, Mr. Gruyaert revealed the timeline for the construction of a pilot factory, along with plans for a second factory and a laboratory, all in Ukraine, as well as other details. An excerpt of an article from the latest interview is below:

Neo-Eco doubles down on Ukraine, 'the best place in the world for a circular economy firm,' with 2 factories planned

Neo-Eco, a French company that transforms war rubble and industrial waste into low-carbon construction materials, is stepping up investment in Ukraine, which it considers the "best place on earth to be" for a company with its "circular economy" business model.

The company, which entered Ukraine shortly after the full-scale Russian invasion of 2022, plans to build a pilot factory by March of 2025 to produce low-carbon cement in the southern city of Mykolaiv, and is ready to then build a second factory.

The pilot factory will produce 100,000 tons a year of cement, which Gruyaert points out is enough to build 10,000 homes. And, depending on the energy source used to produce the cement, the carbon footprint can be as little as 5% of the footprint of regular cement.

The second factory, to be built within a two-hour drive of the first, will be 10 times that size, said Gruyaert, who has led Neo-Eco's move into Ukraine since June of 2022, about four months after the full-scale Russian invasion.

... Read the full story here

... Read the summary and transcript of the interview here

In Case You Couldn't Make It:

A representative of the European Investment Bank presented projects in Ukraine, backed by related presentations of the Lviv Transport Company and the head of Ukraine's Dream Platform.

The seminar, titled Successful Tenders and Procurement, was held Sept 19 by AHK Ukraine - German Chambers of Commerce Abroad and the Agency for Business and Development.

Ukraine Rebuild Newswire attended. Please find a summary of the seminar, along with slide presentations, transcripts, audio and other information, here.

Newsweek: It's Time to Think About the Endgame in Ukraine

In an op-ed piece in Newsweek, former Romanian Prime Minister Mihai Razvan Ungureanu and journalist Dan Perry say that three potential outcomes for the war are being considered as pressure mounts in the lead-up to the US election.

The "Korean model" envisions a frozen conflict with a militarized border, leaving Ukraine and Russia in a permanent standoff. The "Finlandization" model would cede Ukrainian territory such as Crimea in exchange for neutrality, preventing it from joining NATO or the EU. The third option, the "Rasmussen plan," advocates for full Ukrainian victory, with sustained Western support, the withdrawal of Russian forces, and Ukraine’s integration into NATO and the EU.

The Guardian: Zelensky has a game-changing plan to win peace. For it to work, Biden must back it – fast

Unless the West acts decisively, Ukraine may be forced into a weak ceasefire position, prolonging the conflict indefinitely. And time is on Russia's side, writes historian Timothy Garton Ash in an op-ed piece in The Guardian.

"Having for two years talked only of total victory, defined as recovering all the country’s territory in the frontiers of 1991, including Crimea and Donbas, (Ukrainian officials) now speak of reaching a position where Ukraine can negotiate from strength," he wrote. "Unlike many in the west, however, they understand that the only way to get there is to turn the tide on the battlefield: to knock Goliath sharply back on his heels, if not his arse."

Politico: Are we asking enough hard questions about Ukraine?

The media may be falling into an "information trap" when it comes to Ukraine, similar to what happened during the Iraq war, where journalists were too accepting of official narratives, Politico Europe opinion editor Jamie Dettmer writes.

Key assumptions, such as Ukraine being the first step in a broader Russian plan to attack NATO or that sanctions will collapse Russia’s economy, go largely unchallenged, he writes. Counter-arguments, like the unlikelihood of Russia attacking NATO or the depletion of Western military supplies, are rarely heard.

Western leaders must rethink their approach and clearly define achievable war aims, he says. The media must play a key role in pressing these difficult questions, ensuring that policy is based on realistic expectations rather than slogans or wishful thinking.

The Times: Ukraine has a victory plan — but what does victory mean?

Western leaders have avoided defining “victory” in relation to the war in Ukraine leaving Ukraine to decide, The Sunday Times writes in an opinion piece.

This ambiguity raises key dilemmas about whether Ukraine can regain all its occupied territories and what security guarantees would ensure lasting peace, according to the article. With no clear end in sight, the war risks becoming a prolonged conflict, testing both Ukraine’s endurance and Western commitment.

"Behind the scenes there is considerable and widespread 'Ukraine fatigue,' especially in Europe," The Times writes. "While some nations such as Poland and the UK still seem firmly committed to maintaining support for Ukraine, elsewhere there is a growing sense that it may be time to end the war, even if this means creating an 'ugly peace'."

CEPA reviews Penny Pritzker's year as special envoy to the reconstruction of Ukraine, suggests longer term

The US government should nominate a special envoy to the reconstruction of Ukraine on a multi-year term, set aside more money for reconstruction and issue travel advisories that recognize the different level of danger in various parts of Ukraine, the Washington-based Center for European Policy Analysis (CEPA) said in a special report.

The report praised Pritzker's focus on encouraging investment from the private sector in her one-year term, which ended last month, and suggested she be returned to the job if she's willing. Among its conclusions:

"The next president should keep the position of special representative and appoint someone with a similar profile to Pritzker’s. This is a multiyear mission that requires a longer commitment.
The special representative should lead more delegations of private investors to Ukraine. Investment in Ukraine cannot wait until the end of hostilities."

Ukraine IT Association analyses the impact of the IT sector on the war against the Russian invasion

Companies and employees in Ukraine's IT sector have donated a combined UAH 38.8 billion ($918 million) and 90% of IT companies in the country have employees who have joined the military, with more than 10,000 employees from the sector in uniform.

Also, "over the two years of war, more than 400,000 IT professionals have joined the cyber resistance and 70% of large IT companies have employees who have enlisted in cyber forces," the report said.

Jan Ruuth, an official with the European Commission's DG NEAR, posted an announcement that the Steering Board of the Ukraine Investment Framework on Friday gave the green light to the first call for proposals to mobilise private and public investments and an EIB guarantee of up to €1.95 billion.

Pierre Heilbronn, France's special envoy to the reconstruction of Ukraine, recounts last week's trip to Kyiv in a social media post, including meetings with senior government figures, businesses such as Ukrenergo, Energoatom, Naftogaz and DTEK, and others.

Borys Danevych, CEE head of life sciences and healthcare for law firm CMS, launches a guide explaining new Ukrainian regulations formalizing the use of off-label medicine.