MIL-OSI Europe: Multi-agency Donor Coordination Platform: Joint Ministerial Communiqué

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Source: Government of Sweden

We, the MDCP members convened today the first annual ministerial meeting of the Multi-agency Donor Coordination Platform for Ukraine (MDCP), at the 2024 Ukraine Recovery Conference in Berlin. We acknowledged the support provided to Ukraine since February 2022 and reaffirm our unwavering commitment to continue supporting Ukraine in view of Russia’s illegal, unjustifiable, and unprovoked war against the country. We will continue to coordinate our efforts to meet Ukraine’s financing needs, preserve macroeconomic and financial stability, and develop a sustainable, resilient, inclusive, gender-responsive, and green recovery based on strong democratic institutions, the rule of law, and anti-corruption measures. Our unified economic support totals more than USD 142.8 billion to date. Ukraine has already received more than USD 74 billion from our countries in budget support, the majority of the USD 85 billion provided by all donors.

We acknowledge the ongoing challenges Ukraine faces and reiterate our commitment to work towards addressing Ukraine’s needs for 2024 and 2025. Through our joint efforts, we have made considerable progress in closing the external financing gap for 2024. This includes disbursement of USD 6.5 billion from the EU, USD 2.1 billion from Japan, USD 1.5 billion from Canada, USD 881 million of IMF financing under the Extended Fund Facility, USD 516 million from the UK, and USD 295 million from Norway in January-June 2024. It also includes an additional USD 10.9 billion to be disbursed by the EU subject to the implementation of commitments outlined in the Ukraine Plan and forming part of the USD 41.2 billion for budget support from 2024 through 2027. Working with Congress, the United States intends to provide USD 7.8 billion in budget support, Japan has committed an additional USD 2.0 billion, and the UK an additional USD 484 million. We continue to assess how we can meet emerging supplemental budget needs caused by Russia’s continuing aggression in a predictable and regular manner to maintain financial and economic stability.  We welcome the EU decision to direct extraordinary profits stemming from immobilized Russian sovereign assets for the benefit of Ukraine. G7 countries are making progress in their discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine, consistent with international law and their respective legal systems, with a view to presenting options to G7 Leaders ahead of the Apulia Summit. The G7, the Netherlands and Sweden reaffirm that, consistent with our respective legal systems, Russia’s sovereign assets in our jurisdictions will remain immobilized until Russia pays for the damage it has caused to Ukraine. 

We firmly condemn Russia’s targeting of Ukraine’s energy infrastructure. We reiterate our call of accountability for all international crimes committed in and against Ukraine. As we have stood in solidarity with Ukraine for the last two winters, we commit to continue to support Ukraine with significant emergency assistance to help repair and stabilise the energy grid and restore power generation, first and foremost in preparation for the next winter. As part of the G7+ energy coordination group, we have committed and pledged over USD 1 billion in additional financing and in-kind donations to respond to these most urgent energy sector needs after Russia escalated its attacks on Ukraine’s critical infrastructure, particularly its power generation facilities. The group has focused its assistance on materials for the protection of energy infrastructure, urgent repairs, and development of distributed power solutions to enable longer-term economic sustainability and growth. At the Ukraine Recovery Conference, the members of the G7+ energy coordination group reiterated their collective support for Ukraine’s energy sector, including through the Clean Energy Partnership, acknowledged progress on key business-enabling reforms, and pledged additional assistance to achieve Ukraine’s vision of a modern, more decentralized, greener energy system that is integrated with Europe. 

We welcome Ukraine’s strong commitment to reforms and the progress made so far, which will contribute to improving conditions for investment and economic growth. We welcome the Ukrainian Government’s publication of its reform matrix, a prioritized and sequenced list of all of Ukraine’s reform commitments, including those stemming from the Ukraine Plan and Ukraine’s EU accession path, and stress the importance of further sound implementation of these reforms under difficult circumstances. The positive economic impact of the Ukraine’s reform agenda can be supported through the mitigation of macro financial risks, ensuring security of energy supply, securing export routes, including through the EU-Ukraine Solidarity Lanes, and access to affordable finance, including to offset effects of war on labour market and induce productivity of the private sector as a backbone of competitive economy. The matrix and white paper on economic growth presented by Ukraine will serve as a tool to assist all stakeholders, including Ukrainian and international civil society, in facilitating the coordination of economic reforms and supporting and monitoring Ukraine’s reform progress as the foundation for long-term green and sustainable socio-economic growth. 

We reaffirm our determination to continue providing support to respond to Ukraine’s urgent early recovery and reconstruction needs. We support Ukraine’s launch of its public investment management reform and Strategic Investment Council aimed at improving project planning, prioritization, and preparation of a single pipeline of projects to maximize donor and private sector investments to Ukraine from 2025 onwards. In this context, we commit to continuing our efforts to address the short-, medium- and long-term transportation needs of Ukraine, including with over USD 800 million in announced funding for 2024 by the Platform. We all commit to principles of aid effectiveness, sustained responsible stewardship, donor coordination, transparency, and accountability in reconstruction projects, including through enhancing digital platforms.

To support Ukraine’s public investment management process, the Government of Ukraine, the United States, the United Kingdom and the European Commission in collaboration with MDCP members, plan to develop a new Project Preparation Framework to boost Ukraine’s project preparation capacity, in cooperation with the World Bank Group, the European Investment Bank and the European Bank for Reconstruction and Development. The Steering Committee of the Multi-agency Donor Coordination Platform will take the matter further at its next meeting, including presenting plans to develop project preparation facilities. This will contribute to the recovery, reconstruction and modernization effort, in line with Ukraine’s commitment to its EU accession process.

In Berlin, we met the members of the newly launched Business Advisory Council and committed to receive their advice on how Ukraine and donors can strengthen Ukraine’s investment climate, attract private sector investment, and bolster Ukrainian enterprises. 

The Multi-agency Donor Coordination Platform will strive to further foster robust and effective channels for assistance coordination to ensure donors are meeting Ukraine’s highest priority needs. Steering Committee members will meet again in the fall, hosted by Italy’s Presidency of the G7.

Permanent members of the Multi-agency Donor Coordination Platform are Italy, Canada, the European Commission on behalf of the European Union, France, Germany, Japan, Ukraine, the United Kingdom, and the United States. Temporary members are the Republic of Korea, the Netherlands, Norway, and Sweden.

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