Ukrainian Government:

• The Government of Ukraine, along with the World Bank Group, the European Commission, and the United Nations, has published an updated joint assessment of damage and needs resulting from the Russian invasion (RDNA3), estimating Ukraine’s recovery needs at USD 486 billion over the next decade. This figure is about 2.8 times Ukraine’s nominal GDP for 2023 and 18% higher than the previous RDNA2 estimate. The report covers damage from the invasion between February 24, 2022, and December 31, 2023, with direct losses reaching almost USD 152 billion, particularly affecting sectors like housing, transport, trade and industry, energy, and agriculture.

• The blockade by Polish farmers continued at five checkpoints along the Polish-Ukrainian border, leading to ongoing disruptions in cargo traffic. According to the State Border Guard Service of Ukraine, as of March 9, approximately 1,700 trucks were queued at these checkpoints. The longest queue was reported at the Yahodyn checkpoint. Despite the blockade, buses and cars were able to pass through the checkpoints without hindrance.

• During the Government session on March 5, Ukraine allocated an additional UAH 9.3 billion (approximately SEK 2.5 billion) for the rapid recovery program. The funds will support the repair of residential buildings, schools, hospitals, and critical infrastructure facilities in 13 regions, aiming to create conditions for Ukrainians to return from abroad and continue European reforms.

• Ukraine’s IT industry, a key economic driver, continues to thrive despite the war. Diia.City, a major tech hub, now houses 800+ residents and supports innovation. The government is enhancing the hub’s accessibility and fostering partnerships with global firms. Diia.City is expanding its focus to include defense technology, bionic prostheses, and electric vehicles, aligning with Ukraine’s innovation priorities.

• The Cabinet of Ministers of Ukraine has approved the Plan for the Ukraine Facility program, a pivotal step for accessing EU financial assistance totaling EUR 50 bln from 2024 to 2027. The plan, comprising over 150 indicators in 69 reform areas, is designed to bolster the country’s economy and business climate. This approval sets the stage for the implementation of reforms aimed at enhancing public finances, fighting corruption, and advancing key industries. Funding under the program will be based on the Plan’s indicators, with the last payment expected in 2028. The Plan’s approval marks a crucial step in Ukraine’s path toward economic development and integration with the European Union.

Sweden in Ukraine

• Sweden, alongside the Republic of Korea, the Netherlands, and Norway, joined the Donor Coordination Platform for Ukraine, pledging over USD 5.5 billion to support Ukraine’s economic recovery. This collective commitment demonstrates the international community’s solidarity with Ukraine in its efforts to rebuild and stabilize its economy after the conflict.

• On February 20, Sweden announced its largest military support package to date for Ukraine, totaling SEK 7.1 billion. The package includes a maritime initiative, artillery ammunition, anti-aircraft systems, and financial aid, bringing Sweden’s total military assistance to Ukraine since the invasion to SEK 30 billion.

• On February 29, the Government of Sweden adopted a regulation enabling exporting companies to apply for special export credit guarantees with the Export Credit Board (EKN) for exports to Ukraine that support the country’s development and welfare. This move aims to facilitate Swedish investments in Ukraine, with Minister for Aid and Foreign Trade Johan Forssell highlighting the importance of these guarantees in promoting trade and business promotion. In addition to the export credit guarantees, the government announced the opening of a new trade secretary’s office in Kiev and the appointment of a new trade secretary in Ukraine. This was a final step in formalizing re-opening of Business Sweden’s presence in Ukraine.

• During her visit to Ukraine on March 25th, Swedish Deputy Prime Minister and Minister of Energy, Business, and Industry, Ebba Busch, met with Ukrainian officials to discuss increasing Swedish business presence in Ukraine. The meeting, attended by Ukrainian Minister of Economy, Yulia Svyrydenko, focused on cooperation in high-tech sectors like energy, telecommunications, and cyber security. Discussions also included support for Ukraine’s energy sector amid challenges and initiatives to reduce the gender pay gap. Additionally, Deputy Prime Minister Busch discussed nuclear energy cooperation with Ukrainian Minister of Energy, German Galushchenko, highlighting Sweden’s interest in collaboration in this area. Deputy Prime Minister’s visit underscores the growing interest in bilateral business collaboration between Sweden and Ukraine.