Svyrydenko outlines a strategy to accelerate Ukraine's economic growth for the next year and a half
Kyiv • UNN
Ukraine's Economy Minister Yulia Svyrydenko has detailed a strategic plan to boost economic growth and reduce dependence on international aid by increasing exports, industrial development and attracting investment. Key components include a €50 billion program proposed by the EU, unimpeded sales of Ukrainian goods around the world, infrastructure development, and localization of arms production.
Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, has outlined a plan to grow Ukraine's economy in the next 12-18 months with the help of American partners. Yulia Svyrydenko described this plan step by step in her column "Why Ukraine's economy is showing unexpected success during the war" for the American magazine TIME, UNN reports.
Despite so many unfavorable forecasts, Ukraine's perseverance has paid off, largely thanks to the courage of its entrepreneurs and the support of our international partners. Now our strategy for 2024 is clear: we will accelerate the recovery, stimulate the development of the industrial sector, increase exports, attract more investment in real sectors of the economy, and generally create new investment opportunities.
Details
Svyrydenko emphasized that this growth is necessary for Ukraine's economic self-sufficiency. So that Ukrainians could cover most of the costs of the war and be less dependent on international financial assistance.
The Ministry of Economy is currently working on a number of concrete steps that, if implemented in the next 12-18 months, will help the Ukrainian economy continue to grow. In particular, the plans include the implementation of a four-year, 50 billion euro ($55 billion) program proposed by the EU.
Svyrydenko emphasized that the Ministry of Economy worked together with American partners to develop the plan.
The minister noted that the highest priority now is the ability to sell Ukrainian goods around the world without hindrance.
In 2021, our average monthly export revenue was $5.6 billion. When the Black Sea Grain Initiative expired in July, the amount dropped to $2.5 billion. The launch of Ukraine's own Alternative Black Sea Corridor of Safe Shipping Routes has been a success, delivering steady growth: sea freight traffic was up 70% in November compared to October. And increased to 30.7% in December compared to November. We expect this growth to continue.
The development of logistics and transportation infrastructure also remains a key element of Ukraine's cooperation with the US and the EU.
Svyrydenko noted that Ukraine is actively increasing the capacity of the solidarity roads between Ukraine and the EU, primarily in Moldova and Romania. The railroad is being improved. In addition, in February, a new berth is planned to be opened in the port of Constanta, which will allow transshipment of Ukrainian products from barges to large ships
Among the important tasks is the restoration of the energy sector. Thanks to the tremendous efforts of our power engineers, a large part of the Ukrainian energy system damaged by Russian attacks has been repaired. But Ukraine's economy is not yet able to operate at full capacity during the winter months.
We will continue to develop electricity production throughout the year, mainly through nuclear power, green energy and connections to the EU grid. It should be noted that Ukraine is now fully integrated into the EU's common electricity market.
Another priority is the development of the Ukrainian defense industry. It currently accounts for 3.6% of Ukraine's GDP. Currently, the defense sector accounts for 3.6% of Ukraine's GDP, but its potential is much greater. The government is working to localize arms production in our country.
We are living in a situation where ensuring technological superiority over the enemy is becoming a key driver of industrial production and innovation, and it is extremely important to localize arms production as much as possible - both for economic growth and national security. To this end, one of our goals for 2024 is to launch five joint ventures in Ukraine with Western arms manufacturers, which will include the exchange of advanced technologies in partnership with Day& Zimmermann, Northrop Grumman, Lockheed Martin and Raytheon.
Another priority, according to Yulia Svyrydenko, is to attract foreign investment.
Another important step is the transfer of Russian assets frozen abroad to Ukraine. Currently, they are estimated at about €300 billion. These assets generate interest, and in the EU alone, they generate annual income of €4-6 billion. The Ukrainian government expects that these funds will be transferred to our country as compensation for all the crimes committed by Russia and the damage caused.
Ukraine also expects that in February, at the next summit, the European Commission will decide to allocate €50 billion under the Ukraine Facility program.
