UK contributes £20 million to the Trust Fund to support Ukraine's economy
Kyiv • UNN
The United Kingdom has donated £20 million to the SURE Fund for Ukraine's recovery, established by MIGA in February 2013 to support the country's economic recovery and attract private investment in the wake of the war.
The UK has made a £20 million contribution to the Trust Fund for the Support of Ukraine's Reconstruction and Economy (SURE), which was launched in February 2023 by the World Bank's Multilateral Investment Guarantee Agency (MIGA). This was reported by the Ministry of Finance of Ukraine, according to UNN.
Details
We would like to thank our partners from the UK for their contribution to the Trust Fund for the Support of Ukraine's Reconstruction and Economy (SURE). In addition to the financial support provided by the fund in the real sector of the Ukrainian economy, it is important for us that more and more countries are joining in to support investors who are ready to participate in Ukraine's recovery without waiting for the war to end
She also emphasized that MIGA guarantees are a key risk mitigation tool, ensuring the continuity of private sector operations and attracting investment for the country's recovery and reconstruction.
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UK Industry and Economic Security Minister Nusrat Ghani added that Britain is committed to supporting Ukraine's long-term reconstruction needs.
Our £20 million contribution to the MIGA insurance trust fund will help reduce project risks and attract much-needed private investment in Ukraine to support economic recovery now and in the future,
Addendum
The ministry notes that MIGA is an active insurance provider in Ukraine, having issued political risk insurance guarantees for more than $215 million since the beginning of the Russian invasion in February 2022.
Due to the ongoing war, private insurers are unable to provide political risk insurance in Ukraine. Instead, the SURE trust fund allows MIGA to continue to support foreign direct investment in Ukraine during this difficult period for the country.
Together with Norway's contribution of about $22 million, MIGA will now be able to insure a minimum of $100 million in new investment in Ukraine.
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The fund is expected to grow to $300 million through contributions from additional donors, allowing MIGA to provide trade finance guarantees, conflict-related bank reserve insurance, and political risk insurance to support post-war recovery.
As a reminder,
the World Bank has approved a new INSPIRE projectfinanced by a $1.2 billion loan to provide funding for 29 types of social benefits to nearly 10 million Ukrainians affected by the consequences of Russia's invasion of Ukraine.
SEE ALSO: EU agrees 50 billion euros financial aid package for Ukraine
