Ukraine

The situation in Ukraine is highly complex, with continuing conflict and major humanitarian challenges. Throughout 2024, the fighting and bombardments have claimed more and more civilian victims, while causing massive damage to infrastructure. Homes, schools, hospitals and water, gas and electricity networks are regularly targeted. The considerable damage caused to infrastructure and the power cuts are slowing down economic activity in the ‘breadbasket of Europe’.

By the end of 2024, almost four million people - including almost a million children - were displaced within Ukraine, while more than six million were refugees abroad. In addition to the insecurity of war, and the trauma of bereavement and displacement, poverty has risen sharply since the war began. Unsurprisingly, statistics suggest that the proportion of Ukrainians suffering from mental health problems is very high and growing.

International humanitarian aid, to which Luxembourg makes a significant contribution, continues to provide essential assistance, including food, medical care and shelter. However, needs outstrip available resources, and diplomatic efforts to resolve the conflict have so far been unsuccessful.

Despite the ongoing conflict, Ukraine has shown remarkable resilience and unity, and continues its commitment to economic and democratic reform, consolidating its links with Europe and the international community. The country actively participates in a number of organisations such as the Council of Europe, reaffirming its desire to adhere to European standards. At the same time, initiatives are being taken to diversify its economy and strengthen the country's energy independence.

Luxembourg Cooperation is paying particular attention to the Kryvyi Rih raion (district) in the Dniepropetrovsk oblast in the south-east of the country, which is home to a population of around 780,000 people and is facing a large influx of displaced persons. It is currently the largest industrial zone in Ukraine. In 2024, it will account for 15% of the country's gross domestic product. The area is not immediately on the front line, but it is a key target because its mining and metallurgical profile is essential not only for the Ukrainian economy, but also for the war effort.

Following a needs assessment, in 2024 Luxembourg launched a programme to support the population of Kryvyi Rih in close collaboration with its Ukrainian partners. This programme consists of various initiatives in the fields of education, vocational training, support for micro, small and medium-sized enterprises, energy resilience and mine clearance. LuxDev is also supporting the Kryvyi Rih authorities in designing and seeking funding for projects in key areas such as energy, transport and agriculture.

At national level, since the end of 2024 Luxembourg has been supporting the efforts of the Ukrainian energy sector through its support for the Ukraine Energy Support Fund , which aims to counter the impact of the war on critical energy infrastructures.