Ukraine

Ukraine continues to suffer the consequences of Russian aggression, both in human and material terms, with the destruction of civilian infrastructures such as hospitals, energy infrastructures and residential buildings. 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 increased sharply since the start of the war.

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. At the same time, initiatives are being undertaken to diversify its economy and strengthen the country's energy independence.

According to the third rapid damage and needs assessment carried out by the World Bank, the Ukrainian government, the European Commission and the United Nations in February 2024, reconstruction costs in Ukraine amount to 486 billion dollars. The need for recovery continues to grow as Russian aggression continues, and we cannot wait for the end of the war to begin rebuilding the country.

At the request of Ukrainian President Volodymyr Zelensky, Luxembourg Cooperation is concentrating its recovery support in the raion (district) of Kryvyi Rih (Dniepropetrovsk oblast) in the south-east of the country, home to a population of around 780,000 and facing a large influx of displaced people. It is currently the largest industrial zone in Ukraine. By 2024, it will account for 15% of the country's gross domestic product.

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 humanitarian demining. 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.