This significant support was announced during the business forum “Italy Supports ‘Made in Ukraine’” held in Rome, according to the press service of the Italian Ministry of Economy.
Strategic Partnership with Ukrhydroenergo
During the event, Italy, in collaboration with the European Bank for Reconstruction and Development (EBRD), confirmed its dedication to strengthening Ukraine’s energy infrastructure by allocating €200 million to Ukrhydroenergo, Ukraine’s largest hydropower company. The agreement, formalized in February 2024, outlines that the loan funds will be utilized to:
- Purchase Critical Equipment: Upgrading the Dnipro and Sredneodniprovska hydroelectric power plants with essential machinery to enhance their operational efficiency and capacity.
- Provide Emergency Liquidity Support: Ensuring the sustainability of Ukrhydroenergo’s operations by maintaining financial stability during the ongoing conflict.
Supporting "Made in Ukraine" and Key Economic Sectors
Italy reaffirmed its commitment to the Ukrainian government's "Made in Ukraine" policy, emphasizing the importance of fostering domestic production and innovation. Italian businesses expressed keen interest in collaborating with Ukrainian enterprises across five pivotal sectors:
- Metallurgy and Critical Materials
- Development of Renewable Energy Sources
- Defense Industry
- Agro-Processing
- Mechanical Engineering
These collaborations are expected to not only bolster Ukraine’s economic resilience but also create mutually beneficial opportunities for both Italian and Ukrainian businesses.
Enhancing Supply Chains of Critical Raw Materials
In addition to direct financial support, Ukraine and Italy agreed to deepen their cooperation in the supply chains of critical raw materials. The areas of collaboration include:
1. Strengthening Value Chains
Promoting safe and sustainable practices within the value chains of critical raw materials while expanding commercial and investment opportunities to ensure robust and reliable supply chains.
2. International Cooperation
Working together to make supply chains more diverse, transparent, resilient, and sustainable. This cooperation will take place within the framework of key international forums, such as the Mineral Security Partnership Forum, focusing on the security and sustainability of these supply chains.
3. Research and Innovation
Exploring joint research initiatives into the value chains of critical materials. Potential areas of collaboration include sharing knowledge, experience, and best practices to drive innovation and efficiency.
4. Mapping and Exploration
Collaborating on exploration plans and leveraging the expertise of the Italian Institute for Environmental Protection and Research (ISPRA) and the State Service for Geology and Subsoil of Ukraine to enhance resource mapping and exploration efforts.
Addressing Infrastructure Needs and Economic Recovery
Minister Vitaliy Koval highlighted that the analytical study by UkraineInvest underscores the Ukrainian government’s strategic approach to developing the agricultural sector, which plays a crucial role in economic recovery and supporting rural areas. The study emphasizes the need for significant investments in infrastructure to increase productivity, particularly in irrigation systems, logistics, and crop storage.
Despite the immense potential, the Ukrainian agro-industrial sector has suffered considerable losses estimated at $80 billion, with over 65% of these losses occurring in regions affected by conflict. To restore and develop the industry over the next decade, an investment of $56 billion is deemed necessary.
Italy’s Commitment to Ukraine’s Reconstruction
Italy’s latest financial contribution is part of a broader commitment to Ukraine’s reconstruction efforts. By facilitating the involvement of international donors and private companies, Italy aims to ensure the effective restoration of critical infrastructure and the provision of essential public services. This collaborative effort is vital for Ukraine’s sustained economic recovery and resilience in the face of ongoing challenges.
Conclusion
Italy’s allocation of €200 million to Ukraine’s power system restoration signifies a robust and multifaceted support strategy aimed at rebuilding Ukraine’s critical infrastructure and enhancing its economic stability. Through strategic investments, fostering international cooperation, and supporting key economic sectors, Italy is playing a pivotal role in Ukraine’s path toward recovery and long-term resilience.
As Ukraine continues to navigate the complexities of post-conflict reconstruction, such international partnerships are essential in ensuring the nation’s sovereignty, economic growth, and contribution to global food security.
