The Dutch government will provide Ukraine with a package of non-military support worth € 1.2 billion over the coming three years. The package will address the country’s most urgent needs and contribute to recovery and reconstruction, and improve opportunities for Dutch companies in Ukraine, especially in areas where they can offer expertise.
The bulk of the package is aimed at the energy and water sectors. Minister of Foreign Trade and Development Cooperation Sjoerd Sjoerdsma made this announcement during his visit to Kyiv on Wednesday. ‘Ukraine is under heavy fire and facing a tough winter’, he said. ‘It is essential for the security of us all that we continue to support Ukraine and its people to withstand this war. That is why the government has decided on this new package.’
The Netherlands will make a contribution of € 40 million to the Ukraine Energy Support Fund before the end of this year, to support the most urgent replacement and repairs to the energy system. Russian air strikes are increasingly targeting Ukraine’s energy and water infrastructure and have caused extensive damage and destruction. Dutch support will make it possible to repair damaged installations, stockpile emergency supplies and train specialist personnel for the energy and water sectors. The Netherlands will also provide € 55 million for in-kind energy support, enabling the delivery of energy equipment from Dutch companies to Ukrainian partners via the Netherlands Enterprise Agency.
Mr Sjoerdsma is visiting Kyiv together with the president of the Confederation of Netherlands Industry and Employers (VNO-NCW), Coen van Oostrom. They will talk with Ukrainian officials and Dutch businesses active in Ukraine about strengthening business relations, forging collaborations and removing obstacles.
The new package increases the government’s private sector support, enabling Dutch companies to play a bigger role in recovery and reconstruction and secure a better position in the Ukrainian market. For instance, € 136 million will go toward initiatives including the Ukraine Partnership Facility. Additionally, the government is enlarging the coverage of the existing export credit insurance in order to reduce risks for businesses aiming to export to Ukraine, with an additional €19.5 million available, on top of the existing €60 million facility.
Foreign trade minister Sjoerdsma: ‘Support for recovery and reconstruction can’t wait for a ceasefire. Ukraine needs our help right now: military support, but also social and economic assistance. However successful you are on the battlefield, it's also essential that energy systems, hospitals and food production keep ticking over. This is not possible without the involvement of the private sector. That’s why it’s good to be here today with VNO-NCW. The companies that get involved now will help shape the partnerships, supply chains and opportunities of the future.’
VNO-NCW president Coen van Oostrom: ‘It’s impressive to see how Ukraine is keeping its economy running under very difficult circumstances. But reconstruction will be a huge job, and Dutch companies can play an important role in it. In this, we'll need to work closely with the Ukrainian government and remove obstacles for businesses. That’s what I'll be talking about today.’
Mr Sjoerdsma and Ukraine’s Minister of Economy and Environment Oleksandr Kravchenko will sign a declaration of intent on the Netherlands’ contribution to President Zelenskyy’s Industrial Ramstein initiative (€ 10 million). Its focus is on repairing and modernising the production capacity of Ukrainian businesses by facilitating the delivery of machines, equipment and other goods from other countries, including the Netherlands.
In addition, through the United Nations Development Programme, the Netherlands continues to support efforts to locate and return abducted Ukrainian children. Finally, the package also includes support in the areas of housing, humanitarian assistance, healthcare, mental health and psychosocial support, demining, democracy and the rule of law, and the restoration of cultural heritage.
With the package, the government is providing more details about how it will spend the amounts it had already pledged for the coming three years, namely €878 million in non-military support set out in the coalition agreement and an additional €327 million announced on Budget Day. A large part of this support is channeled through the European Bank for Reconstruction and Development (EBRD), the World Bank, and the European Investment Bank (EIB)