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‘Colossal’: World leaders meet in Switzerland for Ukraine recovery conference

Leaders from dozens of countries, international organisations and the private sector gathered in Switzerland Monday to hash out a "Marshall Plan" to rebuild war-ravaged Ukraine.

President Ignazio Cassis said Switzerland will join the EU in imposing sanctions on Russia. Photo by Fabrice COFFRINI / AFP)
Swiss President Ignazio Cassis. Photo by Fabrice COFFRINI / AFP)

Ukrainian President Volodymyr Zelensky, who will take part virtually, warned Sunday that the work ahead in the areas that have been liberated alone was “really colossal”.

“And we will have to free over 2,000 villages and towns in the east and south of Ukraine,” he said.

The two-day conference, held under tight security in the picturesque southern Swiss city of Lugano, had been planned well before Russia launched its full-scale invasion on February 24.

It had originally been slated to discuss reforms in Ukraine, but once the Russian bombs began to fall it was repurposed to focus on reconstruction.

As billions of dollars in aid flows into Ukraine, however, lingering concerns about widespread corruption in the country mean far-reaching reforms remain in focus and will be a condition for any recovery plan decided here. 

‘Roadmap’

Lugano is not a pledging conference, but will instead attempt to lay out the principles and priorities for a rebuilding process aimed to begin even as Russia’s war in Ukraine continues to rage.

Ukraine’s ambassador to Switzerland Artem Rybchenko said ahead of the conference that it would help create “the roadmap” to his country’s recovery.

Zelensky had initially been scheduled to come and co-host the event alongside his Swiss counterpart Ignazio Cassis, but now he is due to give his address Monday afternoon via video link.

Ukrainian Prime Minister Denys Shmyhal has however made a rare trip out of Ukraine since the war began to attend, and was met at the airport Sunday by Cassis and regional leaders.

Five other government ministers were also among the around 100 Ukrainians who made the long and perilous journey, although Foreign Minister Dmytro Kuleba reportedly had to cancel at the last moment due to illness.

In all, around 1,000 people were scheduled to participate in the conference, including European Commission President Ursula von der Leyen, several government chiefs and numerous ministers. 

‘Marshall Plan’

Questions have been raised about the value in discussing reconstruction when there is no end in sight to the war.

But Robert Mardini, director-general of the International Committee of the Red Cross, told the RTS broadcaster that while the reconstruction itself could only happen fully after the bombs have stopped, it is vital to give “a positive perspective to civilians who have lost their homes, and who are struggling with anxiety and uncertainty for the future”.

Others stress the need to begin laying the groundwork well in advance, as was done with the wildly successful Marshall Plan, a US initiative that pumped vast sums in foreign aid into Western Europe to help the continent rebuild and recover after World War II.

The task is daunting.

Rebuilding Ukraine, which four months into the war has already seen devastating destruction, is expected to cost hundreds of billions of dollars.

The effort will require “colossal investments”, Zelensky acknowledged at the weekend.

Kyiv School of Economics (KSE) has estimated the damage done so far to buildings and infrastructure at nearly $104 billion.

It estimated that at least 45 million square metres of housing, 256 enterprises, 656 medical institutions, and 1,177 educational institutions had been damaged, destroyed or seized, while Ukraine’s economy had already suffered losses of up to $600 billion. 

Could last decades 

Simon Pidoux, the Swiss ambassador in charge of the conference, said that it was too early to try to estimate all the needs, insisting Lugano instead should provide “a compass” for the work ahead.

“I think the effort will last for years if not decades,” he said.

While not a donor conference, a number of participants are expected to make new pledges and propose frameworks for providing more funds.

The European Investment Bank will for instance propose the creation of a new Ukraine trust fund, which with investments from EU and non-EU states could eventually swell to 100 billion euros, according to sources familiar with the draft plans.

The proposal, which is due to be announced Monday afternoon, aims to create a platform able to generate investment towards reconstruction, and also towards Ukraine’s EU accession goals, they said.

British Foreign Secretary Liz Truss is meanwhile due to set out her country’s vision for the rebuilding, according to a statement. In her comments to the conference Monday, she is expected to highlight the importance of Ukraine’s full recovery from “Russia’s war of aggression”. That, she will say, will be “a symbol of the power of democracy over autocracy.”

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UKRAINE

Switzerland bans imports of Russian gold

Switzerland, a key refiner and manufacturer of gold bars, is banning imports of the precious metal from Russia, the government said Wednesday.

Switzerland bans imports of Russian gold

The central government aligned itself with EU sanctions which, on July 21, added a ban on gold imports of Russian origin to the list of restrictions following Moscow’s invasion of Ukraine.

The ban came into effect at 6:00 pm on Wednesday, Switzerland’s Federal Council said in a statement.

Under the new sanctions, Switzerland forbids “buying, importing or transporting gold and gold products from Russia”, the statement said, adding that “services in connection with these goods are also prohibited”.

Traditionally neutral, Switzerland broke with its usual stance in the days after the start of the war in Ukraine by aligning itself with European Union economic sanctions.

In May, three tons of gold from Russia were imported from Britain, but it was not clear which company was responsible for bringing it to Switzerland, Bloomberg News reported.

The Swiss Association of Manufacturers and Traders in Precious Metals (ASFCMP), which represents the country’s largest refineries, contacted its members and said none of them were responsible for the imports.

The association insisted that “doubtful gold” had “no place in Switzerland” and urged its members to act “with the utmost caution”.

Swiss customs said at the time they were examining the imports in light of the sanctions, but insisted that gold imports from Russia were not banned.

While gold exports were already subject to sanctions, imports were not banned under the sanctions order, customs officials said.

The fourth package of sanctions imposed by the EU included luxury goods, banning the sale, supply, transfer or export of luxury goods to Russia, including gold, silver, pearls and diamonds.

But on July 21, the EU also explicitly added a ban on importing gold from Russia, including in the form of powder, debris or gold coins.

Switzerland has several refineries to recycle gold and melt ingots.

The sector employs 1,500 people, according to ASFCMP.

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