Federal Council to support recovery in Ukraine with CHF 5 billion by 2036

The funds required for reconstruction in Ukraine are estimated at USD 486 billion (around CHF 440 billion). This World Bank estimate is based on a damage and needs analysis co-financed by Switzerland. Switzerland is already supporting projects in Ukraine that focus on rebuilding destroyed civilian infrastructure in the energy, road and healthcare sectors. In addition, Switzerland and Ukraine jointly launched the political recovery process on a broad scale at the Ukraine Recovery Conference in Lugano in July 2022. The 59 delegations from states and international organisations in attendance there agreed on the Lugano Principles, laying the cornerstones of the political recovery process.

To date, Switzerland has spent around CHF 3 billion on these and other measures in support of people affected by the war in Ukraine. Around CHF 425 million of this was drawn from the international cooperation budget, with the rest (around CHF 2.5 billion) spent by the State Secretariat for Migration for welcoming and supporting people with protection status S in Switzerland.

Through the measures on the ground taken to date and those planned, Switzerland is also contributing to stability in Europe and reducing migration flows, while indirectly also strengthening Switzerland's security, prosperity and independence.

Over the next twelve years, the Federal Council intends to step up its support for reconstruction in Ukraine and promote cooperation with the private sector. It plans to spend CHF 5 billion to these ends by 2036. Given the Swiss federal government's current financial situation, the Federal Council has proposed a phased approach: the support for Ukraine drawn from the international cooperation budget up to 2028 is to total CHF 1.5 billion. The Federal Council will propose this to Parliament within the framework of the international cooperation strategy. For the 2029–36 period, the Federal Council intends to also look into other sources (beyond international cooperation) from which to draw the remaining CHF 3.5 billion.

At its meeting today, the Federal Council also instructed the FDFA and the EAER to draw up a joint Ukraine country programme that includes the appropriate oversight mechanisms. This programme should ensure targeted and effective support and be based on the seven Lugano Principles: partnership, reform focus, transparency, accountability and rule of law, democratic participation, multi-stakeholder engagement, gender equality and inclusion, and sustainability.

The Federal Council also instructed the FDFA, in cooperation with the EAER and with the involvement of all the departments concerned, to establish how the Ukraine country programme is to be headed, in strategic terms. Specifically, a proposal for an interdepartmental steering group headed by a Federal Council delegate for Ukraine is to be drawn up and submitted to the Federal Council for approval.

Address for enquiries:

For further information:
FDFA Communication
Tel. Press service +41 460 55 55
kommunikation@eda.admin.ch

Publisher:

The Federal Council
Federal Department of Foreign Affairs
Federal Department of Economic Affairs, Education and Research