Corporate social responsibility
The sustainable reconstruction of Ukraine
There’s been much discussion about foreign support for Ukraine. But amid the efforts of national governments, what can the private sector offer that their bureaucratic cousins cannot? And are corporates starting to think about how best to support Ukraine once the fi ghting fi nally ends? Phoebe Galbraith explores, along the way speaking to Morgan Williams, president and CEO at the US-Ukraine Business Council.
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ussia’s invasion of Ukraine sparked international outrage last year, with governments rushing in to provide a blizzard of military and humanitarian support. That’s clear across borders. The UK offered almost £400m in humanitarian aid, even as it supplied tanks, helicopters and anti-tank weapons to the beleaguered Kyiv government. Germany, for its part, has sent €22bn in aid since the start of the war, while allocating a €76m grant to Ukraine’s national power grid. Despite this foreign support, however, Ukraine clearly has a hard road ahead – even once the fighting finally ends and the country can focus on reconstruction. And with nations around the world facing the looming threat of recession, even sympathetic allies are unlikely to have deep enough pockets over the years ahead. If Ukraine is to be ready for what happens when the guns finally fall silent, in short, it will be down to the private sector to step up.
“[Ukraine] can’t just rely on the government – and the government doesn’t have the money, they don’t have the expertise, to do what the private sector does,” is how Morgan Williams puts it. “You’re going to need a lot more investment, you’re going to need a lot more jobs, and we need a much more friendly business environment.”
As president and CEO of US-Ukraine Business Council, a non-profit trade association established to advance US businesses in Ukraine, Williams fell in love with the culture and history of the country decades ago, and now works with US companies to invest in the bloodstained eastern European state. “Our job,” he argues, “is to promote Ukraine as a place to do business.”
Chief Executive Offi cer /
www.ns-businesshub.com Business and bombs
Beyond short-term military and humanitarian support, Ukraine faces the broader challenge of rebuilding critical and social infrastructure, of which promoting business, economic development and prosperity is essential. Private companies are doing much in the way of supporting this. The International Conference on Ukraine’s Recovery (URC23), for example, raised $60bn for Ukraine’s recovery, with over 500 companies signing a statement showing their unwavering support for Ukraine. The International Finance Corporation (IFC) estimates that Ukraine’s private sector could contribute roughly $140bn to the country’s reconstruction over the next decade – around a third of what it needs. At the same time, an influx of cash could do much to keep the country secure over the coming decades. As Ukraine’s president, Volodymyr Zelenskyy, recently noted in an address to his people, a “rebuilt, transformed and strengthened” Ukraine is vital to “safeguard against any forms of Russian terror” in the future.
More than mere finance, meanwhile, the private sector can also offer jobs and goods – and tax and export revenues. To this end, British International Investment (BII), the US International Guarantee Agency (DFC) and Multilateral Investment Guarantee Agency (MIGA) have all agreed to risk-share the IFC’s trade finance exposure, with the BII and DFC planning to provide $25m and $50m respectively to support trade of critical goods like food. The MIGA, for its part, has also approved $20m to support trade finance guarantees. This support will facilitate up to $1bn in imports and exports over the next three years. Businesses also create jobs through private investments.
300 KFC 17
The number of Ukrainian women KFC has committed to training and hiring over the next three years.
Barks/
Shutterstock.com
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