The issuance of thematic bonds linked to sustainable development and result-oriented public-private partnerships are the most promising innovative tools for financing mine action in Ukraine. This is stated in a report by the United Nations Development Programme (UNDP) based on the results of a study commissioned by the Ministry of Economy.

“Our partners estimate that USD 34 billion is needed to survey and demine the Ukrainian territory. This is a significant figure. The Government is working to reduce the cost of land clearance, in particular by introducing a demining market, using the latest technologies and domestic demining machinery and equipment. Innovative approaches to financing, which we are striving to implement together with our partners, should ensure sustainable financing of the work,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

The study on strengthening mine action financing in Ukraine was conducted from April to September 2024. Experts examined 39 innovative financial products and risk reduction mechanisms.

According to Jaco Cilliers, UNDP Resident Representative in Ukraine, UNDP is committed to implementing innovative solutions that not only address immediate needs, but also contribute to Ukraine’s long-term sustainable development goals. Combining mine action with sustainable agricultural practices and renewable energy is one way to contribute to the recovery and resilience of the Ukrainian economy.

The aim of the study was to identify the tools and mechanisms that could have the greatest potential to support mine action in Ukraine. As a result, the experts identified two most promising approaches:

• Issuance of thematic bonds by the Government of Ukraine linked to sustainable development. Half of the bonds’ proceeds are proposed to be used for land clearance and demining, and half for initiatives to transition to sustainable agriculture. In particular, the development of organic winter wheat production and the introduction of a no-till system.
• The result-oriented public-private partnership that would combine funding for mine clearance with solar energy development. Under this mechanism, the private sector invests in clearing land for solar power plants and constructing solar power plants, while receiving concessions from the Ukrainian Government and performance-based incentive payments from donors.

The report’s authors, Chris Loughran and Camille Wallen, emphasise that both approaches have the potential to raise additional funding for mine action, as well as revenue for the Government of Ukraine.

The report was prepared with the support of the governments of the Netherlands, Switzerland and the United Kingdom.