Olga Zykova in Gdańsk: Recovery cannot wait until the war ends — Ukrainian communities are already implementing development projects

Deputy Minister of Finance of Ukraine Olga Zykova took part in a conference “Strategic collaborations for Ukraine’s prosperity”, organized by Deloitte Poland and Ukrgasbank on the sidelines of the Ukraine Recovery Conference 2026, held in Gdańsk on June 24–26.

As part of the event, she spoke at the panel discussion “Infrastructure: Stimulating the economy”, dedicated to the role of infrastructure investments in stimulating Ukraine’s economic recovery. Representatives of the Ministry for Development of Communities and Territories of Ukraine, the Ministry of Veterans Affairs, Ukrgasbank, the European Investment Bank, and KfW also participated in the discussion.

During the panel, Olga Zykova emphasized that investments in municipal and social infrastructure are among the key drivers of Ukraine’s economic resilience and long-term recovery. Amid the full-scale war, restoring water supply systems, district heating, transport, schools, hospitals, and social housing not only addresses the basic needs of communities but also creates conditions for people to return, supports local businesses, and attracts investment.

“Infrastructure reconstruction is not only about physically rebuilding damaged assets. It is an investment in human capital, the competitiveness of communities, and the future of Ukraine’s economy. That is why the development of municipal and social infrastructure remains among the Government’s priorities,” said Olga Zykova.

According to the Deputy Minister, Ukraine’s recovery needs remain unprecedented in scale. According to the latest Rapid Damage and Needs Assessment (RDNA5), Ukraine’s total reconstruction needs over the next ten years amount to approximately USD 588 billion.

In this context, international financial institutions have become indispensable partners for Ukraine in supporting communities and restoring essential services during wartime. Their role extends far beyond direct financing – they also provide technical expertise, project preparation support, implementation assistance, and help build international confidence necessary to attract additional investment.

In particular, the European Bank for Reconstruction and Development supports municipal transport, district heating systems, water supply, and energy resilience projects in Ukrainian cities. During attacks on energy infrastructure, the Bank also helped mobilize financing for emergency energy solutions. The World Bank, in addition to supporting budgetary needs, invests in social sectors and the restoration of essential local services. The Council of Europe Development Bank has become an important partner in housing, social infrastructure, and support for internally displaced persons, helping communities adapt to the increased pressures caused by the war.

Olga Zykova also stressed that an important outcome of cooperation with international financial institutions has been the shift from responding to urgent damage toward systematic, resilient reconstruction. New projects are increasingly designed with energy efficiency, accessibility, sustainability, and alignment with European standards in mind.

“Today, we are not simply rebuilding what was lost – we are laying the foundation for a fundamentally new model of community development. Recovery must begin before the war ends, and Ukrainian communities are already implementing projects that improve living conditions and support local economic activity,” she emphasized.

The Deputy Minister also highlighted cooperation between Ukraine and the European Investment Bank, one of Ukraine’s key partners in financing municipal infrastructure recovery. The EIB’s portfolio in Ukraine currently includes 27 active projects totaling EUR 4.7 billion, making it one of the largest among international financial institutions operating in Ukraine. To date, the EIB has approved more than EUR 3 billion for projects in Ukrainian municipalities, including nearly EUR 2.9 billion in loans and approximately EUR 190 million in grant assistance.

In particular, Ukrainian municipalities have already mobilized over EUR 1.2 billion in loan financing under the European Commission guarantee within the Ukraine Facility program. These funds are directed toward projects in education, district heating, energy efficiency of public buildings, water supply and wastewater management, urban transport, and social housing for internally displaced persons.

Olga Zykova also underlined the important role of state-owned banks in financing economic recovery. Today, state-owned banks not only ensure financial system stability but also serve as key instruments for implementing state investment policy through risk mitigation mechanisms and long-term financing.

In 2025, investment lending by state-owned banks to the real economy reached nearly USD 2.5 billion, including around USD 600 million for the energy sector, USD 1.2 billion for agriculture and processing industries, and USD 395 million to support businesses in frontline regions.

During the first five months of 2026, investment lending already reached nearly USD 2 billion, accounting for more than 80% of the total investment lending volume recorded in the previous year.