Sergii Marchenko discusses Ukraine’s recovery financing and energy sector support with UNDP Administrator Alexander De Croo

On 10 September, Minister of Finance of Ukraine Sergii Marchenko held a meeting with Administrator of the United Nations Development Programme (UNDP) Alexander De Croo.

Special Advisor Tom Meulenbergs, UNDP Resident Representative to Ukraine Auke Lootsma, and representatives of both institutions also participated in the meeting.

The parties discussed key challenges and priorities in financing Ukraine’s reconstruction amid ongoing large-scale destruction, as well as the general macro-financial context and cooperation with international partners.

Separately, the participants emphasized the importance of UNDP’s participation in the Ukraine Donor Platform. Practical experience and expertise in implementing recovery projects, as well as in mobilizing and coordinating donor support, can play a positive role in the Platform’s further work and in strengthening the coordination of international assistance to Ukraine.

The Minister of Finance expressed gratitude to UNDP for its systemic support and the significant work of its team on the ground since the beginning of the full-scale invasion.

“We highly appreciate UNDP’s contribution to strengthening the resilience of Ukrainian communities, supporting recovery efforts, and building the capacity of state institutions. Further deepening of cooperation, particularly in the areas of recovery and sustainable development, will contribute to the effective mobilization of private investment,” emphasized Sergii Marchenko.

The participants paid special attention to the primary needs of the energy sector, which has suffered the most severe damage. Since the beginning of the war, UNDP has mobilized over USD 565 million to support Ukraine’s energy system, channeling these funds both into rapid recovery and the supply of critical equipment (such as cogeneration units and transformers) and long-term transformation. The parties also discussed housing recovery projects and energy efficiency improvements through Energy Service Companies (ESCO).

During the discussion on financing instruments, the participants considered the possibilities of introducing special guarantee schemes (in particular through structures like UNCDF) to mitigate risks and support Ukrainian businesses and the agricultural sector. The parties also touched upon expanding lending through international financial institutions and the European Investment Bank (EIB) for the implementation of municipal projects.

Finally, the participants discussed the continuation of systemic reforms amid the challenging conditions of the war, maintaining fiscal discipline, and strengthening the resilience of state institutions, which serves as a necessary foundation for further constructive dialogue with donors.