When Russia invaded Ukraine in February 2022, the international response was unprecedented in its speed and effectiveness. Many countries scrambled to supply defence, economic, infrastructure and humanitarian assistance. In the first sixth months of the conflict, over $100 billion was committed to Ukraine by national governments, multilateral agencies, and the largest private philanthropic foundations – from immediate supplies to pledges to maintain essential Ukrainian infrastructure. Ever since, despite ongoing uncertainty about the course of the conflict and diverging views amongst some as to how success should be defined, support has remained largely steadfast amongst a wide range of allies including the UK and the US.
The United States’ contribution has towered above that of its allies. As of July 31st, $76.8 billion of assistance had been provided, including $46.6 billion of military assistance. Just on Wednesday, the United States announced a further $200 million package of military aid, in an important signal of its continued commitment to supporting Ukraine. Across the Atlantic, joint European Union and member state support to Ukraine has totalled over €82 billion in military, financial, humanitarian, emergency and refugee assistance. The EU has also backed up its political support to Ukraine by announcing a new €50 billion multi-year support package to be delivered through to 2027.
The UK is the largest single European donor to Ukraine, with more than £4.7 billion of non-military assistance, and £4.6 billion in military assistance committed to Ukraine so far. The UK Government has been able to act quickly and assuredly, in the knowledge that British citizens are strongly in support of a robust and comprehensive response.
Looking forwards, with reconstruction costs most recently estimated at $417 billion in March 2023 (but believed already to have surpassed $500 billion since then), the effort is monumental in scale and the need for a varied range of skills and expertise from a multitude of partners is becoming more explicit. There is an opportunity for Europe, and the UK in particular, to take the lead on infrastructure reconstruction. A focus on infrastructure will necessitate the UK continuing to effectively leverage a wide range of competences found in the private sector, deployed in partnership with the public and third sectors – a partnership model in which the UK has a strong track record.
With the UK a hub of capacity and expertise in fields from regulation, financial and legal services, infrastructure, engineering and logistics, to education, humanitarian assistance and conflict resolution, the UK’s blend of private, public and third sector has a unique ability to bring valuable expertise and insights to Ukraine’s recovery and reconstruction.
In an effort to facilitate more UK activity and initiative in Ukraine, this week British Expertise International convened a panel event providing practical advice to UK organisations in the key areas of risk, security, insurance and contracting.
Security consultants Spearfish spoke from their recent experience on the practicalities and mechanisms of setting up a legal entity Ukraine, and provided an overview of the current risk and security perspective at two levels; providing, first, a strategic overview of the current security picture; and secondly, speaking to some of the practical considerations on potential risk mitigation strategies. The operating environment is unique, and the importance of contextualising one’s understanding of risk on the ground was well noted.
Legal firm Beale & Co, specialists in the construction and insurance industries, spoke to some of the potential contractual challenges the private sector can face as they are seeking to contribute to Ukraine’s reconstruction. Infrastructure and engineering organisations might consider, for example, suspension and termination provisions; dispute considerations and applicable law; as well as clauses concerning force majeure, liquidated damages, loss and expense relief events.
Finally, insurers WTW provided an update on coverage for Ukraine, with background on the (re)insurance market’s negotiations since the start of the war as well as insights of the current picture. WTW highlighted some of the key players and types of cover available and were hopeful that the market will be sufficiently flexible and solution-oriented by reviewing loss limits in the light of local market dynamics, addressing treaty covers and war exclusions, and being prepared to take net positions.
In an ever-changing security landscape, the overriding message from our panel was to do one’s research, work with partners, and to be flexible and prepared for change. In this way the UK private sector, working with public and third sector partners, will be especially well placed to help put policy imperatives into practice.
Joint blog by:
Alexandra Barnes, British Expertise International
Eliza Keogh, British Foreign Policy Group
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