Sunak to pledge £2.35 billion in loan guarantees at Ukraine Recovery Conference

The Prime Minister will tell the London summit that Britain will stand with Ukraine ‘as long as it takes’.

Prime Minister Rishi Sunak will announce further financial support for Ukraine at a recovery summit (Ian Vogler/Daily Mirror/PA) (PA Wire)

Prime Minister Rishi Sunak will pledge to stand with Ukraine “as long as it takes” as he announces three billion US dollars (£2.35 billion) in bank loan guarantees to bolster Kyiv’s rebuild.

Opening a major conference in London focused on Ukraine’s recovery after Russia’s invasion, Mr Sunak will hail the country’s “defiance” as Ukrainian president Volodymyr Zelensky’s troops use a counter-offensive to push back the Kremlin’s forces.

He will announce a financial package that includes World Bank loan guarantees worth three billion US dollars over three years.

Downing Street said the guarantees amount to the first bilateral package of multi-year fiscal assistance to be set out by a G7 country.

We’ll stand with Ukraine for as long as it takes as they continue to win this war

Prime Minister Rishi Sunak

The funding is expected to support public services, including the cost of running schools and hospitals.

To mark the two-day summit, hundreds of companies, including British venture Virgin and US bank Citi, have signed up to back Ukraine’s recovery and reconstruction.

In pre-briefed comments, Mr Sunak will tell the Ukraine Recovery Conference on Wednesday: “As we’ve seen in Bakhmut and Mariupol, what Russia cannot take it will seek to destroy. They want to do the same to Ukraine’s economy.

“The scale of the challenge is real. The war brought a 29% fall in Ukraine’s GDP last year, but just look at the streets of Kyiv, despite the threat of attack, people are getting on with their lives and getting on with business.

“President Zelensky’s government is determined to drive reforms to become more open, more transparent and ready for investment.

“This is a vibrant, dynamic, creative, European country that refuses to be subdued.

“So, together with our allies we will maintain our support for Ukraine’s defence and for the counter-offensive, and we’ll stand with Ukraine for as long as it takes as they continue to win this war.

With this support, we will keep delivering and help Ukrainians imagine a life after the war

Ajay Banga, World Bank Group president

“I’m proud that today we’re announcing a multiyear commitment to support Ukraine’s economy, and over the next three years, we will provide loan guarantees worth three billion dollars.”

Ajay Banga, president of the World Bank Group, said: “The UK Government’s generous guarantees to the World Bank Group will support the people of Ukraine at a critical moment.

“The World Bank Group is designed to do hard things like helping people rebuild their lives after devastation. With this support, we will keep delivering on that mission and help Ukrainians imagine a life after the war.”

On top of the loan guarantees, Mr Sunak will also announce a commitment of up to £250 million of new capital for British International Investment, the UK’s development finance institution.

No 10 said the money will support private sector investment in major infrastructure projects, energy markets, financial services and agriculture across Ukraine.

World businesses are also involved in recovery efforts, with more than 400 companies from 38 countries, with a combined annual revenue said to be more than 1.6 trillion dollars (£1.25 trillion), pledging to back Ukraine’s rebuild as part of the summit.

Major conglomerates, international corporations and retail chains are among those who have signed up to the Ukraine Business Compact, with Virgin, Sanofi, Philips, Hyundai Engineering and Citi among those involved.

The Prime Minister will also use the summit to announce the London Conference Framework for War Risk Insurance, which is set to receive G7 backing.

As part of its plan to deliver on the framework, the UK is releasing up to £20 million of funding for the Multilateral Investment Guarantees Agency to provide guarantees and insurance for reconstruction projects while the conflict is still going on.

Britain’s funding efforts are in addition to a £240 million boost in UK aid for Ukraine this year, No 10 said.

Addressing the conference, Mr Sunak is expected to add: “We’ll stand with Ukraine as they win the peace and harness all their ingenuity and defiance to build the future they deserve.

“The question for us today is what can we do to support this – to fast-track recovery and help Ukraine unleash its potential?

“We must bring to bear a partnership of governments, international financial institutions and business leaders, all of us here today, to make this happen.

“The British Government will continue to play its full part.”

Mr Zelensky is scheduled to address the conference virtually on Wednesday, while Ukraine’s prime minister, Denys Shmyhal, will give a keynote speech.