““There are no good conditions for large-scale investment activity. Currently, only point investments are possible, which are limited to critical infrastructure””, — write: www.radiosvoboda.org
The association conducted the study jointly with the head of the Council on Cooperation with Ukraine and the National Contact Point of EU Research Programs (KPK). From August 23 to September 5, more than 100 Polish banks were interviewed. Commercial financial institutions expressed the greatest interest in participating in the reconstruction of Ukraine.
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“We consider the process of rebuilding Ukraine a little more broadly. It is not only about investments directly in Ukraine itself, but also, and maybe above all, investments that concern Poland, but are purposefully intended for the reconstruction of Ukraine,” says Arkadiusz Levitskyi, director of the group of public programs and the economic environment of the Association of Polish Banks.
The main reasons why Polish financial institutions show interest in the reconstruction processes of Ukraine are the expectations of the bank’s clients, ethical and solidarity motivation, and long-term profit prospects.
Chairman of the Council for Cooperation with Ukraine Pavel Koval (left), Chairman of the Association of Polish Banks Tadeusz Bialek (center), representative of the Association of Polish Banks Arkadiusz Levitskyi (right)
When asked in what form the banks plan to participate in reconstruction, most answered that they intend to provide loans, participate in financial consortia, offer settlement services and bank guarantees. Instead, they say that high investment risks are caused by the ongoing war and the inconsistency of legal norms – barriers that can make it difficult for banks to participate in the reconstruction of Ukraine.
“The current situation on our eastern border will continue to be very tense. Currently, there is no clear horizon for the end of this conflict, although some hope that soon, due to the results of the elections in the USA, the conflict will be at least temporarily suspended. But at the moment, there are still no good conditions for conducting large-scale investment activities. Currently, only point investments are possible, which are mainly limited to critical infrastructure,” says Tadeusz Bialek, head of the Association of Polish Banks.
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According to Pavlo Koval, the head of the Council for Cooperation with Ukraine, most often at meetings with Polish businesses regarding the future participation in the reconstruction of Ukraine, questions about risks are heard:
“It will not be possible to reduce them to zero, but we are trying to minimize risks at the level of banking instruments, at the level of guarantees and at the political level, as well as at the level of international law.”
Pavel Koval added that, despite the war, more than 3,500 Polish companies are currently working in Ukraine.
President Volodymyr Zelenskyy previously stated that the losses Ukraine suffered as a result of Russian aggression reached about 800 billion dollars.