Ukraine counts on Japan's support in economic recovery

Ukraine is interested in attracting Japanese experience in economic recovery in the post-war period, in particular in financial support on the part of the private sector.

This was reported by the press service of the Ministry of Economy following the meeting of Ukraine’s First Vice Prime Minister, Minister of Economy Yulia Svyrydenko with Japan’s Deputy Minister of Finance for International Affairs Kanda Masato, Ukrinform saw.

"Now we need to strengthen support for small and medium-sized businesses in order to accelerate economic growth and create new jobs. First of all, we’d like to develop the Ukrainian industry in accordance with the principles that Japan once applied in post-war recovery. One of the priorities should be the strengthening of cooperation between Ukrainian manufacturers and Japanese partner companies," said Svyrydenko.

According to the Vice PM, Ukraine now needs from partners support for grant programs for small and medium-sized businesses and processing enterprises, which is expected to stimulate economic activity.

"I hope that Japan will be able to provide us not only financial support for the budget, but also for the private sector. After all, without access to financing, it is really difficult for entrepreneurs to develop and create new jobs," Svyrydenko noted.

Another incentive for economic growth should be the introduction of war risk insurance instruments.

"We appreciate Japan's $23 million financial contribution to MIGA to cover war risks when investing in Ukraine. This is a very important message for international businesses willing to work in our country. But it is more important for us to provide such insurance for Ukrainian companies. This will simultaneously serve two purposes – it will reduce business risks and help companies get financing from Ukrainian banks," added Svyrydenko.

During the meeting, the parties discussed the possibilities of financing veterans' adaptation programs, creation of industrial parks, and preparation of public-private partnership projects.

As Ukrinform reported earlier, the state budget of Ukraine received$1.5 billion in preferential financing, which is provided under the Japanese government’s guarantee through the World Bank Trust Fund facility.