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This event took place on April 21, 2022

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00:00 Good afternoon.
00:02 I'd like to welcome everyone joining us here at the World Bank Group headquarters
00:06 in Washington, DC,
00:07 as well as the global audience joining us via live stream.
00:12 I've been deeply horrified and shocked
00:15 by Russia's invasion of Ukraine,
00:17 the atrocities committed against the civilian population,
00:21 and the loss of life and livelihoods for millions of Ukrainians.
00:25 For nearly two months,
00:27 the people of Ukraine have demonstrated incredible resilience and bravery.
00:32 Ukraine's needs are immense and evolving.
00:35 We're here today as part of our continuing assessment of those needs,
00:39 recognizing that the situation on the ground changes by the hour.
00:43 We're honored to have his Excellency,
00:46 President Volodymyr Zelensky, joining us live from Ukraine.
00:51 President Zelensky has demonstrated powerful leadership throughout the war.
00:57 Mr. President,
00:58 you and your nation have shown strength, tenacity and heroism
01:03 in the face of aggression.
01:05 President Zelensky, the floor is yours.
01:14 Thank you, Mr. President.
01:17 Dear President David Malpass and
01:23 dear Managing Director of IMF, Kristalina Georgieva.
01:29 I would like to greet all those who are attending this historical meeting
01:36 of the World Bank.
01:37 And...
01:40 a few days ago, I spoke with Ms. Kristalina Georgieva.
01:43 and I heard very important words from her about Ukraine.
01:47 We talked about life in our city, Kharkiv.
01:52 It's the biggest city of Eastern Ukraine.
01:55 The Russian troops are bombarding and firing at it
01:59 for some weeks.
02:01 And those parts where Russian weapons can reach,
02:05 over 1000 houses have been ruined.
02:08 Russian artillery, Russian missiles,
02:10 Russian air bombs do not discriminate between who to kill
02:15 and which buildings to blow up or set on fire.
02:19 In downtown Kharkiv and at the side streets,
02:23 it's equally dangerous and people can die from Russian strikes.
02:29 But you should know, our people,
02:30 the residents of Kharkiv, even during the war,
02:33 during those firing strikes, Kharkiv has remained a functioning city.
02:39 And Ms. Kristalina pointed out that, despite everything,
02:43 they are planting flowers in Kharkiv.
02:46 They are trimming the trees,
02:50 cleaning the streets and keeping the city in a good shape.
02:54 That's what our Kharkiv is like.
02:55 That's what our country is like.
02:57 We were able to liberate three northern provinces of the country
03:02 from the occupiers.
03:03 That's Lviv, Chernihiv and Zhytomyr.
03:05 And we are doing everything now to bring normal life back there.
03:09 Russian troops have destroyed or damaged tens of thousands of buildings.
03:16 Almost all objects of social sphere have been burned down or require fixing.
03:24 Thousands of people have been killed.
03:26 Most businesses have been destroyed.
03:29 We are bringing back electricity, communication lines, water supplies.
03:34 We are renewing transportation lines,
03:37 building up temporary bridges on the rivers.
03:41 We are continuing building social administrative services.
03:45 And every day we remove mines and booby traps left by the Russian military.
03:55 Imagine they were even putting those mine traps in people's homes,
04:02 in home equipment, and even in the agricultural fields.
04:10 But despite all this, our people are coming back home.
04:13 Ukrainians are doing everything in order to bring back normal life,
04:16 because that's who we are, Ukrainians.
04:19 In the east of our country, in Donbas in the south,
04:23 the situation is even harder.
04:25 And right now, active combat action is going on.
04:29 Russia is still trying to build up a new and atrocious offensive operation.
04:36 I can give you just one number
04:38 so you understand the scale of our experiences.
04:42 Owing to bombardment and fire strikes,
04:46 there have been 1141 educational institutions
04:52 ruined or damaged.
04:54 That includes schools, nursery schools, universities all across the country.
05:01 Not every country of the world has so many institutions of education
05:07 as Russians have ruined in Ukraine.
05:09 And if we are talking about schools and colleges,
05:13 you can imagine how many other places that have been ruined.
05:18 That's hospitals, infrastructural objects, businesses, etc.
05:23 Russian investment has given tremendous damage.
05:29 At the very preliminary evaluation,
05:33 Ukraine has lost 550,000 billions in the value of the destruction.
05:39 Russia has blocked our ports in the Black Sea and the Sea of Azov.
05:44 This has reduced our exports,
05:47 including agrarian exports, and it already impacts world food safety.
05:52 A recent UN report
05:57 said that 47 million people in 81 countries of the world
06:02 will starve because of growth of prices for food.
06:09 And this is not about physical shortage of food.
06:12 In many countries of Africa and Asia,
06:14 this will also cause political instability
06:17 and maybe a new migration crisis.
06:20 People will look for the guilty,
06:23 those who are guilty of that, and they will go out on the streets,
06:26 They will look for a way to save themselves.
06:29 We are doing everything we can in order to build up the export of our products.
06:34 And we have started sowing in the fields as much as we can.
06:42 But nobody in the world can be sure
06:44 that we'll be able to guarantee food security
06:48 as long as this war is going on.
06:50 To stop the war now and to liberate our territory from the Russian invaders
06:55 is the only secure way to stop the development of a food crisis.
07:02 Russian military are aimed at destroying all objects in Ukraine
07:07 that can serve as an economic base for life.
07:11 That includes railroad stations, food warehouses,
07:16 oil refineries, etc.
07:21 At this time, we need up to $7 billion each month
07:27 to make up for the economic losses.
07:32 And we will need hundreds of billions of dollars to rebuild all this later.
07:37 I'm sure that all of you have seen those calculations.
07:40 We have to speak honestly with you and say
07:44 that Russia is using aggressive methods in the world market
07:50 while fighting this war.
07:52 They are creating such conditions, so not only the food market,
07:55 but also the fuel market and other raw materials markets
08:00 would face instability.
08:01 Russia has provoked the growth of prices
08:06 for energy resources in Europe and the whole democratic world.
08:14 They are slowing the sales,
08:19 especially for natural gas,
08:21 to create painful prices for European consumers.
08:25 This and other examples show that Russia can no longer be considered
08:30 a normal and reliable supplier of energy resources,
08:34 a normal and reliable trade partner.
08:37 We all can implement such decisions,
08:40 which will not only stop the aggressive intentions of Russia,
08:45 and who not only support Ukraine in this war,
08:48 but will also show all potential aggressors in the world
08:52 that if you create problems for other nations,
08:57 this means you will create problems for yourself.
09:00 Because if we don't do that, then millions and millions of people in the world
09:05 will suffer more than once from aggressive action of some countries.
09:09 So what steps are needed now?
09:13 Right now.
09:14 First is immediate support for Ukraine
09:17 so that the leadership of Russia know
09:20 that war will not allow them to implement any of their aggressive goals.
09:27 Details of such financial support, I'm sure, will be presented
09:31 by our Prime Minister and Minister of Finance,
09:33 who are present at this meeting.
09:35 We must do everything so that Ukrainians
09:38 have everything they need for survival and life,
09:42 even despite the war.
09:44 And as I mentioned the city of Kharkiv at the beginning,
09:47 and this applies to all other cities and communities of Ukraine.
09:51 Number two. We need immediately to exclude Russia
09:56 from all international financial institutions,
09:59 IMF, World Bank, and others.
10:02 That's not the place for a country
10:04 that is trying to build the life of a neighborly nation.
10:09 Number three. A special tax on war is needed.
10:13 Russia and, after that, any other aggressor,
10:17 must pay for destroying global stability.
10:20 Such tax must be applied to all, without exception,
10:26 trade operations with the Russian Federation,
10:29 or with Russian companies, or all export and import operations.
10:35 For all financial operations that are not blocked yet,
10:39 the costs from that war tax
10:42 must be used to help Ukraine
10:46 to renew everything that Russia has destroyed.
10:50 And if this tax is applied to another aggressor,
10:54 then those costs must be directed to the victims of that war.
10:59 The world needs...
11:02 needs a working effective instrument to react to destructive action
11:08 and to all those who don't want to support collective security.
11:14 I'm sure that such a war tax can be a tool of that kind.
11:18 Number four. Every country of the world
11:20 must immediately prepare to break up all relations with Russia.
11:25 No one should be dependent
11:27 on the political whims of the leaders of that country.
11:32 If the world is prepared to isolate Russia completely,
11:36 then the Russian leadership will have a motivation to avoid any war.
11:41 Number five.
11:43 Those assets of the Russian state that already have been blocked
11:47 and of the Russian elite,
11:49 those are not all their assets that we know.
11:53 This blocking has to be continued.
11:57 Those efforts have to be continued, and that's not a goal in itself.
12:01 Those monies that were blocked and frozen
12:05 have to be used to rebuild Ukraine after the war,
12:08 as well as to pay for the losses cost to other nations.
12:15 If starvation started
12:20 in some regions due to Russia's war,
12:23 those frozen assets can be used to pay for the assistance and compensation.
12:30 We must use all our strength, so that Russia feels
12:34 that is being punished for this war and also feels how big
12:39 is the need to bring back peace, including for Russia itself.
12:44 So by helping us,
12:52 we are helping to stabilize the world in general,
12:55 and fix market problems,
12:59 including beginning with the food market.
13:01 And with your support, with your financial support,
13:06 we will quickly rebuild our nation.
13:09 That means new opportunities, business from different countries,
13:13 for not just economic growth, but also this will be a specific proof
13:17 that global financial institutions
13:20 are capable to work in the interests of rank and file people
13:25 and of mankind in general.
13:27 I would like one of our next meetings to take place in Ukraine
13:32 in one of our cities that were rebuilt with your support,
13:37 maybe in Kharkiv.
13:40 Thank you for your attention and glory to Ukraine.
14:04 [David Malpass] I appreciate your participation in today's meeting.
14:09 Next, I would like to welcome His Excellency Denys Shmyhal,
14:15 Prime Minister of Ukraine.
14:18 And Prime Minister, the floor is yours.
14:22 [Denys Shmyhal] Thank you very much.
14:24 Dear President Malpass, dear Managing Director,
14:27 Kristalina Georgieva, your Excellencies, dear colleagues.
14:31 I'm sure you understand the current situation in Eastern Europe.
14:37 And what exactly is Russia doing here in Ukraine?
14:42 Firstly, they destroy Ukraine's economic potential.
14:46 As President Zelensky told, all types of infrastructure,
14:51 all types of enterprises are subjected to massive attacks,
14:55 airstrikes and artillery fire.
14:58 Not only the military, as Russia's representative says,
15:02 but everything from bakeries to food warehouses
15:08 to machine-building enterprises and petroleum storages.
15:12 Everything is bombed, is under rocket strikes.
15:16 Secondly, the Russian military tactic is aimed
15:18 at creating a migration crisis in Europe.
15:22 Russian troops are deliberately destroying people's homes.
15:27 There are dozens of Ukrainian cities and communities
15:30 that have been almost completely destroyed by the Russian's fire.
15:33 Mariupol is just one example,
15:37 but one, but not last.
15:40 Volnovakha, Izyum and other cities suffered comparable large-scale destructions.
15:46 Other cities such as Kharkiv, Chernihiv, Irpin, Borodyanka,
15:50 have been turned into ruins.
15:53 Thirdly, Russia is blocking our seaports.
15:56 No other state has posed such a threat which indicates
16:00 that if our seaports stay blocked, we cannot export agricultural products.
16:06 If we cannot export agricultural products,
16:08 it means there will be a threat of food crisis at least,
16:13 or even large-scale political destabilization
16:16 in dozens of countries in North Africa, Asia and other regions at worst.
16:23 What are the consequences of Russia's aggression today?
16:27 Donbas as one of the key industrial regions of Eastern Europe
16:31 is absolutely destroyed by Russia.
16:34 Black Sea and Azov seaports of Ukraine are blocked.
16:38 Dozens of thousands of Ukrainians are dead.
16:42 Almost 12 million of Ukrainians were forced to leave their homes.
16:47 About 15 million of them left...
16:51 About five million of them left Ukraine.
16:54 For now, 220 000 people lost their homes
16:59 because 7000, as President Zelensky mentioned, residential buildings
17:06 were damaged or destroyed completely.
17:10 Hostilities and bombing of our cities
17:14 by Russian military forces still continue.
17:17 So, the list of damages and destroyed property
17:21 will only be increasing day by day.
17:24 Over 120 000 sq. mi
17:29 of Ukrainian territory requires mine cleaning.
17:32 It's a huge territory.
17:35 Ukraine's GDP can drop by 30% to 50% during this year
17:40 according to prior estimates by experts
17:42 and by international financial organizations.
17:46 Our prior analysis has demonstrated
17:49 that direct and indirect losses because of the war
17:53 amount to more than 560 billion of US dollars.
17:59 And if we do not stop this war together, the losses will increase dramatically.
18:06 Infrastructure losses alone are already higher than 100 billion dollars.
18:13 In March this year, more than 60% of Ukrainian enterprises
18:17 were stopped completely or partially.
18:20 One of the biggest Ukrainian steel production plant in Mariupol
18:24 was almost destroyed by Russian bombs.
18:27 And this is just one of the hundreds of enterprises and facilities
18:32 which are no longer operational
18:34 after missile and air bomb strikes by Russia.
18:38 Obviously, Ukraine's efforts only
18:41 are not enough to come back to normal life,
18:44 after such a horrible aggression from Russia.
18:47 And it is also obvious that the recovery of Ukraine after this war
18:53 will be a must to recover global security.
18:57 Russia as well as all other potential aggressors all around the world
19:01 must understand that their wars will never be able to destroy the life of any nation.
19:07 They must see that everything they destroy will be renewed immediately
19:11 and will be compensated and recovered.
19:15 It should be one of the safeguards from the military aggression
19:20 in the future.
19:22 If every potential aggressor knows
19:25 that the civilized world will help every nation
19:31 which has become or may become a victim of the war,
19:35 then the motivation to start a war will be decreased.
19:39 That is why the real support of Ukraine will translate into a direct benefit
19:44 for each of our countries, for the civilized world,
19:49 and for global security.
19:51 Our public and our civil institutions in Ukraine have already demonstrated
19:56 that President Vladimir Zelensky and the government of Ukraine
19:59 are ensuring their right way
20:02 the right way to move forward in Ukraine's Development.
20:05 Sustainability of our institutions,
20:07 capability of our State to regroup at all levels,
20:12 defending our nation from the Russian invasion
20:15 as well as stability of our financial system,
20:19 have proven the right track of governing Ukraine, our country.
20:24 We have mobilized and allocated all the international resources very quickly.
20:30 State budget revenues in March were 100%
20:33 in line with the budget plan before the war.
20:36 To avoid the total collapse of business,
20:38 we have simplified taxation and customs, but the war is still going on
20:43 and we expect in April state budget will be performed at only 50%.
20:50 And to balance state budget as well as to support small and medium business,
20:54 we need additional financial resources.
20:57 We finance our security and defense sector.
21:01 We have launched a new state program
21:04 to support people who lost their job, incomes and homes.
21:10 Despite all difficulties,
21:13 our country is performing all social obligations,
21:16 pensions, salaries, social payments,
21:19 and it all costs about US$7 billion per month for our budget.
21:26 We do our best to prevent food crisis and political destabilization
21:30 in the African countries and other macro regions of the world.
21:35 For example, the Ukrainian share in the global export
21:40 is 10% in wheat,
21:42 14% in corn and 47% in sunflower oil.
21:48 Some of those countries are especially vulnerable.
21:52 For example, Egyptian food market is 100%
21:56 dependent on Ukrainian and Russian wheat supplies.
21:59 Despite the war and blockages of the sea ports,
22:03 Ukrainian farmers continue to work and a sowing campaign is underway,
22:08 and we expect to farm about 80%
22:13 of the total farming area compared to last year's.
22:17 We create new export logistics
22:20 and this also requires additional finances
22:24 and special technological solutions.
22:28 So as you can see, the scale of the challenges is very serious
22:33 in all spheres of economic and social life in Ukraine.
22:37 But taking into account the additional environmental risks because of the war
22:44 in the industrial zones,
22:45 flooded coal mines, intervention in the Chernobyl zone,
22:51 then the scope of additional support needed will increase dramatically.
22:57 In a short-term perspective, we need a financial bridge
23:01 for up to 5 months with US$4-5 billion per month.
23:08 In a long-term perspective, we need a recovery plan for Ukraine
23:11 similar to Marshall Plan for Europe after Second World War.
23:15 According to the order of the President of Ukraine, Volodymyr Zelensky,
23:19 The government of Ukraine began to work on the United 24 Recovery Plan
23:26 and established the United 24 Recovery Fund.
23:30 The goal of the plan is not to recover the destroyed economy,
23:35 but to build a new economy in Ukraine
23:37 which will be fully integrated into the EU.
23:41 As of today, such recovery, reconstruction and transformation
23:46 will cost about US$600 billion.
23:50 But first we have to stop the war.
23:53 We have to bring peace back to Ukraine and put the Russian Federation to justice.
23:58 That is why I call all of our international partners
24:02 to be focused on three particular instruments.
24:05 First, supplying ammunition weapons to Ukraine.
24:11 As President of Ukraine, Volodymyr Zelensky said,
24:14 "Freedom must be armed no worse than tyranny."
24:18 Second, we ask to put more sanctions pressure on Russia
24:22 because only this can force them to seek peace.
24:26 It is clearly important.
24:28 It is crucially important to impose
24:31 complete blockage of the Russian banking sector,
24:34 ban their energy exports,
24:36 including oil and nuclear fuel, and in future, gas.
24:41 Third, financial support of Ukraine.
24:43 The tyranny must clearly see that the Democratic world
24:47 will not leave our nation, which is fighting for freedom,
24:53 without support.
24:54 We need to have all necessary financial resources,
24:57 not only for defense,
25:00 but for the functioning of all public and social institutions
25:04 and to guarantee return of internally displaced persons.
25:10 We are in the dialogue with all who can support Ukraine.
25:13 We are grateful to all our international partners
25:17 to World Bank, the IMF, the IBRD, the EIB, the European Union,
25:24 G7 countries, other European, Middle East, and Asian countries
25:29 for providing support to Ukraine.
25:31 I have sent letters to many of my colleagues and have asked them
25:35 to provide 10% of SDRs to support Ukraine financially.
25:40 For example, Canada has agreed to provide
25:42 CAD 1 billion in SDRs
25:45 to the special administrative account created by IMF.
25:48 Thank you for this.
25:49 We hope that all other partners will follow this example.
25:54 The World Bank also created a trust account for donors
25:58 and we call our partners to support us through this World Bank account.
26:07 We are grateful for loans, guarantees and grants provided.
26:12 In the government of Ukraine, we believe
26:14 that this military financing will continue.
26:18 While I'm talking to you, Russia is attacking my country
26:22 to undermine resilience of the Ukrainian nation.
26:26 Ukrainian people have proven
26:28 that they are ready to fight as much as it is needed.
26:34 We will fight bravely and wisely
26:37 to defend our nation and freedom of the European continent.
26:41 But to win the war, we need your support.
26:45 That is why I appeal to all of you on behalf of those who fight for Ukraine,
26:50 those who work hard now for our victory and survival of the Ukrainian nation.
26:55 I appeal to you by...
26:57 I appeal to you with my request,
26:59 help us protect freedom.
27:03 You have all the resources needed for this.
27:06 We need decisions.
27:07 Slava Ukraini! Glory to Ukraine! And thanks to you all.
27:11 Thank you so much.
27:14 [Applause]
27:21 [David Malpass] Thank you very much, Mr. Prime Minister.
27:24 We've been honored to have you here today,
27:27 and we're also honored to have Finance Minister Marchenko
27:30 and Governor Shevchenko here with us,
27:34 and finance ministers from many countries around the world.
27:37 And we appreciate everyone's participation.
27:41 And I want to say a few words of thanks
27:44 to all those that have contributed already.
27:48 But let me repeat, on behalf of the World Bank Group,
27:51 we have been deeply horrified and shocked by Russia's invasion of Ukraine,
27:57 the atrocities committed against the civilian population,
28:01 and the loss of life and livelihoods for millions of Ukrainians.
28:06 The Russian invasion is needlessly taking lives
28:10 injuring so many,
28:11 and causing massive damage to your economy.
28:15 And we appreciate you going through some of that.
28:18 We know how painful it is.
28:20 War is first and foremost a human tragedy.
28:24 The World Bank group has completed an early assessment
28:28 of the physical damage.
28:30 It puts the cost in terms of buildings and infrastructure.
28:34 The narrow cost at roughly US$60 billion.
28:37 That doesn't include the growing economic costs to Ukraine's economy.
28:43 And also, of course,
28:44 the war is still ongoing so those costs are rising.
28:47 Ukraine's government and state-owned enterprises
28:50 face a large non-military fiscal deficit and debt burden.
28:56 Since the invasion, the World Bank Group
28:59 has provided fast dispersing financial support
29:02 to help the government provide critical services,
29:04 pay wages for hospital workers, public servants and the elderly.
29:09 Through IFC,
29:10 we've provided immediate working capital
29:12 for companies providing supplies to Ukraine.
29:16 We've now mobilized more than US$3 billion for Ukraine
29:19 to support the continuation of essential government services.
29:23 [David Malpass] This was made possible,
29:25 and I want to thank the grant contributions through our multi-donor trust fund
29:30 from the United States, the United Kingdom, Norway, Denmark,
29:35 Austria, Latvia, Lithuania, Iceland,
29:38 and guarantees from the United Kingdom, Netherlands and Sweden,
29:43 and parallel financing from Japan.
29:46 These announcements were still being made today
29:49 and I know many other countries are also putting money directly
29:54 into the support effort for Ukraine.
29:57 Our mechanisms are providing rapid, targeted and secure delivery
30:03 of the support to Ukraine in the challenging times.
30:06 The priority should be to fill Ukraine's current financing needs
30:11 in a way that minimizes its future debt burden,
30:14 so grant contributions will be very important.
30:18 Our MDTF is one mechanism that can be utilized,
30:22 and I also would like to acknowledge complementary approaches,
30:27 including the IMF's administered account,
30:30 the European Union Solidarity Trust Fund, EBRD's resilience package.
30:36 It will be important for all partners
30:39 to continue coordinating their support for Ukraine's budget needs.
30:44 We're working toward three phases of the recovery effort
30:50 of relief, recovery, and resilience,
30:52 and I know many around the table are working in those efforts.
30:57 As the war continues,
30:58 we'll work to build confidence in Ukraine's financial,
31:03 monetary and fiscal institutions,
31:07 fostering currency stability as we go forward
31:11 in the six to eight months after peace.
31:13 We believe the reconstruction of essential infrastructure connectivity
31:18 such as transport, power, heating and digital
31:22 should be urgently addressed
31:24 and then over the medium term, reinforcing the macro fiscal capacity,
31:28 rebuilding cities and households,
31:31 and strengthening the agriculture and business sectors.
31:34 The war has been devastating for Ukraine's people and its economy
31:37 and it must end now.
31:40 Rebuilding will take hard work, determination and struggle,
31:45 but I remain optimistic.
31:47 With our collective support, Ukraine can achieve a brighter future.
31:52 With that, I want to say thank you and turn to my friend and colleague,
31:56 IMF Managing Director, Kristalina Georgieva,
31:59 to give her remarks.
32:02 [Kristalina Georgieva] Thank you very much, David.
32:05 Thank you for organizing this meeting.
32:10 I cannot think of a more important gathering than this one.
32:18 Why?
32:19 Because the unthinkable happened.
32:22 We again have a war in Europe.
32:26 We again have refugees in Europe.
32:29 Those of us who know well European history, we are horrified for Europe,
32:38 but we are horrified for Europe and the world as well.
32:44 After the Second World War,
32:46 United Nations High Commissioner for Refugees was set up
32:52 to help 3 million Europeans still left displaced to go back to their homes.
33:01 We have today over 4.5 million Ukrainians outside of Ukraine.
33:09 And the data say at least 8 million displaced internally.
33:14 So we have a duty to you and we have a duty to ourselves.
33:21 And that is what makes this meeting today so important.
33:27 I want to thank wholeheartedly Minister Marchenko
33:31 for the time he spent with us.
33:33 Governor Shevchenko is here.
33:37 When we finish the meeting,
33:39 I would ask you, how did you manage to come?
33:41 But we are so grateful you did.
33:44 I want to make four points.
33:46 The first one is about the impact of the war on the economy.
33:51 As you said, estimates are quite dreadful hours.
33:55 We just published on Tuesday, 40% shrinkage of the GDP this year.
34:03 It is a very deep contraction
34:06 that certainly causes tremendous drain on your resources.
34:12 My second point is something that we have been saying
34:15 from the very beginning of this war,
34:19 how incredibly impressed we are
34:23 by the emergency economic and financial policy response
34:28 by the Ukrainian authorities.
34:31 You've acted decisively
34:33 to preserve the availability of foreign exchange reserves
34:37 and reduce exchange rate uncertainty.
34:41 You have supported financial stability and protected priority budget payments.
34:47 And you have ensured that people in Ukraine can still access
34:53 the services and the cash they need.
34:56 And yes, I can vouch for it.
35:01 In the midst of the invasion,
35:02 these actions have helped avoid the economic shocks that a company wars,
35:07 such as hyperinflation and currency devaluation.
35:13 My third point is the importance for this of the financing you,
35:22 some of you through us are providing.
35:27 And I want to most sincerely salute all the friends of Ukraine
35:34 for the generous support you have provided.
35:38 Please continue to do so.
35:41 Like the World Bank, we have played our role.
35:44 We have provided swiftly $1.4 billion emergency financing.
35:50 In less than two weeks after the invasion,
35:55 we had established the administered account for Ukraine
35:58 that would provide donors with secured vehicle for direct financing.
36:04 And I want to recognize Canada, as you did, for 1 billion disbursed in this account.
36:11 And this is what keeps Central Bank foreign exchange reserves stable
36:16 relative to prewar levels.
36:19 And on the fiscal side, this is what supplements domestic revenues.
36:24 You don't have to go to excessive recourse to monetary financing.
36:31 But as important this is, let's be very frank,
36:36 it is not enough.
36:39 Why?
36:40 Because we have in front of us a couple of very difficult months.
36:45 Hopefully the war would end.
36:49 But holding on your functions as government
36:54 until it ends and probably a bit after it ends,
36:58 it would need help.
37:01 Reserves are under pressure.
37:04 Capital outflows can increase
37:08 and inflow can shrink further
37:11 if your export routes for agriculture products
37:16 continue to be compressed.
37:20 And in that context, we've worked with you to ascertain what are...
37:28 What is the short term financial gap?
37:32 There is a great deal of uncertainty, but we do assess it to be
37:37 in the order of $5 billion over the next two to three months.
37:43 Yes, we do hope that the economy can start functioning
37:47 in the part of the country that is not affected.
37:50 We actually think you probably are going to see remittances increasing
37:55 because, unfortunately, smart Ukrainians are working somewhere else,
38:00 but they can then help our families,
38:04 but we would really urge us
38:07 to work towards this 15 billion over the next three months
38:12 to make sure that you can continue to provide the vital government services.
38:19 Like David,
38:22 I would urge us to seek as much as possible ground financing
38:26 or highly concessional financing,
38:29 because piling up more debt in Ukraine at this moment of time is just not wise.
38:37 It will have to be restructured down the road for sure.
38:43 We also have to prepare for the future.
38:48 Sergei talked about your dream for Ukraine.
38:52 Well, we have to make this dream a reality
38:56 and planning early would make it more certain.
39:00 You called on us to look into possibility of lending some SDR resources
39:07 from countries that have it but don't need it decisively.
39:12 Our team is working on it.
39:14 It is not a trivial matter. It is not easy.
39:16 We will be working with you to make every effort
39:21 to make use of a resource that, at this moment, in many countries is idle,
39:28 and we can deploy it at very low cost.
39:35 I want to conclude with the following.
39:42 We have these rare moments in life
39:46 when we find who we are,
39:50 and this is one of these moments.
39:53 Thank you.
40:02 [David Malpass] Thank you very much, Kristalina.

Ministerial Roundtable Discussion for Support to Ukraine

- Watch in українська мова | العربية | Français | Español -

Ukraine’s President Volodymyr Zelensky addressed participants at the Ministerial Roundtable Discussion for Support to Ukraine on 21 April via video link from Ukraine. He spoke about the enormous humanitarian and economic costs of the Russian invasion on Ukraine – including the widespread destruction of schools, nurseries and universities. The World Bank Group estimates the Russian invasion has caused almost $60 billion in physical damage to buildings and infrastructure. The event was hosted by the World Bank Group and the Government of Ukraine. Speakers at the event included Ukrainian President Volodymyr Zelensky, Ukrainian Prime Minister Denys Shmyhal, World Bank Group President David Malpass, and International Monetary Fund Managing Director Kristalina Georgieva.

Read the remarks by World Bank Group President David Malpass

PAGE SECTIONS

- LIST OF SPEAKERS -

- RESOURCE LINKS -

- ABOUT THE SPRING MEETINGS -

00:00 Welcome and opening remarks by David Malpass, WBG President
01:12 Speech delivered by Ukraine’s President Volodymyr Zelensky
14:11 Remarks by Denys Shmyhal, Prime Minister of Ukraine
27:22 The support from the World Bank Group to Ukraine
31:53 Remarks by Kristalina Georgieva, IMF Managing Director

Speakers

Volodymyr Zelensky

President, Ukraine
@ZelenskyyUa
Denys Shmyhal

Prime Minister, Ukraine
@Denys_Shmyhal
David R. Malpass

Former President, World Bank Group
@DavidMalpassWBG
Kristalina Georgieva

Managing Director, International Monetary Fund
@KGeorgieva

RESOURCES

Website

- The World Bank in Ukraine

News

- War in the Region: Europe and Central Asia Economic Update Spring 2022 (10 April 2022)
- Joint Statement of Heads of International Financial Institutions with programs in Ukraine and neighboring countries (17 March 2022)
- World Bank Announces Additional $200 Million in Financing for Ukraine (14 March 2022)
- World Bank Mobilizes an Emergency Financing Package of over $700 million for Ukraine (7 March 2022)
- Joint IMF-World Bank Group Statement on the War in Ukraine (1 March 2022)
- World Bank Group Stands with Ukraine and its People (24 February 2022)
- Readout from World Bank Group President David Malpass’s Meeting with Volodymyr Zelensky, President of Ukraine (19 February 2022)

Read the transcript

00:00 Good afternoon.
00:02 I'd like to welcome everyone joining us here at the World Bank Group headquarters
00:06 in Washington, DC,
00:07 as well as the global audience joining us via live stream.
00:12 I've been deeply horrified and shocked
00:15 by Russia's invasion of Ukraine,
00:17 the atrocities committed against the civilian population,
00:21 and the loss of life and livelihoods for millions of Ukrainians.
00:25 For nearly two months,
00:27 the people of Ukraine have demonstrated incredible resilience and bravery.
00:32 Ukraine's needs are immense and evolving.
00:35 We're here today as part of our continuing assessment of those needs,
00:39 recognizing that the situation on the ground changes by the hour.
00:43 We're honored to have his Excellency,
00:46 President Volodymyr Zelensky, joining us live from Ukraine.
00:51 President Zelensky has demonstrated powerful leadership throughout the war.
00:57 Mr. President,
00:58 you and your nation have shown strength, tenacity and heroism
01:03 in the face of aggression.
01:05 President Zelensky, the floor is yours.
01:14 Thank you, Mr. President.
01:17 Dear President David Malpass and
01:23 dear Managing Director of IMF, Kristalina Georgieva.
01:29 I would like to greet all those who are attending this historical meeting
01:36 of the World Bank.
01:37 And...
01:40 a few days ago, I spoke with Ms. Kristalina Georgieva.
01:43 and I heard very important words from her about Ukraine.
01:47 We talked about life in our city, Kharkiv.
01:52 It's the biggest city of Eastern Ukraine.
01:55 The Russian troops are bombarding and firing at it
01:59 for some weeks.
02:01 And those parts where Russian weapons can reach,
02:05 over 1000 houses have been ruined.
02:08 Russian artillery, Russian missiles,
02:10 Russian air bombs do not discriminate between who to kill
02:15 and which buildings to blow up or set on fire.
02:19 In downtown Kharkiv and at the side streets,
02:23 it's equally dangerous and people can die from Russian strikes.
02:29 But you should know, our people,
02:30 the residents of Kharkiv, even during the war,
02:33 during those firing strikes, Kharkiv has remained a functioning city.
02:39 And Ms. Kristalina pointed out that, despite everything,
02:43 they are planting flowers in Kharkiv.
02:46 They are trimming the trees,
02:50 cleaning the streets and keeping the city in a good shape.
02:54 That's what our Kharkiv is like.
02:55 That's what our country is like.
02:57 We were able to liberate three northern provinces of the country
03:02 from the occupiers.
03:03 That's Lviv, Chernihiv and Zhytomyr.
03:05 And we are doing everything now to bring normal life back there.
03:09 Russian troops have destroyed or damaged tens of thousands of buildings.
03:16 Almost all objects of social sphere have been burned down or require fixing.
03:24 Thousands of people have been killed.
03:26 Most businesses have been destroyed.
03:29 We are bringing back electricity, communication lines, water supplies.
03:34 We are renewing transportation lines,
03:37 building up temporary bridges on the rivers.
03:41 We are continuing building social administrative services.
03:45 And every day we remove mines and booby traps left by the Russian military.
03:55 Imagine they were even putting those mine traps in people's homes,
04:02 in home equipment, and even in the agricultural fields.
04:10 But despite all this, our people are coming back home.
04:13 Ukrainians are doing everything in order to bring back normal life,
04:16 because that's who we are, Ukrainians.
04:19 In the east of our country, in Donbas in the south,
04:23 the situation is even harder.
04:25 And right now, active combat action is going on.
04:29 Russia is still trying to build up a new and atrocious offensive operation.
04:36 I can give you just one number
04:38 so you understand the scale of our experiences.
04:42 Owing to bombardment and fire strikes,
04:46 there have been 1141 educational institutions
04:52 ruined or damaged.
04:54 That includes schools, nursery schools, universities all across the country.
05:01 Not every country of the world has so many institutions of education
05:07 as Russians have ruined in Ukraine.
05:09 And if we are talking about schools and colleges,
05:13 you can imagine how many other places that have been ruined.
05:18 That's hospitals, infrastructural objects, businesses, etc.
05:23 Russian investment has given tremendous damage.
05:29 At the very preliminary evaluation,
05:33 Ukraine has lost 550,000 billions in the value of the destruction.
05:39 Russia has blocked our ports in the Black Sea and the Sea of Azov.
05:44 This has reduced our exports,
05:47 including agrarian exports, and it already impacts world food safety.
05:52 A recent UN report
05:57 said that 47 million people in 81 countries of the world
06:02 will starve because of growth of prices for food.
06:09 And this is not about physical shortage of food.
06:12 In many countries of Africa and Asia,
06:14 this will also cause political instability
06:17 and maybe a new migration crisis.
06:20 People will look for the guilty,
06:23 those who are guilty of that, and they will go out on the streets,
06:26 They will look for a way to save themselves.
06:29 We are doing everything we can in order to build up the export of our products.
06:34 And we have started sowing in the fields as much as we can.
06:42 But nobody in the world can be sure
06:44 that we'll be able to guarantee food security
06:48 as long as this war is going on.
06:50 To stop the war now and to liberate our territory from the Russian invaders
06:55 is the only secure way to stop the development of a food crisis.
07:02 Russian military are aimed at destroying all objects in Ukraine
07:07 that can serve as an economic base for life.
07:11 That includes railroad stations, food warehouses,
07:16 oil refineries, etc.
07:21 At this time, we need up to $7 billion each month
07:27 to make up for the economic losses.
07:32 And we will need hundreds of billions of dollars to rebuild all this later.
07:37 I'm sure that all of you have seen those calculations.
07:40 We have to speak honestly with you and say
07:44 that Russia is using aggressive methods in the world market
07:50 while fighting this war.
07:52 They are creating such conditions, so not only the food market,
07:55 but also the fuel market and other raw materials markets
08:00 would face instability.
08:01 Russia has provoked the growth of prices
08:06 for energy resources in Europe and the whole democratic world.
08:14 They are slowing the sales,
08:19 especially for natural gas,
08:21 to create painful prices for European consumers.
08:25 This and other examples show that Russia can no longer be considered
08:30 a normal and reliable supplier of energy resources,
08:34 a normal and reliable trade partner.
08:37 We all can implement such decisions,
08:40 which will not only stop the aggressive intentions of Russia,
08:45 and who not only support Ukraine in this war,
08:48 but will also show all potential aggressors in the world
08:52 that if you create problems for other nations,
08:57 this means you will create problems for yourself.
09:00 Because if we don't do that, then millions and millions of people in the world
09:05 will suffer more than once from aggressive action of some countries.
09:09 So what steps are needed now?
09:13 Right now.
09:14 First is immediate support for Ukraine
09:17 so that the leadership of Russia know
09:20 that war will not allow them to implement any of their aggressive goals.
09:27 Details of such financial support, I'm sure, will be presented
09:31 by our Prime Minister and Minister of Finance,
09:33 who are present at this meeting.
09:35 We must do everything so that Ukrainians
09:38 have everything they need for survival and life,
09:42 even despite the war.
09:44 And as I mentioned the city of Kharkiv at the beginning,
09:47 and this applies to all other cities and communities of Ukraine.
09:51 Number two. We need immediately to exclude Russia
09:56 from all international financial institutions,
09:59 IMF, World Bank, and others.
10:02 That's not the place for a country
10:04 that is trying to build the life of a neighborly nation.
10:09 Number three. A special tax on war is needed.
10:13 Russia and, after that, any other aggressor,
10:17 must pay for destroying global stability.
10:20 Such tax must be applied to all, without exception,
10:26 trade operations with the Russian Federation,
10:29 or with Russian companies, or all export and import operations.
10:35 For all financial operations that are not blocked yet,
10:39 the costs from that war tax
10:42 must be used to help Ukraine
10:46 to renew everything that Russia has destroyed.
10:50 And if this tax is applied to another aggressor,
10:54 then those costs must be directed to the victims of that war.
10:59 The world needs...
11:02 needs a working effective instrument to react to destructive action
11:08 and to all those who don't want to support collective security.
11:14 I'm sure that such a war tax can be a tool of that kind.
11:18 Number four. Every country of the world
11:20 must immediately prepare to break up all relations with Russia.
11:25 No one should be dependent
11:27 on the political whims of the leaders of that country.
11:32 If the world is prepared to isolate Russia completely,
11:36 then the Russian leadership will have a motivation to avoid any war.
11:41 Number five.
11:43 Those assets of the Russian state that already have been blocked
11:47 and of the Russian elite,
11:49 those are not all their assets that we know.
11:53 This blocking has to be continued.
11:57 Those efforts have to be continued, and that's not a goal in itself.
12:01 Those monies that were blocked and frozen
12:05 have to be used to rebuild Ukraine after the war,
12:08 as well as to pay for the losses cost to other nations.
12:15 If starvation started
12:20 in some regions due to Russia's war,
12:23 those frozen assets can be used to pay for the assistance and compensation.
12:30 We must use all our strength, so that Russia feels
12:34 that is being punished for this war and also feels how big
12:39 is the need to bring back peace, including for Russia itself.
12:44 So by helping us,
12:52 we are helping to stabilize the world in general,
12:55 and fix market problems,
12:59 including beginning with the food market.
13:01 And with your support, with your financial support,
13:06 we will quickly rebuild our nation.
13:09 That means new opportunities, business from different countries,
13:13 for not just economic growth, but also this will be a specific proof
13:17 that global financial institutions
13:20 are capable to work in the interests of rank and file people
13:25 and of mankind in general.
13:27 I would like one of our next meetings to take place in Ukraine
13:32 in one of our cities that were rebuilt with your support,
13:37 maybe in Kharkiv.
13:40 Thank you for your attention and glory to Ukraine.
14:04 [David Malpass] I appreciate your participation in today's meeting.
14:09 Next, I would like to welcome His Excellency Denys Shmyhal,
14:15 Prime Minister of Ukraine.
14:18 And Prime Minister, the floor is yours.
14:22 [Denys Shmyhal] Thank you very much.
14:24 Dear President Malpass, dear Managing Director,
14:27 Kristalina Georgieva, your Excellencies, dear colleagues.
14:31 I'm sure you understand the current situation in Eastern Europe.
14:37 And what exactly is Russia doing here in Ukraine?
14:42 Firstly, they destroy Ukraine's economic potential.
14:46 As President Zelensky told, all types of infrastructure,
14:51 all types of enterprises are subjected to massive attacks,
14:55 airstrikes and artillery fire.
14:58 Not only the military, as Russia's representative says,
15:02 but everything from bakeries to food warehouses
15:08 to machine-building enterprises and petroleum storages.
15:12 Everything is bombed, is under rocket strikes.
15:16 Secondly, the Russian military tactic is aimed
15:18 at creating a migration crisis in Europe.
15:22 Russian troops are deliberately destroying people's homes.
15:27 There are dozens of Ukrainian cities and communities
15:30 that have been almost completely destroyed by the Russian's fire.
15:33 Mariupol is just one example,
15:37 but one, but not last.
15:40 Volnovakha, Izyum and other cities suffered comparable large-scale destructions.
15:46 Other cities such as Kharkiv, Chernihiv, Irpin, Borodyanka,
15:50 have been turned into ruins.
15:53 Thirdly, Russia is blocking our seaports.
15:56 No other state has posed such a threat which indicates
16:00 that if our seaports stay blocked, we cannot export agricultural products.
16:06 If we cannot export agricultural products,
16:08 it means there will be a threat of food crisis at least,
16:13 or even large-scale political destabilization
16:16 in dozens of countries in North Africa, Asia and other regions at worst.
16:23 What are the consequences of Russia's aggression today?
16:27 Donbas as one of the key industrial regions of Eastern Europe
16:31 is absolutely destroyed by Russia.
16:34 Black Sea and Azov seaports of Ukraine are blocked.
16:38 Dozens of thousands of Ukrainians are dead.
16:42 Almost 12 million of Ukrainians were forced to leave their homes.
16:47 About 15 million of them left...
16:51 About five million of them left Ukraine.
16:54 For now, 220 000 people lost their homes
16:59 because 7000, as President Zelensky mentioned, residential buildings
17:06 were damaged or destroyed completely.
17:10 Hostilities and bombing of our cities
17:14 by Russian military forces still continue.
17:17 So, the list of damages and destroyed property
17:21 will only be increasing day by day.
17:24 Over 120 000 sq. mi
17:29 of Ukrainian territory requires mine cleaning.
17:32 It's a huge territory.
17:35 Ukraine's GDP can drop by 30% to 50% during this year
17:40 according to prior estimates by experts
17:42 and by international financial organizations.
17:46 Our prior analysis has demonstrated
17:49 that direct and indirect losses because of the war
17:53 amount to more than 560 billion of US dollars.
17:59 And if we do not stop this war together, the losses will increase dramatically.
18:06 Infrastructure losses alone are already higher than 100 billion dollars.
18:13 In March this year, more than 60% of Ukrainian enterprises
18:17 were stopped completely or partially.
18:20 One of the biggest Ukrainian steel production plant in Mariupol
18:24 was almost destroyed by Russian bombs.
18:27 And this is just one of the hundreds of enterprises and facilities
18:32 which are no longer operational
18:34 after missile and air bomb strikes by Russia.
18:38 Obviously, Ukraine's efforts only
18:41 are not enough to come back to normal life,
18:44 after such a horrible aggression from Russia.
18:47 And it is also obvious that the recovery of Ukraine after this war
18:53 will be a must to recover global security.
18:57 Russia as well as all other potential aggressors all around the world
19:01 must understand that their wars will never be able to destroy the life of any nation.
19:07 They must see that everything they destroy will be renewed immediately
19:11 and will be compensated and recovered.
19:15 It should be one of the safeguards from the military aggression
19:20 in the future.
19:22 If every potential aggressor knows
19:25 that the civilized world will help every nation
19:31 which has become or may become a victim of the war,
19:35 then the motivation to start a war will be decreased.
19:39 That is why the real support of Ukraine will translate into a direct benefit
19:44 for each of our countries, for the civilized world,
19:49 and for global security.
19:51 Our public and our civil institutions in Ukraine have already demonstrated
19:56 that President Vladimir Zelensky and the government of Ukraine
19:59 are ensuring their right way
20:02 the right way to move forward in Ukraine's Development.
20:05 Sustainability of our institutions,
20:07 capability of our State to regroup at all levels,
20:12 defending our nation from the Russian invasion
20:15 as well as stability of our financial system,
20:19 have proven the right track of governing Ukraine, our country.
20:24 We have mobilized and allocated all the international resources very quickly.
20:30 State budget revenues in March were 100%
20:33 in line with the budget plan before the war.
20:36 To avoid the total collapse of business,
20:38 we have simplified taxation and customs, but the war is still going on
20:43 and we expect in April state budget will be performed at only 50%.
20:50 And to balance state budget as well as to support small and medium business,
20:54 we need additional financial resources.
20:57 We finance our security and defense sector.
21:01 We have launched a new state program
21:04 to support people who lost their job, incomes and homes.
21:10 Despite all difficulties,
21:13 our country is performing all social obligations,
21:16 pensions, salaries, social payments,
21:19 and it all costs about US$7 billion per month for our budget.
21:26 We do our best to prevent food crisis and political destabilization
21:30 in the African countries and other macro regions of the world.
21:35 For example, the Ukrainian share in the global export
21:40 is 10% in wheat,
21:42 14% in corn and 47% in sunflower oil.
21:48 Some of those countries are especially vulnerable.
21:52 For example, Egyptian food market is 100%
21:56 dependent on Ukrainian and Russian wheat supplies.
21:59 Despite the war and blockages of the sea ports,
22:03 Ukrainian farmers continue to work and a sowing campaign is underway,
22:08 and we expect to farm about 80%
22:13 of the total farming area compared to last year's.
22:17 We create new export logistics
22:20 and this also requires additional finances
22:24 and special technological solutions.
22:28 So as you can see, the scale of the challenges is very serious
22:33 in all spheres of economic and social life in Ukraine.
22:37 But taking into account the additional environmental risks because of the war
22:44 in the industrial zones,
22:45 flooded coal mines, intervention in the Chernobyl zone,
22:51 then the scope of additional support needed will increase dramatically.
22:57 In a short-term perspective, we need a financial bridge
23:01 for up to 5 months with US$4-5 billion per month.
23:08 In a long-term perspective, we need a recovery plan for Ukraine
23:11 similar to Marshall Plan for Europe after Second World War.
23:15 According to the order of the President of Ukraine, Volodymyr Zelensky,
23:19 The government of Ukraine began to work on the United 24 Recovery Plan
23:26 and established the United 24 Recovery Fund.
23:30 The goal of the plan is not to recover the destroyed economy,
23:35 but to build a new economy in Ukraine
23:37 which will be fully integrated into the EU.
23:41 As of today, such recovery, reconstruction and transformation
23:46 will cost about US$600 billion.
23:50 But first we have to stop the war.
23:53 We have to bring peace back to Ukraine and put the Russian Federation to justice.
23:58 That is why I call all of our international partners
24:02 to be focused on three particular instruments.
24:05 First, supplying ammunition weapons to Ukraine.
24:11 As President of Ukraine, Volodymyr Zelensky said,
24:14 "Freedom must be armed no worse than tyranny."
24:18 Second, we ask to put more sanctions pressure on Russia
24:22 because only this can force them to seek peace.
24:26 It is clearly important.
24:28 It is crucially important to impose
24:31 complete blockage of the Russian banking sector,
24:34 ban their energy exports,
24:36 including oil and nuclear fuel, and in future, gas.
24:41 Third, financial support of Ukraine.
24:43 The tyranny must clearly see that the Democratic world
24:47 will not leave our nation, which is fighting for freedom,
24:53 without support.
24:54 We need to have all necessary financial resources,
24:57 not only for defense,
25:00 but for the functioning of all public and social institutions
25:04 and to guarantee return of internally displaced persons.
25:10 We are in the dialogue with all who can support Ukraine.
25:13 We are grateful to all our international partners
25:17 to World Bank, the IMF, the IBRD, the EIB, the European Union,
25:24 G7 countries, other European, Middle East, and Asian countries
25:29 for providing support to Ukraine.
25:31 I have sent letters to many of my colleagues and have asked them
25:35 to provide 10% of SDRs to support Ukraine financially.
25:40 For example, Canada has agreed to provide
25:42 CAD 1 billion in SDRs
25:45 to the special administrative account created by IMF.
25:48 Thank you for this.
25:49 We hope that all other partners will follow this example.
25:54 The World Bank also created a trust account for donors
25:58 and we call our partners to support us through this World Bank account.
26:07 We are grateful for loans, guarantees and grants provided.
26:12 In the government of Ukraine, we believe
26:14 that this military financing will continue.
26:18 While I'm talking to you, Russia is attacking my country
26:22 to undermine resilience of the Ukrainian nation.
26:26 Ukrainian people have proven
26:28 that they are ready to fight as much as it is needed.
26:34 We will fight bravely and wisely
26:37 to defend our nation and freedom of the European continent.
26:41 But to win the war, we need your support.
26:45 That is why I appeal to all of you on behalf of those who fight for Ukraine,
26:50 those who work hard now for our victory and survival of the Ukrainian nation.
26:55 I appeal to you by...
26:57 I appeal to you with my request,
26:59 help us protect freedom.
27:03 You have all the resources needed for this.
27:06 We need decisions.
27:07 Slava Ukraini! Glory to Ukraine! And thanks to you all.
27:11 Thank you so much.
27:14 [Applause]
27:21 [David Malpass] Thank you very much, Mr. Prime Minister.
27:24 We've been honored to have you here today,
27:27 and we're also honored to have Finance Minister Marchenko
27:30 and Governor Shevchenko here with us,
27:34 and finance ministers from many countries around the world.
27:37 And we appreciate everyone's participation.
27:41 And I want to say a few words of thanks
27:44 to all those that have contributed already.
27:48 But let me repeat, on behalf of the World Bank Group,
27:51 we have been deeply horrified and shocked by Russia's invasion of Ukraine,
27:57 the atrocities committed against the civilian population,
28:01 and the loss of life and livelihoods for millions of Ukrainians.
28:06 The Russian invasion is needlessly taking lives
28:10 injuring so many,
28:11 and causing massive damage to your economy.
28:15 And we appreciate you going through some of that.
28:18 We know how painful it is.
28:20 War is first and foremost a human tragedy.
28:24 The World Bank group has completed an early assessment
28:28 of the physical damage.
28:30 It puts the cost in terms of buildings and infrastructure.
28:34 The narrow cost at roughly US$60 billion.
28:37 That doesn't include the growing economic costs to Ukraine's economy.
28:43 And also, of course,
28:44 the war is still ongoing so those costs are rising.
28:47 Ukraine's government and state-owned enterprises
28:50 face a large non-military fiscal deficit and debt burden.
28:56 Since the invasion, the World Bank Group
28:59 has provided fast dispersing financial support
29:02 to help the government provide critical services,
29:04 pay wages for hospital workers, public servants and the elderly.
29:09 Through IFC,
29:10 we've provided immediate working capital
29:12 for companies providing supplies to Ukraine.
29:16 We've now mobilized more than US$3 billion for Ukraine
29:19 to support the continuation of essential government services.
29:23 [David Malpass] This was made possible,
29:25 and I want to thank the grant contributions through our multi-donor trust fund
29:30 from the United States, the United Kingdom, Norway, Denmark,
29:35 Austria, Latvia, Lithuania, Iceland,
29:38 and guarantees from the United Kingdom, Netherlands and Sweden,
29:43 and parallel financing from Japan.
29:46 These announcements were still being made today
29:49 and I know many other countries are also putting money directly
29:54 into the support effort for Ukraine.
29:57 Our mechanisms are providing rapid, targeted and secure delivery
30:03 of the support to Ukraine in the challenging times.
30:06 The priority should be to fill Ukraine's current financing needs
30:11 in a way that minimizes its future debt burden,
30:14 so grant contributions will be very important.
30:18 Our MDTF is one mechanism that can be utilized,
30:22 and I also would like to acknowledge complementary approaches,
30:27 including the IMF's administered account,
30:30 the European Union Solidarity Trust Fund, EBRD's resilience package.
30:36 It will be important for all partners
30:39 to continue coordinating their support for Ukraine's budget needs.
30:44 We're working toward three phases of the recovery effort
30:50 of relief, recovery, and resilience,
30:52 and I know many around the table are working in those efforts.
30:57 As the war continues,
30:58 we'll work to build confidence in Ukraine's financial,
31:03 monetary and fiscal institutions,
31:07 fostering currency stability as we go forward
31:11 in the six to eight months after peace.
31:13 We believe the reconstruction of essential infrastructure connectivity
31:18 such as transport, power, heating and digital
31:22 should be urgently addressed
31:24 and then over the medium term, reinforcing the macro fiscal capacity,
31:28 rebuilding cities and households,
31:31 and strengthening the agriculture and business sectors.
31:34 The war has been devastating for Ukraine's people and its economy
31:37 and it must end now.
31:40 Rebuilding will take hard work, determination and struggle,
31:45 but I remain optimistic.
31:47 With our collective support, Ukraine can achieve a brighter future.
31:52 With that, I want to say thank you and turn to my friend and colleague,
31:56 IMF Managing Director, Kristalina Georgieva,
31:59 to give her remarks.
32:02 [Kristalina Georgieva] Thank you very much, David.
32:05 Thank you for organizing this meeting.
32:10 I cannot think of a more important gathering than this one.
32:18 Why?
32:19 Because the unthinkable happened.
32:22 We again have a war in Europe.
32:26 We again have refugees in Europe.
32:29 Those of us who know well European history, we are horrified for Europe,
32:38 but we are horrified for Europe and the world as well.
32:44 After the Second World War,
32:46 United Nations High Commissioner for Refugees was set up
32:52 to help 3 million Europeans still left displaced to go back to their homes.
33:01 We have today over 4.5 million Ukrainians outside of Ukraine.
33:09 And the data say at least 8 million displaced internally.
33:14 So we have a duty to you and we have a duty to ourselves.
33:21 And that is what makes this meeting today so important.
33:27 I want to thank wholeheartedly Minister Marchenko
33:31 for the time he spent with us.
33:33 Governor Shevchenko is here.
33:37 When we finish the meeting,
33:39 I would ask you, how did you manage to come?
33:41 But we are so grateful you did.
33:44 I want to make four points.
33:46 The first one is about the impact of the war on the economy.
33:51 As you said, estimates are quite dreadful hours.
33:55 We just published on Tuesday, 40% shrinkage of the GDP this year.
34:03 It is a very deep contraction
34:06 that certainly causes tremendous drain on your resources.
34:12 My second point is something that we have been saying
34:15 from the very beginning of this war,
34:19 how incredibly impressed we are
34:23 by the emergency economic and financial policy response
34:28 by the Ukrainian authorities.
34:31 You've acted decisively
34:33 to preserve the availability of foreign exchange reserves
34:37 and reduce exchange rate uncertainty.
34:41 You have supported financial stability and protected priority budget payments.
34:47 And you have ensured that people in Ukraine can still access
34:53 the services and the cash they need.
34:56 And yes, I can vouch for it.
35:01 In the midst of the invasion,
35:02 these actions have helped avoid the economic shocks that a company wars,
35:07 such as hyperinflation and currency devaluation.
35:13 My third point is the importance for this of the financing you,
35:22 some of you through us are providing.
35:27 And I want to most sincerely salute all the friends of Ukraine
35:34 for the generous support you have provided.
35:38 Please continue to do so.
35:41 Like the World Bank, we have played our role.
35:44 We have provided swiftly $1.4 billion emergency financing.
35:50 In less than two weeks after the invasion,
35:55 we had established the administered account for Ukraine
35:58 that would provide donors with secured vehicle for direct financing.
36:04 And I want to recognize Canada, as you did, for 1 billion disbursed in this account.
36:11 And this is what keeps Central Bank foreign exchange reserves stable
36:16 relative to prewar levels.
36:19 And on the fiscal side, this is what supplements domestic revenues.
36:24 You don't have to go to excessive recourse to monetary financing.
36:31 But as important this is, let's be very frank,
36:36 it is not enough.
36:39 Why?
36:40 Because we have in front of us a couple of very difficult months.
36:45 Hopefully the war would end.
36:49 But holding on your functions as government
36:54 until it ends and probably a bit after it ends,
36:58 it would need help.
37:01 Reserves are under pressure.
37:04 Capital outflows can increase
37:08 and inflow can shrink further
37:11 if your export routes for agriculture products
37:16 continue to be compressed.
37:20 And in that context, we've worked with you to ascertain what are...
37:28 What is the short term financial gap?
37:32 There is a great deal of uncertainty, but we do assess it to be
37:37 in the order of $5 billion over the next two to three months.
37:43 Yes, we do hope that the economy can start functioning
37:47 in the part of the country that is not affected.
37:50 We actually think you probably are going to see remittances increasing
37:55 because, unfortunately, smart Ukrainians are working somewhere else,
38:00 but they can then help our families,
38:04 but we would really urge us
38:07 to work towards this 15 billion over the next three months
38:12 to make sure that you can continue to provide the vital government services.
38:19 Like David,
38:22 I would urge us to seek as much as possible ground financing
38:26 or highly concessional financing,
38:29 because piling up more debt in Ukraine at this moment of time is just not wise.
38:37 It will have to be restructured down the road for sure.
38:43 We also have to prepare for the future.
38:48 Sergei talked about your dream for Ukraine.
38:52 Well, we have to make this dream a reality
38:56 and planning early would make it more certain.
39:00 You called on us to look into possibility of lending some SDR resources
39:07 from countries that have it but don't need it decisively.
39:12 Our team is working on it.
39:14 It is not a trivial matter. It is not easy.
39:16 We will be working with you to make every effort
39:21 to make use of a resource that, at this moment, in many countries is idle,
39:28 and we can deploy it at very low cost.
39:35 I want to conclude with the following.
39:42 We have these rare moments in life
39:46 when we find who we are,
39:50 and this is one of these moments.
39:53 Thank you.
40:02 [David Malpass] Thank you very much, Kristalina.

About the Spring Meetings 2022

The Spring Meetings bring together leaders from government, business, international organizations, and civil society, along with a diverse group of experts, to discuss global challenges and the path ahead. Watch the replay of our events dedicated to international development.

Apr. 12: Addressing Challenges
Apr. 19: Responding to Global Shocks
Apr. 20: Opening Press Conference
Apr. 20: The Digital Revolution
Apr. 21: Financing Climate Action
Apr. 21: Support to Ukraine
Apr. 22: Fragility
Apr. 22: Preserving Open Trade
Apr. 23: Human Capital

Available with simultaneous interpretation in Arabic, French and Spanish.

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