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The West must take urgent steps to prevent Ukrainian economic collapse
Russia’s invasion of Ukraine has devastated the country. In addition to thousands of military and civilian casualties, the war has also inflicted grave damage on the Ukrainian economy.
In response, the international community is helping to arm Ukraine and is also providing emergency financing in a bid to keep the Ukrainian economy afloat. However, far more comprehensive measures are required in order to prevent what could become a much greater economic collapse. If implemented without delay, the right steps could help safeguard Ukraine’s battered economy and set the stage for a strong post-war recovery.
Many Ukrainian companies currently face a lack of working capital and other business finance. This is in part due to the absence of political or conflict risk insurance (PRI), as well as the current shortage of ordinary business or property insurance. As a result, many Ukrainian businesses far from the frontlines are having to close or drastically reduce their activities.
Recent talk of a Ukrainian Marshall Plan for the post-war period is certainly welcome but Ukraine needs immediate action from the West on PRI, general insurance and business finance to avoid a further deterioration in the country’s already dire economic situation. Rebuilding Ukraine’s economy after the war will […]