Dutch finance minister in Kyiv to discuss long-term support

The Dutch Cabinet should discuss the possibility of providing additional financial support to Ukraine this year, said Finance Minister Sigrid Kaag. “That is a real issue,” said Kaag from Kyiv to ANP. The Minister visited the Ukrainian capital on Sunday and met her Ukrainian counterpart and the Minister of Economic Affairs, among others.

The Netherlands has already announced 2.5 billion euros in aid for this year, with an emphasis on military support. Kaag heard in the Ukrainian capital “that the money is being spent very quickly. It is also necessary. We will talk with each other about a top-up,” the Minister said. She stressed, however, that the Cabinet is still discussing the Spring Memorandum when the Cabinet makes decisions on the budget.

The International Monetary Fund (IMF) approved a four-year financing package for Ukraine on Friday. A tranche of 180 million euros of Dutch money has also been allocated.

According to Kaag, the Ukrainian government hopes for predictability when it comes to financial support so that Ukraine has a better idea of what it can count on. But there was also a request for “a view of the future: to determine together how to fill in Ukraine’s recovery.” The Minster thinks that in the long term, Dutch money will not only go to reconstruction and military support but also to investments in the economy.

After the war, which started with Russia’s invasion in February 2022, Ukraine wants to invest in a more modern economy. There is talk of risk financing in the private sector so that companies can innovate. But the war has forced Ukraine to build up a great deal of military knowledge. The Minister thinks a “military-industrial” sector could also be promising in the country after reconstruction.

Kaag visited a reception center for domestic refugees in Ukraine, among other things. These are projects for which a lot of money is currently being spent.

For the time being, it remains essential to “do everything possible to ensure that Ukraine wins the war as quickly as possible,” the Minister said. The Netherlands will continue to “drive” support for Ukraine within NATO and the European Union. “And from Finance also within the IMF.”