Poland Can Be a Logistics Hub for the Reconstruction of Ukraine

Waldemar Buda, Minister for Economic Development and Technology (the Ministry coordinates the Polish-Ukrainian cooperation), speaking at the opening of the ReBuild Ukraine trade fair, which took place on 15‒16 February in Warsaw, stressed how important it is to bring together institutions and companies and discuss how to rebuild Ukraine in the future. A step in this direction was made with the creation of a database of Polish companies interested in participating in the reconstruction.

The Ministry of Economic Development and Technology in cooperation with the Polish Investment and Trade Agency (PAIH) opened a call on 9 June 2022 for Polish companies interested in resuming exports and participating in the reconstruction of Ukraine. More than 1,750 companies representing various industries have signed up. 30 percent of them are construction companies but there are many companies from the machinery, IT and pharmaceutical sectors. The initiative includes webinars, training courses and consultations for companies to prepare Polish businesses for cooperation in the reconstruction of Ukraine.

A catalogue of Polish companies willing to participate in reconstruction projects will be published at the turn of February/March this year. More than 500 companies have responded to the PAIH’s enquiry to be included. The catalogue will be available in three language versions: Polish, Ukrainian and English.

The Ministry of Economic Development and Technology is taking steps to maintain Polish-Ukrainian business relations despite the difficulties caused by the war. With the support of the Ministry, the Export Credit Insurance Corporation (KUKE) reopened in June 2022 the offering of short-term credit insurance for export contracts with Ukrainian contractors.

The Ministry of Economic Development and Technology is working to draft legal solutions enabling investment projects in Ukraine to be insured, including credit collateral for long-term export contracts and direct investments. Legislative work includes the addition of freight transport insurance for shipments crossing the Polish-Ukrainian border to KUKE’s reinsurance offer. These solutions can improve mutual trade and mitigate contractors’ concerns about business risks caused by the war.

There are other important initiatives. Minister Waldemar Buda participated in Polish-Ukrainian intergovernmental consultations in Kyiv in June 2022, where an agreement on economic cooperation on bilateral trade support instruments was signed. The Ministry of Economic Development and Technology organised the 8th meeting of the Polish-Ukrainian Intergovernmental Commission on Economic Cooperation in Rzeszów in September 2022, chaired by Waldemar Buda together with Iryna Vereshchuk, Deputy Prime Minister and Minister for the Reintegration of the Temporarily Occupied Territories of Ukraine.

Ukraine on Its Way to the EU

The total cost of rebuilding Ukraine could be as high as USD 750 billion. This is a massive challenge which needs to be financed from a variety of sources, ranging from international organisations through support from different governments to the private sector. Poland calls for the frozen reserves of the Russian Central Bank and seized assets of Russian oligarchs to be used in financing the reconstruction. Warsaw understands that it is a legal challenge which should be seen as an opportunity.

It is not yet clear how Ukraine’s reconstruction projects will be managed. However, a variety of forms seems likely, including tenders opened by international organisations, projects implemented by governments in cooperation with Ukraine, and tenders opened directly by the Ukrainian government. The final procedures will be decided by the authorities in Kyiv.

The G7 established a multi-agency Donor Coordination Platform in December 2022 to integrate existing mechanisms for ongoing and long-term support to Ukraine, including its reconstruction. The Ministry of Economic Development and Technology expects that Poland will be included in the work of the Steering Committee of the Platform with the active support of the Ukrainian partner. Work is also underway in the EU to launch its own financial instrument ReBuild Ukraine.

The reconstruction of Ukraine is not only about rebuilding buildings but also about modernising the country and conducting reforms enabling membership of the European Union, especially in the context of Ukraine’s EU candidate status. Investment in the reconstruction of the energy sector and the development of renewable energy will be equally important throughout the process. The war in Ukraine has significantly undermined the EU’s energy security, highlighting the problem of the EU countries’ dependence on Russian gas and oil. All of the member states are now taking steps to diversify their sources of supply and develop other forms of energy. This also applies to Ukraine.

In addition to specific objectives and an aid plan, support for reconstruction includes an exchange of experience and know-how. The Polish Ministry of Economic Development and Technology has declared its support for Ukraine in the process of adapting its legislation to EU requirements. Ukraine still has a long way to go and further economic reforms and improvements are needed, but the change has already started and Poland is actively supporting the process.

The Ministry launched a website in May 2022 which presents international public procurement procedures dedicated to Ukraine. The site provides information on public tenders opened by international organisations, international banks, EU member states, members of the European Economic Area, and other countries providing assistance to Ukraine where procurement is addressed to entrepreneurs from outside Ukraine. An additional website section presents procurement procedures announced directly by the Ukrainian authorities opened to companies from outside Ukraine, including Poland.

Support for Ukrainian Businesses

What is important in the context of putting the Ukrainian economy back on track is support for local businesses and the professional activity of Ukrainians, both in Poland and in Ukraine.

Since the beginning of the war, more than 9 million Ukrainians have crossed the border into Poland. Approximately 1.5 million still remain in our country. Thanks to the amendment of the Law on Aid to Ukrainian Citizens, all Ukrainians legally residing in Poland can set up a business on the same terms as Polish nationals. The Ministry of Economic Development and Technology has launched a website at www.biznes.gov.pl/ukraina which provides details on how to start a business, take up employment, and hire Ukrainian citizens.

Efforts to stimulate Ukrainian business in Poland have been productive. Ukrainians established more than 17,500 new businesses from mid-March 2022 to 31 December 2022. The central business database CEIDG recorded a tenfold increase in the number of registration applications in July and August compared to January and February 2022.

The Diia.Business office was established in Warsaw in May 2022 as a result of cooperation between the Ministry of Economic Development and Technology with the Ukrainian Ministry of Digital Transformation and the Agency for Enterprise Development and Export of Ukraine. It is a Ukrainian support centre for Ukrainian entrepreneurs. Diia.Business support centres for Ukrainian entrepreneurs have previously operated in more than a dozen Ukrainian cities, providing free consultations and advice on opening a business, taxation, marketing, sales, exporting, etc. Now Ukrainian entrepreneurs can get support in Warsaw. The space along with the necessary infrastructure has been made available free of charge for a period of one year.

Small and medium-sized companies from Ukraine can conduct their business from the territory of Poland since the beginning of March 2022. Thanks to the efforts of the PAIH, they have access to free office space with the necessary infrastructure.

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