Cabinet resolution #770 of June 25, 2023 

Sponsor: the Cabinet of Ministers of Ukraine 

Status: in effect since July 25, 2023 

Who is affected: victims of the Russian armed aggression, Ministry for Communities, Territories, and Infrastructure Development, State Agency for Reconstruction and Infrastructure Development, and oblast state administrations mentioned in the resolution 

Summary of the resolution: 

  • ₴3.5 billion are allocated from the Fund for the Liquidation of Consequences of the Armed Aggression to the State Agency for Reconstruction and Infrastructure Development for a new budget program for the construction and reconstruction of infrastructure, residential and public facilities, public buildings and structures 
  • the Agency will distribute funding for: 
    • construction (new construction, reconstruction, restoration, and major repair) of public buildings, civil defense infrastructure, and military infrastructure (buildings, houses, barracks, facilities, warehouses, roads, etc.) 
    • construction of infrastructure facilities, including those required for water supply, sewerage, heat production, heat supply, and electricity supply 
    • reconstruction of damaged residential (including country and garden houses) and public facilities 
    • new construction of residential buildings for persons who lost housing due to the armed aggression of the Russian Federation against Ukraine, development of construction documentation for the construction of such facilities. 
  • the Cabinet approved the list of projects that will be funded and the amounts of funding for each of them 
  • reconstruction projects will be implemented in Zaporizhzhia, Kyiv, Mykolaiv, Odesa, Sumy, Kharkiv, Kherson, and Chernihiv oblasts. 

What is right: the state launches reconstruction projects in the communities affected by armed aggression. 

What is wrong: 

  • since there is no unified reconstruction plan, funds are allocated randomly, leading to their inefficient use and increased corruption risks. Restrictions introduced under martial law, in particular, restricted access to state registries and restrictions on freedom of speech, do not allow the media and NGOs to effectively monitor the use of public funds 
  • large capital investments in regions where military hostilities continue are unjustified, as there is a significant risk that reconstructed property will be damaged or destroyed once again. The exception should be made only for projects necessary to ensure the livelihood of the local population. 

Alternative solution: to develop a unified strategy for the reconstruction of Ukraine and plan the work of the Fund accordingly. The reconstruction must be timely, efficient, just, and data-driven. A more detailed overview of our proposals regarding the issue can be found here.