Bridges for Ukraine – Accelerating Opportunities for Reconstructing Ukraine

Ned Sedgwick

Pathways to Prosperity

In anticipation of an upcoming UCL Institute for Global Prosperity white paper on the opportunities for British businesses in Ukraine’s reconstruction efforts, Innovo organised a roundtable on the subject.

It was convened to emphasise the importance, and opportunity, for British businesses to work collaboratively with Ukraine to build pathways to prosperity for all parties.

Innovo is a construction and urban development company who have first-hand experience of this successful collaboration, having worked with the British and Ukrainian governments to rebuild three bridges destroyed in the war. This, combined with their strong connections across British business and politics, made them uniquely positioned to convene a high-calibre group of stakeholders.

In attendance at the discussion were Ukrainian lawmakers, including Members of Parliament Serhii Soboliev MP and Lesia Vasylenko MP; British politicians, including the Trade Envoy to Ukraine, Alex Sobel MP; leading figures from the British business community, such as Nick Stace OBE (Barclays Bank) and David King OBE (Bechtel UK&I); and Professor Dame Henrietta Moore, Director of the UCL Institute for Global Prosperity.

Updates, Challenges and Opportunities

‘Reconstructing Ukraine is the biggest investment opportunity of the century’

The first topic selected by Innovo for discussion was Updates, Challenges and Opportunities in Ukraine. This section was presented by the Ukrainian delegation, and the overarching message was that Ukraine was actively seeking British business collaboration, along the model of Innovo’s.

While the UK’s military support and diplomatic efforts were acknowledged and appreciated, the delegation highlighted a noticeable lack of engagement from the UK business sector—particularly among small and medium-sized enterprises (SMEs). Lesia Vasylenko, a Member of Parliament in Ukraine, noted that although it is difficult for Ukrainian SMEs to travel, British businesses could engage locally with assistance from the Ukrainian state. A motivating factor for Innovo to convene the roundtable was to highlight the strong political will in Ukraine to actively support and facilitate British investment, and how their experience could be an example to others.

One attendee observed that events since the full-scale invasion had ‘changed warfare’, and the United Kingdom was learning as much from Ukraine as Ukraine was getting from the United Kingdom in military support. This proven beneficial collaboration could extend beyond the military sphere, and to British/Ukrainian business as well. The roundtable itself was an example of the secondary benefits to businesses as a way of networking outside of original markets.

The urgency of the need for British help with rebuilding was underlined by statistics from the Ukrainian government. 4.6 million Ukrainians are internally displaced, and over 4 million are externally displaced. It is estimated that war damage stands at 500 billion dollars, and Ukraine’s energy infrastructure is under constant attack. The Ukrainian delegation made it clear that the more these issues are addressed, the more Ukraine can focus on winning the war, and it would boost the wider British economy as well as individual businesses.

The Role for UK Business in Ukraine’s Reconstruction

‘A message to the British government – if you want reconstruction – you must help us be involved’

The UK businesses invited by Innovo had a diverse range of expertise, from engineering firm Arup, to Barclays Bank, to the strategic advisory firm Hakluyt. Attendees were near unanimous in calling for government backing to match the ambitions of UK business. There was consensus that UK Export Finance and export credit guarantees must be leveraged to enable firms to operate at scale. Innovo’s leadership in securing and executing projects demonstrates that UK business can and should be leading reconstruction efforts.

The issue of reallocating seized Russian funds was widely discussed. It was agreed that within the British political establishment there was a will to use these funds in the rebuilding of Ukraine, but problems with jurisdiction are holding back this redistribution. However, should the British government rely on it, they may miss the opportunity of large returns for British businesses.

A Citizen-Led Recovery

‘Experimental activity can be key to unlocking investment potential’

It was generally agreed that British businesses’ aversion to risk could lead them to miss opportunities big and small, especially as Ukraine represented a space where experimental projects could be undertaken. Ukraine’s experience and expertise has proven the advantage of creative solutions. The example of underground schools near the front line was cited—an innovation which kept children in school for unbroken periods for the first time, in some cases, since before the onset of the Covid-19 pandemic. There are over 800 bankable public sector projects like this identified by the Ukrainian government, but the equity within Ukraine to take advantage of this is limited.

It was also stressed that due to the UK’s military and diplomatic assistance, it would be a first-choice business partner for many Ukrainians. However, competition would only increase, and British businesses could be left behind. Innovo has seen on the ground the benefit of being a first mover and thought leader in the country, and in helping other British businesses become established in the country.

Professor Dame Moore gave a final, sobering reason to move quickly. After an example of a successful school building project following a civic twinning between Austrian and Ukrainian towns, she pointed out the long-term impact that bad infrastructure can have on childhood development, and the long-term impact this can have on the economy and society. The implication was clear: if we wait, it could be too late to resolve many of the issues that impact people for life—but if Britain takes a proactive and experimental approach, rebuilding efforts across every area could be assisted, to the benefit of everyone.