Green light for Switzerland-Ukraine reconstruction agreement
Keystone-SDA
Both chambers of the Swiss parliament have approved a bilateral agreement to allow the private sector to help rebuild war-torn Ukraine.
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The agreement, signed in July 2025, will increase the involvement of Swiss companies by including those not yet present in Ukraine. This approach of tied aid with the objective of promoting the private sector does not comply with federal law on development cooperation, hence the need for a legal basis.
With this agreement, Switzerland is moving towards a system of invitations to tender managed by the Swiss authorities in response to requests made by the Ukrainian authorities.
The risk linked to corruption, while not zero, is controlled since the funds would not be paid to state entities in Ukraine but directly to Swiss companies.
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Switzerland signs controversial reconstruction aid package for Ukraine
These goods will be purchased with non-repayable financial aid. In 2024, the Federal Council decided to allocate CHF5 billion to the reconstruction of Ukraine between now and 2036. A sum of CHF1.5 billion will be made available for the years 2025 to 2028. Of this amount, CHF500 million is earmarked for private-sector participation.
Scepticism
Some parliamentarians were very sceptical about the project, calling on the government to be rigorous in its use of funds. It was pointed out that several corruption cases had recently implicated leading Ukrainian politicians.
The head of the Federal Department of Economic Affairs, Guy Parmelin, was reassuring: “We are perfectly aware of the issues at stake and will be monitoring this very, very closely. What’s more, the Federal Council’s delegate for Ukraine goes there regularly and keeps a close eye on how things are developing. I think we’re on the right track at the moment”.
Hundreds of billions of dollars
The programme for Ukraine 2025-2028 focuses on three areas: economic recovery, public services, and the protection of the civilian population and the promotion of peace. In addition, the Swiss private sector will participate in order to put the expertise and innovation of Swiss private companies at the service of reconstruction.
The agreement governs the obligations of both parties, the procedure for selecting the goods and services to be financed and the conditions to be met by interested Swiss companies. It is limited to December 31, 2036.
The needs in Ukraine are great. In 2024, the World Bank estimated the costs of reconstruction and economic recovery at $524 billion.
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Adapted from French by AI/mga
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