Ukraine: Swiss Federal Council to spend CHF5 billion on reconstruction

Municipal workers clean a street next to a shelling crater in the aftermath of a shelling in downtown Donetsk, Russian-controlled Ukraine, February 20, 2024. KEYSTONE

The Federal Council intends to support Ukraine's reconstruction with CHF5 billion ($5.5 billion) until 2036. Aid organisations criticise the move, stating it undermines development aid efforts.

This decision was made at the Federal Council meeting on Wednesday. Switzerland aims to send a strong signal of solidarity with Ukraine and contribute to stability on the European continent.

Since the war’s onset in February 2022, the Confederation has been aiding Ukraine, addressing humanitarian needs, fostering economic development, and undertaking long-term reconstruction efforts. Projects include restoring civilian infrastructure in energy, road construction, and healthcare sectors.

Almost CHF3 billion so far

The federal government has already allocated around CHF3 billion for these efforts, with CHF425 million from the international cooperation budget and CHF2.5 billion from the State Secretariat for Migration (SEM) for people with S protection status.

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The Federal Council plans to increase support over the next twelve years, investing more in reconstruction and fostering cooperation with the private sector. Initially, around CHF1.5 billion will be requested from international cooperation until 2028.

Criticism from aid organisations

However, aid organisations, including Alliance Sud, criticise the decision. They find it unacceptable that the entire CHF1.5 billion for the first tranche comes from the international cooperation budget, arguing it undermines Switzerland’s established development cooperation efforts. As of 2025, Ukraine would receive more money than all bilateral programmes of the Swiss Agency for Development and Cooperation (SDC) in sub-Saharan Africa combined. For funding the remaining CHF3.5 billion from 2029 onwards, alternative financing channels beyond international cooperation will be explored. The World Bank estimates Ukraine’s reconstruction will require around CHF440 billion.

Adapted from German by DeepL/amva

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