Ukraine Must Restore Creditors’ Confidence

The World Bank mission headed by Luca Barbone, regional manager for Ukraine and Belarus (left in the photo) has completed its work in Kyiv. Addressing the summary news conference on April 5, Mr. Barbone stated the World Bank intends to expand its activities, assisting public education, health care, and social protection, stressing that further aid will depend on Ukraine’s actual progress in reform. “We cannot continue financing Ukraine if in three years Ukraine does not renew its access to private sources,” he emphasized. And this is possible only by renewing faith of international financial organizations in Ukraine.

While focusing on the social sector, the World Bank strategy will also include the coal industry and finance adjustment projects. Mr. Barbone expressed disappointment in Ukraine’s energy sector. As he put it, this domain remains the “least transparent” and most susceptible to corruption. Its current status can really only obstruct Ukrainian economic progress. Under the circumstances, it is hard to plan investment projects in the Ukrainian energy sector, which must be cleaned up in the first place, Mr. Barbone pointed out, adding that a new strategy of aid to Ukraine will be considered by the World Bank Board sometime in midsummer.