Cabinet sets out how €1.2bn Ukraine aid will be spent
Minister Sjoerd Sjoerdsma announced in Kyiv how the money will be spent. €55m will go to Dutch companies that supply parts to keep Ukraine's energy running, and a larger pot will go to firms doing business there.
Foreign trade and development minister Sjoerd Sjoerdsma has set out how the cabinet will use its €1.2bn in non-military aid for Ukraine, announcing the plans during a visit to Kyiv. The aid is partly meant to help Ukraine through the winter while Russian attacks hit its energy and water supply.
For Dutch companies, the cabinet is setting aside €55m to buy parts from Dutch firms that Ukraine needs to keep its energy supply running, such as generators, transformers and compressors. The pot to help firms do business in Ukraine rises to €136m. Cover under the export credit insurance for companies selling to Ukraine is also being widened to reduce their financial risk.
Used equipment from gas producer NAM, such as turbines and transformers, can be shipped to Ukraine using the Dutch money. Sjoerdsma called it good equipment that is second-hand and no longer useful in the Netherlands, but will be put to use in Ukraine.
“Ukraine is under heavy fire and is heading into a very hard winter,” Sjoerdsma said. “It is also of great importance for the security of all of us that we keep supporting the Ukrainians, so that they can keep up the fight.”
Coen van Oostrom, chair of the business federation VNO-NCW, travelled to Kyiv with the minister. “Reconstruction is a huge task,” he said, “and Dutch companies can play an important role in it.”
Van Oostrom said the highest travel warning for Ukraine holds many companies back. He hopes it can be adjusted for businesses. “These are not pleasure trips, it is important to be here,” he said.
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exportkredietverzekering
Export credit insurance is a state-backed insurance scheme that protects Dutch exporters against the risk that a foreign buyer does not pay, for example because of commercial or political problems abroad. In the Netherlands it is administered on behalf of the government, and it makes it easier for companies to sell to markets they would otherwise consider too risky. It matters in this context because it covers Dutch firms selling to Ukraine.
NAM (Nederlandse Aardolie Maatschappij)
The Nederlandse Aardolie Maatschappij is a Dutch oil and gas producer, owned in a joint venture by Shell and ExxonMobil. It is best known for operating the Groningen gas field. Its name is used here for the company that owns the equipment being donated.
VNO-NCW (Verbond van Nederlandse Ondernemingen – Nederlands Christelijk Werkgeversverbond)
The Confederation of Netherlands Industry and Employers is the main employers' organisation in the Netherlands, representing companies across many sectors. It speaks for businesses in consultations with the government and trade unions on economic, labour and wage policy, and lobbies on behalf of its members.