EditDespite bilateral tensions, Ukraine and Poland advance reconstruction efforts at Gdańsk conference
The overall reconstruction of Ukraine is estimated at approximately $588 billion over the next decade
The Ukraine Recovery Conference (URC 2026), co-hosted by Poland and Ukraine in the symbolically resonant Baltic port city of Gdańsk, opened on Thursday amid expectations of major economic breakthroughs despite ongoing diplomatic strains between the two neighbors.
Ukrainian Prime Minister Yulia Svyrydenko, leading her country’s delegation in place of President Volodymyr Zelenskyy, announced that Kyiv anticipates signing deals worth more than €10 billion over the two-day event, encompassing over 160 agreements focused on defense, business, and regional development.
The conference, the main annual international forum dedicated to Ukraine’s post-war reconstruction after more than four years of Russia’s full-scale invasion, brings together over 5,000 participants from around 70 countries. It emphasizes practical investment facilitation, private-sector involvement, and long-term resilience in key sectors hit hardest by the war: energy, critical infrastructure, logistics, and – in a new addition proposed by Poland – security and defence capabilities.
Major financial announcements bolster support
European Commission President Ursula von der Leyen highlighted Europe’s commitment, confirming the transfer of the first €3.2 billion tranche of a €90 billion EU macro-financial assistance loan to Ukraine. A second €6 billion tranche was also announced specifically to support drone production. Von der Leyen described an EU-backed investment fund for Ukraine’s reconstruction – supported by the EU, France, Germany, and Poland – as “ready to go,” with potential to mobilize around €500 million this year through risk-sharing mechanisms to attract private capital. An initial public package of up to €220 million (or higher in some reports) aims to de-risk investments.
German Chancellor Friedrich Merz echoed the need for private involvement, noting that public funding alone is insufficient and that investing in Ukraine means investing in Europe’s future. The overall reconstruction of Ukraine is estimated at approximately $588 billion over the next decade, according to joint assessments by the World Bank, UN, European Commission, and Ukrainian government.
Von der Leyen tied reconstruction explicitly to Ukraine’s EU accession path, noting recent progress such as the opening of Cluster 1 (“Fundamentals”) negotiations on 15 June, and gradual integration steps like participation in the “Roam Like at Home” scheme and moves toward the Single Euro Payments Area (SEPA). She framed investment in Ukraine as building a future Single Market participant worth trillions, grounded in rule of law and economic standards.
Symbolic venue and structured agenda
Gdansk was chosen deliberately: the city, devastated in World War II and subsequently rebuilt, serves as a powerful metaphor for Ukraine’s recovery. Polish Prime Minister Donald Tusk highlighted this parallel while stressing the need for historical reconciliation.
The conference features multiple platforms:
- A Recovery Forum for dialogue, best practices, and partnerships.
- A Business Fair showcasing companies from Ukraine, Poland, and internationally.
- Dedicated Infrastructure and Energy Platforms addressing transport connectivity (including TEN-T integration), energy resilience and decentralization, digital transformation, and regulatory alignment with EU standards.
- A new Security and Defence dimension.
- Side events including a Think-Tank Forum and meetings of the Ukraine Donor Platform.
These structures aim to move beyond declarations toward concrete transactions, contracts, and investment pipelines.
Strained relations cast a shadow
The event has not been without friction. Relations between Warsaw and Kyiv have been tested by a long-standing dispute over World War II history, particularly the 1943–1945 Volhynia massacres in which Ukrainian Insurgent Army (UPA) units killed an estimated 100,000 Poles – events Poland classifies as genocide. While many Ukrainians view the UPA as fighters against both Nazi and Soviet forces, the issue remains highly sensitive in Poland.
Tensions escalated recently when Zelenskyy named an elite Ukrainian special forces unit after UPA heroes. In response, Polish President Karol Nawrocki stripped Zelenskyy of Poland’s highest state honor, the Order of the White Eagle. Ukrainian officials, including Zelenskyy, returned their Polish decorations. Zelenskyy opted not to attend the conference, with Kyiv downgrading representation to insulate the economic forum from political fallout.
Medals saga deepens Poland-Ukraine tensions over historical memory
Tusk has worked to de-escalate, emphasizing that “we can build the future only on truth, on mutual respect, on an understanding of history” and that true European unification requires reconciliation. Svyrydenko focused on gratitude for Poland’s wartime solidarity – including hosting over one million Ukrainian refugees – and the practical benefits of cooperation, avoiding direct engagement with the historical row.
Business leaders on both sides have largely sought to compartmentalize the dispute. Poland remains one of Ukraine’s top trading partners, with Polish exports to Ukraine rising significantly and Polish foreign direct investment growing. Over 3,500 Polish companies have expressed interest in reconstruction projects. A new bilateral intergovernmental agreement on transport, energy, and logistics is reportedly nearing finalization.
Outlook: pragmatism amid partnership
Despite the diplomatic undercurrents, the conference underscores a pragmatic reality: both nations have strong incentives to deepen economic ties. Poland sees opportunities for its businesses in Ukraine’s recovery and positions itself as a key gateway and partner. Ukraine benefits from Polish expertise, logistics networks, and political support within the EU and NATO contexts.
As the war continues, the URC 2026, which continues through Friday, serves as both a platform for immediate deal-making and a signal of long-term commitment to Ukraine’s European future.
Ukraine and Poland: when disputes over the past overshadow the essential
With Reuters and partner media Suspilne and European Pravda
Caption: Polish Prime Minister Donald Tusk (R), European Commission President Ursula von der Leyen (4R), European Council President Antonio Costa (5L), Ukrainian Prime Minister Yulia Svyrydenko (2R), and Lithuanian President Gitanas Nauseda (3R) during the opening session of the Ukraine Recovery Conference 2026 at the European Solidarity Centre in Gdansk, Poland, 25 June 2026. The Ukraine Recovery Conference, co-hosted by Poland and Ukraine, takes place on 25 and 26 June 2026. EPA/ADAM WARZAWA
Updated: June 26, 2026 - 05:29
