Rebuilding Ukraine? All of us have it wrong!!! (some more than others)

Eleven months of constant work on the subject of Rebuilding Ukraine (both during and after the war); eleven months of preparation; of running two daily Telegram channels and reading countless articles on subject; watching videos and listening to podcasts by renowned, well-educated experts and politicians; daily conversations with friends and business associates who live in Ukraine and multiple in person and Zoom meetings with US and UA government officials, IFI representatives, mayors of over forty Ukrainian cities and dozens of corporate representatives.

Over these eleven months, a constant barrage of information and PR promotion from think tanks, government investment agencies, IFIs and reporters. Months of reading about emerging and repeating themes of using confiscated russian assets to rebuild Ukraine, countless high-level meetings with renowned global financial institutions, most of whom have never been in Ukraine before, on how to manage expected billions of dollars expected to flow to the country after the war. Endless talks about need for insurance, insurance and insurance, direct foreign investment and grants, grants and more grants. All these subjects and issues and information flows were part of our daily lives at the Rebuilding Ukraine Agency since the day of its official founding March 24th, 2022! Then, three days in Warsaw, being a key part of the REbuild Ukraine conference and exposition changed it all. Speaking and listening to hundreds of attendees (6,000 attended), tens of exhibitors (254 companies were present) and multiple representatives of the government agencies from at least dozen countries (there were over twenty in attendance) certain things became crystal clear.

Despite what the title of this article says, not all of the folks involved in the subject of Rebuilding Ukraine have it wrong, and many solutions, activities and plans offered are very good, needed and may one day have a shot at being implemented. The problem is not the plans and ideas and available insurance or financing programs. The problem is DISCORD of all the parties involved. There is a very famous 1814 fable by Krylov called Lebed’, Rak i Shuka (Swan, Crayfish and a Pike) (Yes, I know Krylov was russian and no, I will not accept criticism of activists for using this reference here, as it absolutely perfectly illustrates what is going on with respect to the subject of Rebuilding Ukraine). The gist of the fable is that when asked to pull a cart together, the swan, the crayfish and the pike would have easily succeeded had they worked together in unison, yet they failed miserably because the swan was pulling up wanting to fly, crayfish crawled backwards, and the pike was pulling the cart toward the river. With this type of effort, the cart of course remained in place.

The same situation is taking place now with respect to Ukraine. Multiple stakeholders, each with their own self-interest, are pulling the proverbial cart in different directions, while Ukraine remains in one place, all while being raped, tortured and pillaged by the aggressor. This is unacceptable and will not work effectively when the time comes to rebuild the country. Add to that graft and corruption, which exists both in Ukraine and in practically all Western countries, inexperience of many new entrants, protectionism and squatting within Ukraine and the recipe for a failure is almost complete. Below are but just a few factors, which have developed during the war, and which contribute to the discord. Rebuilding Ukraine’s process today is like a star-studded symphony orchestra without a conductor.

War effect – this terrible war has affected the lives of tens of millions of people, severely damaged Ukrainian economy and infrastructure, necessitated new skills and knowledge from multiple local participants, and completely upended the traditional means of municipal financing, affected urban development, reconfigured construction supply markets, impacted labor availability, economic development and this is just scratching the surface.

Federal vs municipal – Ukraine’s Federal Government has done a very credible job dealing with the war effort, repairing some infrastructure and planning for the post war recovery. The situation at the regional and local levels has not been quite as smooth and uniform. The fact that the local authorities were left largely to fend for themselves did not help. Most Regional and local entities do not have significant experience dealing with the western businesses and attracting international financing.

Famous vs forgotten – although there are over one thousand cities, towns, municipalities and villages, some like Bucha, Irpin, Bakhmut, Mariupol, Kharkiv, Zaporizh’e Kherson, Mykolaiv, Dnipro and Odesa became very well known as result of the devastating war and their suffering. This “fame” attracted disproportionate attention from the international community and a disproportionate desire to help rebuild these particular locales. Yet hundreds of other municipalities, some located practically next door to the aforementioned, have also suffered just as badly. What about them? How do they cope not only with the effects of war, but with being dealt a less fortunate hand in the rebuilding process?

PR effect – PR on all levels has been one of the most effective tools during this horrible war. From the national level PR of the President speaking to the parliaments, governments and international financial institutions, to more localized investment promotion agencies, municipalities, countless NGOs, YouTube bloggers and commercial entities constantly appearing in social media and at various international events, PR has made Ukraine the leading global brand and the most attractive destination for rebuilding. This phenomenon has attracted a great many players who have never before done business in Ukraine, or even visited the county.

Award of patronage – many countries, NGOS, individuals and businesses spent the last year helping Ukraine in its war efforts. Countless tons of military equipment, medical supplies, food, clothing and much more were delivered to Ukraine. As the result, the President of Ukraine awarded to some countries priority patronage over rebuilding certain cities. The basis for such awards were unclear, the countries selected were very few and this process did not appear to help the remaining municipalities in Ukraine.

Foreign entrants – It is estimated that businesses, NGOs and governments from about fifty countries are interested to participate in helping Ukraine win the war and to take place in the subsequent rebuilding process. Almost every country has one or more government agencies charged with supporting exports and investments for the businesses from that country. These agencies are very useful in helping their constituents enter multiple foreign markets but could become much more effective if they become a part of the Ukraine-focused international initiative, one that is capable of delivering to their clients the so called “last mile” connectivity with the Ukrainian federal, regional, local and commercial markets and can help them to better understand Ukrainian processes, needs and the local culture.

Foreign money and insurance – from the start of the war, many Ukrainian and international participants (including our own Agency) began to focus on bringing new investment projects and understanding the tools available for financing and insurance in Ukraine today and once the hot phase of the war ends. While FDI, debt financing and Political Risk Insurance (PRI), war insurance, export credit and breach of contract coverages, along with similar instruments are very important, it should be the proverbial number 175 on the list of priorities to rebuild Ukraine. The Rebuilding Ukraine Agency has an extremely deep and capable multi-country team to develop, finance and insure complex projects. We closely work with both government, private and capital market funding, and insurance sources in over 20 countries. Our members have successfully completed large and very complex financing in Ukraine over 27 years. What we see now is a very unorganized and poorly prepared market with a dearth of well-developed projects, deteriorating credit quality, unwillingness of many Western funders and local investors to participate and precious few selected projects ready for the financing/insurance applications submissions. The recipe for fixing this critically important issue will be a subject to a separate post.

Regional vs regional – Lviv region vs Zakorpatye vs Volyn, vs Chernihiv vs Odesa vs Kherson along with the other eighteen regions they all compete. They compete for economic development, for domestic and foreign investment, for more inhabitants, for more resources. During peaceful times, this type of competition is absolutely healthy and normal and should be left alone. Yet these are not peaceful times and the resources for which regions compete are foreign as well as domestic. The demographics are changing with manufacturing capacity and populations moving West or leaving the country completely. It is vital for the new market entrants to understand the effects of these changes in making their investment and financing decisions. It is also vital for the Regional and local authorities to understand the evolving situation and develop plans to make their regions more attractive for economic development, which are based on the new realities.

Local vs local – cities, towns, hromadas and villages – face much the same issues as the regions, but their woes are amplified. There are many of them, they greatly vary in size, economic advantages, location and population. Their credit quality is largely non-existent, or not sufficient to obtain any type of financing, other than from the Ukrainian Federal government, local taxes or utility fees. They education as to what is needed to attract Western counterparties is often below par and the local corruption is often high. All these sources are far from sufficient to help these cities and towns rebuild and jumpstart their economic activities post-war. For the last eleven months their issues have been largely ignored and this needs to change.

Shifting demographics, declining population, PTSD – by various estimates, about ten million people were displaced as the result of the war, about 4.7 million were forced to leave the country, and it is safe to predict that most of the 40 million Ukrainians will suffer the effects of PTSD. Thus, developing a coordinated plan to help welcome those refugees who will be coming back, replace those labor market participants who will not return and set up effective rehabilitation programs for those suffering from PTSD will be vital and will require strong coordination.

Reconciling Ukraine 5.0 with damaged pipes, schools and hospitals today – The mandate of the Ukraine’s government and its lawmakers, which is echoed by a number of private and NGO players, is to rebuild Ukraine better. Smart cities, energy efficient construction, new urban planning and other state-of-the-art features. But Ukraine is badly damaged, not destroyed. Thus, how to reconcile the planning of building an entirely new ultra-modern, energy efficient smart City, of which only maybe 20 percent has been damaged and for which the City administration desperately needs funds to repair broken pipes, streets, schools and kindergarten facilities today!!!! Do it piecemeal and you end up with a quilt patch of mediocre, and there is certainly no funding to do it all at once. Again, strong multiparty coordination is needed.

The Warsaw conference clearly showed the proper unique positioning and the leadership role of the Rebuilding Ukraine Agency. During the conference we have been approached by multiple European Governments and Government agencies, seeking to cooperate with the Agency and for us to assist their constituent businesses. The Agency has also conducted significant discussions with the private sector companies and with multiple Ukrainian municipalities. Current situation calls for completely different tactics. Investment projects and market entrance by the players new to Ukraine have to be curated and carefully developed. The Investment Promotion agencies, while useful, have no depth and expertise needed to see the projects through to their financing and completion. Over the next several months the Agency will significantly broaden its scope and membership roster. Stay tuned!

After two action-packed days, the basic thesis of the Rebuild Ukraine event may be summed up as follows: Private business looking to get into Ukraine and Ukrainian business looking for the western business expertise and financing, should be supported by their respective governments, IFIS and NGOs, but led into action by an international, experienced privately managed economic development organization, which has experience, cross-cultural awareness, stature and independence to act. This organization needs to be comfortable in talking to all Ukrainian and external stakeholders, as it will be a key interface between helping Ukraine get ready for Western investment, lending, insurance, supply and training. Support from international government investment promotion agencies is absolutely vital as is the support from the Ukrainian side on all levels. The analogy I often like to use is that of a major port where large passenger, cargo and at times military ships, come in and each one of them is big and mighty. Yet, in order for the port to operate successfully, small, agile tugboats are needed to coordinate all these large ships. Thus, either as the conductor of a large multinational Rebuilding symphony orchestra, or as the tugboat of the port of call named UKRAINE it is indisputable that Ukraine needs an experienced independent, multinational economic development organization to coordinate the massive rebuilding effort for the western players seeking to help the country. For the last eleven months, the members of the Rebuilding Ukraine Agency have been working on developing innovative training programs, financing solutions and economic development techniques applicable to the new realities of Ukraine. If your organization is interested in helping Ukraine rebuild efficiently and with the maximum benefit, please consider joining our Agency. Our team, and our esteemed members have the technical, legal, cross-cultural and financial tools required to deliver an orderly process where the resources are used strategically and the rebuilding process involving western companies, governments and financial institutions will have the maximum effect for every Hryvna, Dollar, Euro, Pound or Zloty spent.

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REbuild Ukraine – Warsaw Diary. DAY t-3

It is Sunday February 12th. I awoke to the news of more russian missiles falling on Kharkiv and on other Ukrainian cities, more news on the devastating earthquake in Turkey, US shooting down a third! flying object in a week, as the country prepares for today’s Superbowl. Yet amidst the ongoing wars, diplomatic conflicts and natural disasters, an important event will be taking place this coming week in Warsaw, Poland. It will be focused on the bright future of beautiful, resilient, war-torn Ukraine. Over the next week, I will attempt to document this event from the insider’s perspective. I will try to post daily, but given the schedule ahead, it may not be feasible. So please bear with me over the few days and I hope you find these diaries interesting and helpful.

As I write this, thousands of men and women from over twenty countries have begun to make their way to Warsaw for the Rebuild Ukraine Forum and Conference. This event is laser-focused solely on construction segments and will cover significant topics such as demining and handling of unexploded ordnance during the rebuilding, infrastructure restoration, construction material recycling, increasing Ukraine’s capacity to produce and supply vital construction materials such as insulation, plate glass, precast concrete, as well as developing real-estate projects, which will address Ukraine’s new realities such as shifting demographics and the need to restore and rehabilitate post-war the physical and mental health of the nation. The event will also be focused on how to finance, insure and develop projects, which will help Ukraine rebuild.

Unlike other political, macroeconomic, and academic events dedicated to the subject of the Rebuilding Ukraine, the Warsaw conference and exhibit is driven by the private business – the infantry of the recovery process. This is very important, as these folks vote with their own dollar, euro zloty or hryvna and are the first to go in and engage. What is even more important, is the fact that this event will facilitate a direct dialogue between the Ukrainian Government, multiple Ukrainian regions and municipalities and is expected to act as a starting point for several viable investment, construction and recovery projects.

After four months of preparation for the event, our own Rebuilding Ukraine Agency will be well-represented. Our delegation of 25 men and women will consist of the several Agency’s Board Members, the Agency’s CEO, Vice President and representatives of several Agency-member companies who will be showcasing their projects and capabilities. Although our Rebuilding Ukraine Agency is US-based and will be unofficially representing the United States at the event (other countries are having government-sponsored pavilions), the Agency is international in nature, and our Warsaw delegation will have members from six countries at the exhibit pavilion. Even though the event has not yet started, our Group’s meeting calendars are already well-booked, with meetings starting two days before the actual February 15th and 16th conference dates. Our Agency has been one of the co-organizers of the Rebirth of Nation panel and I will be speaking there on the financing and insurance opportunities available to foreign and local investors. Our Agency team is putting final touches on a Master Class for Ukrainian municipalities on how to develop and package projects for investment and financing by the international community.

So today, t-3 days until the official events kickoff, is the travel day for most of us. Overnight flights on LOT and Delta from the US, car and train rides from Ukraine, Italy, Germany and Croatia. Presentations and marketing materials are being delivered from Kyiv, where they were printed, despite drone attacks and power outages. As the self-appointed photographer for the Agency i will be chronicling the conference and activities taking place at our Agency’s pavilion. My luggage contains over 25 pounds of photographic equipment, including multiple lenses. Given the gravity of the events taking place in Ukraine, as this conference will be taking place, I am thinking of shooting the entire reportage in black and white. Have not yet made up my mind on this though.

Special thanks to everyone who has been involved in the preparation for this significant event. Our wonderful video and presentation designers, along with our terrific CEO and VP, members who supported the exposition, exhibit organizers and Board members who volunteered their time to make sure that the Agency is well-prepared not only for this event, but to help Ukraine, as it gets ready to REbuild itself after this devastating war. Stay tuned for additional coverage of the Warsaw conference in the upcoming issues.

By. Alexander Gordin, Chairman of the Board, Rebuilding Ukraine Agency

Rebuilding Ukraine – seven months of swimming upstream

It has been eight long and painful months watching Ukraine and its brave people fight and suffer during the brutal war brought on by its neighboring “broZer”. During seven of those months, Rebuilding Ukraine Agency had its own complex journey riddled with victories, potholes and disappointments.

Formed a month after the war, our member-owned international rapid deployment Agency has one clear mission – help Ukraine rebuild by bringing together likeminded US, UK, European and Ukrainian companies, along with international capital and risk management solutions.

The Agency is organized along several key industry segments – construction/real estate, energy, agriculture, and healthcare. Approximately fifty members strong today, the Agency’s members represent a broad array of companies. From single-person professional practices, to very large architectural, engineering, agricultural and energy firms. As the world’s governments and major financial institutions have been working with Ukraine to develop recovery and rebuilding mechanisms, the Agency quietly took a lead in creating a “closed cycle approach” of developing, financing and insuring projects using its broad toolbox of financing and insurance mechanisms, coupled with building of multidisciplinary teams capable to address the project needs at each stage. Current projects in the Agency pipeline range from development and financing of the state-of-the-art insulation production facility, development of a precast concrete production facility, development of a wellness/rehabilitation center and housing subdivision, to co-financing of a nuclear reactor and of alternative energy powered powerplant facilities.

Despite of the uneven support from the various government agencies and from the international financial institutions on both sides of the pond, the Agency’s Board and staff have persevered and have been moving forward with the laser focus. Rebuilding Ukraine is a rapid deployment agency and that ability to quickly decide, mobilize and act has thus far served as an unbeatable advantage. The Agency entered into several key alliance with established organizations, both in Ukraine and in the US, and through regular roundtables and social media channels has been in the forefront of curating the “Rebuilding Ukraine” topic to a broad audience in several countries. The Agency’s invitation-only Telegram Channel 1 has been critically acclaimed and has become the go to place on the subject.

However, Rebuilding Ukraine journey has not been without its challenges. At the time the Agency was formed, the pro-Ukrainian sentiment was very high worldwide, the war was in the headlines and the world’s outpouring of humanitarian and emotional support has been tremendous. A number of members who joined the Agency at that time have joined guided largely by emotion and having no clear understanding of how they may benefit Ukraine’s rebuilding. When it became apparent that the war will not end quickly and the Agency’s strategy would need to be revised for the long-term, the Agency experienced an attrition of about ten percent of its members.

Another significant obstacle has been investor/donor fatigue, which has developed across the entire “Ukraine” space and the Agency’s capital raising efforts have been impacted by this. As the economic situation in Ukraine deteriorated and bombings escalated, it has become increasingly difficult to develop bankable projects and to even keep up certain meeting schedules due to electricity blackouts, facilities of Agency’s clients being attacked and forced air raid evacuations.

Since the entire Agency staff, Board members and supporting professionals have been volunteering their time, sometimes their “day jobs” took priority and certain Agency initiatives did not unfold as quickly as desired.

When, in March, the Rebuild Ukraine Agency started delivering the message of Private Sector being the key driver in the Rebuilding of Ukraine process, the media and various forum spaces were dominated by theorists and pundits who would put out opinions on how to Rebuild Ukraine without any practical basis. As the time passed, multiple relevant parties understood the importance of the Rebuilding Ukraine with the private sector and started to piggyback on the Agency’s message. I guess imitation is the sincerest from of flattery.

Based on the analysis of the problems, obstacles and successes, the Agency’s Board and Officers have working on putting together a strategic plan, which would allow the Agency to maintain its leading position in the Rebuilding Ukraine space, expand its financing toolbox with equity and possibly NFT offerings, transition its key staff away from the volunteering role, develop cost-effective due diligence and compliance procedures and grow its membership roster to 100 members in 2023.

The Agency is planning a major in-person event in the middle of February in Poland to participate in the Rebuild Ukraine conference and exhibit being organized to accelerate the rebuilding process and we expect 2023 to be the year this horrific war finally ends and the recovery and rebuilding of Ukraine will start in earnest with the Rebuilding Ukraine Agency leading the way for its members.

Rebuilding Ukraine Agency is 120 today

120 days that is. And yet, with the horrific war raging in Ukraine for the past five months, these 120 days seem like eternity. The Agency’s journey, thus far, has been an exhausting marathon filled with ups, downs and periods of frustration. Although, all our activities pale in comparison with the heroic efforts of the Ukrainian armed forces, civil defense and tireless volunteers, who provided incalculable help in delivering humanitarian aid and clean up of destroyed cities, we know that our work is important and is vital to the development of Ukraine’s economic future.

Just 90 days after its formation, the Agency announced its first economic development project – creation of a $25mil. production and distribution facility in the center of Ukraine to produce badly needed construction insulation materials. The project’s principal is a US-based company. Think about the courage required to make such an investment decision into a country embroiled in the brutal war. The agency’s role has been to assist with the project’s development on the ground and to arrange financing and insurance coverage for the facility. Not an easy task, but one for which the Agency has been specifically developed. We are a private, member-owned and rapid reaction organization with significant multi-disciplinary capabilities.

The investors into the insulation project are by no means a unique case. Other Agency members are hard at work developing projects ranging from pre-cast concrete, plate glass and ceramic block production facilities, medical rehabilitation centers, gas and agricultural infrastructure for transportation and storage, and expansion of healthcare facilities for cancer and neo-natal patients.

I am often being asked if the the Agency’s representatives will be attending various rebuilding Ukraine related forums, which have been springing up across several countries. My answer thus far has always been “NO”. While some of these forums are important and highlight policy discussions, international cooperation programs and legal scholars’ theories on subjects of whether it will be possible to use frozen Russian assets towards the cost of reparations, the Agency is laser-focused on its core mission of developing and fulfilling specific projects in key areas of Ukraine’s economy.

In the the movie “Schindler’s List”, the main hero was not able to save all the Jews from the horrors of holocaust, but he was able to make a huge difference by saving over a thousand souls, who in turn gave birth to a new generation. Thus far, the Agency’s approach has been similar. We monitor the policies and trends for rebuilding set by the Ukrainian government, follow various aid announcements etc. and keep our members informed on the developments. Yet, we are primarily concentrating on developing and executing as many specific impactful projects as possible, all while realizing that the Agency will not be able to solve all the problems caused by the war, but every project we successfully realize will make a difference.

I would like to congratulate all the Agency’s Members, Officers and Directors with this small, but important milestone in the life of the Rebuilding Ukraine Agency and I want to thank all the folks in Ukraine, US, Canada, UK and EU countries, who have supported our organization and have helped it move forward. Ukraine will overcome and we will be there to help it rebuild!

Investing in Ukraine’s energy-efficient construction

(June 24, 2022, Washington, DC, Kyiv).  The Rebuilding Ukraine Agency, with support of the National Investment Council of Ukraine, the Confederation of Builders of Ukraine and the U.S.-Ukraine Business Council, proudly announces that the Agency has been engaged to spearhead construction development, arrangement of financing and political risk insurance for a state-of-the-art building insulation manufacturing and distribution facility, to be inaugurated in Ukraine in the next several months. 

The proposed $25 million facility is being developed by the Depsol Technologies Group of companies– an experienced, US-based supplier of chemical raw materials to the construction industry in Ukraine and the Baltic countries. The planned facility will be located in the Central Economic District of Ukraine in close proximity to the markets most affected by the wartime destruction. The new plant will produce highly energy efficient and fire-resistant polyurethane insulation material ranging from flexible insulation to rigid structural panels, which will be used for construction and insulation of residential, commercial and industrial buildings. 

Given the substantial destruction of Ukraine’s existing insulation capacity and anticipated needs during the upcoming rebuilding phase, the planned initial production and distribution capacity of the Depsol facility will be 3 million sq.m. of insulation per year. The Depsol facility will have its own solar energy generation plant and will be built to the most rigorous international energy efficiency standards. Over 500 jobs will be created during construction and operation of the plant and of the adjoining distribution center.

The financing for the project is expected to be a combination of equity and European-export-credit-agency-(ECA)-backed loans. Political risk insurance is expected from the US-based government agencies.

About:

Depsol Technologies LLC. is a chemical company focused on distribution of construction insulation materials and production inputs, as well as plastics in and oil and gas chemicals in Ukraine and the Baltic countries.

Depsol’s senior management team has more than 20 years of experience in distribution and trading of plastics and industrial chemicals throughout FSU countries. Prior to establishing Depsol Technologies, Drs. Alfred and Irene Roth founded Dipol Chemical, a major distributor for Dow, Nova, DuPont, Solvay, Clariant in the region, which in 2008 has been successfully sold to the worldwide chemical distributor Brenntag.

Rebuilding Ukraine Agency (www.rebuildingUA.com) – Rebuilding Ukraine Inc. is the US-based member-owned international rapid deployment agency, that was founded in March 2022 with the sole purpose of helping Ukraine rebuild after the Russian war.

The agency represents the US, UK, EU, Canadian and Ukrainian professionals, financing institutions and manufacturers under a unified umbrella, in order to deliver maximum impact for the rebuilding effort of Ukraine. The agency’s team of professionals has decades of experience working in Ukraine and an impressive list of successfully completed projects in Ukraine and around the world.

National Investment Council – Office of the National Investment Council is an advisory body to the President of Ukraine.  It addresses Ukraine’s needs in support for the design and implementation of policy reforms and institutional capacity building, as well as investments. The National Investment Council of Ukraine was established by the Decree of the President of Ukraine N365/2016 and comprises the highest-ranking state officials. Chairman of the National Investment Council is President of Ukraine Volodymyr Zelenskyy, Secretary of the National Investment Council is Halyna Yanchenko

Members of the National Investment Council are leading international companies that have already invested in Ukraine or are planning to invest, as well as international financial organizations.

Confederation of Builders of Ukraine – formed 11 years ago, the Confederation of Builders of Ukraine is the largest specialized association, which unites more than 700 participants in the country’s markets for real estate, construction and construction material supply.

US Ukraine Business Council (USUBC) – The U.S.-Ukraine Business Council was established in October 1995 to advance U.S. companies’ trade and investment interests in Ukraine’s significant emerging market, advocate for measures to improve conditions for bilateral trade and investment, and generally promote strong, friendly bilateral ties. 

For more information contact Tamara Zykova at management@rebuildingUA.com

My 60 Days of Rebuilding Ukraine

This weekend marks 60 days since the Rebuilding Ukraine Agency was founded in order to help Ukraine rebuild from the destruction caused by the Russian aggression. 60 days in the context of what it will take to rebuild the country post-war is a negligible number, and yet the last 60 days were among the most vivid, rewarding and event-filled in my 35-year international business journey. 60 days out of 35 years.

Thus far, it has been almost 90 days that Ukraine has been fighting a brutal, unprovoked war with its Russian neighbor. The war, which caused unimaginable destruction of property and economy, forced millions to leave their homes, cost thousands of lives and hampered hundreds of new births. The war, which caused the entire civilized world to rally around Ukraine and its people, in order to offer unprecedented help and support.

Amidst this global seismic shift, a small group of folks in the US, Canada, Ukraine, UK and EU, have decided that given their extensive international and professional experience, they wanted to help and rebuild Ukraine. Although they did not know when the war would end, what would be the final geographical boundaries, or national security arrangements, these folks were and remain convinced that Ukraine would win and remain independent. They also knew, that regardless of the massive expected reparations, government assistance, loans from international financial institutions and equity investment, Ukraine could use a team of international experts in the fields such as engineering, urban design, agricultural infrastructure, energy, water, healthcare, financing, insurance, legal, compliance and telecom.

They also knew that given the strain on the Ukrainian Government, regional and municipal authorities, as well as on the private business, which was caused by the war, it was necessary to simplify delivery of the rebuilding services and solutions to be offered. They also knew that no matter how much money would be allocated for rebuilding, Ukraine could always use more funding to rebuild and facilitate economic growth. Finally, they knew, that in the world of international bureaucracy, they would need to be nimble and have the capability to react rapidly, make decisions quickly and have a large toolbox of solutions unsurpassed by anyone else. Every one of these folks simply said “I am in, what can I do to help Ukraine rebuild?”

Thus was born the Rebuilding Ukraine Agency – the first international, member-owned, rapid deployment Agency, focused solely on helping Ukraine rebuild after the war. Initially, twenty four professionals and representatives of several companies became members. In the next 60 days, the Agency grew to over 50 members and its growth continues. What follows below, is my personal account of this short, but very event filled journey.

As one of the co-founders of the Agency I have been privileged to quarterback the first 60 days. The emotional highs and lows have been tremendous. Initially, it was difficult to reconcile the fact that with the war raging and missiles flying, people in Ukraine’s liberated cities started rebuilding efforts. The Agency arranged meetings with the Mayors of the war-ravaged towns of Bucha, Borodyanka, Melitopol and holding back tears, its members listened, as the Mayors recounted destruction and atrocities in their cities. The Agency’s Ukrainian-based members visited Irpin and saw first hand the destruction and the scope of the massive rebuilding efforts needed to restore the housing and infrastructure.

I watched, as Agency members from different countries, most of whom who did not know each other previously, started to function as a cohesive team. I watched, as our efforts at the Agency received support and offers of help from the folks at the US Government financial institutions, Ukraine’s investment agencies, and large engineering, agricultural and capital markets firms. I was there filled with joy, when a group of US investors expressed their firm commitment to invest in Ukraine and build a plant to produce badly needed construction materials. I was there, when the Agency forged alliances with the Ukrainian Builders’ Confederation. I participated in very open and candid discussions with a Senior Ukrainian Rada member, the UA Ambassador to the US, US Commercial Service officers, business executives and NGOs and was glad to see that their views on rebuilding the country after the war were mostly aligned. I was amazed to see the level of acceptance and support received through social media platforms. A times, I have been overwhelmed by all the activity required when setting up such an Agency. I am grateful to my team, our members, our attorneys and financial professionals for their support and for their continuing efforts to set this Agency up.

Having US Government maintain availability of Political Risk Insurance and project development grants during the war time, gave me optimism and allowed us to start putting together a pipeline projects, which will need to be financed, as soon as the hot phase of the war ends.

And then there was Nezhin. Although the Agency is not a non-profit, the story of the war-damaged birthing hospital in the city of Chernihiv and of totally underequipped neonatal facility in the city of Nezhin charged with handling overflow of the premie births and births requiring surgeries, moved my colleagues and me deeply. The members of the Agency’s healthcare committee sprang up into action and earlier this week a fundraiser was held, which would enable the Agency to buy, ship and fully oversee the delivery of the badly needed equipment to help rebuild the birthing unit at the Nezhin’s town hospital. More is needed and we will be looking for additional humanitarian funding for this and similar projects.

As all these efforts and meetings were taking place, there were always painful reminders of war. Having air raid sirens go off multiple times during my zoom calls with Kyiv, always caused my heart to race. A three month old baby killed by a missile strike in Odesa, along with his mom and grandma, a shopping center in that city struck by a missile, hundreds of yards from our client’s new construction site, fuel shortages, occupation of Chernobyl and the centralized spent fuel storage facility our team helped finance temporarily falling into the enemy hands…. Our team also came across the dark side and saw that elements of corruption, infighting and malaise were unfortunately are still present in Ukraine war, or no war.

Probably, the most difficult, was the realization that the war is likely to last much longer than I originally thought, thus delaying serious rebuilding efforts and subjecting Ukraine to a much greater human toll, as well as property and economic destruction. Another difficult realization was the understanding that the Agency will not be able to help everyone who will need help. Emotionally this is very difficult to reconcile, amidst the rebuilding needs, which will need to be addressed.

Some years ago, I wrote a book in which I recounted interesting stories and adventures along what was then 25 year international journey. The last 60 days have made every one of those stories pale in comparison and I may one day document the Agency’s and mine journey on what I know will be a constructive and and meaningful effort to help Ukraine rebuild. Slava Ukraini!

Alexander Gordin

This Mothers’ Day My Thoughts are in Nezhin

Until a few days ago, I’ve only heard of Nezhin in a few casual conversations I have had with my colleagues. But that was in another life, before the horrific war unleashed on Ukraine by its “brotherly” neighbors.

Then, last week, this small town suddenly became the key focal point for me and my colleagues at the Rebuilding Ukraine Agency. One of the Agency’s Ukrainian members brought to our attention a situation, which demanded immediate attention. Nezhin’s small-town 30-bed hospital has become the closest destination for the neonatal ICU and complex birthing cases, as the regional hospital in the city of Chernihiv has been destroyed by the bombings. Although Nezhin’s birthing unit was poorly equipped to handle neo natal cases, nothing else was available in the area to replace Chernihiv’s neonatal birthing facilities. The Agency’s team had a Zoom call with the head Ob-Gyn at the site and the horror stories we heard brought tears to everyone who participated on the call.

The Agency’s Healthcare Committee moved into action and within 6 hours set up a team, which would be responsible to fund, acquire and shepherd needed equipment and supplies all the way to the Town of Nezhin and would work with the local doctors and hospital administration to expand the neo-natal and complex birthing unit until the Chernihiv hospital will be rebuilt. Because of the way the Agency is set up, such quick reaction and deployment makes it unique, and allows it to address certain key rebuilding issues ahead of the much needed and much more extensive government, foreign donor and NGO efforts.

Why am I writing this today? Motherhood, on any given day is a special and noble calling, which deseves utmost respect. Motherhood, during the times of war is that much more complex. Giving birth to a new life during war is extremely complex, and stressful. However, giving birth to a premie during war times and not having proper conditions to care for the newborn is unimaginable, unfair and heartbreaking. It is up to all of us not only help Rebuild Ukraine, but also make sure that every newborn in Ukraine has a chance to survive and grow up in a peaceful country, where they can carry on a legacy and culture of its people. Happy Mothers’ Day to all the Moms and a special and heartfelt Happy Mothers Day to all the Mothers of Ukraine!

Rebuilding Ukraine Agency tackles its first project in the town of Nezhin

(May 4, 2022, New York City) Rebuilding Ukraine has announced today that its Healthcare Committee, led by Drs. Daniel Fass and Arthur Zgurov, has agreed to assist a team of prominent Ukrainian pediatricians and neonatologists in helping to expand and equip a neonatal birthing unit and an obstetrics and gynecology department in the town of Nezhin.

As the result of the war taking place in Ukraine, the City of Chernihiv has suffered tremendous destruction from the bombing and rocket fire. Among the casualties, a central hospital, which was the primary birthing and neonatal facility in that city. After the Chernihiv hospital was destroyed, Nezhin, with its small local facility, has become the primary destination to admit and care for the neonatal and c-section birthing cases. Nezhin’s facility was ill-equipped to handle the patient influx and the Ukrainian team put out a call to the Rebuilding Ukraine team to help with the expansion and equipping of the Nezhin’s neonatal department.

The Rebuilding Ukraine’s medical team answered the call and has already started working on identifying and prioritizing the list of neonatal and surgical equipment needed. Sourcing of the needed items will take place in the US and Europe and deliveries will be made directly to Nezhin and will be assisted by the Agency’s Ukraine-based team.

About Rebuilding Ukraine Agency. Formed in March of 2022, Rebuilding Ukraine is the first non-government, international, multidisciplinary, rapid deployment Agency to assist the country of Ukraine, as it rebuilds itself after the war. The Agency is member-owned and is comprised of over fifty respected international and Ukrainian companies and professionals with deep experience in developing, financing, insuring and supplying projects in Ukraine and other developing markets where post-war recovery took place. The Agency’s professionals have expertise tackling complex projects in the sectors ranging from healthcare, agriculture, engineering (power, nuclear, renewable, water, wastewater), urban design, construction materials, equipment supply and construction management, real estate and hospitality, gas exctraction, supply and service, sanitation. Of note, is the Agency’s finance, insurance and legal team, which has a broad tool box of various international financing options, as well as deep expertise in risk management and access to a broad legal panel of several prominent US and Ukrainian law firms.

for additional inquiries contact Tamara Zykova at management@rebuildingUA.com