The Swiss Federal Council approved a draft bilateral cooperation agreement with Ukraine on reconstruction at its meeting on 25 June, establishing a legal framework for Swiss private sector involvement in Ukraine’s rebuilding process.

The agreement will enable Switzerland to provide Ukraine with non-repayable financial assistance for purchasing goods and services from Swiss companies for reconstruction projects, according to the Swiss government. Support will target priority sectors including energy, transport, machinery, construction, water supply, and disaster prevention.

“The agreement stipulates that Ukraine will play a key role in selecting projects: It will identify its reconstruction needs and submit a list of goods and services that it requires from Switzerland,” the government reported. “These goods and services will be procured in accordance with Swiss public procurement law.”

The bilateral agreement will be signed at the Ukraine Recovery Conference scheduled for 10-11 July in Rome. Swiss Federal Council delegate for Ukraine Jacques Gerber and Ukraine’s First Deputy Prime Minister Yuliya Svyrydenko will sign the document on the conference sidelines.

Currently, Swiss private sector involvement in Ukraine is limited to companies already established in the country. The new agreement addresses this constraint by creating a legal basis for Swiss companies not yet present in Ukraine to participate in reconstruction efforts.

The Swiss government devised measures in summer 2024 to encourage greater private sector involvement as a complement to humanitarian aid and conventional international cooperation projects.

Once signed, the Federal Council will initiate a consultation procedure and submit the agreement to Swiss parliament for ratification, according to government officials.

The agreement forms part of Switzerland’s broader commitment to Ukraine reconstruction. On 12 February, the Federal Council adopted a 2025-2028 country programme for Ukraine, marking the start of a 12-year support process for reconstruction, reforms and sustainable development.

The programme allocates CHF 1.5 billion ($1.9 bn) from the international cooperation budget through 2028, with CHF 500 million ($620 mn) designated specifically for Swiss private sector involvement in reconstruction efforts. The programme focuses on protecting civilian population, achieving peace and economic recovery, and strengthening institutions.

The Ukraine Recovery Conference series launched in Lugano following the outbreak of war in 2022 and focuses on rapid recovery and long-term reconstruction of Ukraine. The Rome conference will mark the fourth such gathering.

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