President Joe Biden
said he is appointing former Commerce Secretary Penny Pritzker to be the
US special representative for Ukraine’s economic recovery, a new post
aimed at helping to rebuild the war-shattered country.
“Working
in lockstep with the Ukrainian government, our allies and partners,
international financial institutions, and the private sector, she will
drive the United States’ efforts to help rebuild the Ukrainian economy,”
Biden said in a statement. “This includes mobilizing public and private
investment, shaping donor priorities, and working to open export
markets and businesses shut down by Russia’s brutal attacks and
destruction.”
The announcement reflects growing
concern within the administration and among Ukraine’s other allies over
the country’s economic situation about a year and a half into Russian
President Vladimir Putin’s invasion.
The
move also coincides with an upcoming showdown over federal funding.
Biden has asked Congress to provide $24 billion for the Ukraine war and
related costs, but House Republicans have been skeptical of funneling
more money to Kyiv, heightening the possibility of a government shutdown
Oct. 1.
Kyiv is in the midst of a
critical counteroffensive to regain territories lost to Russian forces,
but there is also an increasing focus on the country’s economic
situation. The war has ravaged Ukraine’s economy, and Ukrainian
officials say the country will need international support and investment
to rebuild — and to convince refugees to return home.
The
World Bank in March increased its estimate of how much Ukraine will
need for its recovery and reconstruction to at least $411 billion — a
figure that’s 2.6 times the country’s projected 2022 gross domestic
product. The assessment found Russia’s invasion pushed 7.1 million
people into poverty and reversed 15 years of development progress.
Biden said Pritzker would work with
other international partners to ensure aid efforts are “complementary
and mutually reinforcing, as well as to encourage international partners
to keep stepping up their support for Ukraine’s immediate economic
recovery needs.”
Pritzker is the
sister of venture capitalist-turned-Illinois Governor J.B. Pritzker, who
is seen as a potential future Democratic presidential contender, and is
a prominent Democratic party donor.Ukraine’s ongoing counteroffensive has made slow progress. On Wednesday,
Putin met with North Korean leader Kim Jong Un in Russia, part of an
effort to obtain more weapons for his invasion.