Belgium's Federal Government's development agency Enabel is opening a branch in Ukraine. The budget, €150 million, comes from tax revenue from frozen Russian billions at Euroclear in Brussels.
Enabel currently has 20 foreign offices, mainly in West and Central Africa and the Middle East. Soon, a branch in Ukraine will soon be added, announced the agency's managing director Jean Van Wetter. Initially, Enabel will work from the Belgian embassy in Kyiv, and may later move to its own office. Where that office will be located has yet to be decided.
"We have been scouting in Chernihiv, a city in northern Ukraine," Van Wetter told Trends. "But the final location will depend on the needs of the Ukrainian Government and the security situation on the ground. In any case, Enabel will be working in a region outside Kyiv."
The Ukrainian branch will receive a budget of €150 million – thanks to some €200 billion in frozen Russian deposits at Euroclear in Brussels, the handler of global securities transactions.
Credit: UNDP Ukraine/Oleksandr Ratushniak
Because of the interest income on the Russian deposits, Euroclear pays more corporate tax to the Belgian Government. In turn, the Government transfers the extra tax money to a new Ukraine fund. From that fund comes the budget for Enabel's Ukrainian branch. "The intention is to combine that money with resources from other funds and institutions, such as the European Union," Van Wetter said.
The Enabel team in Ukraine will be quite modest, and number about 10 people. (The Enabel office in Kinshasa, for example, employs 400 people.) But in Ukraine, the Enabel team will mainly play a mediating role.
"For a project in healthcare, for example, we can pair an expert from the Belgian Health Ministry with a specialist from the Ukrainian government services," said Van Wetter. Additionally, Enabel can call on experts from other Belgian ministries, such as Economy, Finance and Defence, while the Federal Police can also provide specialists.
"As coordinator, we ensure a coherent approach to Belgian aid to Ukraine," he said. "It is about bringing the best Belgian expertise to Ukraine. We can count on our past experience. At the time, for example, we also helped with the financial reforms in Greece. In Ukraine, we will focus on healthcare, education, social protection and energy."
