BlackRock and JPMorgan Chase are allegedly partnering to set up a “reconstruction bank” for the Ukrainian government.
QUICK FACTS:
- BlackRock and JPMorgan Chase are reportedly helping the Ukrainian government by setting up a “reconstruction bank” that could aid in rebuilding projects heavily invested in by private entities.
- According to The Financial Times, it will cost Ukraine roughly $411 billion to rebuild their country amid the conflict with Russia.
- With the cost increasing, Ukraine reached out to BlackRock in November to see if there was a way of achieving investments and JPMorgan later followed in February.
- Last month, Ukrainian President Volodymyr Zelensky confirmed that he was collaborating with the two financial institutions.
- “So many of today’s long-term challenges are best addressed through blended finance and this is one. You need these vehicles to mobilize capital at scale,” BlackRock vice-chair Philipp Hildebrand said.
- BlackRock has said Ukraine needs a “development finance bank” that would provide the country with infrastructure, climate, and agriculture opportunities.
- JPMorgan has allegedly been added to the account to help manage the country’s debt.
- “The fund is being set up to also give public and private sector investors the opportunity to invest into specific projects and sectors,” Stefan Weiler, JPMorgan’s head of debt capital markets in Europe, said.
- “There will be different sectoral funds that the fund identified as priorities for Ukraine. That aim is to maximise capital participation,” Weiler continued.
UKRAINIAN PRESIDENT VOLODYMYR ZELENSKYY’S OFFICE ON PARTNERING WITH BLACKROCK:
“Volodymyr Zelenskyy and Larry Fink agreed to focus in the near term on coordinating the efforts of all potential investors and participants in the reconstruction of our country, channelling investment into the most relevant and impactful sectors of the Ukrainian economy,” the office said.
BACKGROUND:
- Earlier this month, the Biden administration, showing its commitment to Ukraine’s borders and defense, announced a significant new security assistance package worth $2.1 billion for Ukraine.
- Joe Biden was allegedly paid $5 million by an executive of the Ukrainian natural gas firm Burisma Holdings, where his son Hunter Biden sat on the board.
- The Department of Defense (DoD) outlined the comprehensive aid plan, including critical air defense and ammunition capabilities, under the Ukraine Security Assistance Initiative (USAI).
- “This USAI package illustrates the continued commitment to both Ukraine’s critical near-term capabilities as well as the enduring capacity of Ukraine’s Armed Forces to defend its territory and deter Russian aggression over the long term,” the official press release said.
- This aid package is set to go beyond the scope of Presidential Drawdown authority, which has been consistently used to expedite the delivery of equipment to Ukraine from DoD stocks.
