At the World Economic Forum conference, BlackRock, the world’s largest portfolio investment company, alongside JPMorgan, had announced a significant initiative aimed at supporting Ukraine amidst its ongoing crisis. These financial giants are at the forefront of establishing the Ukraine Reconstruction Bank, a venture designed to marshal substantial private investment towards the reconstruction efforts in Ukraine, which has been severely impacted by conflict.
The stated mission of the Ukraine Reconstruction Bank is clear: to channel billions of dollars in private investment into rebuilding the war-ravaged nation. But that’s the stated mission.
The involvement of major global corporations and financial institutions, including BlackRock, JPMorgan, Citi, Sanofi, and Philips, among 400 others, signals a wide-ranging commitment to Ukraine’s recovery. Or so it seems!
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This collective effort is predicated on the belief that there is a “tremendous opportunity” for private investors, as noted by Stefan Weiler of JPMorgan. A classic case of profit-driven motives packaged in altruism.
Central to this initiative is Big Money’s partnership with the Kiev regime. The collaboration between the Ukrainian government and the private sector, including some of the world’s most influential financial institutions, raises a single important question – Will Ukraine turn into the world’s first Corporate Country?
War is Good for Business captures the essence of this initiative; the destruction wrought by conflict is an opportunity for substantial financial gains by private investors. The role of private capital in post-conflict reconstruction will exert a significant influence over the economic and political landscape of post war Ukraine.
The engagement between BlackRock, one of the world’s foremost investment firms, and Ukraine signifies a deepening relationship between Big Money and the Ukrainian government, a partnership that has evolved steadily since late 2022. This collaboration began when Ukraine sought the expertise of BlackRock’s consulting arm, McKinsey, to explore effective strategies for attracting significant capital investments.
By February, JPMorgan had also joined this growing alliance, marking a significant expansion of Ukraine, Inc. The involvement of these financial behemoths was publicly acknowledged by Ukraine’s President Volodymyr Zelenskyy, who, in a clear testament to the seriousness of this partnership, announced the collaboration with both financial groups along with consultants from McKinsey.
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The formalization of this relationship was further solidified through the signing of a Memorandum of Understanding (MoU) between BlackRock and Ukraine’s Ministry of Economy in November 2023.
In a pivotal meeting in late December 2022, Ukraine’s President Zelensky and BlackRock’s CEO Larry Fink agreed upon an investment strategy that would guide the forthcoming efforts.
The nexus of international diplomacy and support for Ukraine’s recovery efforts found a symbolic and strategic platform in London, just on the cusp of the Ukraine Recovery Conference. King Charles III, a renowned globalist, hosted a notable reception at St James’s Palace. This gathering was not merely a ceremonial event but a confluence of political and civil society hyenas. Among the guests were the Prime Minister of Ukraine, Mr. Denys Shmyhal; the President of the European Commission, Ursula Von der Leyen; and His Majesty’s Ambassador to Ukraine, Dame Melinda Simmons.
The timing of the Ukraine Recovery Conference in London, hosted by the Kyiv Regime and the British Government on June 21-22, 2023, seemed almost prescient, occurring just before the Prigozhin to Wagner “Failed Coup” of June 23-24, 2023. Too much of a co-incidence.
The London conference also served as a precursor to the unveiling of the Ukraine Development Fund, a key initiative still in its planning stages, awaiting the cessation of hostilities with Russia to fully launch. But the Investors and international stakeholders received a preview of the fund’s potential to make a lot of money.
The financial scope required for Ukraine’s post-war reconstruction presents an immense challenge, underscored by the World Bank’s March estimation that $411 billion would be necessary for rebuilding efforts. This figure has since increased due to ongoing Russian military actions, highlighting the evolving and dynamic nature of Ukraine’s needs.
Amidst these circumstances, a formal fundraising target has not been established; however, individuals close to the initiative indicate an ambitious strategy to amass low-cost capital from a blend of governmental entities, philanthropic donors, you know the ones, and international financial institutions. The aim is to leverage this initial capital to entice a significantly larger volume of private investment, potentially augmenting the initial outlay by a factor of five to ten.
BlackRock and JPMorgan are contributing their services pro bono. Funny right. This philanthropic gesture will position these financial giants advantageously, granting them preliminary insights into potential investment opportunities within the nation. So much for pro bono services!
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BlackRock’s recommendation for Ukraine underscores the necessity of establishing a development finance bank aimed at identifying and enhancing investment opportunities across crucial sectors like infrastructure, climate change mitigation, and agriculture. The goal is to render these ventures appealing to pension funds and other entities seeking long-term investments. The rationale behind involving JPMorgan lies in its proficient debt management expertise, essential for navigating the complex financial landscapes of post to conflict reconstruction. Despite the general investor inclination to await the cessation of hostilities, the proactive stance of Ukraine, as highlighted by Weiler from JPMorgan, is pivotal.
Here’s a quick timeline of a country turning into a corporation:
- November 2022: The foundational agreement between Ukraine’s Ministry of Economy and BlackRock, along with consulting support from McKinsey, marks the beginning of a structured approach towards Ukraine’s post-conflict reconstruction.
- December 2022: A pivotal moment in the chronology occurred when an agreement was reached between BlackRock’s CEO Larry Fink and Ukrainian President Volodymyr Zelensky.
- February 2023: The inclusion of JPMorgan into the BlackRock-led reconstruction project for Ukraine added a new dimension of financial expertise, particularly in debt management and investment strategy
- June 18, 2023: The Africa Peace Initiative in Saint Petersburg featured a statement by President Putin regarding the unsuccessful peace negotiations of March 2022. Peace is bad for money.
- June 21-22, 2023: The London conference on Ukraine’s Reconstruction Bank, co-hosted by the British and Ukrainian governments, provided a platform for international dialogue and collaboration
- June 23-24, 2023: The Prigozhin-Wagner “Rebellion” unfolded.
The drive towards reconstruction is completely intertwined with the interests of these financial giants, suggesting that the path to rebuilding is paved with motivations that prioritize financial gains over the welfare of Ukraine’s populace.
The prospect of Ukraine being ushered into a state of significant indebtedness, leading to subservience and dominance by external financial powers, is the only surety. Such a scenario will entrench the country in a cycle of dependency, potentially culminating in mass poverty and social devastation under the guise of reconstruction.
The privatization of approximately 1,000 state assets in early 2024, has been outlined by Vitaliy Koval, Chairman of the State Property Fund of Ukraine (SPFU)
While presented as an opportunity for the development of small and medium sized businesses (SMBs), Big money will be the real beneficiaries of this process.
It will lead to the erosion of the local business ecosystem, favoring large investors and deepening the divide between the wealthy and the impoverished.
And that’s how Ukraine will turn into Ukraine, incorporated.