From BNE Intellinews via MSN, June 19:
BlackRock and JPMorgan will help Ukraine launch a recovery bank to raise hundreds of billions of reconstruction money
The leading American investment companies, BlackRock and JPMorgan Chase, will help Ukraine to create the Fund for the Development of Ukraine - an investment bank for economic recovery after the war.
The Development Fund will attract low-cost loans from other states, donors, and international financial institutions in a “blended finance” approach that has been used elsewhere, theFT reported on June 20. These are expected to be 5-10 times larger than private investments and amount to hundreds of billions of dollars in private investment. Priority will be given to the following sectors: infrastructure, climate, and agriculture.
“There will be different sectoral funds that the fund identified as priorities for Ukraine. The aim is maximise capital participation,” Stefan Weiler, JPMorgan’s head of debt capital markets for central Europe, Middle East and Africa told the FT.
Estimates of thecost of reconstruction vary widely but the World Bank, Ukrainian Government, European Commission and the United Nations estimated the total bill will come to $411bn in March. Others have put the figure as high as $1 trillion if all the economic costs are taken into account. The entire value of Ukraine’s pre-war economy was around $100bn.
“So many of today’s long-term challenges are best addressed through blended finance and this is one. You need these vehicles to mobilise capital at scale,” said BlackRock vice-chair Philipp Hildebrand, as cited by the FT.
The Kyiv government hired BlackRock’s consulting arm in November to determine how best to attract the huge amount of capital needed, and then also invited JPMorgan to join the effort in February because of its experience in the debt markets.
The fund is still at a planning stage and is unlikely to be launched before the end of the war. However, this week, preliminary developments will be presented at the London Conference on the Reconstruction of Ukraine on June 21-22.
The size of the fund has not been determined but sources close to the talks told the FT say the fund is seeking to raise low-cost capital from governments, donors and international financial institutions and leverage it to attract between five and 10 times as much private investment.
It is expected that the fund's supervisory board will include international financial institutions, and investment professionals will provide direct management.
BlackRock and JPMorgan have offered to manage the fund pro bono, although the work will give them an inside track and an early look at possible investments projects....
....MUCH MORE
April 21, 2022
Professor Damodaren Writes About War and ESG
May 24, 2022
UPDATED—Fundraising Lessons From Volodymyr Zelensky: Get In Front Of The World Economic Forum.... Ask For $5 Billion.... Per Month
"Patronage" for investorsZelensky said Ukraine would have a “special, historically significant model of rebuilding,” in which companies and countries could choose a specific region or mine to rebuild....
September 3, 2022
ESG Maven BlackRock Says Oil & Gas Is A "Bright Spot"
September 18, 2022
Former U.S. Ambassador To Ukraine Tipped For Promotion To Assistant Secretary of State for Energy Resources
Most of our posts on Geoffrey Pyatt had to do with the 2013 - 2014 Maidan coup in Ukraine and of course his conversation with Victoria Nuland on who they should install to run the new government, also known as the "F*** the EU" call.
In between his time in Ukraine and his current appointment (awaiting final Congressional approval) Ambassador Pyatt was the Ambassador to Greece, 2016-2022.Because of that connection a lot of the congrats have come from the Greeks
December 9, 2022
"Windfalls await investors in ammunition"
And with their inclusion in many ESG funds,* this is the best of all possible worlds.
*See: It Must Be Tough Being A Satirist These Days
With a Russian invasion right on its doorstep, Europe now finds itself discussing whether weapons should be listed as ESG assets, to grant them more favorable access to financing...
ESG Fund Bets Big on Weapons and Beats 98% of Peers
Meanwhile, the Vanguard ESG U.S. Stock ETF does have major military contractors in the portfolio but draws the line at cluster bombs and nuclear weapons.
December 29, 2022
"Zelensky Says Rebuilding Ukraine Will Cost More Than $1 trillion; Talks To BlackRock About The Opportunity (BLK)"
December 29, 2022
More On BlackRock's Plans For Ukraine
February 28, 2023
"Marketing Ukraine's Reconstruction To Fuel The War"
If you want in on the action, get to know this woman:
March 4, 2023
Big Money: "Who Really Benefits from the Creation of a Land Market in Ukraine?"
I've said the reason Pyatt and Nuland and the rest of the American gang facilitated the Maidan coup was to get at the farmland. That's a bit of an exaggeration but not by much.
Along with pushing against Russia, getting a piece of the oligarch's loot and, dream of dreams, turning Crimea into the headquarters of the U.S. Black Sea Fleat, it is just a piece of the picture, which is now coming into focus: the economic shock therapy that was applied to the Russian part of the Soviet Union will now strip Ukraine of its assets. And then perhaps move on to Poland and definitely liberate the assets of Germany.
If you follow these things, one of the interesting tidbits of the Nord Stream 2 sabotage is the fact that Jeffrey Sachs, one of the Harvard Boys who wreaked Havoc on the Russian economy in the 1990's is at the forefront of those calling for an honest investigation of who blew-up the pipeline. Go figure.
But I'm getting ahead of the story. Right now it is the land that matters, matters so much that the International Monetary Fund has made selling land to foreigners one of the conditions for the multi-billion-dollar loans that Ukraine has been receiving since the Maidan coup.
April 21, 2023
"War and Theft: The Takeover of Ukraine’s Agricultural Land"
April 28, 2023
Ukraine: "To The Losers Go The Spoils?"
And many many more.
