After more than 200 days of war in Ukraine, President Volodymyr Zelensky is discussing rebuilding options with BlackRock CEO Laurence D. Fink.
Key Details
- Zelensky sought Fink’s advice on the best ways to encourage investment in Ukraine despite damage from the ongoing war.
- BlackRock is the world’s largest asset manager, overseeing $8.5 trillion globally.
- Zelensky and Fink discussed how the investment company could support the Ukrainian government as it establishes a reconstruction fund. The fund would be for both public and private investment, Zelensky’s office said.
- The advice and support from BlackRock would be pro bono.
- “We’ve shown that we know how to win on the battlefield. Another important task for us is to achieve victories in the economy as well, and to be an attractive country for investors,” Zelenskyy says.
Why it’s news
Though the war in Ukraine is ongoing, the war-torn country will need to start exploring reconstruction options as the cost to rebuild could be enormous.
The Ukrainian government however is preparing for a $750 billion price tag for its reconstruction.
Countries friendly with Ukraine have already provided billions of dollars in support, but the country will likely need significant donations or loans from other countries in order to rebuild its infrastructure and reboot its economy.
Convincing private investors to contribute while the war is ongoing could be a challenge for the Ukrainian government. Currently, the government is enticing entrepreneurs and business owners with grants, zero-interest loans and other support.
Despite ongoing efforts to keep the economy moving, the war in Ukraine needs to end before the country can truly restart.
Many lenders with clients in Ukraine have frozen payments on billions of dollars worth of loans within the country. BlackRock is one such lender.