Ukrainian President Volodymyr Zelensky is asking businesses around the world to contribute to reconstruction of war-torn Ukraine.
Key Details
- Zelensky announced earlier this month that his administration has created a team of bankers and researchers to help the country as it asks businesses to contribute to the rebuilding of the Ukrainian economy.
- The team, called Advantage Ukraine, asks foreign investors and businesses to see what Zelensky calls “the tremendous growth potential our country presents.”
- Already the Ukrainian president says that the team has identified $400 billion worth of potential investment, including public-private, privatization, and private investment opportunities.
- The European country has been well known for its agricultural contributions, but Zelensky asks investors to consider the potential science and technology investments within the country.
- Zelensky makes clear that he is “not asking for favors” from other countries.
- “Our new program outlines investment opportunities that will unleash the economic potential of Ukraine while delivering growth for those who have the vision to invest,” he says.
Why it’s news
Though war is still ongoing in Ukraine, the president has recently made moves to begin the reconstruction phase of the country.
The country estimates rebuilding costs could total somewhere around $750 billion, though that number is hard to pin down as war continues. Ukraine is attempting to build a fund for investment in business, infrastructure, and other reconstruction projects after the war is over.
Just last week, Zelensky met with BlackRock CEO Larry Fink to discuss how the asset management company could provide support to Ukraine.
Investors will likely view Ukraine as a high-risk investment due to the ongoing war. To combat this, Zelensky said in his announcement that his administration is working to gain investment guarantees from the Group of Seven and the European Union.
In addition to investor hesitancy, Zelensky is fighting concerns about government corruption, an issue Ukraine has a history with. Ukraine was listed at 122 out of 180 counties on anti-corruption watchdog Transparency International’s index just last year.
“Our country has already adopted rules and laws to allow companies to build transparent corporate structures, attract foreign investment more easily, and use additional mechanisms to protect intangible assets,” Zelensky says.
Even if Ukraine is able to overcome these obstacles, rebuilding won’t truly be able to start until the war is officially ended.
