Wall Street is showing increasing interest in investing in Ukraine, with BlackRock, the world’s largest money-management firm, and JPMorgan among the top players seeking to engage with the government.
The country, which is currently fighting a conflict with Russia, has significant potential for private US investment, particularly in rebuilding infrastructure. However, there are concerns among bankers about the continued danger of the ongoing war and, in particular, the scale of corruption in the country.
Meetings between executives from top firms, such as BlackRock’s Larry Fink and JPMorgan’s Jamie Dimon, and Ukrainian officials over the past month have been revealing but have largely taken place in private. The bankers involved have expressed their skepticism regarding investing in Ukraine until the conflict has ended.
They are also wary of the presence of a Russian-style oligarchy that dominates the country’s crony capitalism, an alliance of government and big business that undermines competition.
Zelensky’s request for billions of dollars in private capital to begin rebuilding the country’s economy has not been matched by sufficient action to fight corruption.
The ongoing war with Russia is also seen as a significant barrier to investment, with private funds unlikely to flow until the conflict has ended. Despite Zelensky’s unyielding determination to retake all territory occupied by Putin’s forces, bankers argue that private investment money will not be forthcoming until the war is over.
There have been suggestions that Zelensky compromise with Putin, for example by allowing the Russian leader to retain parts of the Donbas region in the east.
However, Zelensky is currently opposed to such moves, believing that his approval rating of 90% would plummet if he were to give ground on the issue.
Bankers have suggested a solution that would depend on Zelensky’s willingness to compromise with his enemy while also embracing the fundamentals of a free-market economy.
»Wall Street plans to invest in Ukraine«
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