The profound human tragedy is unavoidably also a huge economic opportunity that Ukraines president, Volodymyr Zelensky, has likened to the Marshall Plan, the U.S. program that provided aid to Western Europe after World War II. A report from the German Marshall Fund envisages a total of some $100 billion to rebuild Ukraine's infrastructure. Long-term reconstruction aid will depend not only on the outcome of the war, but on how much money the European Union, the United States and other allies put up. The agency represents the US, UK, EU, Canadian and Ukrainian professionals, financing institutions and manufacturers under a unified umbrella in order to deliver maximum impact for the rebuilding effort of Ukraine. And now hes repurposed this money and given it to families of 9/11 victims. Ukraine's former finance minister, Natalia Jaresko, who later led Puerto Rico's financial oversight board after a devastating hurricane, emphasizes that the first step is to document and assess the damage. Danfoss has since focused on helping with immediate needs in war-torn regions and in western Ukraine, where millions of people displaced from their homes have been forced to settle in temporary shelters. Plus $100b in infrastructure damage and counting. Premium. 2023 Fortune Media IP Limited. For businesses, the risks are greatincluding the potential for Russia to begin lobbing missiles at Ukraine, even if there is a peace deal. Ukraine has a lot of offshore gas and oil potential. Zelensky previously spoke with Fink in September, and Kyiv also indicated some BlackRock leaders will visit Ukraine next year. Thats why Im focused on four key sectors: To repair roads and bridges, Ukraine will need the help of U.S. engineering companies. That's why we're doing everything we can to help Ukraine defend its sovereignty and territorial integrity, and to strengthen Ukraine's position on the battlefield and at the negotiating table," Lewis said. In Europe after World War II, restoring industry, providing financing to eliminate bottlenecks in inputs, and liberalizing trade spurred remarkable growth. Energy resources, for example, are underdeveloped in part because restrictions inhibit investors. So, if the U.S. is set to receive most of this $100 billion to help Build Back Ukraine, wheres it going to go? Most structures and infrastructure that Russian forces have destroyed were built at least four decades ago. . But again, reforms could better persuade creditors to lower Ukraine's debts. In recent years Ukraine has backtracked on commitments to the International Monetary Fund. If history is anything to go by, there is going to be a massive handout to politically connected corporations to rebuild Ukraine. The rebuilding of Ukraine promises to be one of the most challenging and ambitious undertakings of the twenty-first century. Historically, Russia has relied on sales of military equipment to line its pockets. The U.S. will be able to pick Russias pockets to help Ukraine pay for this rebuilding, and Russia wont get any say in how this money is spent. Mr. Fink was brought into the effort by Andrew Forrest, a gregarious Australian mining magnate who is the chief executive of Fortescue Metals Group. What are your picks? Thousands of businesses around the globe are positioning themselves for a possible multibillion-dollar gold rush: the reconstruction of Ukraine once the war is over. After the end of the war there will be six months of rebuilding just to bring the economy back, says Mylovanov, whos on leave from the University of Pittsburgh, where he is an associate economics professor. He says he's worried about his parents, who live in the Sumy region of Ukraine, about 30 miles from the Russian border. And on Wednesday, the Finnish Confederation of Industries sponsored an all-day webinar with Ukrainian officials so companies could show off their wastewater treatment plants, transformers, threshers and prefabricated housing. WASHINGTON, April 21 (Reuters) - U.S. companies can help rebuild Ukraine with digital infrastructure, clean energy and more in the aftermath of Russia's invasion, U.S. Export-Import Bank President Reta Jo Lewis said on Thursday before a meeting with Ukraine finance officials. Hospitals Ukraine's hospital system needs to be rebuilt, including medical equipment and supplies. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Ukraine is expected to need the largest reconstruction drive since the Marshall Plan rebuilt post-war Europe as the IMF warned its economy could face a 35pc plunge in output. In Ukraine, there is a distinct sense of dj vu for people running small and medium-sized businesses over the situation they now find themselves in. Patricia Cohen reported from Lviv, Ukraine, and Warsaw, and Liz Alderman from Paris. After Halliburton it was Bechtel Group. Effective reconstruction will require a better investment climate, deeper reforms, and less corruption. Consider Halliburton (NYSE: HAL), Aecom (NYSE: ACM), and maybe Caterpillar (NYSE: CAT) which makes trucks and equipment. Drawing upon decades of experience, RAND provides research services, systematic analysis, and innovative thinking to a global clientele that includes government agencies, foundations, and private-sector firms. Danfoss, a Danish industrial company that sells heat-efficiency devices and hydraulic power units for apartment and other buildings, has been doing business in Ukraine since 1997. Mining is a big area, too. The question of who will control the money invested in Ukraine is one that Europe, the United States and global institutions like the World Bank are debating. Zelensky said that U.S. companies should invest in Ukraine now while the war is still ongoing to take advantage of opportunities in clean energy, oil refining and weapon manufacturing, and. By continuing to use this website, you agree to their use. Members of the Agency completed multiple projects and financings with OPIC/DFC, various Export Credit Agencies, USTDA, IFC, EBRD and capital markets. Financing the rebuilding of Ukraine is a moral debt for the West. Then Russia started dropping bombs en masse. All quotes delayed a minimum of 15 minutes. Ukraine may need deeper reforms to attract the most international reconstruction financing. Ukraines military has been stuck using a lot of old Soviet and Russian gear, so it will certainly look to purchase American-made equipment. Mr. Forrest announced a $500 million initial investment in a pot of money for rebuilding projects in Ukraine. If Ukraine manages to repel Putin's army and regain its independence, it will need a massive influx of cash to recover and rebuild. The recovery plan described the overarching vision: "To build the new Puerto Rico to meet the current and future needs of the people through sustainable economic development and social transformation; transparent and innovative approaches to governance; resilient, modern, and state-of-the-art infrastructure; and a safe, educated, healthy, and Terms & Conditions. Mr. Forrest has courted Mr. Zelensky, wearing a Ukrainian flag pin in his lapel and presenting the Ukraine president with an Australian bullwhip during a visit to Kyiv last year. "A restoration plan is needed, which I also discussed with the President of the European Commission. And I urge you to prepare for these victories now, to come to Ukraine now so that by the time we restore peace, your hard work has already yielded results.. Right now, nobody is really looking for major reconstruction.. There will be a lot of procurement contracts, Mylovanov says. BlackRock Financial Markets Advisory and the Ukrainian Ministry of Economy signed a memorandum of understanding in November, after Fink and Zelenskyy met in September to discuss driving public and. Kristalina Georgieva . Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices The country's central bank governor, Kyrylo Shevchenko, said the Ukrainian banking system was in good shape and that payment systems are functioning, nearly two months after Russia launched its Feb. 24 assault on its Eastern European neighbor. In other words, Ukraines about to go on a spending spree and Russias footing the bill! Legal issues could be complex, but political pressures could favor applying these resources to reconstruction. And that is why right now we are calling on all businesses to come to Ukraine and to leave the Russian market, Zelensky said. William Courtney is an adjunct senior fellow at the nonprofit, nonpartisan RAND Corporation who has served as U.S. ambassador to Kazakhstan and Georgia. Subscribe here. Ukraine understands this is the playbook. Khrystyna Holynska is an assistant policy researcher at RAND, a Ph.D. student at the Pardee RAND Graduate School, and a visiting professor at the Kyiv School of Economics. It will also need to piece together communities that have been blown apart by the war. . Over the next few months, were going to find out just how entwined these two nations are. Supporters of Ukraine fill the square during a Stand with Ukraine rally at Copley Square in Boston on Feb. 26, 2023. Id look at a major drilling company like Transocean (NYSE: RIG). Reconstruction in the construction sector would benefit if there were easier access to building permits, better mortgage programs, and a more-efficient real estate market. BlackRock, one of the world's largest investment managers, has been providing "advisory support for designing an investment framework, with a goal of creating opportunities for both public and private investors to participate in the future reconstruction and recovery of the Ukrainian economy," the company said in a statement last month. Mr. Zelensky and his allies want to use the rebuilding to stitch Ukraines infrastructure seamlessly into the rest of Europe. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Ukraine desperately needs funds just to keep going and to make emergency repairs. Elsewhere, Egypt keeps buying U.S.-made F-15 planes. As usual, Pro subscribers have access to my favorite way to play this opportunity! The fund would be run with BlackRock and aims to raise at least $25 billion from sovereign wealth funds controlled by national governments and private investors from around the world for clean energy investments in war-torn areas. Power and water were widely cut off, forcing Ukraine and businesses to swing back to dealing with emergencies. The RAND Corporation is a research organization that develops solutions to public policy challenges to help make communities throughout the world safer and more secure, healthier and more prosperous. When the war. Fuel cell manufacturers from Denmark and timber producers from Austria. Yet whether all the gold in the much-anticipated gold rush will materialize is far from certain. Such assistance could be most helpful as a force multiplier, magnifying the contribution of private investment and Ukraine's own resources. A Division of NBCUniversal. 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