JP Morgan’s reconstruction deal With Zelenskyy

J.P. Morgan Chase & Co, the largest bank in the United States, has reportedly reached an agreement with Ukrainian President Volodymyr Zelenskyy to secure private investment for a new infrastructure reconstruction fund. The aim of the fund is to repair the damages caused to Ukraine’s infrastructure as a result of the ongoing conflict with Russia.

Bankers from J.P. Morgan and Ukrainian officials, including President Zelenskyy, met last week in Kyiv to discuss the details of the proposed fund, which is expected to be funded by $20 billion to $30 billion in private capital. The meeting also saw discussions around the possibility of establishing a bank run by Wall Street firms to invest in rebuilding essential economic infrastructure, such as oil refineries, roads, and bridges, that were destroyed in Russia’s annexation campaign.

Jamie Dimon, the CEO of J.P. Morgan, emphasized the lasting impact of the conflict and stressed the importance of attracting private capital for Ukraine to resist Russian aggression. During the investment summit hosted by J.P. Morgan, Zelenskyy received suggestions from the bankers on ways to attract private capital, including inviting top CEOs to the country and meeting with GOP lawmakers. The bankers also stressed the importance of combatting corruption in government to attract investment.

BlackRock and Goldman Sachs, among other major Wall Street firms, have expressed interest in supporting the rebuilding of Ukraine. J.P. Morgan, on the other hand, aims to act as an advisor to the country in the capital market, helping it raise funds through the proposed fund or bank. The ongoing conflict with Russia, however, remains a hindrance to attracting private investment as it raises concerns among potential investors.

It has been nearly a year since the Russian invasion of Ukraine, which has caused significant damage to the country’s economy, leading to an unemployment rate of 30 percent. Despite resistance from Ukrainians and support from the U.S. and Western nations, Russia continues to control approximately 15% of the country, primarily in the east.

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