US, Europe map Ukraine rebuilding plan led by BlackRock, World Bank

Washington, Dec 15 (IANS) The United States and its European partners have begun shaping a large-scale economic and reconstruction plan for Ukraine, with BlackRock and the World Bank playing central roles, as part of ongoing peace talks aimed at ending the Russia-Ukraine war, a senior US administration official said on Monday.

Requesting anonymity, the official told reporters that the developmental issue featured prominently during two days of meetings in Berlin with the Ukrainian delegation, including President Volodymyr Zelensky, and senior European officials, as negotiators focused on ensuring Ukraine’s long-term financial viability once the fighting ends.

BlackRock CEO Larry Fink “has assembled a team pro bono” to work on the recovery framework alongside World Bank President Ajay Banga, with both teams already engaging extensively with Ukrainian counterparts. The groups, the official said, have been “digging in” on the scale of Ukraine’s financial challenges and potential solutions.

“This is a very tough financial situation for them,” the senior US administration official said, noting that Ukraine faces multiple and overlapping burdens after nearly four years of war. These include maintaining a strong military, compensating civilians whose property was damaged, supporting families of soldiers killed in the conflict, and rebuilding destroyed infrastructure, the official noted.

The official said European leaders repeatedly stressed that Ukraine is “critical to their security” and that Ukraine’s economic stability is essential to Europe’s long-term security. As a result, European partners indicated there would be “strong financial support” to ensure Ukraine becomes “financially viable and strong” in the post-war period.

The discussions also addressed how to encourage the return of displaced Ukrainians and how to structure a post-war economy anchored in transparency and effective governance. The senior US administration official said plans were being developed to “bring people back to the country” while ensuring “there’s a good, transparent government.”

The official said BlackRock and the World Bank were drawing on “best practices all throughout the world” to design a framework that could attract investment and donor funding while reducing corruption risks. Fundraising mechanisms and sequencing of support were also discussed with European partners.

Another key topic was the issue of frozen Russian funds. The senior US administration official said talks explored “how to try and find a way to use them for reconstruction in a way that hopefully can work through an agreement,” though no final decisions have been taken.

The economic track, the official said, is intended to complement political and territorial negotiations rather than replace them. “President Trump is trying to save Ukraine as a country and make sure that they then have the ability to be viable,” the official said, emphasizing both military sustainability and long-term prosperity.

The official added that the broader objective includes creating incentives for regional stability by encouraging Russia, in the event of a peace settlement, to re-engage with the global economy. This, the official said, could reduce the risk of renewed conflict by shifting incentives away from war and toward economic integration.

The Berlin meetings, the senior US administration official said, reflected an unusually collaborative effort, with Ukrainians and Europeans “in and out of the different meetings” and ideas shared across delegations in real time.

The Russia-Ukraine war, since February 2022, has devastated large parts of the Ukrainian economy, displacing millions of people and leaving critical infrastructure severely damaged.

Major international institutions estimate Ukraine’s reconstruction costs will run into hundreds of billions of dollars, making long-term external financial backing and governance reforms central to any durable post-war settlement.

–IANS

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