BlackRock, JP Morgan set up 'reconstruction bank' for Ukraine

BlackRock and JPMorgan Chase are reportedly aiding the Ukrainian government in setting up a reconstruction bank that could see rebuilding projects being heavily invested in by private entities.The Financial Times noted that it would cost Ukraine roughly $411 billion to rebuild their country amid the onslaught of attacks by Russia, but the cost is continuing to increase.

The Ukraine Development Fund is still in the early stages of setting up the reconstruction bank, but potential investors will get an inside preview of how things will look during a London conference that is set to take place this week.

With the steep cost to rebuild, the Ukrainian government reached out to BlackRock in November to see if there was a conceivable way of attracting investments. JPMorgan was soon added in February. Ukrainian President Volodymyr Zelensky confirmed last month that he was working with the two financial institutions and consultants at McKinsey, per the report. 

Philipp Hildebrand, BlackRock vice-chair, said: “So many of today’s long-term challenges are best addressed through blended finance and this is one. You need these vehicles to mobilise capital at scale.”