Larry Fink, the BlackRock CEO, is the new partner of Volodymyr Zelensky in rebuilding the latter’s war-ravaged country. BlackRock on Wednesday agreed to coordinate in efforts of Ukraine to invest towards its reconstruction, as announced by Zelensky’s office after a meeting between the two via video conference.
Ukraine’s Ministry of Economy signed a memorable understanding with BlackRock Financial Markets Advisory in November, following Zelensky’s meet with Fink in September over driving investments into Ukraine, both public and private. Zelensky and Fink discussed conducting joint investment efforts to rebuild Ukraine after the Russian invasion causing massive destruction.
Kyiv indicated that the leaders of BlackRock may visit the country next year as well.
Who is BlackRock?
BlackRock, the US-based multinational company, founded in 1988, is the leading investment manager worldwide. As of 2022, they have USD 10 trillion in assets under management.
With seventy offices and clients in hundred countries, BlackRock also happens to be one of the three biggest index fund managers dominating corporate America.
Ukraine President’s Website Statement
The official website of Ukraine’s President showed that the investment management company and the Ukrainian government agreed to coordinate efforts of potential investors in reconstructing the country and ensure that the investments are channelized into the sectors which will be impactful and most relevant.
⚡️ Zelensky, BlackRock CEO discuss Ukraine reconstruction.
In a meeting with BlackRock investment company CEO Larry Fink, President Volodymyr Zelensky discussed the reconstruction of Ukraine, reported the President’s Office.
Photo: President of Ukraine’s official website pic.twitter.com/iWJGD6u1gC
— The Kyiv Independent (@KyivIndependent) December 28, 2022
BlackRock Statement
BlackRock said in a statement earlier that it has agreed to provide advisory support to Ukraine to design an investment framework focusing on creating more incredible scopes for investors to participate in rebuilding the Ukrainian economy. However, the company did not comment on the agreement after Larry Fink talked to Zelensky on Wednesday.
Zelensky’s US Visit
Last week, Volodymyr Zelensky visited Washington, DC, where he met President Biden and addressed Congress. The USA approved a $45 billion package for Ukraine in parallel with the visit.
Russia-Ukraine War
The Russian invasion of Ukraine took place eleven months ago, and the latter hinted at a peace summit to be organized hopefully by late February to end the war.
Ukrainian cities, including Kyiv, Kharkiv, Donetsk, Luhansk, Mariupol, Mykolaiv, and Kherson, suffered heavy damage in terms of life and property. Russian troops have mainly targeted the energy infrastructure of Ukraine in the past few weeks amid cold weather.
The total damages amounted to #135.9 billion as of November, as estimated by the Kyiv School of Economics.
In this context, planned investment in Ukraine is essential to reshape the Ukrainian economy, thereby resulting in a rebuilt economy in the country.
BlackRock Facing Criticisms
Some financial and international relations experts suggest the reason behind BlackRock making such a move may in some way be linked to the random criticisms the firm is facing these days from the Republicans. The Republicans are scrutinizing the activities of Larry Fink, whom they think is pushing an agenda, be it governance-related, social, or environmental.
Last month, Florida declared to redeem its state assets of $2 billion managed by BlackRock over ESG investing.
Some activist investors also criticized Fink for his alleged hypocrisy regarding the firm’s ESG stance.
