The Ukrainian government has joined forces with BlackRock and JPMorgan Chase to launch a reconstruction bank and has already gathered $500 million in committed capital, Reuters reported on Jan. 17.
The World Bank assessed in March 2023 that the total cost of Ukraine's reconstruction would amount to $411 billion.
Kyiv approached the two banks in 2023 "to help set up a fund to raise public capital that could attract private investment for Ukraine's post-war reconstruction," Reuters said.
Rostyslav Shurma, deputy head of President Volodymyr Zelensky's Office, told Reuters that the bank aims to raise $1 billion in catalytic capital, which are "capital-like investments, debt and guarantees in which the investor accepts higher risk for greater social impact."
The bank "could be ready to launch in five to six months," according to Reuters.
Blackrock Vice-Chairman Philipp Hildebrand told Reuters that his bank has been helping Kyiv find ways to obtain funding from development banks and foreign countries.
Zelensky and U.S. Special Representative for Economic Recovery in Ukraine Penny Pritzker met with Hildebrand, as well as JP Morgan Chase CEO Jamie Dimon and other heads of the world's largest banks and investment companies, at the World Economic Forum in Davos on Jan. 16.
The discussion highlighted the importance of developing and implementing mechanisms of blended finance that combine private and public capital during the war, according to the President's Office.
"This is where we see your direct role right now. I know that you are actively cooperating with our team. I am looking forward to a tangible result," Zelensky said at the meeting.