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div414 t1_j4eilbc wrote

It’s a bit more complicated.

BlackRock is an advisor to the Ministry of Economy of Ukraine. They will advise on where, and which investments are most useful to the Ukrainian economy.

This is quite litterally nation building.

BlackRock can act as a bridge financier to immediately deploy capital to help Ukraine while the slower decision making process of governments goes through its motions.

The EU and US will foot this bill, while financing Ukraine to extremely favourable terms.

There is absolutely zero benefits to burdening Ukraine with unserviceable debt. This isn’t Greece.

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haarp1 t1_j4fku11 wrote

> The EU and US will foot this bill, while financing Ukraine to extremely favourable terms.

if it will be a loan, it will mean that Ukr will be a vassal state for the next 50-100 years. and it's already one of the poorest euro countries (and most corrupt). i've read that it will cost 1T€ to fully rebuild it. their govt budget for 2021 was only $40B.

they will apparently also have to pay for US weapons (not 100% sure, it might be offset with captured equipment).

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div414 t1_j4fx7yx wrote

Please research the Marshall plan, and how the UK finished paying it off a few years ago.

Nation rebuilding for the victor doesn’t work like you think it does.

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haarp1 t1_j4gagb2 wrote

> Nation rebuilding for the victor doesn’t work like you think it does.

any chance that you can give a quick TLDR? was it a no-interest loan? still, UK has a lot more of GDP or govt budget than Ukraine (1T vs 40B). ukraine exports mostly steel (they can probably forget about that now) and agri stuff (mostly intact but with xx % losses).

https://upload.wikimedia.org/wikipedia/commons/5/5c/Ukraine_exports_in_2013.jpg

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div414 t1_j4ggmbw wrote

Out of the 13B allocated to the Marshall Plan, only 1.2B were loans. Everything else were grants.

Russia has 300B seized by Western institutions. Another source of probable funding.

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haarp1 t1_j4goalv wrote

i wouldn't count on the latter, it would damage trust in the western banking system. even iran got its cash back for example.

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div414 t1_j59oczi wrote

Iran agreed to a deal and didn’t invade anyone.

It’s leverage.

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