Aussie Billionaire Pledges $500 Million Towards Rebuilding Ukraine

Ukraine President Volodymyr Zelenskyy shaking hands with Australian mining billionaire Andrew Forrest. (Courtesy of Tattarang)

Australian mining magnate Andrew Forrest has announced a US$500 million (AU$744 million) pledge towards rebuilding Ukraine as the war-torn country hopes to kick off its post-war economy.

Described by Forrest as Ukraine’s “Marshall Plan,” the Ukraine Green Growth Initiative is seeding investment into energy and communications infrastructure so that the country becomes a “model for the world as a leading digital green economy,” according to a media release.

“Our investment fund will help to step beyond the wirelines of the past and accelerate digital communications development,” Forrest said.

“Ukraine can enter a golden era. By business backing Ukraine, we’re sending a message to the world. I want every government to know that as soon as hostilities cease global business will be ready to help rebuild immediately.

“We will build a new future, not simply replace the past. We want Ukrainian people to know that we will be there with you, helping you to deliver strong economic growth in Europe.”

Forrest along with Ukrainian President Volodymyr Zelenskyy announced the news on Nov. 17 at the New Economy Forum in Singapore.

The billionaire’s private equity group Tattarang contributed the initial $500 million aimed at kickstarting the Green Growth Initiative which is expected to grow to around US$25 billion (AU$37 billion) with support from investment funds like BlackRock and other businesses.

The long-term aim is for the Green Growth Initiative to reach $100 billion (AU$149 billion),

In June, Forrest spent nearly a week in Kyiv meeting Ukrainian President Zelenskyy and a majority of the country’s Cabinet ministers to discuss the plan.

The announcement of the fund follows negotiations that began in March including Forrest, Zelenskyy, U.S. President Joe Biden, former UK Prime Minister Boris Johnson, Australian Prime Minister Anthony Albanese, and OECD Secretary-General Mathias Corman.

It will be led by Larry Fink, CEO of Blackrock, one of the world’s largest asset managers.

In a media release published on Nov. 16, BlackRock confirmed that a Memorandum of Understanding (MoU) was signed between itself and Ukraine’s Ministry of Economy stating that BlackRock would provide advisory support for designing an investment framework.

The framework aims to create opportunities for both public and private investors to participate in the “future reconstruction and recovery of the Ukrainian economy.” The agreement was signed on Nov. 10 in Washington D.C.

Zelenskyy Welcomes Forrest’s Financial Support

Zelenskyy thanked Forrest and BlackRock for their commitment saying that despite the price of reconstruction growing with each new strike from Russia, the Ukrainians cannot wait months for electricity and heat.

Zelenskyy said he and Forrest would “not replace communist-era rubbish Russian infrastructure” but instead leap towards the latest technology.

“We will take advantage of the fact that what the Russians have destroyed can readily be replaced with the latest, most modern green and digital infrastructure,” he said.

“Together we will not only rebuild Ukraine, protecting people’s lives, but also make it an attractive place for global business.”

In September, Zelenskyy said he hoped his country would “be an attractive country for investors.”

In August, Forrest’s philanthropic organisation Minderoo Foundation helped fund the first maritime shipment of Ukrainian wheat grain out of the country. The foundation also funded grain and oilseed storage facilities in Ukraine.