As the conflict with Russia begins to cool with Washington’s direct intervention, the banks and in particular the “vulture funds” are playing a key role. They are impatiently waiting to cash in (and above all earn money) for the services provided in Ukraine, while at the same time they are beginning to plan the economic future of this country to their own advantage. BlackRock, the world’s largest investment fund company with around 12 trillion dollars in assets, PIMCO (Pacific Investment Management Company), the sixth largest international investment company in the world, and JP Morgan Chase, the world’s largest bank, form a powerful financial conglomerate based in the United States. It has remained loyal to Ukraine in recent years in return for lucrative contracts.
The relationship between Kiev and BlackRock dates back to 2014, when the investment fund became one of the most important creditors of Ukrainian government debt following the pro-Western coup against then President Viktor Yanukovych.
However, this connection was to deepen under the current government of Volodymyr Zelensky and especially since the start of the war against Russia in February 2022, when other companies specialising in profit maximisation and financial speculation with constantly new extortionate practices also became involved. This was after they had taken over part of the gigantic foreign debt of almost 170 billion dollars agreed with the IMF and the World Bank.
When the war was already underway, BlackRock and PIMCO agreed to suspend the interest charge for two years. At the beginning of 2024, the agreement was extended for another year on the condition that Zelensky would commission these companies to raise private investment for post-war reconstruction. The “vulture funds” took a leading role in this new economic development by advising various companies interested in making quick profits in Ukraine and charging them for this activity.
In the midst of the Davos Forum last January, Zelensky held secret meetings with the most important chairmen and CEOs of multinational companies to conclude risky deals totalling tens of millions, avoiding the public eye. Always coordinated by the allied organisations, the president met with the heads of international finance companies such as Bridgewater Associates and Carlyle Group, with companies focusing on real estate investments such as Blackstone, with IT centres such as Dell and with steel conglomerates such as ArcelorMittal.
The influence of financial companies at peace negotiations is indisputably great, to such an extent that they already have their own plan for post-war Ukraine, which goes far beyond quick privatisation and onerous contracts in the public sector.
With the support of Donald Trump’s administration, the main interest of the investment funds is the early establishment of a “reconstruction bank”, based on their own experience as venture capital firms and managed internationally. This project is far removed from the Marshall Plan 2.0 proposed by the main European capitals, which would favour certain companies in the defence, transport or industrial sectors in Ukraine. All the signs are that Europe is being side-lined in this first phase of dialogue.
Although they consider Zelensky to be their most important ally and there would be no major legal or political obstacles to recovering the amounts owed, the creditors of the Ukrainian bonds have already instructed the law firm Weil Gotshal&Manges and the consultancy firm PJT Partners to prepare a possible legal dispute in view of the conflicts that could arise in the near future.
After all, the end of the war is not what was expected in the United States, let alone in Europe, where NATO is on its knees in the face of a victorious Russia. Furthermore, unpredictable but significant changes could occur in Ukraine in the coming months, especially if there are major reshuffles on the political and military stage. Most importantly, a large group of bondholders represented by “vulture funds” hopes to receive 23 billion dollars from the restructuring of Ukraine’s debt, which will be initiated immediately with the start of the post-war period.
In the meantime, BlackRock, PIMCO, other investment funds and a growing number of companies, banks and multinationals are hoping to realise greater economic gains from an extremely weakened and war-weary Ukraine. Provided, of course, that their favoured partner, Volodymyr Zelensky, remains at the head of the state and agrees to repay all debts in full, including through the largely uncontrolled transfer of natural resources and land to various commercial enterprises. •
Source: https://www.pagina12.com.ar/804688-ucrania-una-paz-mediada-por-los-fondos-buitre of 18 February 2025
(Translation Current Concerns)
Our website uses cookies so that we can continually improve the page and provide you with an optimized visitor experience. If you continue reading this website, you agree to the use of cookies. Further information regarding cookies can be found in the data protection note.
If you want to prevent the setting of cookies (for example, Google Analytics), you can set this up by using this browser add-on.