Ukraine, What is the End-Game? The Privatization of An Entire Country

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Introduction

The US has conducted numerous wars since the end of what is euphemistically called the post war era:

Korea, Vietnam, Cambodia, Laos, Afghanistan, Yugoslavia, Iraq, Libya, Syria, Yemen… and now Palestine and Ukraine. 

The unspoken objective is not to “win the war” but to engineer the destruction of entire countries, create political and social chaos, with a view to ultimately “picking up the pieces” and taking control of the national economies of sovereign nation states.

This hegemonic agenda is also conducted through “regime change”, “color revolutions” and the concurrent demise and criminalization of the state apparatus coupled with “strong economic medicine” and the imposition of a soaring dollar denominated debt.

That is what happened in Vietnam. The destruction of an entire country which was then “privatized” in the early 1990s: 

“Vietnam never received war reparations payments from the U.S. for the massive loss of life and destruction, yet an agreement reached in Paris in 1993 required Hanoi to recognize the debts of the defunct Saigon regime of General Thieu. This agreement is in many regards tantamount to obliging Vietnam to compensate Washington for the costs of war.”

The NeoCon agenda which is embedded in America’s military and intelligence agenda is to “Destroy Countries”.

It is a profit-driven agenda: “Destruction” leads to “Reconstruction”. 

What is at stake is the engineered economic and social destruction of sovereign nation states.

The creditors are there to “pick up the pieces” and “appropriate real wealth”. 

The Privatization of Ukraine 

This article focusses on the NeoCons’ agenda to “privatize countries” on behalf of the financial establishment, with specific reference to Ukraine.  

Ukraine is a country with a vast territory and tremendous resources. 

The Euromaidan Coup d’Etat (supported by the U.S.) and the onslaught of the war in February 2014 have triggered a crisis in commodity trade as well as the dislocation of all sectors of economic activity.

Ukraine has become an impoverished broken-down Nation State, with an unmanageable external debt of the order of $150 billion 2023.

Moreover the Biden administration has granted $ 75 billion in military aid, a large amount of which will have to be reimbursed.

Debt conditionalities apply but they have taken a different form.

We are no longer in the realm of IMF “strong economic medicine”, austerity measures and ad hoc privatization measures. Since early 2022, the outright “privatization of Ukraine” namely the entire country is contemplated with the support of BlackRock and JPMorgan. 

What is unfolding is the corporate take over and appropriation of an entire country.

BlackRock, which is the World’s largest portfolio investment company together with JPMorgan have  come to the rescue of Ukraine. They have set up the Ukraine Reconstruction Bank.

The stated objective is “to attract billions of dollars in private investment to assist rebuilding projects in a war-torn country”. (FT, June 19, 2023)

“… BlackRock, JP Morgan and private investors, aim to profit from the country’s reconstruction along with 400 global companies, including Citi, Sanofi and Philips. … JP Morgan’s Stefan Weiler sees a “tremendous opportunity” for private investors. (Colin Todhunter, Global Research June 28, 2023)

The Kiev Neo-Nazi regime is a Partner in this Endeavour.

War is Good for Business. The greater the destruction, the greater the stranglehold on Ukraine by “private investors”:

“BlackRock and JPMorgan Chase are helping the Ukrainian government set up a reconstruction bank to steer public seed capital into rebuilding projects that can attract hundreds of billions of dollars in private investment.” (FT, op cit)

The Privatization of Ukraine was launched in November 2022 in liaison  with BlackRock’s  consulting company  McKinsey, a public relations firm which has largely been responsible for co-opting corrupt politicians and officials Worldwide not to mention scientists and intellectuals on behalf of powerful financial interests. 

“The Kyiv government engaged BlackRock’s consulting arm in November to determine how best to attract that kind of capital, and then added JPMorgan in February. Ukraine president Volodymyr Zelenskyy announced last month that the country was working with the two financial groups and consultants at McKinsey.

BlackRock and Ukraine’s Ministry of Economy signed a Memorandum of Understanding in November 2022.

In late December 2022, president Zelensky and BlackRock’s CEO Larry Fink agreed on an investment strategy.

The Ukraine Privatization Chronology 

September 2022, Prime Minister Denys Shmyhal, announced that the government would implement transfer of the majority of state-owned enterprises to the management of the State Property Fund. These State owned assets would then be privatized by the State Property Fund. Major assets such as Port facilities are up for privatization.

November 2022. Memorandum of Understanding between BlackRock and McKinsey, Ukraine Ministry of Economy

December 2022. Agreement between BlackRock CEO Larry Fink and President Zelensky

February 2023. JPMorgan Joins the BlackRock Reconstruction Bank Project

June 21-22, 2023. Ukraine Recovery: London conference co-hosted by the UK Ukrainian governments.

King Charles III Hosts Reception for London Conference Participants. at St James’s Palace on the eve of the Ukraine Recovery Conference. (See below)

December 2023  “Development of SMB 2023: Opportunities, Sustainability and Recovery”  (see below for details)

Ukraine Reconstruction: The London Conference Venue

The Focus of the London Conference (June 23-24, 2023) was on Recovery and Reconstruction. It was preceded by a reception hosted by H.M. King Charles III.

“The Ukraine Development Fund remains in the planning stages and is not expected to fully launch until the end of hostilities with Russia. But investors will have a preview this week at a London conference co-hosted by the British and Ukrainian governments.

The World Bank estimated in March that Ukraine would need $411bn to rebuild after the war, and recent Russian attacks have driven that figure higher.

No formal fundraising target has been set but people familiar with the discussions say the fund is seeking to raise low-cost capital from governments, donors and international financial institutions and leverage it to attract between five and 10 times as much private investment.

BlackRock and JPMorgan are donating their services, although the work will give them an early look at possible investments in the country. The assignment also deepens JPMorgan’s relationship with a longstanding client.

What Ukraine needed, BlackRock advised, was a development finance bank to find investment opportunities in sectors such as infrastructure, climate and agriculture and make them attractive to pension funds and other long-term investors and lenders. JPMorgan was brought in partly for its debt expertise.

… most investors want to wait for the end of hostilities. “The important part is that Ukraine is already thinking ahead,” Weiler said. “When the war is over, they’re going to want to be ready and start the rebuilding process immediately.” (FT, 19 June, 2023, emphasis added)

King Charles V Hosts Reception at St James’s Palace on the eve of the Ukraine Recovery Conference.

Guests included the Prime Minister of Ukraine, Mr. Denys Shmyhal; President of European Commission, Dr. Ursula Von der Leyen and His Majesty’s Ambassador to Ukraine, Dame Melinda Simmons, who presented. Ukrainian civil society leaders. These leaders included Mr. Masi Nayyem [involved in the Neo-Nazi sponsored 2014 EuroMaidan], a decorated Ukrainian veteran and lawyer who received shrapnel wounds to the head on a combat mission during the invasion and now campaigns for veterans rights and support.

The 2024 Ukraine Privatization Plan: Fraudulent Auctions: Small and Medium Sized Businesses (SMB)

The privatization plan enunciated in December entitled “Development of SMB 2023: opportunities, sustainability and recovery” is now being implemented.

According to Vitaliy Koval, in 2024 the Fund plans to put up:

… for privatization about a thousand objects that open up new opportunities for business. These assets will be auctioned, ensuring a fair and transparent process.

Vitaliy Koval, Chairman of the State Property Fund of Ukraine, presented the 2024 SPFU plan. He emphasized that small and medium-sized business will be main beneficiary of this process.

The small and medium sized businesses including agricultural and industrial SME will be wiped out. Many of these assets will be purchased at a negative price. 

 “We think that small and medium-sized business should be in the center of privatization process.

The transparent procedure coupled with rigged auctions are wrought with fraud and corruption. It’s akin to highway robbery: 

He invited business “to cooperate in searching for assets for privatization”.

“We invite you to become Ambassadors in searching for assets for privatization.

Many cities, towns and villages have dormant assets during 10-15 years. We wait your proposals for privatization and do the best that the way to transparent auction will be the shortest,” said Vitaliy Koval. (State Property Fund of Ukraine  emphasis added)

On December 13, 2023, the Six National Forum of SMB “Development of SMB 2023: opportunities, sustainability and recovery” was conducted under the auspices of the Ukraine Chamber of Commerce and Industry and the United Nations Development Programme in Ukraine. The Forum was held with the support of Switzerland and the Project “Strengthening of member business associations of micro, small and medium-sized enterprises in Ukraine”, implemented by UNDP in Ukraine.

Concluding Remarks: It’s Big Money “Highway Robbery”

Ukraine is in the stranglehold of Big Money. BlackRock and JPMorgan.

Ukraine’s Privatization Initiative sets a precedent. Entire countries can be privatized.

Wars are money-making operations for the Military Industrial Complex (MIC).

There have been 3 peace initiatives since 2014 including Minsk 1 and 2 agreements, and Istanbul (March-April 2022) of which the draft was signed by representatives of Ukraine and Russia. The implementation of these Peace initiatives was the object of sabotage.

Peace as well as “Cease Fires” are not “Good for Business”.

“Ukraine’s people desperately need a future based on welfare and peace, but in reality Ukraine is being driven towards the kind of huge indebtedness that leads to subservience and dominance.” (Bharat Dogra, Global Research, June 28, 2023)

The outcome is mass poverty and social devastation of an entire country, under the guise of “reconstruction”.