This is a country that is trying to protect every Ukrainian they can through a refugee process and/or protecting the cities as best they can. The idea Ukraine has the luxury of worrying about it's economy and/or a better GDP is simply unrealistic. As an example, one aspect of the Ukraine GDP was a rocket factory. That has been bombed by the Russians.
So, the idea Ukraine can at all provide some degree of normal financial functioning is absurd. The country needs relief from it's debt and since this is still a new war the path forward is uncertain. One has to consider not just the enormous damage to cities and their infrastructure, but, Russia has been carrying on very strange movements around Chernobyl. For the Ukrainians still living in that region, there may or may not be permanent damage to the region and it may have to one more time be evacuated until radiation levels are down.
The debt Ukriane is incurring to allow for a national defense will have to fall to Russia in reparations. It is international law and Russia is not exempt.
President Zelensky in making this request is worried about the well being of the Ukrainian treasury and it's perception in the international market place. The future for the Ukrainians that are now children are still a concern for President Zelensky. I am most confident the World Bank and other financial institutions can begin to assess Ukraine's problems vs. it's assets which include the people and determine the best path forward. With any luck this conflict will be short lived and Ukraine can return to correct it's path today and rebuild a better business infrastructure.
There is currently an intrinsic value to this conflict the financial world is not considering. THE CONFLICT or WAR has a value to the world that reveals new truths about the global balance of power and the future of weapons and wars. Ukraine has to be assessed as a country that has withstood incredible strife to get this far in protecting it's sovereign state. Ukrainians have overcome some of the most terrible circumstances that can be leveled at a human society and that is a value in lessons that are part of the value of Ukraine.
The lessons the world is learning from Ukraine and it's magnificent people must become part of it's financial legacy going forward. In that understanding comes a reverence for the country in knowing the future holds a great deal of hope. That hope and the knowledge the world has gained is part of a greater legacy that has to be valued in the real world.
No financial institution can replace the people lost in Ukraine that are part of it's economy. But, for the perseverence of the Ukrainians, financial institutions can and must consider wisdom in serving their national debt and their needs today. In that is to realize Russia has a profound indebtedness to Ukrainians regardless of the outcome of the conflict and it is Russia that needs to held responsible TODAY for the destruction they have carried out and the real life damages to the people of that incredible country.
There is no doubt President Zelensky is making an honorable request and all I am stating here is that there is higher regard that can be shown by the world financial institutions and the place where Ukraine's debt actually lies. Please assist President Zelensky in his struggle to protect Ukraine's sovereign borders and the land that will once again be home to a proud nation of people and their children. These are young families and their potential is unlimited as soon as the country is once again functioning as it should.
April 17, 2022
By Grayson Quay
Ukraine has asked the G7 countries for $50 billion (click here) to help cover the war-torn country's budget shortfall, said Oleh Ustenko, the economic adviser to Ukrainian President Volodymyr Zelensky, on Sunday, Reuters reports.
Per Reuters, Ukraine "is also considering issuing zero percent coupon bonds to help it cover a war-linked budget deficit over the next six months."
The World Bank projected last week that Ukraine's economy is expected to shrink by 45.1 percent in 2022 as a result of Russia's invasion, though "the magnitude of the contraction will depend on the duration and intensity of the war."...
