Sergii Marchenko said there was an expectation among Ukrainians that Russia would have to pay for its aggression, stressing various ways in which money could be raised from Moscow. He told Ian King Live: “It’s not just frozen assets of Russian banks, it’s frozen assets of Russian oligarchs, they are … other taxes, extra taxes in Russia, oil and gas that can be directed to Ukraine or more compensation. because of their decisions they will have to pay for it. “Going to war in Ukraine is their decision – that’s why they have to pay for the decision after the war.” Get the latest live updates on the war in Ukraine Mr Marchenko said he hoped the international community would be able to secure reparations from Russia in international court proceedings and that the “necessary amount” could be raised to support the reconstruction of Ukraine. The EU has already promised to set up a post-war reconstruction fund to rebuild Ukraine’s dilapidated infrastructure, and Polish Prime Minister Mateusz Morawiecki has suggested that it should include funds worth at least 100 billion euros (,5 83.5 billion). ). A modern “Marshall Plan” for the reconstruction of Ukraine However, Mr Marchenko said the final bill for the reconstruction could go much further than that, with the potential total amounting to hundreds of billions of dollars. He added: “Our infrastructure alone, the critical infrastructure, is costing us $ 120 billion (92 92.1 billion) in war damage and, if you add the social and military infrastructure, it could be more than $ 500 billion. ». Mr Marchenko, who studied both at Ukraine and at the famous John F Kennedy School of Government at Harvard University, said he was drawn to the Marshall Plan reconstruction package – the giant support package under which the United States States States provided financial assistance to some European countries after World War II. Use the Chrome browser for a more accessible video player 5:19 Michael Ryan at the end of Putin He continued: “Yes, it is possible; we should set up such a fund or vehicle to support Ukraine and make sure it was [based on the] experience of post-war Europe, how they rebuilt, how they created [the necessary conditions to] to build their economy – it should be something like the Marshall Plan for Ukraine. “It might be possible to start this project right after the war.”
GERMANY FACE RUSSIAN ENERGY REVERSE
Ian King
Business presenter @iankingsky The Ukrainian economy was already facing a number of challenges, even before it was attacked by its neighbor. The transition from a planned economy, as in the Soviet era, to a market-oriented economy took many years, and progress was disappointingly slow. Before the war, Ukraine still had about 3,500 companies owned by the national government, while another 12,000 were owned by local and regional governments. The reluctance to tackle this situation and undertake reforms meant that, unlike other Central and Eastern European countries, loss-making companies that had collapsed elsewhere continued to limp knowing that they would be supported. by the State. It was a recipe for inefficiency, lack of business investment and, in some cases, fraud. As a result, pre-war productivity in Ukraine was only 30% of the EU average, and wages were even lower than in comparatively poorer EU members such as Romania and Bulgaria. Thus, the country was insufficiently equipped to go to war with Russia and especially given the persistent harassment of Ukraine in the Donbas region since it annexed Crimea in 2014. Under these circumstances, it is no wonder that Ukraine has continued to pay public sector workers and those receiving state pensions, especially with the tax base collapsing and the tens of billions of dollars’ worth of military effort. This is not the only striking fact about the management of the Ukrainian economy by Sergii Marchenko. The fact that he is already seriously considering the reconstruction of Ukraine underscores not only the cruelty and attitude of the leadership of this country that we never say. It also emphasizes the need for serious thinking, globally, on how to rebuild this country. Mr Marchenko has raised serious questions about the need for a Marshall-type recovery package for Ukraine, although his insistence on forcing Russia to pay post-war reparations to Ukraine may upset those who remember how Hitler came to power in Germany. The 1930s were aided by public outcry over how he was punished in the Treaty of Versailles in 1919 for starting the First World War. Meanwhile, while the West has already doomed Russia to recession this year, much remains to be done. No one wants to paralyze the economies that are slowly coming out of the pandemic. But Germany’s refusal to immediately cut off European gas supplies, fearing a recession, has sparked ridiculous laughter in those EU countries – such as Greece, Portugal, Cyprus and Spain – where Berlin rushed to imposes austerity during the Eurozone. sovereign debt crisis. He may be sympathetic to Mr Marchenko’s assertion that a small recession in countries such as Austria and Germany would be a small price to pay for ending Vladimir Putin’s tyranny. “Our debt, our growing deficit, is very huge right now.” The vehicle, he suggested, could be based on the United 24 (U24) alliance described by Ukrainian President Volodymyr Zelenskyy in a speech to the US Congress last month. The body will not only work together to end conflicts using sanctions, humanitarian aid and money, but will also support those who have experienced humanitarian crises due to war or natural disasters. Mr Marchenko, speaking a day after the World Bank forecast that Ukraine’s economy could shrink by 45% this year, described some of the pressures on the country’s public finances. He said tax revenues had collapsed while Kyiv had to spend huge sums on the war effort, but said that to date, public sector workers and state pensions have continued to be paid. Use the Chrome browser for a more accessible video player 10:13 “500 war crimes suspects identified” In addition to humanitarian and financial assistance from the United Kingdom, the European Union and the United States, Ukraine has also been able to raise money by issuing war bonds and has already raised more than $ 1 billion in five auctions. But he warned: “Of course our debt, our growing deficit, is very huge at the moment and we are looking at different ways to finance it, especially negotiations with donor countries, international and financial institutions. We expect that we will find the necessary tools to finance our budget deficit “. Mr Marchenko, a 41-year-old father of two who has completed two Ironman challenges, also urged European countries to wean themselves off Russian oil and gas as soon as possible. Use the Chrome browser for a more accessible video player 3:10 “Almost impossible” to stop avoiding Russian sanctions He said: “Sanctions are not enough and we need much more because we are still at war with Russia and, in order to win this war, we will have to put extra pressure on them. “If they receive dollars to support their army, it means that [will continue to] “to be in Ukraine – that is why the embargo on oil and gas from Russia will be the next step and we are looking forward to this sanction from the EU and other countries.” Some European countries, such as Estonia, Latvia and Lithuania, have already imposed a general ban on imports of Russian oil and gas, while others, such as Poland and the United Kingdom, have said they will stop buying hydrocarbons from Moscow by the end of the year. . But others, including Germany, Italy and Austria, insisted they could not cut off Russian oil and gas without causing a recession in their countries. Asked what his message would be in such countries, Marchenko replied: “Please look at Ukraine at this particular time – the Russians are killing our people, they are destroying our infrastructure, they are destroying our economy … the people they kill us and that is why your decision [is important ] – The issue is how many people [you] will be able to save. He said a moderate recession in some parts of Europe was a small price to pay if it ended Russia’s aggression.
