Discussions are already underway on the topic of the looming Ukraine reconstruction conference due to be held in London in June, 2023. The conference is a continuation of the first similar conference held last summer in Lugano which aimed to focus minds on the challenge of both ensuring Ukraine has the financial resources to fund the war effort but also beginning to think about winning the peace thru ensuring succesful post war reconstruction.
Your idea of requisition bonds is interesting. Investing the currently frozen Russian central bank reserves held by G7 central banks into Ukrainain Sovereign Perpetuals would make sense, because it would not require actual confiscation of CBR assets. G7 central banks currently holding frozen CBR assets would use the assets to subscribe to the perpetual bonds and continue holding these bonds on behalf of the CBR until the war is over, a peace treaty is signed, and reparations are agreed. After which, the G7 central banks would transfer the Ukrainian Sovereign Perps to the CBR, as a payment in-kind. This provides an incentive for Russia to end its war, and negotiate a peace treaty. It will also help ensure that post-war Russia is interested in seeing a successful Ukraine, and it permits Russia to, one day, recover its assets.
Thanks Tim, for the detailed article, with much to consider. There is plenty of willingness in private and public sectors to consider next steps - which need to be in place as soon as possible, and certainly before the fighting stops. That said, donor concerns about corruption remain high, despite improvement. This will take effort to overcome. To that end, we've been investigating legal structures which may improve confidence significantly.
Your idea of requisition bonds is interesting. Investing the currently frozen Russian central bank reserves held by G7 central banks into Ukrainain Sovereign Perpetuals would make sense, because it would not require actual confiscation of CBR assets. G7 central banks currently holding frozen CBR assets would use the assets to subscribe to the perpetual bonds and continue holding these bonds on behalf of the CBR until the war is over, a peace treaty is signed, and reparations are agreed. After which, the G7 central banks would transfer the Ukrainian Sovereign Perps to the CBR, as a payment in-kind. This provides an incentive for Russia to end its war, and negotiate a peace treaty. It will also help ensure that post-war Russia is interested in seeing a successful Ukraine, and it permits Russia to, one day, recover its assets.
Thanks Tim, for the detailed article, with much to consider. There is plenty of willingness in private and public sectors to consider next steps - which need to be in place as soon as possible, and certainly before the fighting stops. That said, donor concerns about corruption remain high, despite improvement. This will take effort to overcome. To that end, we've been investigating legal structures which may improve confidence significantly.
Another great article. Thanks again Tim for being a voice of reason.