J.P. Morgan, an investment company which manages a USD 4 trillion investment fund, will help the Government of Ukraine attract private investment for the reconstruction of the country. This is stated in a Memorandum of Understanding between the Ministry of Economy of Ukraine and J.P. Morgan Securities plc. The document was signed by First Deputy Prime Minister – Minister of Economy of Ukraine Yuliia Svyrydenko on the Ukrainian side.

“We are thankful to J.P. Morgan representatives for sharing with us their experience on how to attract private capital to Ukraine. Our visions of the country’s future recovery are the same. The best recipe for Ukraine’s recovery is not only to attract public funds but also to mobilize private capital,” said Yuliia Svyrydenko.

J.P. Morgan has ample opportunities to attract private investors, since it manages a USD 4 trillion investment fund. Moreover, the company is in constant contact with representatives of the U.S. Government.

Yuliia Svyrydenko noted that Ukraine was in dire need of investment for reconstruction and post-war economic growth. The Government has identified the following priority and prospective areas of recovery and investment: energy, agricultural sector, natural resources, digital technologies, restoration of transport and other infrastructure.

J.P. Morgan has many years of experience in asset management and public sector engagement. Its experts know the nuances of combining public and private capital to get an additional leverage in the form of loan financing.

“It is important for us that every stage of the recovery process is as transparent as possible. That is why the involvement of such institutions as J.P. Morgan should become a symbol of such transparency,” emphasized Yuliia Svyrydenko.

According to the Memorandum, J.P. Morgan will consult the Government on:

• financial stabilization, inter alia, development and coordination of refinancing and debt restructuring strategies;
• obtaining sovereign credit ratings;
• state liquidity asset management;
• economy digitalization;
• identifying opportunities to establish close economic ties with Europe;
• establishing an institution that would direct and protect public and private sector investment and/or contribute to trade flows.

In addition to signing the Memorandum, the parties agreed to include representatives of J.P. Morgan in the group of advisors and representatives of the financial and investment sector of the capital market together with BlackRock.

The parties also agreed to use a number of financial mechanisms that would allow Ukraine to attract targeted financing, including from the U.S. Department of the Treasury, in the near future.