Ukraine’s Zelenskiy Asks Global Leaders to Seize Russian Assets

(Bloomberg) -- Ukrainian President Volodymyr Zelenskiy told a gathering of global finance leaders in Washington that his country needed $14.1 billion immediately for critical reconstruction needs and pleaded with officials to use frozen Russian assets to help pay the cost.

“For people to return and the aggressor to lose not only on the battlefield but truly in everything, we need approval for this support program,” Zelenskiy, speaking Wednesday via videoconference, told a gathering that included US Treasury Secretary Janet Yellen and chiefs of the International Monetary Fund and the World Bank.

Zelenskiy stressed the importance of extracting compensation from Russia as a way to dissuade other countries from pursuing similarly aggressive behavior.

“It’s necessary to work on concrete mechanisms for using frozen Russian assets to compensate for the damage caused by Russia,” he said. “It will be a peacemaking act on a global scale. Potential aggressors must see this and remember that the world can be strong.”

The Kremlin launched full-scale invasion of Ukraine more than a year ago, killing thousands and driving more than a third of a pre-war population of 40 million from their homes. Russian troops destroyed some Ukrainian towns, while missile attacks have seriously damaged infrastructure, including energy facilities.

The Ukrainian economy shrank more than 30% last year, and the World Bank estimated Kyiv will need at least $411 billion for its recovery and reconstruction.

Read more: Putin Bombs Energy Grid, So Defiant Kyiv Uses Camping Gear

Finance Minister Serhiy Marchenko said Ukraine has $3.3 billion in its budget to finance urgent recovery needs this year, while the rest should come from abroad.

On the top of reconstruction needs, Ukraine was seeking at $38 billion in external financial aid to help cover its budget gap. The US will provide Ukraine with almost $10 billion this year, while the EU will give 18 billion euros ($19.8 billion).

The IMF board signed off on a $15.6 billion four-year aid package for Kyiv last month, changing the fund’s rules for the first time in its history to allow lending to a country at war. It disbursed $2.7 billion immediately.

The program aims to bolster the country’s economy, strengthen its institutions and promote long-term growth and reconstruction after the war.