The world’s largest asset manager, Blackrock, Inc. (NYSE:BLK) is advising Ukrainian President Volodymyr Zelensky on ways to rebuild the war-torn economy. Laurence Fink, Chairman and CEO of BLK, held a videoconference call with Zelensky to discuss the possibilities of attracting both public and private investment to reconstruct Ukraine’s economy.
Blackrock’s Financial Market Advisory team is expected to give pro-bono advice to the Ukrainian government on setting up a reconstruction fund to aid its economic recovery.
The President is confident in his people’s zest to overcome challenging times and hopes to rebuild a normal investment climate. “We’ve shown that we know how to win on the battlefield… Another important task for us is to achieve victories in the economy as well, and to be an attractive country for investors,” Zelensky said in a statement.
Meanwhile, different agencies have calculated shockingly varying amounts needed to reconstruct the war-scarred economy. The Ukrainian government has pegged the bill at $750 billion, while others have projected $100 billion. The International Monetary Fund (IMF) has calculated a monthly outflow of $5 billion to pay for government salaries, pensions, and other expenses.
Ukraine has been under attack since February 2022. The war has damaged the country on all fronts, including financial, social, and economic. Zelensky believes that the aid from supporting countries will provide the impetus for Ukraine to regain its lost economy. The IMF has already given $1 billion to help the ailing country finance its government debt payments.
Is Blackrock a Buy or Sell?
Blackrock is an industry leader in providing a wide range of investment management, asset management, and advisory services. On TipRanks, BLK stock commands a Strong Buy consensus rating based on eight Buys and two Holds. The average Blackrock price target of $715.40 implies 17.6% upside potential to current levels. Meanwhile, the stock has lost 31.9% so far this year.