Australian Mining Tycoon Establishes 34 Trillion Won Fund for Ukraine Reconstruction

Andrew Forrest. (Photo by BBC)

[Asia Economy Reporter Yujin Cho] Australian mining tycoon Andrew Forrest has proposed the establishment of a fund worth $25 billion (approximately 34 trillion KRW) to support the recovery and reconstruction of Ukraine, the British BBC reported on the 17th (local time).

Forrest, chairman of Fortescue Metals Group, Australia's largest iron ore producer, donated $500 million to the fund. The fund will be used for rebuilding Ukraine's infrastructure, including energy and communication systems.

Forrest said that since initiating the fund-raising efforts in early March, shortly after the outbreak of the war in Ukraine, he has discussed the plan with several world leaders, including U.S. President Joe Biden, then British Prime Minister Boris Johnson, and European Union (EU) Commission President Ursula von der Leyen.

As Russia continues indiscriminate missile attacks on Ukrainian cities and infrastructure, Western allies are moving swiftly to rebuild the devastated country.

The United Nations held an emergency special session on the 14th and passed a resolution demanding that Russia pay reparations for its invasion of Ukraine, with 94 votes in favor and 14 against. The resolution states that Russia must bear responsibility for all violations of international law and face the legal consequences of its wrongful acts, including compensation for damages and losses incurred.

Delegates from the Group of Seven (G7), Group of Twenty (G20), and various international organizations gathered in Berlin, Germany last month for a conference on Ukraine’s reconstruction, discussing funding strategies. The EU likened Ukraine’s reconstruction to a "Marshall Plan," emphasizing that it is a challenge to be addressed over several generations and must begin immediately.

According to the World Bank (WB) and the EU Commission, the estimated cost of rebuilding Ukraine is about $349 billion, which is approximately 1.5 times Ukraine’s gross domestic product (GDP) last year.

However, this estimate was made before Russia’s missile attacks on major Ukrainian cities and infrastructure, and as the war prolongs, the scale of damage and reconstruction costs are expected to increase. Ukrainian Prime Minister Denys Shmyhal stated that the total reconstruction cost, including $100 billion for restoring destroyed infrastructure and facilities, will amount to $750 billion.

This content was produced with the assistance of AI translation services.