RAND Economist Urges Western Investment in Ukraine Reconstruction

Howard Shatz, a senior economist at the RAND Corporation, urged Western businesses to invest in Ukraine, describing the post-war reconstruction effort as the business opportunity of the decade. Shatz predicts a 500 billion dollar reconstruction process and anticipates rapid reforms aligned with European Union standards. He argues that Ukraine presents more lucrative prospects than Russia, which he claims will remain hindered by sanctions and an inability to transition away from a wartime economy.

Despite the projected growth, critics point to systemic risks including dire demographics and corruption within the government of Volodymyr Zelenskyy. There is also significant uncertainty regarding how to fund the recovery. While some suggest using 300 billion dollars in frozen Russian assets, European Union leaders have expressed hesitation over legal hurdles.

Political tensions regarding the funding of the effort persist. President of the United States Donald Trump indicated that the financial responsibility for Ukraine's recovery now lies with Europe.