Sources indicate that BlackRock Inc. paused its efforts to secure investors for a multibillion-dollar Ukraine recovery fund earlier this year. The halt was prompted by a perceived shift in US sentiment toward Ukraine following Donald Trump’s election victory. The fund had reportedly garnered significant preliminary interest from governmental bodies in Germany, Italy, and Poland.
Following Donald Trump’s election victory, BlackRock suspended its work on a multibillion-dollar Ukraine recovery fund, causing the initial plan to secure $500 million from governments and another $2 billion from private investors to fall through. The investment firm halted talks in January due to a lack of interest amid perceived uncertainty in Ukraine, causing the fund to be scrapped, though advisory work had been completed. France is now developing a replacement proposal, aiming to secure investment for Ukraine’s reconstruction efforts as the war continues. The success of the replacement plan remains uncertain without Washington’s backing, and as foreign investment in Ukraine is still underwhelming.
CK Hutchison’s planned sale of its Panama Canal ports to a BlackRock-led consortium, initially slated for April 2nd, is delayed. While not officially cancelled, the deal faces significant opposition from Chinese authorities who view it as furthering U.S. containment strategies. The sale, expected to generate over $19 billion, involves two of the five ports adjacent to the canal, and has been met with both support from former U.S. President Trump and criticism from pro-Beijing media. The delay follows directives from Chinese authorities to state-owned firms to avoid new deals with Li Ka-shing’s businesses.
Beijing and Hong Kong officials voiced strong opposition to BlackRock’s proposed acquisition of Panama Canal ports from CK Hutchison, citing concerns about economic coercion. While the ports are outside Chinese territory, the criticism casts doubt on the deal’s future. Chinese agencies are reportedly reviewing the $22.8 billion deal for potential security and antitrust issues. This opposition caused a significant drop in CK Hutchison’s share price.
John Q. Hosedrinker