Ukraine can attract $300B through reparation bonds as a backup plan.

Ukraine can raise about $300B by selling bonds secured by future lawsuits against Russia for compensation for the damage it has caused during military operations.

“Kyiv will be able to receive this amount if the governments of Western countries become buyers of the securities. This mechanism is proposed as an alternative to transferring frozen Russian assets to Ukraine,” Reuters noted.

Such a mechanism will help avoid problems connected with the possible transfer of Russian assets blocked abroad to the country. The securities will only pay off if Russia agrees to indemnify the losses. However, according to the article’s author, Moscow will not voluntarily agree to such conditions. Therefore, frozen Russian assets abroad are Kyiv’s most likely income source.

The chief global economist of PGIM Fixed Income, Daleep Singh, noted that Ukraine can divide the bonds into several tranches. For example, Western governments will buy the riskiest securities, while ordinary investors will purchase bonds with lower risk.