George Soros has been one of the most prominent international figures to stand behind the incredible democratic reforms being tested out in Ukraine right now. He sees the situation there as full of promise yet also demanding of immediate international attention. Even though Ukraine was able to secure an impressive victory in defending against Russian aggression just a few years ago, Soros says that the inspiring country still has a long way to go in terms of solidifying its new democratic reforms.
In terms of making sure that Ukraine is able to survive being the constant subject of lust from Vladimir Putin as well as able to make sure that its democratic institutions continue to be developed, Soros says the EU must make a move. In contrast to Putin, the EU appears to be willing to do very little in the way of Ukraine. For instance, Putin was willing to risk nuclear war in hopes of successfully invading Ukraine, while the EU mostly treats the situation in Ukraine as simply another global crisis that must be handled along with many others. The contrast in approach between Putin and the EU is cause for alarm for Soros because he thinks that the EU is vastly underestimating the threat to European security that is posed from Putin’s aggression toward Ukraine.
The Greatest Investors: George Soros
One of the first steps that the EU can take in enabling Ukraine to continue its reforms and show that it is indeed invested in protecting the future of Ukraine would be to implement some form of forgiveness for the $19 billion it has accumulated in foreign debt so far. In addition, Soros sees a continued role for sanctions against Russia to deter future aggressive behavior toward Ukraine. However, Soros reasons that the sanctions should eventually be phased out as a way of rewarding Russia for holding up its end of the deal. Once the threat from Russia has been more decisively neutralized and Ukraine is not bleeding out its national budget in debt repayment, Soros sees an even larger role for the leadership of the EU in Ukraine.
Aside from restructuring the debt repayment deal for more favorable terms for Ukraine, Soros advises that foreign investment is an absolute necessity in growing the economy of Ukraine. It is understandable that foreign private companies are not chomping at the bit right now to invest in Ukraine because of the inherent risks in its shaky political system. This is where political risk insurance could play a major role in encouraging foreign companies to treat Ukraine as a viable investment opportunity. The EU would spread the burden of accounting for payouts from the political risk insurance system among the states. This way, no one state would bear a disproportionate burdening in accounting for a payout if a catastrophic event were to occur in Ukraine.
Soros understands the interplay between international organizations offering immediate financial relief to Ukraine and the need for long term financial investment in Ukraine. According to him, the EU has the resources and credibility to make reform and stability possible for Ukraine.
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