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London: Ukraine says it wants to make its economy cashless as soon as possible to stamp out corruption and secure the hundreds of billions of dollars from private investors that it will need to rebuild after the war.

The plans follow the direct urging to Ukrainian President Volodymyr Zelensky by Australia’s richest man Andrew “Twiggy” Forrest, who has unveiled a new investment fund for Ukraine’s reconstruction, kick-started with $US500 million ($735 million) paid for via his private company Tattarang.

People in a bar in Kyiv last month. Ukraine wants to move to become a cashless society.Credit: Getty

While the likes of Sweden have moved towards a cashless society, Ukraine could be the first in the world to truly achieve it as part of a shift intended to avoid the corruption seen after the Iraq War, when reconstruction funds were used for bribes and kickbacks.

On the most recent Corruption Perceptions Index by Transparency International, Ukraine scored 33 out of 100 – ranking 116 out of 180 countries on the index.

Deputy Minister for the Economy Oleksandr Gryban said Zelensky was “very determined” to move towards a cashless economy and the government would “make everything to make it happen as soon as possible”.

“He does understand that a number of problems were driven by cash, so one of the last meetings he was managing, cashless economy was just one of the main pillars for the future economic transformation,” Gryban said.

Andrew Forrest (left) and Oleksandr Gryban, Ukraine’s deputy economy minister appear at a news conference at the Ukraine Recovery Conference in London on June 21, 2023.Credit: Bloomberg

In an interview with this masthead, Forrest said he did not invest in Ukraine before the war, despite becoming one of the country’s most significant philanthropic donors since Vladimir Putin’s invasion.

Forrest said the commitment to go cashless made by Gryban was “fantastic” as it would “put the nail in the coffin of corruption”.

“That’s the point I’ve made to the Ukrainian government, cash will lead to corruption. Now here’s your opportunity to go cashless – there’s no reason to have cash in your society, none.”

The fund established by Forrest will be run by Ukraine’s Ministry for Economy and administered by the US multinational investment company BlackRock. The Australian mining billionaire hopes to attract other investors and funds of up to $US100 billion.

Forrest said he was confident in Ukraine’s progress and would advise fellow investors to back the country’s rebuild.

“I think it will be like trying to hold back the tide, I really do,” he said.

Forrest will return any dividends, but any returns will be available to co-investors. The fund will only be triggered when the Ukrainian cabinet concludes that the war is over.

Appearing via videolink at the Ukraine Recovery Conference in London, Zelensky said the country was not going back to its old ways after the war and that necessary reforms that would see it admitted to organisations like the OECD and the European Union were already advancing.

British Prime Minister Rishi Sunak applauds as Ukraine’s President Volodymyr Zelensky appears on the screen at the Ukraine Recovery Conference in London.Credit: Getty

The conference also heard that Britain and France support the speeding up of Ukraine’s entry as a member of NATO.

Britain’s Foreign Minister James Cleverly said Ukraine had evolved very quickly and that Finland and Sweden didn’t have to meet the membership action plan that has been demanded of Ukraine before being admitted.

“The Ukrainians have demonstrated their commitment to reform – the military reform required for NATO membership – through their actions on the battlefield, and I think all NATO allies recognise that,” Cleverly said.

NATO leaders, along with those from four specially invited Indo-Pacific countries – Australia, Japan, South Korea and New Zealand – will meet in Lithuania next month when Ukraine’s plea to join will be discussed.

NATO boss Jens Stoltenberg has said the alliance’s door is open to Ukraine but has not issued a formal invitation to join.

Key NATO allies the United States and Germany are sceptical of speeding up Ukraine’s entry.

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