Can Ukraine's Oligarchs Fund Its Defense? Expert Weighs In on Mobilizing Domestic Resources

Mobilizing Oligarchic Resources for Ukraine's Defense Industry

According to ХВИЛЯ: Political expert Yuriy Romanenko has commented on the potential to harness oligarchic resources for Ukraine's defense-industrial complex, now in its fifth year of war. He noted that oligarchic groups have spent decades erecting legal barriers, making the seizure of assets for the military-industrial complex a formidable challenge. This issue has gained urgency as Ukraine seeks to bolster its domestic arms production while heavily reliant on Western aid.

Romanenko stressed that confiscating oligarchs' assets is legally complex but politically essential.

"Can we finally seize oligarchs' assets for the defense sector? Why are we asking the West for money when enormous resources exist within the country?" the expert remarked.

He pointed out that over 30 years, these individuals have built protective systems that complicate any asset seizure attempts.

"The problem is many assets were long ago transferred to 'front men,' offshore entities, or distant relatives. When the state tries to take something, it faces endless lawsuits, including in international courts," Romanenko added.

Creating Conditions to Utilize Oligarchic Assets

The expert emphasized that Ukraine must not simply 'take and divide' assets, as this approach has backfired historically. He called for creating conditions where oligarchic capital is compelled to work for defense.

"If you own a factory that can produce components for drones or shells but keep it mothballed, waiting for better times-the state has the right to temporary management," he stated.

Romanenko also argued that during war, property rights cease to be absolute if they threaten national survival.

"War is a time when property rights are not absolute if they endanger a nation's survival. Is this harsh? Yes. But if the scales weigh an oligarch's right to super-profits against a nation's right to exist, the choice is obvious," the expert concluded.

Romanenko urged the formation of a war economy where every major asset serves the common goal, under threat of complete loss of ownership rights in case of sabotage.

Yuriy Romanenko's statements highlight the complexity and contentious nature of utilizing oligarchic assets during wartime. The legal barriers created by oligarchs and their ability to defend their interests jeopardize the potential mobilization of resources for defense. Simultaneously, the war increases the need for mechanisms to ensure the effective use of existing resources to support the state's frontline efforts.