As an American taxpayer, I want the money invested in Ukraine to be used effectively - Slattery on Ukrinkom and fair courts

Six-time US Congressman talks about one of the most high-profile cases in Ukraine

In an interview, Jim Slattery, a six-time US Congressman, tells if he expects less attention to Ukraine after the elections in the US, if Western weapons will be allowed to strike deep into Russia, and how pressure on business in Ukraine affects the allocation of US aid. He specifies the Ukrinkom bank case and the litigation with the Deposit Guarantee Fund. 

Many Ukrainians are concerned about further support for Ukraine. Out of the $61 billion in support for Ukraine, we have not yet received it all. How long is it intended to last? And won't Ukraine be out of focus after the US presidential election?

I think Ukraine will not go out of focus after the presidential election. I believe that people in the US Congress, most of which have already voted in favor of supporting Ukraine, will continue to do so. Keep in mind that almost 70 US senators from both parties have supported helping Ukraine. That's a very significant voice in the US Senate, especially if you consider how divided our politics are in the United States today. And in the House of Representatives, more than 300 people from both parties supported assistance to Ukraine. Again, this is a critical majority. When 300 out of 435 members vote for a $61 billion aid package for a foreign country, that's a historic moment for the United States. Thus, I think Ukrainians should understand this and realize that support for Ukraine in Congress today is broad and bipartisan. Almost half of the Republicans in the House voted in favor of helping Ukraine, as did all the Democrats. It is amazing that we had such strong bipartisan support. I believe that this will continue after this election, regardless of the outcome at the presidential level. And I don't believe that Trump, if elected, will just stop helping Ukraine. I don't believe will ever happen.

The United States has been gradually, sometimes belatedly, providing Ukraine with the requested weapons. Now, we are asking for long-range missiles, and there are thoughts that we should be allowed to hit Russian military airfields deep inside Russia. Do you think the United States will take that step, and when?

I think we are moving in this direction. Some people think it should have been done a few months ago. I would have liked it to have been done earlier. But the fact is that Ukraine now has the right to use NATO-provided weapons to strike Russia to defend itself against inevitable attacks from Russian territory. What I think should happen, and this is the opinion of someone who has 20 years of experience here in Ukraine and has had the opportunity to meet every president from Kuchma onwards, and who knows many members of the Rada, many people in the political world, the business world, and the religious community here, is that now is a perfect time tocease fire in this war. I will remind you that it is my personal opinion. And I hope that intelligent and wise people on both sides will eventually be able to resolve this conflict at the negotiating table, which will ensure the long-term safety of Ukraine. And at the same time, to end this violence, this war that has taken the lives of hundreds of thousands of Ukrainians and russians. What happened here is an absolute tragedy. This is what I would call a crazy war. It had no objective moral justification in terms of Russian aggression. I am dismayed that some religious leaders in Russia have blessed this war. Just think about it. Supposedly, Christian church leaders in the Russian Orthodox Church blessed this war.This is unbelievable for me. And I hope and pray that the religious leaders in Russia who have blessed this war will realize the mistake they have made and make maximum effort to end the war that they have blessed. I know that it may sound like anextraordinary request for religious leaders to change their positions on something like a war, but they have to do it. And if they don't, I believe one day they will face a harsh judgment before Almighty God. I'm sorry to go into a religious discussion, but this is a critical part of this war that does not get enough attention in the United States and throughout Europe. But we need to understand the religious backgroundof this war and how Putin has used the Russian Orthodox Church and its highest-level leaders to bless an immoral war. This is what you would expect in the days of the Romanov [dynasty], or in the days of the Bourbons, or in medieval times, when there was a blending of church and state, so to speak. But Putin brilliantly manipulated the Russian Orthodox Church and convinced Kirill to bless his war here in Ukraine. This is unthinkable.

Weapons are not enough to defeat Putin. We alsoneed success in the economy functioning. How would you assess the actions of the Ukrainian government and authorities? Are there any positive aspects over the past two years, and what problemsdo you still notice?

I think that President Zelensky and his team undoubtedly deserve high regard for the way they reacted to the invasion in February 2022. President Zelensky has actively and consistently motivated people around the world to pay attention to Ukraine. I think he deserves high regard for that, and his team deserves respect for how they united the Ukrainian people to confront Russian aggression. As always, there are critics of leaders. They are in the spotlight, so to speak. I understand this. But it is important that the leadership of Ukraine is united in the fight against this terrible Russian aggression. If I happen to have one message to send to President Zelensky, it would be the following: for God’s sake, reach out to all political factions in Ukraine and communicate with them. Do what Churchill did during World War II. Churchill's war cabinet included his political opponents from the Labor Party, the Conservative Party, and the Tories in England. They all participated in the discussion of the decisions that Churchill made. And that was the key to keeping the British united in the United Kingdom during their darkest hour when they literally stood alone against Hitler in 1940. And that was even before Hitler invaded the Soviet Union. So, it was just the United Kingdom alone. It was Winston Churchill who led and inspired the English-speaking world to unite against Hitler. And I think that President Zelensky can learn a lot from Churchill, especially when it comes to making an effort (and I know how difficult it is) and trying to unite his political opponents. But when your nation is facing a threat like Ukraine is today, he has to do everything possible to unite the different political factions and keep them together. Because this war will end at the table. It will end at the table. All wars eventually end at the table. It is either a table of surrender or a table of negotiations where an agreement is reached. And I believe that this war will end at the negotiating table, so to speak. And when that moment comes, it will be necessary for the leader of Ukraine, whoever it is at that time, to speak with one voice at that table as they confront Russia.

How do you assess the reform of Ukraine's judicial system?

You know, I don't have enough personal experience with the [Ukrainian] judicial system. But I have some friends in Ukraine who are very disappointed with the judicial reforms. I believe that it is too early to draw any conclusions. I am involved in one case withcontroversial court decisions that are difficult to reconcile. However, the struggle to reform government institutions in a democracy is an ongoing effort. In the United States today, we are in dire need of some reforms in Congress and the judicial system. For example, I would like to have an age limit for members of the US Supreme Court, as well as for all political positions in Congress and the White House. I also would like to see a term of office for Supreme Court justices and members of Congress, just as I would like to see a term of office for the president.We have a two-term limit for the president, and I think we should have limits for our Congress and the Supreme Court. I mention this only because, in a democracy, you never reach a final point regardingthe form of institutions. Institutions have to evolve together with the country. That’s why we will always have questions about judicial reform and law enforcement. But in a democracy, you can elect leaders who make these decisions and then hold them accountable in the next election. And this is what matters in a democracy. Eventually, it all comes back to the people.

They say there is pressure on business in Ukraineand the influence on judges, especially when it comes to big business...

I think this is probably true, but again, I don't have a lot of personal experience with this. So, I cannot comment on specific cases in this regard.

You recently publicly addressed the President of Ukraine regarding the case of Ukrinkom Bank. What did you mean? And why is this case important?

This is important because we are talking about roughly $35-50 million. This is the money that Ukrinkombank wants to collect from borrowers who have taken loans from the bank over the past 15 years. These loans have not been repaid. After the Russian invasions in 2014 and 2022, the bank lost 30-40% of its assets due to the Russian invasion. The Russians destroyed buildings and stole combines, tractors, and various equipment that were pledged as collateral for loans granted by this bank. In many cases, the borrowers who took money from the bank can repay these loans. After the invasion, the Russians destroyed or stole 30-40% of the bank's assets, and the bank was in financial difficulty, as one could have expected. Then, the Deposit Guarantee Fund had to intervene to protect depositors. The DGF spent millions of dollars to protect depositors. Now,the question is how the DGF can get reimbursed. In fact, it is public money that the DGF used to protect these depositors. Ukrinkom Bank now wants to collect the money from the borrowers to have the funds to pay back the DGF. We hope that the DGF and government officials in Ukraine will recognize that the interests of the government and my client coincide. These are collecting the money from the borrowers and immediately returning to the DGF what it is owed and what it spent to protect the bank's depositors who were financially distressed by the Russian invasion. If this is not done, the Ukrainian government will still be responsible for the $35-50 million spent by the DGF to protect these depositors. My client wants to collect the money from the borrowers who legitimately owe this money to the bank so that the bank has the resources to repay the DGF. This is quite a long story, but I explained it as simply as possible. There is a lot of false information about this case.

There were some allegations of fraud on the part of my client. I have not seen any proof. From what I know today, my client is ready to do everything possible, cooperating with the National Bank of Ukraine and the Guarantee Fund, to collect all possible money from borrowers who legitimately owe the bank millions of dollars and use all that money to repay the Guarantee Fund and other creditors. And if there is something left over, the bank's shareholders will benefit from it. But they will get nothing until the Deposit Guarantee Fund is fully reimbursed as well as the creditors. This is exactly what I am working on.

I would like to ask you to sum up what you have said. What do you expect from the Ukrinkombank case? What decision do you expect regarding this bank?

I have always been optimistic, so I believe in the young people who are now running the Ukrainian government. I'm going to give everyone the benefit of the doubt and hope they will do the right thing. And when they know all the facts, I believe they will do the right thing. And the right thing is for my client, Ukrinkombank, to work with the DGF to collect money from the borrowers so that the DGF can be reimbursed with this $35 or $40 million or some other amount. We don't know the precise sum. But whatever that amount is, let's work together to collect the money from the borrowers who legitimately owe this money to the bank so that the bank can return the money to the Guarantee Fund and that the Guarantee Fund can return the money to the government of Ukraine.

As an American taxpayer, I care about this becausethe United States has provided Ukraine billions ofdollars in financial assistance. And we want to makesure that this money is used effectively. If this $35-50 million is not collected from the borrowers whoowe it, the Ukrainian government will have to find a way to fill this budget deficit. And one of the waysthat they [the government] are turning to is theirWestern partners, including the United States, who can financially support the budget. So, all the moneyhere is fungible. It's all in one big pot, so to speak. And if we don't collect this $35-50 million from theborrowers, it will create a liability for thegovernment of Ukraine and a potential burden for theUS taxpayers. So I want all this money coming here[to Ukraine] to be used effectively.