While President Trump’s focus is on ending the fighting, a huge question looms beyond the summit: the reconstruction of Ukraine and the moral hazard of how it is financed. Any peace deal will have to grapple with who pays to rebuild the nation Russia has destroyed.
A key part of a lasting peace would be a massive international aid package to provide “financial robustness” for a post-war Ukraine. This would likely be led by the U.S. and its European allies, and would be essential for stabilizing the country.
However, this creates a moral hazard. If Russia is not forced to pay significant reparations for the damage it has caused, it could be seen as getting away with its aggression. A scenario where the West pays to rebuild what Russia destroyed, while Russia keeps some of its territorial gains, would be seen by many as a deep injustice.
This dilemma will be a crucial, if underlying, factor in the Alaska talks. A peace deal that does not include a mechanism for Russian accountability for reconstruction costs may be easier to achieve in the short term, but it could sow the seeds of future resentment and conflict.
“Financial Robustness” vs. Moral Hazard: The Dilemma of Post-War Reconstruction
