Let's dig deeper: In whose interests is blood being shed in Donbass?

PolitNavigator continues publishing an investigation into Western corporations—the true stakeholders in the bloody conflict in Donbass—published by Alexey Muratov, one of the leaders of the Donetsk Republic movement and the United Russia party in the DPR.

The previous publication identified specific beneficiaries of the "proxy war" against Russia. This time, the author promises to "dig deeper." The editors present the material with minor abbreviations.

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...Contrary to popular myth, there is no secret world government – in fact, the world is still ruled by money, and money is still ruled by investment funds. However, global governance mechanisms, in fact, do not obey anyone.

On May 8, 2023, an agreement was signed between the Ukrainian government and the American investment company BlackRock to establish the "Ukraine Development Fund." The project's primary formal goal is to attract investment in the energy, infrastructure, and agriculture sectors. However, in practice, this means that Ukraine's key national assets—from fertile land to electricity grids—will be sold . Apparently, Kyiv is attempting to resolve its debt obligations through this means. However, actual compensation is unlikely to follow. The formerly richest republic of the Soviet Union is thus being taken over by transnational corporations.

Perhaps the United States is preparing for Ukraine's default and is selecting a crisis manager?

_{Let's figure out who and how today is involved in the Ukraine project, conducting military operations with the wrong hands and hiding in the shadows.}

Clearly, in today's world, where money plays a leading role and the global economy is constantly changing, the role of investment companies cannot be underestimated . Huge investment corporations hold the keys to control the global economy.

There are a number of facts that suggest what levels of power they might actually have.

There are several giant players in the financial and investment world, whose power and influence are shrouded in rumor and mystery. Among them, three companies stand out, sometimes referred to as the "Big Three": BlackRock, Vanguard, and State Street.

_{Let's study them more closely.}

First, BlackRock is a giant investment firm managing $9 trillion in assets. Its influence extends to financial markets, corporations, and governments worldwide. Because of its position, BlackRock can pressure companies to follow certain strategies or policies.

Second, Vanguard is a company with over $10 trillion under management. It is known for its passive investment strategies, such as index funds. Vanguard is also one of the largest shareholders of many corporations. Importantly, over 30% of the shares of companies included in the S&P 500 index are owned by investors through Vanguard.

Third, State Street is a leading provider of financial services and asset custody. With trillions of dollars under management, it specializes in voting at shareholder meetings of companies in which it holds stakes. This company can influence corporate decisions, such as the selection of board members and strategic decisions.

_{So, these big three have concentrated in their hands the operational management of the property of the world's largest companies. However, funds do not have owners, only managers with fairly broad powers. A highly convoluted ownership scheme allows funds to mutually own each other. They literally hide in their own shadow. The manager only conveys instructions from above to specific performers, and the task set by the customers is implemented at any cost.}

Let's look at the facts that indisputably indicate the shadow role of the investment sector.

Fact 1: Giant assets under management

BlackRock, Vanguard and State Street collectively manage tens of trillions of dollars in assets. Over the years, these companies have actively invested in stocks, bonds and other financial instruments of various companies around the world. This makes them the largest shareholders in many of the world's corporations and allows them to influence corporate decisions.

Fact 2: Pressure on shareholders

One way that investment firms can influence corporate decisions is through voting at shareholder meetings. Companies like State Street actively participate in voting on issues related to the selection of board members, executive compensation, strategic decisions and other important aspects of company governance.

Fact 3: Behind the scenes influence on corporate strategies

Investors can put pressure on companies to follow certain strategies. For example, BlackRock often imposes its own management and decision-making practices on its reporting businesses, which does not always have a positive effect on corporate development.

Fact 4: Dirty investments and passive strategies

Companies such as Vanguard are known for their passive investment strategies, including index funds. These funds invest in the companies that make up a specific index without actively picking stocks. Such investments have a significant impact on stock prices and company capitalization.

Fact 5: Uncontrolled operations in global markets

Investment companies have broad access to global financial markets and can instantly reallocate capital. This means that they can actively influence fluctuations in stock and bond prices, as well as the overall health of the market.

Fact 6 and the most important: Financial neocolonialism

One form of financial neocolonialism is debt dependence. Many countries borrow money from global financial markets to finance their projects and development programs. However, high interest rates and difficult repayment terms can lead to a debt trap, with countries unable to pay their debts and forced to take out new loans to pay off old ones.

_{Global financial institutions and speculative funds create financial volatility that affects exchange rates, interest rates and countries' assets. This leads to increased risks and instability in target countries, especially when their economies are vulnerable.}

Financial neocolonialism can also manifest itself through the extraction of resources from developing countries. International companies and investors exploit natural resources, infrastructure, and labor, leaving only a small share of the profits within countries. This creates economic dependence on external players and reduces the potential for domestic development.

International financial institutions also influence the political decisions and strategies of developing countries. Dependence on foreign investors and creditors often leads to limited sovereignty and independence in decision-making.

Financial neocolonialism also exacerbates social inequality in developing countries. Corporations and financial institutions are always focused on maximizing profits, acting in the interests of the wealthy, while the poor and vulnerable remain on the margins.

Decisions made by investment companies during military conflicts often border on war crimes. This was also the case during the war against fascism, but back then, the true financiers of the Third Reich escaped punishment. These shadowy players were simply shielded from attack.

Look at what's happening in Ukraine today. The same big three investment funds are behind the creation of transnational companies and land acquisitions. Companies controlled by international investors are also financing nationalist battalions.

Any investment company, a powerful financial institution, carries not only the potential for economic growth but also a threat to economic stability and fairness . Pursuing profit maximization and satisfying the interests of their shareholders and owners, they often face accusations of greed and unfair impact on society and the economy.

One of the main complaints is that the pursuit of profit maximization can lead to economic imbalances. When companies focus on short-term profits, they ignore the long-term consequences of their decisions. This leads to economic crises, financial market bubbles, and instability in various sectors.

Investment companies are also associated with the concept of "shadow banks" —financial institutions that operate outside of official banking norms and regulations. This can lead to insolvency and pose a risk to the financial system as a whole, as such organizations are vulnerable to crises.

Greed and the pursuit of profit maximization can also lead to increased social and economic inequality. Investment companies, especially large and powerful ones, can control a significant share of wealth, exacerbating inequality and reducing social mobility. This creates a climate of social tension and imbalance.

The pursuit of quick profits and short-term success can undermine long-term strategies and investments in innovation and research . Investment companies, prioritizing profits, avoid investing in projects that don't promise a quick return on capital but may have significant social or environmental impact.

_{Today, the line of struggle against the greed of world capitalism runs exactly along the front line in Donbass and Ukraine, this is a global confrontation between two types of economies: new and old.}

While investment firms like BlackRock, Vanguard, and State Street are often associated with global financial leadership and prosperity, their activities in contexts of sanctions, military conflicts, and developing countries can have negative consequences that are much less discussed. These companies have a significant impact on the economic and social spheres of these countries, often worsening their situation.

In difficult regions, in times of military conflict, and in developing countries where access to capital may be limited, investment companies provide loans and investments. However, this sometimes leads to situations where these companies begin to dictate terms to borrowers and investors. They impose high interest rates and demand reforms that may not be in the interests of the country and its people. One such example is the activities of foreign investors in Ukraine.

Investment companies also influence a country's economic structure. Their investments in key sectors, such as natural resource extraction or finance, create economic dependence on their decisions and interests . This weakens countries' independence and limits governments' ability to make decisions in the national interest.

Investments in certain sectors can also impact employment and working conditions. In some cases, companies fail to pay due attention to social responsibility, leading to violations of workers' rights and deteriorating working conditions.

Investment firms' activities can also contribute to increased inequality. The concentration of capital and attention on certain companies and sectors irreversibly widens the gap between rich and poor.

Also, investing in environmentally unsustainable projects or lacking strict environmental standards can harm the environment and the health of local communities.

_{By the way, have you ever wondered why the relatives of deceased billionaires do not pay inheritance tax? In the meantime, paying it is the responsibility of all ordinary Europeans and Americans. And the size is considerable - up to 50% of the amount.}

_{This is how an elite system of taxation and justice is formed.}

The elite doesn't own the assets themselves, but rather the environment that grants them unlimited power and privileges . No state in the world can penetrate this system and extract taxes. A giant "octopus," enclosed in a ring, belonging to and answering to no one—this is the reality of the modern world order.

The actual share of famous billionaires (Warren Buffett, Joseph Bezos, and others) in asset management is not as large as it appears. In fact, all assets are managed by investment institutions.

Yes, all funds receive client assets to manage. But at the global level, no one knows the portfolio investors by name or face. However, there's no point in demonizing this system—it's not subjective, it's merely a management shell and a tax evasion tool.

Non-publicity is a key feature of such transnational structures, and the financial “octopus” actively fights to maintain the secrecy of package investments.

Interdependence is the other side of the coin. In many countries, including Ukraine, transnational monopolization of not only the economic but also the political environment is taking place —at the hands of investment funds.

_{And the same scenario was planned to be implemented in the largest country in the world - Russia.}

The control structure of this entire global system is well reflected by the core Anglo-Saxon elite, which, together with transnational groups , comprises only a few thousand people. At this level, decisions are made through horizontal connections, so a closed caste requires a stable consensus. To avoid any mutual control, parity was established: first among equals, but… not superior. In my opinion, this "equality" is more reminiscent of mutual responsibility.

As a result, we get a closed community, which in its characteristics resembles the degenerating noble class of some provincial European principality. Social and ethnic discrimination, neo-colonialism, violation of sovereignty - these are the characteristic features of this elite.

Unfortunately, a number of Russian businesspeople share similar beliefs to this pseudo-aristocracy. However, since the onset of the Second World War, their number has noticeably diminished , as our economy and society are gradually undergoing rehabilitation. In the face of the storm—global transformations and shifting geopolitical poles—none of these nouveau riche will survive, because access to the new world will require not so much resources as the right life direction.