U.S.-Ukraine investment fund prepares first projects for Ukraine’s recovery
The U.S.-Ukraine fund will not limit investments to minerals alone (illustrative photo). (Photo: Unsplash)
The first projects funded by the U.S.-Ukraine Reconstruction Investment Fund could be announced by mid-2026.
“Our goal was to secure about three investments by the end of this year. I believe we are likely to reach that target and could see several investments by mid-year,” Jonathan Taylor, head of the direct equity and investment funds legal team at the U.S. International Development Finance Corporation (DFC), said. He spoke at the fourth Ukraine Resilience Business Forum organized by the Luxembourg-Ukraine Chamber of Commerce in Luxembourg, Interfax-Ukraine reported.
Taylor suggested that “some headlines may appear in the coming months,” and that announcements could coincide with the next Ukraine Recovery Conference (URC), expected to take place in Poland in the second half of June.
The DFC representative said the fund already holds $175 million in capital and will not limit investments to the mineral sector, noting that such projects often require long development timelines.
“The key point is that we created a private equity fund. That fund currently holds more than $175 million and will continue to grow as royalties and revenues flow into it. It will invest across multiple sectors,” Taylor said. “We are working closely with the Ukrainian government to define the fund’s investment strategy.”
According to Taylor, the fund is also coordinating with the European Investment Bank, the European flagship investment fund, the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC), part of the World Bank Group.
“What sets our fund apart from many of these initiatives is our mandate to act quickly and invest now,” he said. “Everything we do is designed to move rapidly.”
Taylor emphasized that the fund is not waiting for a ceasefire or the end of the war to begin investing on the ground.
In addition to minerals, sectors of interest for the U.S.-Ukraine Reconstruction Investment Fund include processing industries, hydrocarbons — where many international financial institutions cannot invest — energy generation and transmission, telecommunications and tower infrastructure, IT technologies, logistics and transportation infrastructure, as well as ports that are critical for the development of Ukraine’s exports.
He added that the initial stage will likely focus on development grants, while equity investments are expected at a later stage.
Taylor also noted that as the fund invests several hundred million dollars over the next two years, it will likely employ investment risk-mitigation tools.
“We at DFC are the largest provider of political risk insurance in Ukraine and one of the largest in the world,” he said. “We expect projects going through our process to have additional political risk insurance.”
He also predicted the fund would be effective in attracting additional capital, creating opportunities for European investors.
“We want to crowd out strategic competitors such as Russia and China,” Taylor said. “That’s why we want allies involved, and we want European capital to come in alongside us.”
Earlier reports indicated that during its first two months of operation the fund received 138 investment proposals. Of those, 22 were selected for further review, while eight are considered highly ready for implementation.
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