The US Agency for International Development Finance (DFC) has launched an online portal for those who want to apply for the new reconstruction fund – saying it expects to announce the first investments in the coming months.
The US-Ukraine Reconstruction Investment Fund (URIF), established in record time as part of the minerals deal the two countries signed in April, became operational in December. Focusing on investments in critical minerals and other strategic sectors, it is expected to reach $200 million by the end of the year, a senior US official said, and Ukrainian officials want to announce three initial projects this year.
“We look forward to reviewing project proposals and making our first investments in the coming months,” Conor Coleman, DFC’s chief investment officer and a member of the fund’s board, said in a statement.
Trump’s commitment to lasting peace
DFC CEO Ben Black said the launch of the portal underscores US President Donald Trump’s commitment to ensuring a lasting peace in Ukraine, paving the way for reconsideration of projects and investments that advance the shared national interests of the United States and Ukraine.
The DFC announced that the fund will consider proposals in a number of sectors, including projects involving critical minerals, power generation, transportation and extraction of hydrocarbons, as well as transport and logistics, information and communications technology and emerging technologies.
Officials are already in talks with several interested investors and are ready to vet some potential projects, the senior US official told Reuters.
What has followed the signing of the mineral agreement
Kiev signed the minerals deal after months of pressure from the Trump administration, giving the US preferential access to new Ukrainian mineral projects in exchange for investment in hopes of securing Trump’s continued support.
The deal has dramatically improved the US dialogue with Kiev and strengthened the US-Ukraine relationship, the official said. But they warned that investing in the country, which will mark the fourth anniversary of the Russian invasion on February 24, will be a complex and demanding task, and the US will insist that any projects meet the interests of both governments and generate commercial returns.
The fund has already received $23 million in proceeds from hydrocarbon auctions, on top of its initial seed capital of $150 million, and by the end of the year was “close to about $200 million,” the official said.
It is structured to grow over time and promote co-investment from other countries and institutions, including the World Bank and the European Bank for Reconstruction and Development, among others.
Approved projects will start immediately
The fund’s investments differ from private equity projects in that they will focus on strategic areas and begin immediately – not after the ceasefire goes into effect. It will also work on mobilizing private capital alongside its investments, officials said.
A big advantage, the official said, is that they will “fly both the U.S. and Ukrainian flags,” which should provide some protection and help promote additional private sector involvement in Ukraine’s reconstruction efforts.
