Seed capital for the reconstruction fund.
The U.S. International Development Finance Corporation (DFC), the U.S. government’s development bank, will provide $75 million in seed capital for a fund aimed at financing Ukraine’s reconstruction, according to a recent announcement. This initiative is part of a resource agreement between the U.S. and Ukraine, finalized in late April after prolonged negotiations.
Under the fund, Ukraine will contribute 50% of the revenues generated from future monetization of oil, gas, and other mineral resources, along with related infrastructure. However, the country will retain full control over how these funds are used.
The U.S. hopes the agreement will strengthen its supply chains for critical raw materials and create investment opportunities in Ukraine. Ukraine will also provide $75 million to the fund, according to Prime Minister Yuliya Svyrydenko. The government aims to implement three major projects in energy, infrastructure, and critical minerals using the fund’s resources by the end of 2026.
Read more: The Scientific Service of the German Bundestag published an overview of Ukraine’s mineral resources in October 2023. [Link to PDF]
Photo: Dovapi via Canva