Ukraine and the US provide initial investments of $150 million to the Reconstruction Investment Fund
The US-Ukraine Reconstruction Investment Fund has officially started its operations, marking a significant advancement in bolstering Ukraine's economy and security.
On 8 May, the Ukrainian parliament approved the agreement establishing this joint investment fund, following the US and Ukraine signing a minerals agreement on 30 April. The agreement planned the creation of the US-Ukraine Investment Fund.
The Fund, founded on the principle of parity, sees both the US and Ukraine committing equal financial contributions. The US Development Finance Corporation (DFC) has pledged an investment of US$75 million, while Ukraine has contributed US$75 million, totaling US$150 million. The European Bank for Reconstruction and Development (EBRD) has also added an additional US$75 million to the establishment of the Fund.
The initial focus areas of the Fund are energy, infrastructure, and critical minerals. According to Ukraine's trade representative Taras Kachka, the Fund will be able to invest in both the development of mineral deposits and infrastructure projects.
The decisions made by the Fund are expected to finance large-scale projects, create modern industries, new jobs, and technological solutions. The Fund's operations are being led by Prime Minister Yuliia Svyrydenko.
In September, US representatives visited the first deposits that could become pilot projects for the Reconstruction Investment Fund. No further details about the specific projects were provided at the time.
The Fund's operational work comes after Ukraine passed the necessary amendments to the Budget Code on 4 June, to implement the minerals agreement between Ukraine and the US. President Volodymyr Zelenskyy later signed off on the ratification of the minerals agreement with the US on 12 May.
This joint investment fund is a testament to the robust partnership between the US and Ukraine, and it is hoped that it will bring about positive changes and growth for Ukraine's economy and security.
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