Washington to provide startup capital for Ukraine-US Investment fund

The United States has agreed to provide "startup capital" for the creation of a joint investment fund with Ukraine, Ukrainian First Deputy Prime Minister, Economy Minister Yulia Svyrydenko said. 

The fund, which aims to support Ukraine's economic recovery, will be co-managed by representatives from both nations, with each country appointing three members to oversee its operations. Svyrydenko noted that the sides are finalising the negotiations on how the team will be selected, Caliber.Az reports via RBC-Ukraine.

“The work of these managers from each country will be unpaid. This means that these will be people working in the government in some capacity. From the US, representatives of the DFC and the US Treasury will be chosen. We will follow a similar logic. At the start, we will need, for example, an investment advisor — this is where the basic funds will go. There won’t be an office,” Trade Representative Taras Kachka revealed. 

Regarding the organisational structure, Kachka noted that the six managers—three from each country—would also serve on various committees, with each individual expected to take on multiple committee roles. The operational model will mirror that of supervisory boards, where one person may be involved in several key areas.

According to Svyrydenko, the United States is interested in investing in critical materials, the oil and gas sector, mining in general, and infrastructure projects.

“If a Ukrainian company wants to engage in mining, such as lithium extraction, but lacks its own financial resources and is looking for an external investor, it should contact the Fund. This means informing the Fund about the project and the conditions under which it is seeking an investor,” she noted. 

Companies interested in projects like lithium mining must first inform the fund about their project and the terms they are offering. The fund will then assess whether it can find an interested investor, either from the US or another country.

The minister emphasised that although the company is free to negotiate with other investors, it cannot offer them better terms than those offered to the Fund for a period of six months.

“The company must provide information to the Fund first. The proposal can be submitted to the Fund immediately, and then, for example, two minutes later, to the EBRD. Essentially, the condition is met if the Fund is notified first,” she added. 

On May 1, during a visit to London, Ukraine’s Economy Minister Yulia Svyrydenko and US Treasury Secretary Scott Bessent signed an agreement to create the US-Ukraine Reconstruction Investment Fund, along with a strategic partnership in the field of critical minerals.

This agreement is seen as a crucial step toward Ukraine’s industrial recovery and resource security amid the ongoing war and future reconstruction efforts. However, some parliamentarians have raised concerns about the lack of transparency in the process and the potential risks embedded in the document.

By Sabina Mammadli