Current news on Rebuild Ukraine topic

Ukraine and the United States Sign Economic Partnership Agreement

Ukraine and the United States of America have signed an Agreement on the Establishment of a Reconstruction Investment Fund. The Fund will serve as a key instrument for attracting investment into the development of Ukraine's economy and deepening the strategic partnership between Ukraine and the U.S.

The Agreement was signed by First Deputy Prime Minister – Minister of Economy of Ukraine Yulia Svyrydenko and U.S. Secretary of the Treasury Scott Bessent.

It is noted that the Reconstruction Investment Fund will enable financing of critically important projects in the field of mineral development and will promote innovation, technological advancement, and recovery.

Key guarantees for Ukraine:

• Compliance with the Constitution and EU integration course. The Agreement is in line with Ukraine’s current legislation and international obligations.
• Full control over resources. All subsoil resources, territorial waters, and natural assets remain under Ukraine’s ownership. Only Ukraine determines the conditions and locations for extraction.
• Preservation of state ownership. State-owned companies remain the property of Ukraine. The Agreement does not affect privatization processes.
• Optimal legislative changes. Only limited amendments to Ukraine’s Budget Code are required for the Fund to operate. The Agreement itself is subject to ratification by the Verkhovna Rada (Ukrainian Parliament).

How the Fund will operate:

• The Agreement focuses on future, not past, U.S. military assistance.
• Ukraine will contribute to the Fund 50% of future revenues from new royalties on new licenses for new sites (in critical raw materials, oil, and gas). Revenues from existing projects or already budgeted income will not be included in the Fund.
• The Fund's resources will be invested exclusively in Ukraine — in extractive projects or infrastructure reconstruction.
• For the first 10 years, profits will not be distributed but fully reinvested in the Ukrainian economy. After that, profits may be distributed among partners.
• The Fund will be managed on a parity basis between Ukraine and the United States.
• The U.S. will help attract additional investments and technologies into Ukraine’s economy. The Fund is supported by the U.S. government through the DFC agency, which will assist in attracting investments and technologies from funds and companies in the U.S., EU, and other countries supporting Ukraine’s fight against the aggressor. Technology transfer is a key component of the Agreement, as Ukraine needs not only investment but also innovation.
• The Agreement provides tax guarantees. The Fund’s income and contributions are not subject to taxation either in the United States or in Ukraine.

EU to Support Ukraine in Reforming Housing Finance Sector.

Ukraine and the European Mortgage Federation (EMF) have agreed to establish an Advisory Board on Housing Finance Development. The corresponding Letter of Intent was signed by Minister of Economy Yuliia Svyrydenko and EMF Secretary General Luca Bertalot.

The document outlines cooperation between the parties in developing reforms and recommendations for effective financial instruments in housing policy. The goal is to implement European best practices, mobilize investments, and establish dialogue among government agencies, international institutions, the expert community, and market participants.

“Restoring the housing sector is essential for bringing people back home, creating new jobs, attracting investments, and developing the economy,” said Svyrydenko.

Under the agreement, the Ministry of Economy will coordinate the creation of the Advisory Board, while EMF will provide expert and analytical support and facilitate engagement with international partners.

The EMF is the leading European organization representing mortgage lenders and covered bond issuers. Since March 2024, Ukrfinzhytlo has held observer status in the EMF and is Ukraine’s first representative in the federation. The joint creation of the Advisory Board is part of a broader strategy to transition from state-funded housing initiatives to market-based mechanisms, supported by international financial institutions.

Parliament to Improve Investment Conditions in Green Energy Sector.

The Verkhovna Rada of Ukraine has registered Draft Law No. 13219, aimed at significantly enhancing mechanisms for attracting investment in the construction of renewable energy power plants in Ukraine.

Specifically, the draft law proposes:

• the introduction of a support mechanism for winners of green auctions in the form of a “clean” premium;
• resolving existing issues related to quota volumes for different types of generation and auction participants;
• allowing auction participants to provide financial security directly to the state enterprise "Guaranteed Buyer" as an alternative to a traditional bank guarantee.

Additionally, the bill proposes to extend the timeline for quota distribution auctions for new power plant construction by five years — from 2030 to 2034.

The document also improves the issuance and circulation mechanism for guarantees of origin for electricity from renewable energy sources, aligning it with EU legislation to ensure recognition of Ukrainian guarantees of origin within the EU. Furthermore, it will allow the integration of energy storage systems within the cable pooling mechanism.

Canadian Black Iron Seeks Investment to Boost Industry and Support Ukraine’s Reconstruction.

Canadian mining company Black Iron Inc., which is implementing the Shymanivske iron ore project in Ukraine, is actively seeking investors both for the development of its project and to contribute to Ukraine’s broader reconstruction efforts.

The company’s CEO, Matt Simpson, recently participated in the annual United States Export-Import (EXIM) conference in Washington, D.C., which gathered over 1,200 participants, including investors, representatives of development finance agencies, policymakers, and businesses. The event was held under the theme “Mobilizing the Private Sector: Capital for the Recovery and Reconstruction of Ukraine.”

Attendees discussed investment opportunities related to Ukraine’s recovery and the potential establishment of a U.S.-Ukraine Reconstruction Investment Fund.

It was also noted that Simpson will take part in the main iron ore panel at the upcoming CIM CONNECT 2025 conference hosted by the Canadian Institute of Mining, Metallurgy and Petroleum in Montreal on May 7, alongside senior executives from Iron Ore Company of Canada, ArcelorMittal Canada, and Quebec Iron Ore.

Reduction of Ukrainian Companies' Debts in the Last Three Years Exceeds Foreign Direct Investment by Three Times.

Ukrainian businesses have reduced their net debt from 2022 to 2024, increasing their liquid funds and deposits while reducing debts to Ukrainian banks by $21 billion. This reduction is three times higher than foreign direct investment during this period and twice as much as in Ukraine's "most successful year in history," according to Alexander Parashchiy, a top manager at Concorde Capital.

Specifically, business loans decreased by $2-2.8 billion, deposits increased by $16-17.7 billion, and investments in government bonds (OVDP) grew by about $2.4 billion. This deleverage can be interpreted as untapped investment potential for Ukrainian businesses and/or a challenge for the Ukrainian economy.

There are several scenarios for how businesses will use these funds after the war ends. One scenario involves a capital outflow of over $15 billion once the NBU capital outflow restrictions are lifted, while the other foresees the accumulation of funds and rapid economic growth.

In the first scenario, the volume of funds leaving the country would outweigh any foreign private investments, making the likelihood of new capital inflows very low. Parashchiy explained, "As a result, we would face significant outflows in the balance of payments and the banking system, painful devaluation of the hryvnia, and the degradation of the economy. Our businesses would actively invest money abroad."

In the second scenario, $40 billion in investments would be ensured through the accumulations of Ukrainian businesses and their credit financing in Ukraine.