European DFIs, private investors to join EU-coordinated structured investment fund for Ukraine

Ukraine and its international partners are jointly developing a structured fund to support investment in key sectors of the Ukrainian economy – namely infrastructure, energy, industry, agriculture, high technology, education, and healthcare, according to First Deputy Economy Minister Oleksiy Sobolev.

"We are seeing interest from several leading institutional development funds to participate in the UIF (Ukraine Investment Framework), and we expect announcements on specific projects in the near future. This process is already underway, but our recovery needs demand even greater effort," Sobolev explained in a Facebook post, highlighting the rationale behind establishing an additional fund.

He recalled that risk-reduction tools embedded in the UIF have already helped attract investments into infrastructure, SMEs, green energy, and innovation, though the need for effective mechanisms remains much broader.

"This is why, together with our partners, we are working on the creation of a European investment platform that will combine public and private resources and comply with EU standards," the Deputy Minister said.

Sobolev reported that during a recent special event in Paris, representatives of the European Commission, the French government, major European DFIs (including Proparco, KfW, and CIP), fund managers (Amundi, Natixis), and leading Ukrainian private investment funds discussed the expansion and development of new financial instruments to boost private capital involvement in Ukraine's reconstruction.

He also revealed that he had discussed with Nicolas Dufourcq, CEO of the French state investment bank Bpifrance, the possibility of creating a targeted financial instrument to support reconstruction investments.

"We hope to present concrete plans in July for launching a special venture fund focused on Ukraine. This initiative will help attract more participation from the French private sector in recovery projects," Sobolev added.

He noted that the parties also discussed expanding insurance programs for French companies – particularly exporters – by unlocking the potential of existing Bpifrance tools, based on a needs analysis of both Ukrainian businesses and French manufacturers.

The next step, Sobolev said, will be to present further measures to mobilize private capital at the Ukraine Recovery Conference (URC-2025), which will take place on July 10–11 in Rome.

"This is a critical issue: according to recent estimates, at least one-third of Ukraine's reconstruction must be financed by private investment. That requires effective solutions to address the funding gap and ensure the immediate mobilization of private capital into the economy," Sobolev said in his Facebook post.