Ukraine Expects New US-Backed Fund Project by Summer
Ukraine expects its joint investment fund with the United States to approve another project in the summer, likely focused on the energy sector, Deputy Economy Minister Yegor Perelygin said.
Perelygin said cooperation with the US International Development Finance Corporation (DFC) on the reconstruction fund is progressing well, with discussions under way to expand its scope. The fund was established under a mineral resources agreement signed a year ago and targets five strategic sectors, including critical raw materials.
The fund announced its first investment last month in Lviv-based Sine Engineering. It could reach $200m by the end of the year. According to Perelygin, the mechanism is designed to reduce risk and attract investment into infrastructure, energy and technology.
Ukraine’s energy sector suffered extensive damage from Russian attacks over the winter, leaving the country needing to restore about three gigawatts of capacity. At the same time, Kyiv is negotiating with major investors and insurers and requires about $5bn in insurance capital each year to support growth.