The government announced plans to launch the Development Fund of Ukraine

The Cabinet of Ministers announced plans to launch the Development Fund of Ukraine (DFU). It is stated on the website of the Ministry of Economy.

This is a real step towards the creation of a national institution that will be key in the post-war reconstruction of the country. It is planned that the Fund will attract and mobilize public and private capital for the reconstruction of Ukraine.

According to the message, the activities of the Fund will be directed to key sectors of the Ukrainian economy, including energy, infrastructure, agriculture, production and IT. The DFU will contribute to Ukraine’s efforts to rebuild the economy and become a key partner of the global community in the transition to a low-carbon economy.

The support of the Fund will be taken care of by the international asset management company BlackRock – last time there was a meeting between the President of Ukraine Volodymyr Zelenskyi and its delegation. As a result of the meeting, the Ministry of Economy signed an agreement with BlackRock Financial Market Advisory on the provision of DFU support services.

According to Zelenskyi, Ukraine is attracting the best financial and consulting organizations in the world, including BlackRock, JPMorgan Chase, McKinsey and others, to ensure transparency and success of the project.

“The launch of the fund is a strong signal that will strengthen the investment climate. This will make it possible to attract capital and start an active recovery of the economy and the construction of new businesses immediately after the end of active hostilities,” he noted.

According to Charles Khatami, who runs financial markets advisory group BlackRock, the country’s recovery will create significant opportunities for investors to participate.

“The investment challenge that Ukraine will face in the coming years will be enormous, and only thanks to the close cooperation of state and private capital will we be able to direct the necessary amount of financing,” he noted.

As GMk Center reported earlier, Ukraine creates the State Fund for Decarbonization and Energy-Efficient Transformation. The Fund will be replenished with the environmental tax on CO₂ emissions – it will primarily be paid by large industrial enterprises. The received funds are going to be used for the introduction of new technologies that will reduce emissions, as well as for thermal modernization and other projects.

Also, Ukraine uses EU standards and is integrated into the single market even despite the war, said Deputy Minister of Economy – Trade Representative of Ukraine Taras Kachka. According to him, the country sets an ambitious goal to ensure full integration into the single market even before obtaining EU membership.