Investment company “BlackRock” has stopped looking for investors for Ukraineʼs multi-billion dollar recovery fund.
Bloomberg writes about this, citing sources.
This fund was to attract at least $500 million from governments, public development banks and other donors, as well as $2 billion from private investors, “BlackRock Vice” Chairman Philip Hildebrand said last year.
At the same time, Hildebrand noted that it was about forming a consortium of equity and debt investors capable of financing at least $15 billion for Ukraineʼs reconstruction. According to estimates by the World Bank and other organizations, the total cost of Ukraineʼs reconstruction after the Russian invasion in February exceeded $500 billion.
The fund almost received initial support from entities funded by the governments of Germany, Italy, and Poland. However, in January, “BlackRock” decided to suspend talks with institutional investors due to a lack of interest amid growing uncertainty about the future of Ukraine. At the same time, in December, the US government was not included in the list of parties supporting the fund, which was a noticeable signal.
A “BlackRock” representative said the company completed its pro bono advisory work on the Ukraine Development Fund in 2024 and currently has "no active mandate" to work with the Ukrainian government.
According to some sources, “BlackRock” planned to present the fund in Italy at the Ukraine Recovery Conference, which will take place on July 10-11 with the participation of Italian Prime Minister Giorgi Maloni and Ukrainian President Volodymyr Zelensky. However, the exact date of the public presentation has not yet been announced.
France, according to sources, is working on creating an alternative fund to replace the canceled “BlackRock” initiative, but it is currently unclear how effective the new plan will be without US support.
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