The U.S.-Ukraine Reconstruction Investment Fund, a joint venture between the U.S. and Ukrainian governments, was created to bolster Ukraine’s long-term economic recovery while also advancing America’s own economic growth, security, and innovation.

The deal, also known as URIF, was signed in mid-2025 and heralded at the time by Treasury Secretary Scott Bessent as “a partnership between the American people and the Ukrainian people to show both sides’ commitment to lasting peace and prosperity in Ukraine.” Since then, DFC and its partners in the U.S. and Ukrainian governments have made extraordinary progress in a short amount of time. DFC and the Government of Ukraine each approved an initial seed capital equity investment in the fund of $75 million, fully operationalized the fund — including hiring the service providers necessary to ensure the Fund’s success — launched the online URIF application portal, and have begun reviewing dozens of projects submitted through the portal for potential investment by the Fund.

URIF is considering proposals in its target sectors, which include investments in critical minerals, both upstream and midstream; energy, including power generation, transmission, and hydrocarbon extraction; transport and logistics; information and communications technology; and emerging technologies.

The Fund is targeting to commit at least three investments during 2026, with significantly more investments planned in coming years. While it is authorized to invest throughout the capital stack for eligible projects, the Fund expects to prioritize equity and equity-like investments in its early years of operations.

DFC, the international investing arm of the U.S. Government, is uniquely positioned to drive foreign policy objectives while also creating American jobs and financially benefiting the American taxpayer.

The initial seed capital provided by the two governments, starting at $150 million, will grow as the Fund receives 50 percent of the licensing fees, royalties, and revenues from profit-sharing agreements in Ukrainian projects over time. These funds are designed to catalyze further private sector investments in Ukraine. This strategic partnership is poised to rebuild critical infrastructure, strengthen access to natural resources, and develop both secure supply chains as well as new opportunities for American businesses in key markets — all while unlocking Ukraine’s significant economic potential.

But as with many elements of the current situation in Ukraine and DFC’s work there, seizing opportunities to achieve results requires a new kind of approach, particularly for the impactful outcomes that DFC’s stakeholders have come to expect of the agency.

Jonathan Taylor, DFC associate general counsel for Direct Equity and Investment Funds, offered more details about the project and DFC’s work with its Ukrainian counterparts in this interview:

Who is going to manage the U.S.-Ukraine Reconstruction Investment Fund?

Both Ukraine and America together — we have a jointly managed Board of Managers between the U.S. Government and the Government of Ukraine. Together, we both retain a role in selecting and approving the investments of URIF going forward.

Is the Fund looking to make investments with only American counterparties and co-investors?

No, definitely not. While a key goal of URIF is to encourage U.S. counterparties to invest into Ukraine, we realize that the task of supporting Ukraine’s reconstruction is broad and demanding. And it will require a massive effort not just from American companies, but also from companies based in aligned partner countries as well.

We designed URIF to crowd-in capital — a key element of how DFC does business — to support Ukraine’s economic development and reconstruction. We are looking to support allied sponsors and co-investors, while, of course, preventing those who support Russia’s war machine — including China — from benefitting economically from Ukraine’s reconstruction. That’s a particularly important point for all of us involved.

And will these investments primarily be focused on Ukraine’s mining sector, or other things outside of that, too?

We are, first and foremost, focused on the ongoing and future reconstruction of Ukraine, and mining and critical minerals projects are a big part of that. But in addition to those sectors, the Fund will also focus heavily on critical infrastructure and technology opportunities throughout the country.

Will the Government of Ukraine retain control over its natural resources?

Yes. Let me be clear about this: The Fund does not grant control to the U.S. Government or any other American investor over natural resources in Ukraine. We designed the Fund to be a financial investor in assets that remain in Ukraine, including natural resources projects that support Ukraine’s own economic development.

Separate provisions of the agreement establish new mechanisms for directing offtake of Ukrainian critical minerals to the United States. These measures are really innovative, and they create a way for Ukrainian mine operators to sell their minerals — at market prices — to the U.S. Government.

The U.S. Government is focused on de-risking its critical minerals supply chains from strategic competitors such as Russia and China. This deal creates a durable means for the Ukrainian and U.S. critical minerals sectors to work together for the mutual security and prosperity of both countries.

So who will award licenses for projects? The Fund? DFC?

Neither. DFC and the Fund itself have no role in making any decision about awarding concessions for these projects. That’s also true for profit-sharing agreements or, really, any other form of subsoil or infrastructure contract. Appropriate agencies of the Ukrainian government remain the sole organizations that will award licenses.

How about sponsoring specific projects, will the Fund do that?

URIF is not designed to serve as an operator or a lead investor in the projects in which it will invest. Our goal is to mobilize private capital into the region, designed to act as a multiplier effect. The Fund will, rather, invest in minority equity stakes — so, below 40 percent — or debt stakes.

The U.S. International Development Finance Corporation (DFC) is the international investment arm of the United States Government and central to U.S. economic statecraft. DFC mobilizes private capital to advance U.S. foreign policy and economic development. Our investments deliver strong returns for American taxpayers, drive meaningful economic development for our allies and partners, and secure supply chains to counter and outcompete our adversaries.