U.S. commits $75 million towards harnessing Ukraine's resources
The United States and Ukraine have announced a significant partnership aimed at promoting economic prosperity for both nations, as well as rebuilding critical infrastructure in Ukraine.
The U.S. International Development Finance Corp. (DFC) has pledged a $75 million equity commitment to the U.S.-Ukraine Reconstruction Investment Fund, which will serve as seed capital for the initiative. The Ukrainian government, led by Minister of Economy, Environment and Agriculture Oleksii Sobolev, has confirmed that they will match this initial contribution.
The funds will be primarily used to rebuild critical infrastructure in Ukraine, with a focus on promoting mineral extraction and processing. This includes the mining and processing of critical minerals, which is expected to unlock natural resources in Ukraine and de-risk global supply chains.
Sobolev emphasised that the partnership between the U.S. and Ukraine will not only contribute to Ukraine's reconstruction and security but will also mobilise private capital to support these efforts. The investment is intended to catalyse private-sector investments in Ukraine, further bolstering the country's economic growth.
Conor Coleman, head of investments at the DFC, made the statement about the investment, stating that it represents a significant step forward in the U.S. and Ukraine's strategic partnership. The aim of the partnership is to generate economic prosperity for both nations, while also supporting Ukraine's reconstruction and security efforts.
The funding, announced by the European Bank for Reconstruction and Development (EBRD) in June 2023, marks a significant commitment from both the U.S. and Ukraine to strengthen their economic ties and support Ukraine's recovery from conflict.
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