Ukraine's deputy economy minister said on Wednesday he expects the joint Ukraine-U.S. reconstruction investment fund to clear a second project this summer, with the second likely focused on energy and a third project planned before the close of 2026.
Yegor Perelygin, who is part of a large Ukrainian delegation visiting Washington this week, described cooperation with the U.S. International Development Finance Corp as progressing well and said talks are ongoing about broadening the fund's scope. The fund was created as part of a minerals agreement signed between the United States and Ukraine one year ago and targets investments across five strategic areas, including critical minerals.
Perelygin noted the fund announced its first investment last month in Sine Engineering, a communications and navigation technology firm based in Lviv. He reiterated official expectations that the fund will grow to about $200 million by the end of the year. That target depends on initial seed contributions from both the U.S. and Ukraine being supplemented by fees and other sources of capital.
Describing the fund's purpose, Perelygin said it serves as a "de-risking mechanism" to draw investment into the five priority sectors: critical minerals, infrastructure, energy, telecoms and high tech, and emerging technologies. "We think that we can use it as a centerpiece for funneling or taking more insurance-related mechanisms onto the market or supporting strategic off-take contracts," he said in an interview.
The minister emphasized the scale of reconstruction needs in Ukraine's energy sector after severe damage from intense Russian attacks this past winter. He said the country will need to rebuild roughly 3 gigawatts of power capacity this year, but declined to provide an estimate for the cost of that work.
Perelygin said Ukrainian and U.S. officials are looking to bring major institutional investors into the effort, naming the European Investment Bank and the European Bank for Reconstruction and Development as potential participants, alongside sovereign investment funds, private equity investors and large industrial companies. "The idea is that this fund can serve as a first step on the long, long road ahead," he added.
On insurance, Perelygin said Ukraine is in talks with several major insurance companies about providing investor backstops for projects inside the country. The government has estimated a need for roughly $5 billion of insurance capital annually to sustain operations and foster growth, with about 40% of that amount needed specifically for the energy sector.
He said discussions, including talks with British insurers, have revealed interest in specialized insurance instruments tailored to protect energy assets and support deployment of energy technologies in Ukraine. Perelygin framed these insurance arrangements as complementary to the fund's role in reducing investor risk and enabling larger-scale participation from institutions and private-sector players.
Implications
The fund is being positioned as a catalytic vehicle: initial capital and insurance-related mechanisms are intended to lower barriers for larger institutional and private investors while channeling finance into sectors central to Ukraine's reconstruction and future growth.