On July 10, during the URC2025 Ukraine Recovery Conference in Rome, the European Commission officially presented a new initiative to create the European Flagship Fund for the Reconstruction of Ukraine.
The launch of the Fund was officially announced by European Commission President Ursula von der Leyen. This is a new initiative within the Team Europe approach, aimed at accelerating Ukraine’s recovery and supporting it on its path to EU membership. It has already been supported by France, Germany, Italy, and Poland.
“We are literally betting on the future of Ukraine by using public funds to attract large-scale investments,” said Ursula von der Leyen.
With an initial catalytic capital of €220 million, the Fund aims to mobilize €500 million by 2026 through strategic, results-oriented investments, primarily in equity capital.
“The creation of the Fund opens up additional opportunities for investors. By combining loans, guarantees, and grants, we will have a structured, transparent, and effective mechanism for reducing risks and mobilizing large amounts of private capital for Ukraine’s recovery and development. This means new jobs and expanded production capacity. The Fund is more than a financial instrument; it is a signal of solidarity from European partners, active leadership, and faith in the stability of our economy. The creation of this new instrument proves that investing in Ukraine today is investing in Europe’s future,” emphasized First Deputy Prime Minister of Ukraine – Minister of Economy Yulia Svyrydenko.
The main investors in the fund at the initial stage will be its initiators — the European Commission (through the Ukraine Investment Framework) and leading development banks: the European Investment Bank (EIB), Kreditanstalt für Wiederaufbau (KfW), Cassa Depositi e Prestiti (CDP), Proparco & Bank Gospodarstwa Krajowego (BGK). It is expected that initial investments may be made by the end of 2026. Currently, market research is underway and a competition has been announced to select a management company.
The priority sectors for investment will be:
The EU, Germany, Poland, Italy, and France will contribute the initial capital through their development banks, which will serve as a basis for further involvement of private partners. It is expected that all EU member states, international partners, institutional investors, Ukrainian funds, and private investors will be able to invest in the fund.
The following investment models are being considered:
It is also important that the fund will work in synergy with other EU initiatives and measures aimed at deepening Ukrainian financial markets. In particular, within the framework of cooperation with the High-Impact Equity program of the International Finance Corporation (IFC) and the European Development Finance Institution Management Company (EDFI MC). The fund will provide complementarity in cooperation with local private equity and venture capital funds.
It is expected that the management company of the European Flagship Fund for Ukraine’s Recovery will be selected on a competitive basis between July and October 2025.
Source: https://me.gov.ua/
