American-Ukrainian Reconstruction Investment Fund officially launched: all procedures completed

American-Ukrainian Reconstruction Investment Fund officially launched: all procedures completed

All procedures related to the launch of the Agreement on the establishment of the American-Ukrainian Reconstruction Investment Fund have been completed. Thus, all necessary formalities have been fulfilled for the agreement to take effect.

On May 23, the final stage took place – the exchange of diplomatic notes.

This was written on Telegram by the head of the finance, tax, and customs policy committee, Danylo Hetmantsev.

The preparatory phase moved forward in a very short timeframe:

• On April 30, the Agreement between the governments of the USA and Ukraine on the establishment of the American-Ukrainian Recovery Investment Fund was signed in Washington;
• The Verkhovna Rada needed just a week to approve the law on the ratification of this document by May 8;
• On May 12, the law was signed by President Volodymyr Zelenskyy;
• On May 13, the U.S. International Development Finance Corporation and the Ukrainian State-Private Partnership Support Agency signed two commercial agreements – on limited partnership and on an LLC, which will act as the general partner in the Fund.

It is very important for us that such a high pace is maintained in the process of registering the appropriate structures, appointing authorized responsible persons from Ukraine and the USA to them, and actually already at the stage of attracting investments.

It is no secret that the volumes of international aid that Ukraine receives through instruments like those launched for us by the European Union (Ukraine Facility) and the IMF (EFF) will gradually decrease.

Therefore, investments will become increasingly important for Ukraine’s recovery. Our resource needs are enormous – according to the RDNA4 Report by the World Bank, the European Commission, and the UN, as of the beginning of this year, they were estimated at $524 billion over the next decade, which is on average over $52 billion annually (for comparison – all the direct foreign investments accumulated by us during the years of Independence amount to less than $56 billion).

It is necessary for the Fund to get involved in the task as quickly as possible. It is the first institution officially established with a strategic partner, created specifically for the recovery of Ukraine. And it absolutely has no right to make mistakes or delays – because other potential partners and allies, whom we expect to involve in the rebuilding of Ukraine and for whom it should become an example of a "success story worthy of scaling," will be closely watching this Fund.