Investment Fund for Ukraine’s Reconstruction
BlackRock, led by Larry Fink, along with Apollo Global Management’s Mark Rowan and KKR’s Henry Kravis, are in discussions about managing a U.S. investment fund aimed at financing Ukraine’s reconstruction after the war, according to sources.
Meanwhile, Jared Kushner, former President Trump’s son-in-law, was in New York City recently for talks with major asset managers regarding this initiative, particularly focusing on Hudson Yards—a high-profile development.
One insider mentioned, “Kushner is on the lookout for a U.S.-based asset management firm to oversee the Ukraine Recovery Fund.”
Fink had previously put on hold BlackRock’s multibillion-dollar Ukraine development fund last July due to uncertainties surrounding President Trump’s plans for the conflict.
In a recent call, Fink and Kushner discussed the situation with Treasury Secretary Scott Bessent and Ukrainian President Volodymyr Zelenskiy. According to a source, “BlackRock is generally seen as neutral. If you look back, it’s been one of the companies that the government has favored, making them likely the frontrunner.”
Another source added, “It’s important to note that this isn’t about making huge profits. We’re not expecting any kind of incentives; it’s more of a public service.” Engaging with Kushner and the president may position whoever is chosen to manage the fund favorably, though it might also raise concerns among European allies about being sidelined in reconstruction contracts.
The Trump administration has already pledged $75 million in equity through the U.S. International Development Finance Corporation (DFC) to help jumpstart investments in crucial infrastructure sectors in Ukraine. This investment is expected to be matched by Ukraine, totaling $150 million, with emphasis on the collaboration with private sector partners.
Ukrainian officials, including Prime Minister Yulia Sviridenko, plan to hold extensive discussions on a U.S.-backed peace initiative. This will also cover rebuilding efforts after significant destruction inflicted by Russian forces over the past four years.
Kushner, while not part of the official administration, has emerged as a significant figure in the dialogue between Ukraine and Russia. Recently, he participated in a lengthy meeting with Russian President Vladimir Putin and later engaged with Ukrainian representatives in Florida.
The 44-year-old has previously been involved in brokering cease-fire agreements in the Middle East and has proposed plans for rebuilding Gaza.
A critical aspect of Ukraine’s reconstruction strategy involves setting up an investment fund for sectors like rare metals, which is a priority for the U.S. Sviridenko is actively involved in guiding this initiative, and Ukraine has sent a revised proposal, containing 20 points, to the White House.
This proposal includes creating a demilitarized zone, ensuring security for Ukraine under NATO’s Article 5, and aiming for EU membership by 2027. Interestingly, while the restriction on Ukraine’s NATO membership was removed from discussions, the status of that membership remains ambiguous, which is a pivotal topic for the Kremlin.
