The joint U.S.-Ukrainian Recovery Investment Fund has signed its first critical minerals agreement and approved four other projects, Conor Coleman, head of investments at the U.S. International Development Finance Corporation (DFC), told Reuters.
According to him, the total volume of the fund's current project portfolio is estimated at approximately $70 million.
The first subsoil sector agreement involves an investment of about $30 million into a joint investment platform with BGV Group, owned by ATB supermarket chain co-owner Hennadiy Butkevych. At the initial stage, the partnership will focus on the exploration and development of deposits of rare earth elements, uranium, beryllium, and zirconium. As Coleman emphasized, all of these items are included in the official U.S. critical raw materials list.
Two additional areas are aimed at strengthening Ukraine's electricity and heat generation amid hostile strikes ahead of the winter period. Specifically, one of the initiatives will complement a nearly $100 million credit line approved by DFC for the DTEK energy holding to deploy a battery energy storage system for backup power to up to 600,000 households for up to two hours.
In addition, the fund will acquire an equity stake in a combined heat and power generation platform to construct a network of local "energy hubs."
As reported, the U.S.-Ukrainian Recovery Investment Fund was established under an intergovernmental agreement on cooperation in the field of minerals at the initiative of U.S. President Donald Trump. The fund's activities focus on five strategic areas: subsoil resources, the defense-industrial complex, energy, logistics, and infrastructure. The fund is currently working on attracting additional capital.
