Current news on Rebuild Ukraine topic

The U.S. Will Finance Geological Exploration of Ukrainian Subsoil; Ukraine Approves Conditions for Joint Investment Fund and Agrees on Cooperation with Canada.

The Government of Ukraine has agreed with the U.S. Department of State on additional funding for geological exploration of Ukraine’s subsoil to obtain more accurate information on mineral reserves, Economy Minister Oleksiy Sobolev reported. This funding will be provided under a separate program, which is not related to the operations of the U.S.-Ukraine Fund.

Sobolev reminded that the current capital contributions of both sides to the fund amount to $150 million, with $75 million from Ukraine and $75 million from the U.S. “Under the new program, the budget will be larger,” the minister assured, adding that its primary goal is updating geological data, most of which currently dates from 1950–1980. Updated information will allow for a more precise assessment of reserves and help identify the most promising areas for development.

The Minister of Economy also noted that Ukraine is working on launching an EU-backed investment fund, which will invest in private and state projects, receiving a stake of around 10–20%.

Deputy Minister Yehor Perelyhin added that Ukraine plans to involve other partners in geological exploration — including Germany, the UK, and Canada. In particular, Ukraine has signed a cooperation agreement with Canada in the fields of geology and subsoil use. The two-year program includes the creation of a Ukrainian-Canadian Coordination Committee on Mineral Resources, which will serve as a platform for implementing joint initiatives, exchanging expertise, and introducing modern approaches to natural resource management. Collaboration with Canada covers geological research, modernization of geological data, digital transformation of the sector, and joint study of critical mineral deposits, among other activities.

In addition, the Ukrainian government approved the procedure for implementing agreements on the creation of the U.S.-Ukraine Reconstruction Investment Fund, paving the way for active investment engagement. The document defines the operational framework for investors, rules for interaction between business and state institutions and American partners, as well as the conditions for project implementation under the agreements between Ukraine and the U.S.

IFC Invests $25 Million in Dragon Capital’s Ukraine Reconstruction Fund.

The International Finance Corporation (IFC), part of the World Bank Group, is investing $25 million in Rebuild Ukraine Fund LP (REBUF) — a private equity fund established in 2024 by the Ukrainian investment group Dragon Capital.

The Rebuild Ukraine Fund focuses on small and medium-sized enterprises (SMEs) and has a target size of $250 million. The fund plans to invest in companies operating in the consumer goods and services, healthcare, pharmaceuticals, financial services, agribusiness, construction materials, retail, and technology sectors.

IFC will serve as the anchor investor with a partial first-loss guarantee — covering 50% of its investment, backed by the French government and other guarantors. According to IFC, its investment is critical for the fund’s first close, as attracting private capital during wartime remains challenging.

Since the full-scale Russian invasion of Ukraine, IFC has supported only one similar fund — Horizon Capital Growth Fund IV ($350 million). REBUF is also expected to be primarily financed by development finance institutions (DFIs). Dragon Capital will contribute $20 million of its own capital, and the European Bank for Reconstruction and Development (EBRD) has committed an additional $25 million.

Parliament Approves Tax-Based Compensation for Capital Investments in the Processing Industry; Benefits Estimated at UAH 20–40 Billion.

On November 4, the Verkhovna Rada approved in the first reading draft laws No. 13414 and No. 13415 on capital investment compensation through taxes, reported Dmytro Kysylevskyi, co-author of the initiative and Deputy Chair of the Committee on Economic Development.

Investment projects eligible for compensation through a company’s own taxes must be implemented in the processing industry. Specifically, the following expenses qualify for compensation:

• Construction of engineering networks, facilities, and related infrastructure;
• Purchase of buildings and structures, or expenses for their construction, modernization, or re-equipment;
• Purchase of production equipment;
• Acquisition of land plots.

Partial compensation will be provided through the following taxes: corporate income tax, import VAT on equipment, import duty on equipment, property tax, and land tax.

The share of investments eligible for compensation depends on the size of the investment project:

1. €100,000 – €1 million: 70%
2. €1 million – €20 million: 50%
3. €20 million – €50 million: 30%

The initiative applies not only to new enterprises but also to investments in existing companies.

Deputy Chair of the Finance Committee, Yaroslav Zheleznyak, noted that the estimated cost of the benefits is UAH 20–40 billion.

However, Finance Committee Chair Danylo Hetmantsev assured that implementing tax and customs incentives for investors is aimed at stimulating future investment in the processing industry and does not create direct losses for the state budget.