USA, EU plan to raise $800 bln for ten-year Ukraine reconstruction plan – Politico

The United States and the European Union aim to mobilize $800 billion in public and private funds for a large-scale reconstruction of Ukraine after the end of the full-scale Russian invasion, according to a Politico publication.

The 18-page document outlines a 10-year plan to guarantee Ukraine’s recovery with a fast-tracked path toward EU membership. The funding strategy stretches until 2040 alongside an immediate 100-day operational plan to get the project off the ground. But the prosperity plan will struggle to attract outside investment if the conflict rumbles on, according to the world’s largest money manager, BlackRock, which is advising on the reconstruction plan in a pro-bono capacity.

“Think about it. If you're a pension fund, you're fiduciary towards your clients, your pensioners. It's nearly impossible to invest into a war zone,” BlackRock’s vice chairman, Philipp Hildebrand, said Wednesday in an interview at the World Economic Forum in Davos. “I think it has to be sequenced and that's going to take some time.” The prosperity plan is part of a 20-point peace blueprint that the U.S. is attempting to broker between Kyiv and Moscow. It explicitly assumes that security guarantees are already in place and is not intended as a military roadmap. Instead, it focuses on how Ukraine can transition from emergency assistance to self-sustaining prosperity.

The project’s financial model foresees the EU, the U.S., and international financial institutions such as the IMF and World Bank directing $500 billion in public and private capital over the next decade.

The European Commission plans to provide an additional EUR 100 billion through budget support and investment guarantees under the next seven-year budget starting in 2028, which is expected to unlock EUR 207 billion in investments. The U.S. plans to channel resources through a special U.S.-Ukraine Reconstruction Investment Fund, focusing on American company participation in projects related to critical minerals and the energy grid. Discussions on next steps with representatives from Ukraine, the U.S., and Russia are scheduled for this coming weekend in Abu Dhabi.