**US Seeks Administrator for Investment Fund with Ukraine**
The US government’s development finance agency, the U.S. International Development Finance Corporation (DFC), has started looking for a company to manage a joint US-Ukraine investment fund. This move is part of a critical minerals agreement signed by the US and Ukraine in April.
**What Does the Agreement Mean?**
As part of this agreement, the two countries are creating a joint reconstruction fund to develop projects related to natural resources such as oil and gas, lithium, graphite, and critical minerals. The fund will also include defense projects.
**How Will the Fund Be Managed?**
The fund’s governing board will consist of three representatives from each country, with all investment decisions requiring unanimous approval. Initial capital will come from a 50% share of royalties from new Ukrainian extraction permits, US contributions, and Ukraine’s startup funding. Current US military aid is classified as a conditional American contribution to the fund.
**Profits Will Be Reinvested**
Profits generated during the fund’s first decade will be fully reinvested in Ukrainian projects across sectors such as mining, energy, oil and gas, and logistics. Income distribution between the partners will only be allowed after 2035.
**Next Steps for the Fund Administrator**
The DFC has issued a Request for Information (RFI), marking the beginning of the technical evaluation process to select a fund administrator. The chosen administrator will oversee the fund’s operational management, including accounting, documentation, transaction processing, and regulatory compliance.
**Key Requirements for Candidates**
Candidates must demonstrate expertise in fund accounting, quarterly net asset value calculations, and financial reporting under US or international standards. They must also have proven experience handling capital calls, distributions, and asset transactions, particularly in the natural resources and infrastructure sectors.
**Timeline and Expectations**
The technical process runs in parallel with broader preparations for the fund’s first investments, expected to begin in late 2025. Prospective administrators have until July 27 to submit their responses. Economy Minister Yuliia Svyrydenko aims to launch at least three projects with the fund within 18 months.
**Read More**
To learn more about this story and the investment fund’s plans for Ukraine, click on the link below:
Read More @ kyivindependent.com
