US–Ukraine fund approves first critical minerals deal and new energy investments

What was decided

On October 2 the board of the U.S.–Ukraine Reconstruction Investment Fund (URIF) approved what Ukraine’s government called the fund’s largest investment package so far. According to Ukraine’s Economy Ministry, the fund will commit more than $60 million of its own money to the new projects and expects them to attract up to $850 million in additional capital from outside investors.

The package includes the fund’s first critical minerals deal, which Reuters described as long-anticipated.

A platform for mining projects

URIF will set up a joint investment platform with Ukrainian company BGV Group Management. The platform will build a portfolio of early-stage mining projects across Ukraine, initially focusing on identified deposits of rare earths, beryllium and zirconium, the U.S. Treasury and Ukraine’s Economy Ministry said. Reuters also lists uranium among the targets.

According to Reuters, the deal will inject roughly $30 million. BGV Group was founded by Hennadii Butkevych, the billionaire co-owner of Ukraine’s largest supermarket chain, ATB. “They are all on the US critical minerals list, so it ties in very well with what we’re looking to do from a (US) administration priority (standpoint),” Conor Coleman, head of investments at the U.S. International Development Finance Corporation (DFC), told Reuters.

Energy ahead of winter

Two other projects aim to shore up Ukraine’s power and heating. Together with the DFC, the fund will provide debt financing for a DTEK project of 200 MW / 400 MWh battery storage at six sites. According to the Economy Ministry, the system is already operating and can power about 600,000 households for up to two hours. Reuters reports that the DFC has just agreed to lend DTEK nearly $100 million for the system.

URIF will also take an equity stake in a combined heat and power platform designed to build and run community-level “energy hubs” supplying thousands of households, including in areas where the war makes access to essential energy services difficult.

What officials said

“These investments represent the continued realization of the vision behind the novel agreement that Prime Minister Svyrydenko and I signed in April 2025,” said U.S. Treasury Secretary Scott Bessent. Oleksii Sobolev, deputy head of the Office of the President of Ukraine, said the round shows “the growing scope of the U.S.-Ukraine partnership, from energy and critical minerals to telecommunications and emerging technologies.”

“It’s absolutely imperative for the Ukrainian people that we’re investing now,” Coleman told Reuters, referring to the damage Ukraine faces ahead of another winter.

Background

URIF was established under the minerals agreement the United States and Ukraine signed in April 2025. A year ago each side contributed $75 million to the fund’s initial $150 million capital. The fund made its first investment, in Ukrainian dual-use technology company Sine Engineering, in March. According to Reuters, the fund’s projects now total around $70 million, and it is looking for more capital to increase its capacity.